Wednesday, January 30, 2013

Deflation versus Inflation: the Fight Continues.

Many dollar-deflationists are in a false sense of complacency. The worlds central banks have unequivocally stated that they are now in money printing and gold buying mood.

Apparently there is a dark wee world in finance called the interest rate swap market. If interest rates begin to rise here, and you will not be the first to know this, then inflation will be signalled. Right now, Japanese bond holders are still expecting deflation as their bond rates are still low; as too are US bond holders.

But Prime Minister Abe in Japan, has trumpeted the need for 2% inflation in Japan, and the deep dark swap market may be beginning to stir. Certainly, it appears that large hedge fund managers are shorting Japanese bonds.

What the final signal will be that inflationary expectations are about to stir is not known. Gold is being kept in check but this will not last.  Will the end game manifest itself in hyperflation of the US dollar? This after many other currencies have died.

Who knows where this will end. But gold looks likely to be a basis for an international reset.

Gold in New Zealand dollars: $1984.26 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $37.47 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
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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
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Wednesday, January 23, 2013

The Bank of Japan and Silver

Here's a great post from Dan Norcini describing the results of the latest announcement from the BOJ that they will undertake 'unlimited money printing' in order to get 2% inflation. Also and update on the silver market.

"The big news today is the long-awaited but pretty much expected response by the Bank of Japan to engage in further stimulus measures by basically committing to open-ended purchases of government securities and setting an inflation target of 2%.

The idea is to stave off the deflationary funk that has gripped Japan for well over a decade and more with the deliberate intent to further suppress the value of the Yen on the foreign exchange markets."
...more here

Gold in New Zealand dollars: $2012.01 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $38.31 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.
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Monday, January 21, 2013

The value of Money not the Value of Gold

Gold is value, fiat currencies are measures of value. Up until now, governments have been attempting to halt gold's revaluing to currencies in order to keep the fiat Keynesian game going for as long as possible. Before the great reset.

Gold will eventually become the de facto value measure for international trade settlements as it (somewhat) was during the Bretton Woods era until 1973.

The idea isn't that you and I use gold to buy groceries or cars, it is that countries use it to settle their accounts.

This would be after they agree on a new value for gold, in their own currencies (or new currencies like the Amero). Gold is money and is the asset that best stores the value of wealth. Currencies would be reset to the amount of gold that each country holds.

This is what mainstream journalists are now alluding to (see The Telegraph) and here in the Sydney Morning Herald). Note the Herald article mention though. A little bit concerning that the US would want to hold gold it doesn't legally own in order to prop up its dollar reserve status. It appears the US will not give up easily on this. Germany gets back 300 tons over 7 years. The likely reason they are doing this is to give the US, and others, time to revalue the dollar in readiness for the the great reset to gold.

It could be that the gold isn't there, as some commentators suggest, but that won't be a problem in this scenario, unless the public find out en masse and decide to do something about it.

So what happens for Joe Sixpack on the street when the dollar is floated against gold for international trade settlements. Gerald Celente said it like this:

"Sooner or later, the world is going to abandon the U.S. dollar as the currency in which international accounts are settled. Consequently, import prices will rise; and as the U.S. is now an import-dependent country, from that day on, Americans will walk into Wal Mart and think they're in Neiman Marcus."

If this scenario plays out, the US dollar base would currently take around $20,000 per ounce, or more, to peg it to the amount of physical gold held. This means prices of imports will increase by around 11 times in the US. Probably not the outcome most would tolerate. So my guess this is done over a period of around seven or eight years. Sound familiar?

Interesting times ahead.

Gold in New Zealand dollars: $2015.43 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
_____________________________________________________________

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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.
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Friday, January 18, 2013

The German Gold Puzzle

Commentators are scrambling to explain what the consequences are of the German gold repatriation announced yesterday.

If the Germans have their gold in other countries and it is just a 'barbarous relic' (Keynes) or a 'tradition' (Bernanke), then why the slow extraction from the USA and France and why no extraction at all from the Bank of England?

Here's what one commentator suggests:
"However, you could also choose to look at it this way:
In preparation for The Great Reset, the Germans do desire to repatriate as much gold as possible but they also don't wish to bring about The Reset any quicker than necessary.

So, they bring home "their French gold" but only do so at the rate of 50 tonnnes/year. Why? If it's just sitting in a vault and collecting dust, why not ship it all home over the next few weeks? What's the big deal?

And why leave "their English gold" untouched? Is it because all gold stored at the BoE can be leased, hypothecated and rehypothecated many times over, thereby making reclaiming it impossible?

And why bring back just 300 tonnes of "their American gold", again over the next 8 years? It shouldn't be that big of a deal to pull up a few pallets of "barbarous relic" from below the streets of lower Manhattan, drive it over to JFK and load it onto an airplane bound for Frankfurt. Should it?

Hmmmm. Maybe, just maybe, their French gold is long gone and the Frenchy-French need some time to come up with new supply to pay them back? Maybe the English gold has all been shipped to China and other points East, where it has been resmelted into kilo bars with official Chinese insignia?"
However this pans out, it appears that gold is set to be an important part of the puzzle when the global currency system resets. For the US dollar, this would be a godsend. They can then revalue the dollar against gold and inflate their debt away.

Watch this space.

Gold in New Zealand dollars: $2008.44 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $37.82 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, January 17, 2013

Gold Becoming Free

Central bank to bring home some reserves: Germany's central bank is to bring back almost 700 tonnes of gold reserves it keeps in New York and Paris.

Bundesbank to pull gold from New York and Paris in watershed moment: Germany’s Bundesbank is to repatriate gold reserves held abroad to tighten control and combat currency crises in the future, pulling a chunk of its holdings from New York and all its bullion from Paris. 

Germany Reacts To The Retiring Treasury Secretary’s Parting Shot, by Jim Sinclair: I respectfully disagree with most of the explanations given today on the why of German actions in gold.

To help you (and I) understand what may be occurring (and to help explain Jim Sinclair's cryptic ways) I refer to this extract on a free gold site:

"The paradigm shift occurs as we collectively transfer our stock of value (savings) from the abstract claims of the monetary system into tangible assets, extinguishing the claims and their counter--‐party risk and receiving our payment in full.

Only one physical asset, gold, specializes in the storage of value (gold's only utility), with a potentially infinite time horizon and a stable stock. Any other asset will store value too, but for a limited time in a fluctuating stock, sooner or later being consumed as all other assets have other utilities too. Gold is simply the best asset in which to store value.

"Indeed, there can be no other criterion, no other standard than gold. Yes, gold, which never changes, which can be shaped into ingots, bars, coins, which has no nationality and which is eternally and universally accepted as the unalterable fiduciary value par excellence." --‐Charles de Gaulle

An honest monetary system requires but one denominator.

The process by which we change our monetary system is both natural and spontaneous, and it is already underway. An honest monetary system is one in which the money is valued by the assets, not the assets by the money. In such a system gold, as the best value storage asset, will serve as the proxy for all assets, for value, as the denominator of the monetary system we utilize to flow value between us.

The current paradigm is within an inequitable system, while the future paradigm is within an equitable one. We will experience a paradigm shift because the inequities of the current system are finally overwhelming our society.

It's just time.

Gold in New Zealand dollars: $1997.62 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $37.41 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.
_____________________________________________________________

Tuesday, January 15, 2013

House Prices in New Zealand v Gold - December, 2012


In December, the gold ounce to house price ratio has moved in favour of housing. It now takes 3 gold ounces more to buy the median priced Auckland house than it did in November, and 8 ounces more to buy a median priced house in New Zealand.



Gold in New Zealand dollars: $1985.37 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $36.98 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, January 14, 2013

House Prices in New Zealand v Gold - November, 2012

In November, the gold ounce to house price ratio has moved in favour of housing. It now takes 9 gold ounces more to buy the median priced Auckland house than it did in October, and 4 ounces more to buy a median priced house in New Zealand.





Gold in New Zealand dollars: $1985.31 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $36.40 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, January 11, 2013

A Trillion Dollar Coin?

I joined the sensible club many years ago and was taught not to fall for weird arguments.

So,up to now, I have ignored this concept of making a trillion dollar platinum coin as one of the weirdest.

But it appears many in the so-called sensible economy are letting the idea fester in order to gauge opinion as to whether to actually make it happen.

Yes, it could happen? Surely not. Am I missing a trick here. Am I actually in the Matrix after all?

This from the Business Insider today: "Today White House press secretary Jay Carney was asked about whether The White House saw the coin as a viable option, and rather than shooting it down he just evaded the question. The response from the media has been unanimous: Carney left the door open."

Here's how this idea would 'work'. The US Congress has to raise the debt ceiling above $16 trillion dollars by the end of February otherwise the US will default on it's monetary obligations. Read 'end of the world'.

Mr Krugman, a Nobel laureate in economics, and once also a member of the sensible club, says this, "By minting a US$1 trillion coin, then depositing it at the Fed, the Treasury could acquire enough cash to sidestep the debt ceiling - while doing no economic harm at all."

The Treasury secretary, Mr Geithner, has the authority to mint platinum coins in the denomination of his choosing. Meant for commemorative products, US law grants Treasury permission to "mint and issue platinum bullion coins and proof platinum coins", which would allow the Treasury to get around legal limits on printing money to pay the bills.

Depositing it would technically pay down US debt, buying time before the country reached the limit on it the debt ceiling again. (courtesy Stuff.co.nz).

This would not be wise. It appears the money men in control are desperate to solve the mathematically unsolvable problem of debt increase. Are these white shoe boys trying to hood-wink us while they believe they have some credibility and trust left.

Shame on them.

Not that many won't want to let this happen because of their vested interest in keeping this debt sham going. Remember, as I have said many times, when you print money, those at the top of the receiving pile get use of it first to by cheap assets. When the money flows to the plebs, we get inflated prices.

If they do go ahead with this and cannot sell it properly to the market, trust in the system will disappear. An unintended consequence of apocalyptic proportions.

By the way, joining the sensible club is free.

Gold in New Zealand dollars: $1985.20 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $36.55 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, January 10, 2013

Remove the Zeros

Here's a helpful way for us to understand the US debt issues.

US Tax revenue: $2,170,000,000,000
Federal budget: $3,820,000,000,000
New debt: $1,650,000,000,000
US National debt: $14,271,000,000,000
Recent budget cuts: $38,500,000,000

Now remove 8 zeros and pretend it is a household budget:

Annual family income: $21,700
Money the family spent: $38,200
New debt on the credit card: $16,500
Outstanding balance on the credit card: $142,710
Total budget cuts so far: $38.50

Gold in New Zealand dollars: $1975.80 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $36.20 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, January 8, 2013

We have a long way to go in this gold bull market.

What will gold do this year? This is the title of the latest predictions from Casey Research. It is well worth taking time to read.

Here's a good word byte: "I think that's the wrong question. Since gold is the best and longest-lasting way to store wealth ever adopted in history, and not technically an investment, the more accurate query is: will gold continue to protect my purchasing power?"

Gold in New Zealand dollars: $1969.16 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $36.06 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, January 7, 2013

In the Valley

Thanks for your forbearance over the last 7 weeks as I took a break from the blog whilst traveling overseas.

Anyway, it doesn't seem I missed much . Gold and silver prices are similar to this time last year and appear to be set for a little pop upwards into January and February. In fact, if us physical precious metal holders had all experienced a Sleeping Beauty moment for 2012, we wouldn't have missed anything.

So what about this year? The fiscal cliff is behind us and we have glided into the valley. More on this tomorrow.

In the old days, when prophets got a call wrong, they got stoned. With real stones. No mercy. So what of those gold and silver gurus that tried to give us their best forecast for 2012 and what of their predictions?

James Turk called for $70 silver by April 2012. David Morgan predicted $60 silver in 2012.


OK, so stoning is a little harsh. These guys do their best. I'm sure they aren't 'talking their books'. Anyway, it's all a matter of timing, which these men would no doubt agree.

My thinking is that the Fed is the source of much of the volatility that we are seeing. The boat is rocking more violently by the day. Are the Fed under control in that they give out information in an acutely organised way for the purpose of massaging the market up or down? Or are they out of control as the recent release of FOMC minutes may suggest? Whatever, the Fed is now the market-maker supreme. No one dare trade in anything unless they first reference the Fed moves. This can only end badly.

But then, that prediction, would make me fall into the 'doomsday' prophet category. And I value my life from the stone-throwing plebs.

But it is difficult to see any other outcome other than a huge reset of the world's currency system within the next few years. May be the shale oil and gas phenomena will keep the creditors at bay and give the West some breathing space. But rest assured, nothing but inflation (money supply increase) will fix the increasingly formidable mathematics behind the burgeoning debt.

The debt problems can't be satiated without devaluing our money. Currency wars have broken out everywhere. How can gold and silver prices not increase?

Gold in New Zealand dollars: $1992.90 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $36.29 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.
_____________________________________________________________