Thursday, June 28, 2012

Europe: Insolvent or a Liquidity Problem?

The case is being increasingly made, by many commentators, that Europe isn't in need of cash (liquidity), but that it is technically insolvent.

Now having a liquidity crisis in any organisation is defined in Wikipaedia as: "refer(ing) to drying up of liquidity, which could reflect a fall in asset prices below their long run fundamental price; or deterioration in external financing conditions; or a reduction in the number of market participants or simply difficulty in trading assets. To be illiquid nmeans you may not have enough ready assets to convert into cash quickly."

Insolvency, on the other hand, is defined in Wikipaedia as: "the inability of a debtor to pay their debt. Cash flow insolvency involves a lack of liquidity to pay debts as they fall due. Balance sheet insolvency involves having negative net assets—where liabilities exceed assets."

So you can see that Europe very much falls into the insolvent league of organisations. Banks do not have enough liquid assets, or the means to produce them, to convert into cash to pay their liabilities. They are bust.

Sure, the central banks of the world could coordinate a huge injection of new money to take these bad assets/debts out of bank balance sheets. But this would only be an 'extend and pretend' mechanism that would not solve the underlying issue of low growth coupled with too much spending.

But don't just give Europe a hard time. In New Zealand here, the Government has just restructured our national railway company and revised asset valuations on it's books. These new valuations have decreased the size of the railway company by $1.1 billion; and increased our national debt by the same.

It makes you wonder how much more of a problem would the banking system be if assets, currently on their books, were a marked to market value and not to whatever nefarious valuation the banks have given them. Valuations that suit the banks solvency position. A bit like an ostrich hiding his head in the sand or the 'hear no evil, see no evil, speak no evil' scenario.

All rather a muddle really.
Gold in New Zealand dollars: $1984.02 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $34.05 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

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Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Monday, June 25, 2012

The Eurozone Has Already Failed

I am not much into reading tea-leaves. I'm a little better at reading economic signs. Now I would not want to ever stake my reputation on reading these signs correctly. After all,  economists are often called modern day soothsayers or prophets akin to the fiery religious ones of antiquity.

So why the sudden bout of confidence in predicting outcomes?

Smart money and not so smart money.

The daily grind of stories coming out of Europe display similar traits. First a crisis, then talks, a few days go by, short relief,  another crisis, more talks, relief. You get the picture. The eurozone problems aren't getting fixed. So what is happening?

Well, in my view, it has already happend. The euro is effectively dead.

Throughout history, when countries monetary systems go through a confidence crisis, people move their wealth and capital to shores that will help protect that wealth and produce returns on that capital.

In Europe, this began many months ago, probably before the first news about the Greek crisis came out in public in May, 2010. You see, we plebs always get the news last. The insiders and the smart money wealth guys see and hear what's coming many months, sometimes years, before the rest of us.

Take a look at what is happening with the euro.

The smart money has already left and the not-so-smart money (so called by me because it belongs to the shady, unscrupulous members of society), that which belongs to the underground economy is moving quietly out. Flows that have already left Europe.

How do we know? Well, when banks are in need of bailouts all over Europe and banks get downgraded because of risk exposure, you know there's been a bank run. Pure and simple. And it is accelerating. Large wealth flows have streamed out of the European banking system to domicile in so-called safe havens like the US bond market and Swiss banks.

The smart money has left and the not-so-smart is in euro cash and moving physically across borders. Just recently, the Italian authorities stopped a wealthy business man from taking a couple of million euros in gold out of Italy. Again, recently, in a newsletter from a large bullion dealer, we hear of an Italian businessman wanting to purchase US$2.5 million worth of gold per week...in euro cash so he can move his, probably, ill-gotten gains out of Italy.

Those in the know, who are wanting to protect their wealth, have already shifted it out of the eurozone. The currency could well be dead already. It's now left to eurozone leaders to manage the fallout in a dignified way to prevent complete panic.

The Eurozone experiment has failed.
Gold in New Zealand dollars: $1991.13 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $34.00 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Friday, June 22, 2012

The Lustre is off Gold: Really?

So, gold down to US$1566 today, silver down to US$26.90.

Gold and silver are finished. It's a race to the bottom.

Not.

Interest.co.nz today has an article about gold. The headline reads; "The lustre is off the gold price as central bank actions and weak Indian jewellery demand both work against the precious metal".

The central banks are not working against the price of gold. This is nonsense. Do we see any central banks on the planet selling gold? The Federal Reserve maybe? No. Do we see any of them buying it, most certainly. In fact, in spades. If the writer deems the Fed not handing out QE3 right now as 'working against gold', then that is an assumption based on a narrow view of what is currently happening.

Moreover, the graphs in the article actually show quite bullish trends over the past 12 months. Now I don't subscribe to the gold bug mantra that the MSM (main-stream media) are always trying to talk down gold and silver. I just think the MSM don't quite understand the way money works. Big call I know, but when you get major economists and even powerful politicians mis-understanding the way this system works, then sure, gold and silver will also be misunderstood.

For New Zealanders, gold still highly outperforms most other 'conservative' investments, including the delusional kiwisaver.

Look at this from Local Bulletin. They delve closely into kiwisaver and come up with some surprisingly negative conclusions. Here is kiwisaver's performances as against other investment classes:





Interestingly, here's their recommendation on kiwisaver:

"to opt out (of kiwisaver) is the second best thing you can do, right after the first best thing which is never joining this scheme in the first place. In our several previous articles we argued why KiwiSaver is a bad retirement investment choice for you. Our recommendation is to avoid it and if you are already in then opting out of there."

Perhaps gold and silver will drop some more, but if you put the puzzle together of how the system works and what is required to keep it going, you only come up with a single answer to all the shenanigans. More QE (money printing) is required. It is how the system works. Here is a quote from the Daily Reckoning yesterday which best explains this:

"If they do print then all I have to say is buy gold. Lots of it. Buy gold stocks. Even buy silver. If Bernanke is happy to embark on QE3 with the stock market 4% from its highs then you can rest assured he is going to keep printing until the whole rotten edifice comes crashing down on his head. Gold will be trading above $5,000-10,000 by then.

Lastly, if you have a spare couple of hours, watch this video about how money works. It is well constructed and relatively easy to understand. It does have political overtones, but you can screen those out yourself.

Gold in New Zealand dollars: $1988.00 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $34.13 per oz
Previous all-time high: $59.19
per oz (30 Apr, 2011)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service.
Your reference: an-001
_____________________________________________________________


Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Thursday, June 21, 2012

House Prices in New Zealand v Gold - May, 2012

Here are the latest median house price figures for New Zealand. May saw a another small two ounce shift in favour of gold (ie. it took two ounces of gold less in May than April to buy the median priced house) for New Zealand overall and Auckland.

Note though, how property investor groups and real estate experts are still trying to lure as manyas they can into the booming Auckland market.

For me, property is for living in and the boom times for investemnt are over. The banks mis-allocated easy money into the property sector from 2000 to 2007, as this created the biggest bang for their cheap bucks.

Naturally, people readily took this cheap money to invest in housing; after all, housing will go up forever and the equity gained will look after them in retirement. Phew, there are so many things wrong with that argument.

Anyway, banks should have been investing this money in capital formation. Creating jobs. Instead we are now left with a generation in huge debt and a system about to bust.

And the banks are still spruiking property as a great investment. Just look at the figures out for new mortgage applications. This will end badly for those using property as investment vehicles.


click to enlarge

click to enlarge

Auckland house prices have dropped nearly 62% against gold since May 2005. Click to enlarge.

Gold in New Zealand dollars: $2018.59 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $35.33 per oz
Previous all-time high: $59.19
per oz (30 Apr, 2011)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service.
Your reference: an-001
_____________________________________________________________


Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Tuesday, June 19, 2012

Conspiracy Theories - Gold and Silver

If you want to get some people in the gold and silver community real upset, you question the gold and silver manipulation theories.

So here goes, the follow on from yesterday.

Those holding conspiracy theories are usually distinguished by a  few similar traits.

Firstly, there are those who spruik a few facts, that suit their purposes, in order to suck people into their worldview in order to further their business interests. In other words they deliberately deceive. Now there's not too many like this, I hope.

Then there are those who have a few facts that suit their story and decisions and truly believe the theories they are hearing and repeating. All the facts seem to lead to one conclusion. There is no telling them otherwise. Perhaps this is a pride issue?

Then there are those who just believe the juicy stories and follow the latest theories because they aren't too well educated and don't have the skills to think. Sometimes they feel kinda safe with these unhealthy ideas?

I believe critical thinking skills are essential for life. A dose of skepticism is always healthy.

So what of the silver/gold manipulation theorists? Which camp do they fall into?

The short answer, I don't know yet. I haven't had enough hard evidence to convince me either way in this argument. But in saying that, there is very little evidence to suggest manipulation.

You see, the argument goes like this. The COMEX, the chief place where commodities are traded worldwide, are in collusion with some big banks (like JP Morgan), the CFTC and the Treasury in the US to control the prices of the monetary metals, gold and silver. There is collusion to the point of price fixing to keep the public from realising that the fiat money system is not 'real' and that if gold and silver ever rose to the prices they should be, then the system would collapse.

One of the best known believers in this is Ted Butler. Now he's done more research into this than anyone on the planet. He even has a paid membership following his every tome on the subject. Here is his latest communication on this:

"I'm disclosing for the first time that the U.S. government has given JPMorgan the green light to manipulate the silver market -Ted Butler

Now this is a great piece and well written. But unfortunately lacks any evidence. He points to charts and attempts to join dots about relationships within JP Morgan and government agencies. But no facts, no people on the inside, coming out to verify any of this.

Now I cannot accuse Ted of laziness, but with some people there is a degree of laziness in not trying to get the right data and make the most sensible conclusions? They continue to get stuck in their wordview on this matter.

I mean, there are other just as learned men, like Martin Armstrong and Jeff Christian, who deny these theories and exlpain very well that this is just how the COMEX and markets work. It is normal.

And here's another, Ed Steer, a popular letter writer, who incidently writes for Doug Casey, a fervent detracter of the gold/silver manipulation theories. At least in Casey Research they have a lively debate on this. Here's a typical statement from Ed Steer:

"And there wasn't a shred of news that would have caused that [drop in mining share price]. A more blatant in-your-face market intervention can scarcely be imagined. The executives and boards of directors of all the silver companies that you own shares in will do what they usually do as they and their shareholders get raped...absolutely nothing. Not a single voice will be raised in our defense. The CME and the CFTC will do nothing as well. One has to wonder what sort of evidence the CFTC is looking for in this almost four year old silver manipulation investigation."

Then there are those like Turd Ferguson and Andy Hoffman. Look out if you ever disagree with this theory on their sites.

So these people look at the charts and have some anecdotal evidence and see 'obvious' signs of this manipulation. But there doesn't appear to be much hard evidence from insiders. It's a bit like the 911 conspiracies. You have all these 'facts' floating around and the conspiracists join the dots that may form a credible trail that leads to government involvement. But really it's all shadows and conjecture. Anyway, with 911, you would think a conspiracy on this scale would have an insider or two leak information by now.

The same with the silver/gold manipulation theories. Yes, Andrew Maguire, through GATA, showed the CFTC hearing some time ago, how one manipulation would occur before it happened. But one occurrence a fact, or credible argument, does not make.

So, for me, there is just not enough data to support such theories. Yes, dots can be joined if you really want them too, but other explanations may be just as plausible

However, in saying all this, if there is more hard evidence, then great. But as David Morgan often says, you cannot manipulate forever. The advice is as always; put a reasonable amount of your wealth into gold and silver and be content that your wealth is preserved whilst this financial system resets.


Gold in New Zealand dollars: $2056.18 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $36.28 per oz
Previous all-time high: $59.19
per oz (30 Apr, 2011)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service.
Your reference: an-001
_____________________________________________________________


Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Monday, June 18, 2012

Conspiracy Theories

There's been a lot of talk amongst the gold and silver communities lately about the manipulation of the silver and gold prices. It's a conspiracy theory that has some merit, but also has a lot of unfortunate dot-joining that appears nefarious at times.

But I also have a conspiracy theory of my own. Only this time it may be based on data that can be verified.

President Obama, and his subordinate Treasury minnions, have been giving dear old friend, Europe, a bit of a 'rark up' (a reprimand for you North of the Equator) lately. In a not so friendly manner.

He is angry at Europe for not getting their affairs and spending under control. (Not withstanding their own lack of spending control of course). Why would the Americans be so harsh? Is it because the US doesn't want the contagion that would come with a rotting or even dead Euro? I mean, US banks are exposed to European debt and massive derivative trades more than anyone. One last drop in the bucket could tip the whole system over.

Or is it, and I tend more towards this theory, more to do with currency wars? Since I read Currency Wars: The Making of the Next Global Crisis (Portfolio), it has given me a wee insight into the machinations of large capital flows around the globe. The trillions of dollars traded yearly flit and dart around seeking refuge and safety and most of all, a return on investment.

Simply put, it works like this. If a country's currrency remains high, then they are less competitive internationally. They struggle to sell stuff at a price that is affordable for buyers, ie export receipts are low. The opposite is also true, if the currency is lower in value than your competitors, then your exports will gain more in income.

Of course this isn't all that happens. The curency also has to be seen as having value. It needs confidence backing it and, most of all, needs assets backing it.

So Obama isn't so much going off at the Europeans because of contagion issues. The big Central Banks still have enough clout to control that through money printing. But he is worried about the low Euro, the next biggest currency of value after the USD, going haywire and losing value.

If this happens then the US cannot be as competitive as they would like. Right now huge money is flowing into US Treasuries and the stock market seeking safe-haven. This because the dollar is the best looking house on a bad street. But these money flows do raise the dollars value and cause US exports receipts to drop, thereby hindering income creation and economic activity. In election year, that is a big no-no for Mr Obama. But if he can get the European leaders to fix their problems, confidence in the Euro will rise, money flows will reverse the dollar will drop (preferably to around 65 on the US dollar index) and the US export machine will be healthy once again. He can get his economy moving just in time before November.

Anyway, that's probably enough for today. I'll get to my other conspiracy theory tomorrow: Mr Ted Butler and his hoards of devoted silver manipulation believers.

Gold in New Zealand dollars: $2065.13 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $36.49 per oz
Previous all-time high: $59.19
per oz (30 Apr, 2011)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service.
Your reference: an-001
_____________________________________________________________


Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Friday, June 15, 2012

QE by Stealth

Here is an excellent article by Dave in Denver today. He outlines the 'QE by stealth' the Fed is undertaking in the US bond market.

The US is as much in debt as the rest of us. However, they have the reserve currency and, for now, can print at will. So read this article and squirm. When this US bond bubble breaks, that will be the end.

"I've been arguing for quite some time that the real reason we will see more QE, despite the rhetoric coming from the Fed, for the simple reason that it is the only way for the Treasury to keep funding its rabid debt issuance at the current low rates.  As has been widely documented, in 2011 the Fed bought 60% of all new Treasury issuance.  As noted by zerohedge, yesterday and today the Fed directly monetized this week's 10-yr and 30-yr Treasury auctions by purchasing an amount equal to 20% of the 10-yr paper sold and 15.4% of the today's 30-yr auctions:... more here

Spain and Italy don't have this particular luxury, although the politicians are becoming shriller in their calls for it. They have to go straight to the market to sell bonds. This is why the interest rates they need to offer to sell these bonds are larger, and almost at breaking point, compared to the US bond market . No backdoor deals for the Europeans...yet.
Gold in New Zealand dollars: $2075.150 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $36.61 per oz
Previous all-time high: $59.19
per oz (30 Apr, 2011)
_____________________________________________________________

YOUnique Gold and Silver

Buy small, affordable physical gold and silver or start a savings program towards
physical gold or silver grams for as little as US$25 per month.

_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service.
Your reference: an-001
_____________________________________________________________


Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Tuesday, June 12, 2012

The Luck of The Irish

Wait a Minute!

The market went all positive yesterday on the news of the Spanish bailout. Well, it lasted at least 30 minutes in that mode then quickly resumed it's dive into oblivion.

Seems the world's market-makers realised the gravity of the situation in Spain and that the 'bailout' would increase the Spanish debt load. Up went 10 year bonds over 6.5% again. Soon Spain will need more bailout cash as no one will lend to them if rates go even a tiny bit higher.

Then the Irish woke up as well. Like gilted friends who are lied to, they realised they had been hoodwinked in 2008. At the time, I was in Dublin and remember looking at one of the Banks after hearing the news and thinking, "What's it like to have all your assets owned by the Europeans? You really going to accept this?"

Back then, the Irish Government guaranteed Irish Banks with European money in exchange for austerity measures. Well, Spain gets off scott free with their loan. The Irish, expectedly and retroactively want the same deal. And don't believe those Irish jokes, it's not easy to hoodwink an Irishman. They tend to have a fairly realistic view on life forged from centuries of being underdogs. Just ask the current Irish rugby team here in New Zealand. Brave, but not ever going to beat the All Black rugby team.

Here's the report. According to Zero Hedge, "We learned that Ireland, as speculated, will demand a comparable retroactive bailout renegotiation."

Then comes the clincher which has all bond holders squirming. As with the Greek bailout, bond holders have had the rules changed overnight. The contracts they signed, by being bond holders, are now worthless. What point is a financial system where contract law can be rewritten in a micro-second. Does nothing for bond market confidence. Spanish bond holders; welcome to the new Europe.

Here's the line from Zero hedge."We got definitive confirmation that the Spanish loan, coming at ~3% or half Spanish GGBs, is a priming loan, subordinating existing creditors.

If this wasn't so serious it would make a great Monty Python episode.

Gold in New Zealand dollars: $2067.12 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $37.10 per oz
Previous all-time high: $59.19
per oz (30 Apr, 2011)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service.
Your reference: an-001
_____________________________________________________________


Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Monday, June 11, 2012

Spain has a ... what?

Then, riding on his white horse, full of authority and charm, comes President Obama. Knowing already what the outcome of the European talks over the weekend would be, on Friday he tells them they really do need to approve this banking plan for Spain. Obama gets the kudos for seemingly pushing the Europeans into a decision and also looks tough in election year. Oh dear, why do we put up with these politicians.

Spain has a bailout, no wait, an injection of funds, um no, a loan; oh dear, that's not right; a recapitalisation, now that's getting close; it's a big word after all. Truth be known, no one knows what the heck this is anyway. Let's just call it a gift. Ah yes, US$ 126 billion gift. No conditions (Spain couldn't agree on or fulfill them anyway), no collateral (none going, all those unwanted houses built are worthless and rotting)

Will all this calm the stormy markets? Maybe. Gold and silver may go up on renewed enthusiasm for risk. Gold equals risk, now there's a weird one. But the markets are weird anyway. How can this market be called such when all market participants do all day is wait for the next statement from some central banker. Sounds like central planning to me, but then the word for that system would be called ...(now look away if you are offended)... communism.

This Spanish 'fund' is a continuation of a plan that started with the bust of 2007/8. Try to fool the market that all is well and we have the tools to fix it. Well, they haven't fixed it or fooled some. They extend and pretend. This latest escalation is a frightening one.

Why? We are now at the stage where money printing is going to go full-steam. The train-wreck will be enormous in it's consequences. I hate to sound doom and gloom, but we are headed for a collapse in this current monetary system worldwide. Just think though, this situation would probably be righting itself naturally had the aurthorities kept their political noses out of the market. The recovery since 2007 might have even been robust by now.

Anyway, behind the scenes on this latest 'thing' for Spain is an old fashioned bank run. Pure and simply. When you have a system like fractional reserve banking, all you need is a wee panic before banks run out of cash. This happened in Spain over the last couple of weeks. Euros flooded out of the system to US Bonds, Swiss francs and to German banks. Spanish banks didn't have the means to raise cash beyond the capital reserves they held for deposit withdrawals. When they needed to sell assets to get that cash, the cupboard was bare. Well, actually, the balance sheet said the collateral existed, but everyone knows those figures are rigged. When the light of day was shone upon them, those asset values were found wanting.

What next? Simple. More 'gifts' to infinity.

Gold in New Zealand dollars: $2051.59 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $36.71 per oz
Previous all-time high: $59.19
per oz (30 Apr, 2011)
_____________________________________________________________

YOUnique Gold and Silver

Buy small, affordable physical gold and silver or start a savings program towards
physical gold or silver grams for as little as US$25 per month.

_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service.
Your reference: an-001
_____________________________________________________________


Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Thursday, June 7, 2012

Preparing to Push on a String

"When monetary policy cannot entice consumers into spending more money or investing in an economy, even if monetary policy is loosened to to put more money into peoples' hands. This term is often attributed to noted economist John Maynard Keyenes." see here

So the worlds Central Banks appear to be readying for a massive coodinated stimulus. A one stop flood of liquidity that will fix the pesky debt problem for good. No more dilly-dallying and talk-fests. Tomorrow, Ben Bernanke is giving testimony to congress about the state of the US economy and is likely to hint at this new QE coming, or at least just some Fed stimulus.

This idea of 'massive coordinated intervention' has been predicted by many astute commentators for years. I won't bore you with why it won't work, but suffice to say, Keynes was right for a change. You can't push on a string. No matter what they do now, the system cannot be fixed.

It appears to me that the time of reckoning is very close. One week, 1 month? Who knows. Confidence at the highest levels of wealth management are shot. These people have been shifting money to safe places for weeks now.

Once again we await the utterances of a Central Banker to determine the course of our lives. Well, I for one, ain't waiting.


Gold in New Zealand dollars: $2102.61 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $37.90 per oz
Previous all-time high: $59.19
per oz (30 Apr, 2011)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service.
Your reference: an-001
_____________________________________________________________


Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Wednesday, June 6, 2012

Desperate Times Call for Desperate Measures

Sometimes you see and hear things that are too incredible to believe.

Like, the tooth fairy, or life on Mars.

Yesterday I read, with incredulity, a statement from the President of the United States, that would make any weird belief seem sane.

The President touted giving "$3,000 to everyone to buy thingamajigs."

Yes, it is coming down to quantitative easing without limit.

Anyway, it appears the  markets didn't really believe Obama when he said this. They took his laughter as this being a joke. The dollar didn't collapse in a frenzy of selling on expectations of hyper-inflation either.

But if it was a joke, it would be a cruel one. After all, new, printed money has to come from somewhere. You see, even if you print money, the 'wealth' it produces has to be taken from elsewhere in order for the "negative to equal the positive" if you like. Systems need balance and monetary systems definitely need it. It's what a market is.

The wealth comes from savers and wealth owners not already protected by gold and other hard assets. The wealth is literally stolen.

Mind you, some do get it. China has bought 100 tonnes of the yellow metal in April alone. This is a record. This is sensible.

But not many people in the middle-classes understand what's happening yet. Most think they deserve the wealth from the rich anyway. So if Obama steals it, so what.

And all this on calls today for America to bailout Europe. Now let's think about that statement. Where not talking big Wall Street Banks or a petty $3000 per American small business owner here. Nope...the whole of darned Europe.

What desperate measures will be required for Europe? This week the G7 talk about the problems in Europe. Don't expect any answers, just the usual indecisiveness bordering on confusion.

Anyway, perhaps they are waiting for desperation to come so that they can foister some wider plan on a  desperate people? Hmm.

As an aside, I wonder why they didn't ask New Zealand to bailout Europe, after all, we can print NZ dollars as well as the US can print US dollars. Then we would own the Eiffel Tower and the paintings in the Louvre, Rome, Vienna and all the other great historical places. Perhaps even cheap holidays.

However, as the saying goes, "desperate times call for desperate measures". This means that when people get into difficulties, and all seems lost, they will do anything it takes to survive.

With Global Meltdown III (ie The Big One) underway, we will see more desperation and more stupidity than we ever dreamed possible.

Gold in New Zealand dollars: $2137.63 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $37.72 per oz
Previous all-time high: $59.19
per oz (30 Apr, 2011)

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AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
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Your reference: an-001
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Friday, June 1, 2012

Our Reference Point: 2008

A small selection of worthwhile articles today:

"No Return to Good Old Times." here

"Our Reference Point: 2008." here

"Almost €100bn pulled out of Spain." here

Gold in New Zealand dollars: $2071.98 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $36.80 per oz
Previous all-time high: $59.19
per oz (30 Apr, 2011)
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YOUnique Gold and Silver

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physical gold or silver grams for as little as US$25 per month.

_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service.
Your reference: an-001
_____________________________________________________________


Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________