Friday, August 31, 2012

Everyone's Waiting

Just one day to go. Oh the excitement...not.

Tomorrow, the greatest market manipulators in history, the Federal Reserve Bank, will bring their dictat to the apprehensive people. Will they bring in some form of money printing to save the economy for another few months, (and perhaps save President Obama), or will they hold back and await the German Constitutional Court decision on Setember 12.

We will see tomorrow.

Gold in New Zealand dollars: $2075.60 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $38.16 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.
_____________________________________________________________

Wednesday, August 29, 2012

Bank Run in Spain?

Not good news for the euro:

"Data from the European Central Bank shows that outflows from Spanish commercial banks reached €74bn (£59bn) in July, twice the previous monthly record. This brings the total deposit loss over the past year to 10.9pc, replicating the pattern seen in Greece as the crisis spread."... more here

Gold in New Zealand dollars: $2070.60 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $38.01 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.
_____________________________________________________________

Monday, August 27, 2012

The Dark World of Banking

Honest and helpful banking is at risk of being destroyed by bank's desperation to make profits.

There was a time when little old ladies would front-up to a real bank branch with real paper and talk to a real bloke. The trust relationship was solid, at least when banks loaned out that cash with careful consideration to the collateral against it and the peoples money it was using. Especially when banks weren't part of the fractional reserve system, which has created large inequalities in the value of collateral versus the money available to loan.

The trust and confidence mantra, that our contract and law society is based on, is crumbling as banks take increasing risk to make larger profts. The derivative market was one such blast of complete folly. It caused the latest global financial crisis.

Anyway, here are some of the insidious plans, and plans gone wild, adopted by banks to weasel the last bit of wealth from it's customers.

In New Zealand, banks have been found to have sold derivative products to local farmers in what amounts to fraud. It has been reported that "Risk and derivative experts say banks, including ANZ National Bank and Westpac, should not have sold complex interest rate swaps to farmers."

A contract is based on trust. Banks cut off their noses to spite their faces if they ignore this.

And this from today's press: "Home loan tip: time to fix rates - Bank economists suggest it is time to fix at least part of your home loan."

Now why would this be? Maybe they sense that rates are about to drop because no one wants their printed worthless money. Is this a blatant attempt to get the public to lock in rates while they are high! Perhaps. I'm no banker, maybe rates will go up and they have your best interest at heart.

And let us not forget the LIBOR scandal. It seems the main stream press has. The one scandal in the last 40 years, that could fatally dent confidence in the banking system, has disappeared under a cloud of complexity. Use complex terms for a simple financial scheme, cause confusion, and the already stressed public won't have the fight left to bring the culprits to justice.

Then there is the total reliance on technology. Now with computers if something can go wrong it will do at the worst possible time.

Recently, the computers that service the British banks, NatWest, RBS and Ulster Bank threw a tizzy.

Transfers into and out of peoples accounts didn't occur. A report says; "People who didn't get their wages; travellers stranded overseas without cash; people unable even to buy basics like food. When a bank lets its customers down this badly there are some very angry casualties."

A mere software problem dealing to your wealth. What is it they say about houses being built on sand?

Moreover, there is the problem of security. A security auditor for a large accounting firm said, at a recent security seminar, that he is able to break into 90% of business systems within 60 seconds.

Does your money feel safe now?

Oh, and finally, there is this latest scam by banks in New Zealand (no doubt in your part of the world as well). "Banks dangle early credit card carrot". "Credit cards generate about $631 million in total interest revenue for the banks each year. On top of that would be revenue from credit card fees and any share of credit card commissions paid by merchants when accepting credit card payments. With so much money at stake it is not surprising that competition among the banks for credit card business is intense."

So why not offer a cheap interest rate of 2.99% to draw the insusceptible in. All with your best interests in mind of course. Yeah, right, to help us buy stuff we cannot afford with printed new money that we pay interest on. How many people realise that credit crad balances are created out of thin air when you buy something? Then they charge you interest on that!

Call me a little angry, but I'm no fool.

Gold in New Zealand dollars: $2067.10 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $38.15 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, August 24, 2012

NIRP: The Financial System’s Death Knell? by Eric Sprott

Be sure to read this article. The implications of NIRP for the financial system are profound.

Just think of the methods now employed by our 'lucky' banks here in New Zealand as they push low interest rate loans onto unwary 'Mums and Dads' to lure them into the investment housing market. More of these tricks will be played as Banks get desperate to create a return on investment.

From Eric Sprott and David Baker:

"On July 18th, 2012, the German government sold US$5.13 billion worth of 2-year bonds at an average yield of -0.06%. Please note the negative symbol in front of that yield number. What this means is that the German government was able to borrow money for less than nothing. When those specific bonds expire in two years’ time, the German government will pay back the original $5.13 billion minus 0.06%. Expressed another way, investors knowingly and willingly bid the German government $5.13 billion in exchange for bonds that will pay no interest and are guaranteed to lose them money on expiration. Welcome to the new status quo.

Germany is not alone. Over the past six months, the countries of Netherlands, Switzerland and France have also issued short-term government debt at negative yields. Like Germany, they’ve been able to do this because European bond investors are so shell shocked that they’d rather park money in a bond that’s guaranteed to only lose a miniscule amount rather than risk losing more in a PIIGS bond that actually pays some interest. In addition, many investors view German, French and Dutch bonds to be cheap options on the break-up of the Eurozone. If the EU currency union collapses, euro-denominated bonds issued by those specific countries may be paid back in re-issued deutschmarks, francs or guilders, which will be far more valuable than the euros that were spent to buy the bonds in the first place… or at least that’s the idea. As a result of this thinking, the bond market auctions for these select countries have seen overwhelming demand, making NIRP (Negative Interest Rate Policy) the new ZIRP (Zero Interest Rate Policy)"...more here


Gold in New Zealand dollars: $2048.30 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $37.33 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 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.
_____________________________________________________________

Thursday, August 23, 2012

Gold and Silver Showing Surprising Strength

So gold and silver are showing some strength this week. Why?

Well, it seems there isn't any dramatic mainstream news to justify this. Franklin Sanders, the noted analyst says,

"That little mouse-burp FOMC announcement isn't causing this. It's something else, I just can't see it yet. Never mind, there's a full head of steam in the gold and silver locomotives." 

Unusual for him not to have some sort of opinion on price movements. So we await.

Could it be the bad corn harvest in the US and grain harvest in Russia causing all commodities to go bananas. Grain indexes are now higher than the highs of 2008 when food prices caused riots in the middle-East. Oil is moving and hence petrol/gas prices here in NZ are at a record high.

The US and UK are threatening military action on Syria if they even hint at using their chemical weapon hoard on the opposition forces.

Perhaps all this conspires to shoot prices higher as stops are taken out on the trading algorithms.

Got gold? Email me, I'll give you some options: asmitho@gmail.com

Gold in New Zealand dollars: $2034.38 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $36.87 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.
_____________________________________________________________

Wednesday, August 22, 2012

Murmurings of Change

Change to complex systems, like the global financial system, usually begins with small, almost insignificant, murmurings. Situations can arise where the parts that form the foundations of the system begin to stress and crack.

There is and old adage that when international financial systems stress, the first scramble for resources and political positioning begins with trade wars, followed by currency wars, then, heaven forbid, hot wars.

In 2008, our financial system, built on confidence and trust in fiat money, began to crumble. So far, the game has been kept going for four years with ever increasing bailouts moving further up the layers of the financial food chain. Firstly, to  large corporations, like Goldman Sachs, then to small sovereign nations, like Greece, to now large sovereign nations like Spain and Italy.

So where are we at in the positioning game? Who's doing what to safeguard their assets and to take advantage of whatever phoenix may arise from the ashes.

Last week, Lord Rothschild made a £130m bet against the euro. That is, he bet that the euro will go down in value and even disintegrate. The Rothschilds have been savy bankers for hundreds of years. Is this action something we should take note of?

Comentators like Franklin Sanders, have been warning folks to get out of stocks for years now. Although even he has been surpirised by the longevity of the US stock market, murmurings of change are about. The New Amercican reports, "(George) Soros’ most recent 13F filing with the SEC showed that during the last quarter, his American fund sold more than a million shares of the big financial companies with a value of almost $50 million. During that period, Soros Fund Management also more than doubled its position in the SPDR Gold Trust to nearly 900,000 shares.

There are indicators of inflation creeping into the system. A sudden recent rise in the 10 year US Bond interest rates. Commodities, especially oil and grains showing steep increases.

Then there are the changes in outlook for gold. Gold is increasingly being talked about as money. The BIS is discussing making gold a tier one asset for collateral purposes, equal to cash. The CME the same. JP Morgan already treats it so.

There is also more talk about the possible manipulation of the gold and silver prices on the paper COMEX market. A number of main stream media outlets have interviewed people like Ned Naylor-Leyland of Cheviot Asset Management (CNN) about this. Jim Rickards as well.

Then there are the recent scandals involving LIBOR and MF Global. Each new case of fraudulent activity striking at the heart of the financial system. LIBOR, because it sets interest rates and therefore the price of money worldwide  And MF Global which brought into question the safety of segregated client funds held in banking institutions. Furthermore, these sorts of scandals are causing those who have unallocated gold and silver accounts with institutions to question the safety of their investments.

Include that Central Banks are net purchases of gold. It is reported by the World Gold Council that gold purchases by Central Banks of various countries have hit a record high of 158 tonnes in the June, 2012 quarter. This is the highest since the second quarter of 2009 and double the 66 tonnes purchased in the same quarter last year.

There are many more examples of significant 'insignificant' (to Joe Sixpack anyway) murmurings that are cause to ponder where you are putting your hard earned wealth. Is the best place safety for now or do you just carry on and hope it will all blow over?

Not easy decisions to make, but unfortunately, having read this current blog post, you now have to make those decisions.

Gold in New Zealand dollars: $2026.84 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $36.24 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.
_____________________________________________________________

Tuesday, August 21, 2012

If I Ruled the World

Do you remember playing those games as a kid where you pretended to rule the world?

Even the TV cartoons on each day had a  despot or two wanting to own and rule everything and everybody. It's even a theme for older generations in movies like James Bond.

But if you were to own the world, what would you have? Well, the value of all assets in the world has been calculated to be around $US 150 trillion. That is $150,000,000,000,000. Quite a handsome sum really. Of this, $60 trillion is in cash, $40 trillion is in bonds, and $40 trillion is in stocks and, wait for it, $2 trillion is in gold. This is about 1% of all assets.

OK, so there are two ways to look at this small allocation in gold. One, that no one wants it and it is a useless relic. Held only for traditional purposes (to repeat Ben Bernanke's famous phrase). Or, the system still hasn't cottoned on to the fact that gold is coiling for a large breakout, especially if the Reserve Bankers continue their money printing ways.  Or maybe fund managers are playing chicken and trying to squeeze out the last bit of return they can get out of fiat money, and it's derivatives, before they call it quits and flood into the safety of gold.

The other way to look at this is that if large institutions were to move into gold, the supply would not be there to meet the demand. There isn't enough of it around at current supply. This would cause huge pressure on the price.

Of course, then there is silver. Silver usually follows gold in the trends, only it does so in a more volatile way. But silver would probably give you more bang for your buck in these circumstances.

Interesting days ahead indeed for the Masters of the Universe and their assets.


Gold in New Zealand dollars: $2004.95 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $36.63 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.
_____________________________________________________________

Monday, August 20, 2012

China's Gold Demand on the Run

The demand of gold in China has been growing exponentially for it to be expected to become the world’s biggest market for this metal this year. The next step in this Chinese gold rush is that china’s state owned Miner, China National Gold, Is prepared to take the next step and have entered preliminary negotiations with African Barrick Gold (ABG), one of Africa’s largest gold miners...more here

Gold in New Zealand dollars: $2002.60 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $34.86 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, August 17, 2012

Dan Sniffs Inflation in the Wind

The highly respected trader, Dan Norcini, has put out a couple of articles and interviews this week, where he analyses a couple of important market trends that appear to be suggesting that inflation is creeping into the system.

He is advising that this is worth watching as it will change the outlook for many commodities including gold and silver.

Quote: "The impact of these higher grain prices is going to be with us for quite some time.  So you have rising food, rising energy, and now we are seeing a breakdown in the bond market.

Bonds have made a low going all the way back to May.  So we are definitely seeing a very important and major shift here.... "

The articles to read are here:

King World News blog
Trader Dan's blog site - Hui Chart
Trader Dan's blog site - Silver Sneaking Higher

Gold in New Zealand dollars: $1991.99 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $34.69 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.
_____________________________________________________________

Thursday, August 16, 2012

Is This a Ponzi Scheme?

Recently, according to zerohedge, Greece managed to sell $4 billion short-dated bills to pay it's bondholders.

But who on earth would buy such junk? Who would see Greek bonds as being an investment of any sort, worth even the paper they are not written on?

Well, as Mark Grant and Rick Santelli clarify, it appears this is how they did it. Note, I have created this graph to make this transaction easy to understand. I hope it helps.



You be the judge as to whether money printing is in full-swing or not.

Gold in New Zealand dollars: $1987.11 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $34.42 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.
_____________________________________________________________

Wednesday, August 15, 2012

House Prices in New Zealand v Gold - July, 2012


The statistics are in for the housing market here in New Zealand for July, 2012.




As placed against gold ounces, house prices are decreasing again in value. For Auckland house prices, it takes about 2 ozs of gold less to buy a house in July compared to June. Compare that to what is stated on websites like interest.co.nz and the NZ Herald. They would make you think prices are rampant. Hmm.


Gold in New Zealand dollars: $1987.20 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $34.46 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.
_____________________________________________________________

Tuesday, August 14, 2012

Anniversary of the Credit Crunch

Alasdair Macleod of GoldMoney:

We are coming up to the fifth anniversary of the financial crisis, at least for the UK’s banking system, because it was five years ago that anxious depositors were queuing up to withdraw their money from Northern Rock, leading to its inevitable rescue by the tax-payer. Anniversaries are often a time for reflection. The Northern Rock failure marked the popping of the UK’s residential property bubble. The signs of excessive valuation were all there, particularly speculation in the buy-to-let market, wide-spread public participation in a “sure thing”, and Northern Rock offering loans with a loan-to-value of 120%. The same extremes of sentiment were visible in the US where there was a lending frenzy on the false assumption that a diverse portfolio of mortgages was somehow risk-free...more



Gold in New Zealand dollars: $1989.24 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $34.37 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, August 10, 2012

House Prices are Overvalued

The Governor of the Reserve Bank of New Zealand has put out two statements in as many days. Warning or coincidence?

His first statement contained the following cryptic message:

House prices are overvalued. "They are certainly well above historical levels and look expensive by international standards relative to incomes or rents," governor Alan Bollard said in a speech to the Employers and Manufacturers Association on Monday.

A repeat of the house-price boom of the last decade seemed unlikely, he said, "but would be very damaging and risky were it to occur."

Now it's not fair to pick and choose statements that reinforce your particular point of view. That's blatantly fraudulent. But, for me, public statements uttered by Reserve Bank Governors, need to be treated with a dose of mirth and foreboding all at once. In other words, don't trust them.

Ben Bernanke is famous for not seeing the pending housing bubble pop in 2007. In fact he should be embarrassed. Statements taken as gospel by him before the crisis would have meant you believing, boots and all, in the 'house prices never go down' mantra.

Phew, glad we didn't.

So do we believe Mr Bollard this time or is he trying to woo the market in a particular direction that produces maximum wealth transfer to his banker masters? That I leave to your imagination.

However, it seems to me that house prices in New Zealand are ready for a major correction. An article in the NZ Herald has this to say:

There is wisdom in the saying that the four most expensive words in the English language are: "This time is different."

This time is not different. Debt at these levels cannot be sustained, especially as our jobless numbers rise and the economy tanks.

Remember too, that many people from Asia have flocked to NZ's shores this past ten years looking for opportunity, bringing with them high demand for houses in Auckland. They will depart as quickly as they came if those opportunities disappear. Another potential drag on house prices.

Also, Bollard states: "...this time it is looking as if the accumulated debt is, in fact, acting as quite a sustained drag, in New Zealand and other advanced economies."

The article further says; Someone who thinks "I can just about afford a mortgage at these rates" needs to reflect on this simple arithmetical fact: If floating mortgage rates were to rise by 2 percentage points - which is hardly beyond the bounds of possibility - that would increase their interest bill by more than a third."

Perhaps Mr Bollard is warning us in good faith this time? I think so.

Gold in New Zealand dollars: $1990.87 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $34.53 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.
_____________________________________________________________

Thursday, August 9, 2012

Chris Powell: The Silver Manipulation Probe

GATA's Chris Powell on the Silver Manipulation and the Federal Reserve gold audit.


Gold in New Zealand dollars: $1977.44 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $34.38 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.
_____________________________________________________________

Monday, August 6, 2012

The Pig in the Python Effect?

This weekend, a well respected financial journalist carried on his tirades against baby boomers here in New Zealand.

I got mad enough to write a brief comment on the article.

The gist of his latest piece appears to accuse baby-boomers of causing a blockage in investment. This because they are holding onto their savings and not releasing them into the economy to provide capital for much needed investment. That they are being too conservative at a time like this is causing a 'pig in the python' problem.

Here's my response:

Sir, either you enjoy blaming older savers for all our problems or you have hit on a formula to make your articles more popular. I hope it is neither.

Anyway, you are again using incorrect logic and knowledge of the financial system.

Here's why. The financial system is not working properly because there is too much debt. Pure and simple. Since 1971, debt has accummulated in the system to where we arrived at breaking point in 2008. You well know that banks freely created buckets of new money (debt) in sectors that allowed them to make huge profits. For example the housing sector.

Not only did they create new money but they leveraged this with new financial instruments that nearly took the system down, and maybe still will. These banks are the pigs, not the older generation.

In fact, savings are being decimated by high inflation and low interest rates in order for governments and banks to survive the debt bubbles they built. This is called stealing from savers. Do you hear older savers complaining? No, because they probably don't understand what is happening. How about calling for justice for older people rather than sticking it to them once again.

Gold in New Zealand dollars: $1958.72 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $33.96 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.
_____________________________________________________________

Thursday, August 2, 2012

The Fed and Caesarean Gold

Well, it's all a bit boring really. The usual scenario is taking place this week. A run up in precious metals prices in anticipation Fed stimulus and then down again on 'no will do' from the Fed boys.

It is August after all, and the only thing that really happens this month is your horse has a birthday and  Europe heads for the beaches. Oh well, perhaps we should nip off for a holiday as well...

Still, one has to wonder at the Feds latest tricks. They appear to be running a fine line between doing nothing and letting the economy completely tank. Mind you, the US economy is already in a depression near equal to the 1930s. Back then, workers stood in lines for jobs. The misery was visible. Today, 47 million Americans get sent food stamps financed with printed money. Not visible, so no depression. Yeah right.

On a light-hearted note, here's a story from coinweek.com.

"A team of researchers from Tel Aviv University has uncovered a hoard of real-life buried treasure at the Crusader castle of Arsur (also known as Apollonia), a stronghold located between the ancient ports of Jaffa and Caesarea, in use from 1241 to its destruction in 1265. The hoard, comprised of 108 gold coins, mostly dinars dated to the Fatimid Period (ca. 900 to 1100 AD), was discovered in a pot by a university student. The coins bear the names of sultans and blessings, and usually include a date and a mint name that indicates where a coin was struck."

Just think, what if they find a USD paper note somehow intact in 900 years time. Do you think they'll be off to the 2900 AD equivalent of Las Vegas to have a good time? No. It'll be worthless, except maybe for collectors value. Seems gold will still have a purchasing power punch in 900 years though.

Gold in New Zealand dollars: $1982.28 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $33.94 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
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