Economy

Shipping Rates Go … Negative!

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– Shipping Rates Go… Negative (ZeroHedge, Feb. 6, 2012):

Following the endless collapse in the Baltic Dry, it was only a matter of time before the shipping industry one-upped the Chairsatan, and was the first to introduce, dum dum dum, negative rates. That’s right: you are now paid to hire a ship. Via Bloomberg:

  • GLENCORE HIRES SHIP AT MINUS $2,000 A DAY, GMI SAYS
  • GMI TO CONTRIBUTE $2,000 A DAY TO GLENCORE’S FUEL COSTS
  • GLOBAL MARITIME’S U.K. MD STEVE RODLEY CONFIRMS DEAL BY PHONE

Why is this happening? Perhaps because ships have to be kept seaworthy and in motion or else they become scrappage in as little time as 3 months. Think sharks. Needless to say, this will play havoc with shipping company (and affiliated entities’) liquidity, as the biggest default wave in the history of the industry is about to be unleashed and tens if not hundreds of billions of European secured loans are about to be “impaired.”

Fukushima’s Tobacco Farmers Secure Contract With Japan Tobacco For 2012 Crop

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– Fukushima’s Leaf Tobacco Farmers Secured Contract with Japan Tobacco for 2012 Crop (EX-SKF, Feb. 5, 2012):

494 leaf tobacco farmers in Fukushima will grow leaf tobacco this year and sell it to Japan Tobacco (JT), a monopoly in Japan (50% of shares owned by the Ministry of Finance) and the 3rd largest tobacco and cigarettes manufacturer in the world, next to British American Tobacco.

Did you know that there is no national safety standard for radioactive materials in leaf tobacco?

From KFB Fukushima Broadcasting Co. (2/5/2012):

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After the nuclear plant accident last year, the tobacco producers’ union in Fukushima Prefecture gave up planting the tobacco. In the next growing season [2012], 494 farms in central, southern and Aizu region of Fukushima Prefecture will resume planting on 474 hectares.

Read moreFukushima’s Tobacco Farmers Secure Contract With Japan Tobacco For 2012 Crop

Group Of 30 To 50 Angry Youngsters Attack House Of Greek President Karolos Papoulias, Hurl Rocks, Molotov Cocktails

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See also:

– Message To The People Of Greece: Prepare For Collapse, Chaos And Currency Devaluation! – IMF Official Admits Austerity Is Harming Greece!

– National Confederation of Greek Commerce (ESEE): Greece Warns It Will Soon Be In ‘Condition Of ABSOLUTE POVERTY’

“When people lose everything they lose lt.”
– Gerald Celente

– Angry Youths Attack House Of Greek President Papoulias; Hurl Rocks, Molotov Cocktails (ZeroHedge, Feb. 3, 2012):

Instead of defaulting a long time ago (when we first suggested it should) when it could have pulled an Iceland, taken a bitter pill, hyperinflated the drachma and in the process delevered overnight, if at a big social cost of losing its welfare safety net (which it is about to lose anyway courtesy of the PSI and OSI), and not be held captive to bigger geopolitical interests, and hostage to the banker superclass, Greece very likely could have been on the road to recovery now, granted with a totally different political regime. Instead, the political regime is the same, Greece is more in debt than ever before, the economy is in shambles, the banks have seen two straight years of bank runs, and most importantly the people now are poorer and more disenchanted than ever, and as the following story indicates, about to get far angrier than any Syntagma square riot cam (which is about to come back with a PayPerView vengeance) has shown to date. According to Kathimerini, late on Saturday evening, “A group of between 30 and 50 youngsters attacked the house of President Karolos Papoulias.”

“The result of the attack was some minor damage to the entrance of the house at Asklipiou Street in central Athens and to the car that Papoulias uses. The hooded youngsters, who arrived by motorbike and on foot just after 8 p.m, hurled a Molotov cocktail, rocks and paint at the house but stopped short of attacking the two guards at the President’s house.

Read moreGroup Of 30 To 50 Angry Youngsters Attack House Of Greek President Karolos Papoulias, Hurl Rocks, Molotov Cocktails

EU Prepares For Potential Gas Crisis

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See also:

– ‘Russian Winter Goes EXTREME’ (Pravda): -50 Degrees Celsius In Siberia …. Video: ‘USDA Says NEW WARM LATITUDES Shift North = Russia/Sibera North Pole’

– EU prepares for potential gas crisis (AP,  Feb. 3, 2012):

BRUSSELS (AP) — The European Union is bracing for another potential energy crisis in the dead of winter as Russian gas supplies to some member states have suddenly dwindled by up to 30 percent.

The European Commission put its gas coordination committee on alert Friday, but insisted the situation had not yet reached an emergency level as nations have pledged to help each other if needed and storage facilities have been upgraded.

Commission spokeswoman Marlene Holzner said Russia was going through an extremely cold spell and needed more gas to keep its citizens warm.

She said that Russia’s gas contracts “allow for certain flexibility in case they also need the gas. And that is the situation that Russia is facing at the moment.” The severe winter in Russia has seen temperatures drop to minus 35 C (minus 30 F).

Read moreEU Prepares For Potential Gas Crisis

Waiting For ‘Magic’ Is Now An Investing Strategy

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– Waiting For “Magic” Is Now An Investing Strategy (ZeroHedge, Feb. 3, 2012):

It has long been known that under central planning “Hope” (that Bernanke sees the printer’s shadow; that the economy implodes so Bernanke can print; that the economy surges so that Bernanke can still print; that Brian Sack fat fingers in a few million extra shares of NFLX, speaking of which the Fed’s Other Assets are now $160 billion) is one of the dominant investment strategies. To this roster of unorthodox investment practices, we can now add magic. Because when analyzing the capital shortfall at Deutsche Bank (whose assets are 84% of German GDP), arguably the bank with most to lose when Europe is gripped by out of control default contagion (right after Allianz and Generali, or A&G, of course), Credit Sights makes the following observation: “The capital shortfall of €3.2 bln identified by the EBA’s capital exercise at 30 September 2011 has magically disappeared… This illustrates the capacity of banks to improve capital ratios without raising new capital.” We agree:expecting nothing short of magic is by far the best means to achieve the €21 trillion in deleveraging needed to make the world viable from a solvency standpoint, forget about growing. As for “magic” as an (inverse) bailout strategy, surely this opens up unlimited potential untapped avenues of value uncreation – just consider the endless opportunities of “magically vaporized” as an official explanation for what will happen to your money when this latest Ponzi bubble bursts…

Full blurb from Credit Sights:

RED ALERT: The Baltic Dry Index Continues To CRASH, Hits RECORD LOW, Falls For 34th Consecutive Session To 647

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See also:

– RED ALERT: Baltic Dry Index Continues To CRASH! (Jan. 30, 2012)

And opinions like this one from economist Dennis Gartman …

– The Irrelevance Of The Baltic Freight Index

… are – in my opinion – only ‘partially’ correct.

Compare this:

– (Dec. 13, 2011): Business Week — Gold is in the “beginnings of a real bear market,” economist Dennis Gartman said today in his daily Gartman Letter.

.. to this …

– (Jan. 31, 2012): Silver Surges 21 Percent in January, Demand Is ‘Diminishing A Supply Surplus’:

Dennis Gartman, economist and newsletter writer, said he is buying more gold priced in euros after he “returned to this trade” last week. It is “time to add to the trade and we are doing so this morning,” he said today in his daily Gartman Letter.

Looks like he ‘knows’ what he talking about! He sounds like the Mitt Romney of economists!

Gold and silver (‘usually’) bottom out around (‘directly after’) Christmas.

The sheeple buy iPads and iPhones and we buy gold and silver!

Prepare for collapse!

– Global Shipping Prices Face More Choppy Waters (Wall Street Journal, Feb. 2, 2012)

Times are tough for the shipping market.

Freight rates hit a record low Wednesday on weak demand for iron ore, poor weather conditions in mining regions and a glut of shipping capacity. The Baltic Dry Index, a composite of commodity shipping costs around the world, fell for a 32nd consecutive session to 662. The previous low, of 663, came in December 2008, during the depths of the credit crunch.

But unlike three years ago, this slump reflects more than a sluggish global economy. A conflation of seasonal, environmental and demand-side factors has accelerated the index’s decline in recent months and could tip it further into the red. The index has plunged 59% this year alone and is down 94% from the peak hit just before the crisis hit.

Read moreRED ALERT: The Baltic Dry Index Continues To CRASH, Hits RECORD LOW, Falls For 34th Consecutive Session To 647

Message To The People Of Greece: Prepare For Collapse, Chaos And Currency Devaluation! – IMF Official Admits Austerity Is Harming Greece!

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National Confederation of Greek Commerce (ESEE):

–  Greece Warns It Will Soon Be In ‘Condition Of ABSOLUTE POVERTY’

You’ve been warned:

– Max Keiser on Greece: ‘The IMF is a Financial Mafia’ (April 28, 2010):

The only solution for Greece is to arrest the Goldman Sachs bankers immediately and all those involved in the fabrication of Greek economic data in 2000, when you became a member of the eurozone. The next step is to nationalize all banks like Sweden did in 1993. The International Monetary Fund is that last thing you need. You will lose your sovereignty. It exercises terrorism. You will be raped in such a way, that it will be the worst pain you have ever felt.

Flashback:

– Greece Must Sell Up To €300 Billion ($434 Billion) In State Property!!!

– NWO Financial Terrorist Attack On Greece: Max Keiser, Nigel Farage, Gerald Celente On Greek Austerity & Bailout

– The No.1 Trend Forecaster Gerald Celente on Greece: ‘The IMF Is Nothing More Than The International Mafia Federation’ Stealing Big!

This is what will happen to you if you are unprepared people of Greece:

– Greek Euro Exit: 60% Currency Devaluation, Default, Banking Sector Collapse

There will be no warnings! (Not only because any warning would instantly cause a BANK RUN!)

Looks like some Greeks are aware of what is going on:

– Silent Bank Run In Greece: ‘Anxious Greeks Emptying Their Bank Accounts’ (Spiegel)

Here is what happened to Mexico:

– Hedge Fund Manager Kyle Bass Explains The New World Order (Panel Presentation):

On Greece:

For those who think a 50% write-down on debt will fix Greece, you have lost your mind. It is only a full wipe-out of the non-TROIKA-owned debt that is the only mathematical way for Greece to have any chance.

…

Don’t believe these governments when they tell you everything is going to fine. The day before Mexico devalued by 60% they denied that they would ever devalue. They can and will never tell you the truth. Find your own numbers.

Here is what happened to Belarus:

– Belarus Devalues Its Currency By 56% Overnight, Against Every Currency Out There:

Luckily for those who held their “money” in the form of gold and silver, they just got an instantaneous 56% value preservation and a relative boost in their purchasing power with just one central bank announcement.

Protect yourself NOW!

Got physical gold and silver? (Having ‘your’ euros in other EU countries will not be the solution.)

This is how the solution looks like:

I’ve told people to invest to invest in gold since 1999.

Gold performance in the last 10 years: +504,51%

Silver performance in the last 10 years: +679,88%

Only physical gold and silver are real.

Everything else is an illusion.

Paper investments in gold and silver will not be covered and there is a bloodbath coming.

As a sidenote, there is a crisis coming, that will be much worse than the crisis of 2008.

More info here:

– RED ALERT: The Baltic Dry Index Continues TO CRASH, Hits RECORD LOW, Falls For 34th Consecutive Session To 647

– RED ALERT: Baltic Dry Index Continues To CRASH! (Jan. 30, 2012)

IMF official admits austerity is harming Greece


Poul Thomsen of the IMF: ‘Greece has done a lot, at great cost to the population.’ Photograph: Kostas Tsironis/AP

– IMF official admits austerity is harming Greece (Guardian, Feb. 1, 2012):

Poul Thomsen, head of the IMF’s mission in Greece, concedes that ‘social tolerance and political support have their limitations’

A leading architect of the austerity programme in Greece – one of the harshest ever seen in Europe – has admitted that its emphasis on fiscal consolidation has failed to work, and said economic recovery will only come if the crisis-hit country changes tack and focuses on structural reforms.

Poul Thomsen, a senior International Monetary Fund official who oversees the organisation’s mission in Greece, also insists that, contrary to popular belief, Athens has achieved a lot since the eruption of the debt crisis in December 2009.

“We will have to slow down a little as far as fiscal adjustment is concerned and move faster – much faster – with the reforms needed to modernise the economy,” he told the Greek daily Kathimerini, adding that the policy shift would be “reflected” in the conditions foreign lenders attached to a new rescue programme for Athens.

Read moreMessage To The People Of Greece: Prepare For Collapse, Chaos And Currency Devaluation! – IMF Official Admits Austerity Is Harming Greece!

Marc Faber: ‘Ron Paul Would Be A Very Good President’ (Bloomberg – Video)

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– Marc Faber: “Ron Paul Would Be A Very Good President” (ZeroHedge, Feb. 3, 2012):

While Marc Faber shares the usual stock of insightful market commentary, together with timing inflection points, and extended thoughts in the attached Bloomberg TV clip, it is the fact that he has officially joined Bill Gross, and so many others, in supporting the candidacy of Ron Paul as president. It is rather sad that only those who see beyond the surface of the current pyramid scheme facade, are bold enough to endorse the only man who is right for the White House. Fast forward to 15 minutes into the video to hear Marc Faber: “Ron Paul would be a very good president.”

Other recent Ron Paul endorsements:

and of course,

See also:

– L.L. Bean Heiress Supports Ron Paul 2012 (CNN, Jan. 29, 2012)

– Freedom Watch: Ron Paul Poised For An Upset – More SC Senators Come Forward to Endorse Ron Paul For President (Video)

– Freedom Watch With Judge Andrew Napolitano: We The People vs. Mitt Romney – Ron Paul 2012!

– Senator Tom Davis From South Carolina Endorses Ron Paul (Video)

– Gerald Celente Endorses Ron Paul For President – ‘The Entire Economic System Is Collapsing’ – ‘Fascism Has Come To America In Every Form’ (Video – Nov. 29, 2011)

Unprecedented Record 1.2 Million People Fall Out Of Labor Force In ONE MONTH, Labor Force Participation Rate Tumbles To Fresh 30 Year Low

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– Record 1.2 Million People Fall Out Of Labor Force In One Month, Labor Force Participation Rate Tumbles To Fresh 30 Year Low (ZeroHedge, Feb. 3, 2012):

A month ago, we joked when we said that for Obama to get the unemployment rate to negative by election time, all he has to do is to crush the labor force participation rate to about 55%. Looks like the good folks at the BLS heard us: it appears that the people not in the labor force exploded by an unprecedented record 1.2 million. No, that’s not a typo: 1.2 million people dropped out of the labor force in one month! So as the labor force increased from 153.9 million to 154.4 million, the non institutional population increased by 242.3 million meaning, those not in the labor force surged from 86.7 million to 87.9 million. Which means that the civilian labor force tumbled to a fresh 30 year low of 63.7% as the BLS is seriously planning on eliminating nearly half of the available labor pool from the unemployment calculation. As for the quality of jobs, as withholding taxes roll over Year over year, it can only mean that the US is replacing high paying FIRE jobs with low paying construction and manufacturing. So much for the improvement.

Chart below shows it all – that jump is not a fat finger!

And Labor Force Participation:

This is the largest absolute jump in ‘Persons Not In Labor Force’ on record…and biggest percentage jump in 30 years.

HSBC Laundering Billions?

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Flashback:

– Former Assistant Secretary of Housing: The U.S. is the Global Leader in Illegal Money Laundering (Video)

– HSBC Laundering Billions? (The Daily Bell, Feb. 3, 2012):

A former employee of one of the world’s largest international banks has provided WND with more than 1,000 pages of documents, including customer account ledgers for dozens of companies through which the financial institution was laundering money each month, according to the whistleblower. “I found many accounts through which hundreds of thousands of dollars were being flowed as a conduit on a monthly basis,” John Cruz, an account relationship manager who worked in the HSBC southern New York region, told WND. ? WorldNetDaily

Dominant Social Theme: What a shock! This is perhaps the biggest bank in the world! Where were the regulators? What’s going on? How could this happen? It’s really impossible to believe …

Free-Market Analysis: Jerome Corsi better hire pretty good security. In Georgia, a lawsuit that Corsi has helped promote seems close to knocking US President Barack Obama off the ballot due to questions about his parents and whether he is US “natural born” – and thus eligible to be president.

And now Corsi has apparently helped reveal the underbelly of the Western world’s banking system by exposing “thousands of pages” of documents that, according to Corsi, seem to prove fairly conclusively that HSBC was involved in a massive money laundering scheme that involved people at the very top of the bank.

As of 2011, according to Wikipedia, British-based HSBC was the world’s second-largest banking and financial services group and second-largest public company per a composite measure by Forbes magazine … “In February 2008, HSBC was named the world’s most valuable banking brand by The Banker magazine.”

Read moreHSBC Laundering Billions?

Priceless!!! Banco de Portugal Offers … ‘Seminar: Optimal Sovereign Debt Default’

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You can’t make this stuff up!

– Friday Humor Part Dois – Banco de Portugal “Wink Wink” Edition (ZeroHedge, Feb. 3, 2012):

… the following seminar announcement from the Banco de Portugal, of all places, is truly priceless…

Source: Banco de Portugal

Washington State Introduces HB 2731 To Declare Gold And Silver Legal Tender Within The State

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– Washington State Considers Gold and Silver as Legal Tender (The New American, Jan. 31, 2012):

In an effort to protect the property of citizens from the harmful effects of inflation created by the Federal Reserve, lawmakers in Washington State introduced a bill (PDF) over the weekend to declare gold and silver legal tender within the state. Sound-money advocates across the nation immediately praised the effort.

Citing several provisions of the U.S. Constitution and various rulings by the U.S. Supreme Court, the legislation notes that only gold and silver are to be considered legal tender by the states. The bill also blasts the federal government for imposing an unconstitutional monetary system on the states and for unjustly confiscating citizens’ wealth by allowing the Fed to create money.

The legislation seeks to offer the people of Washington an opportunity to use constitutional money instead of the ever-depreciating paper currency issued by the American central bank, lawmakers who sponsored the bill told The New American. However, no one would be forced to accept gold or silver as payment.

Read moreWashington State Introduces HB 2731 To Declare Gold And Silver Legal Tender Within The State

Gold And Silver Rise, Gold BreaksThrough Resistance At $1,750/Oz

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– Gold Challenges Resistance at $1,750/oz – Technicals and Fundamentals Remain Very Positive (Business Insider, Feb. 2, 2012)

– Gold climbs towards 8-week high as stocks rise (Reuters, Feb. 2, 2012)

See also:

– ‘Gold Rush’: China Bought Around 500 Tons Of Gold In 2011 To Diversifiy Its Assets (RT – Video)

Microsoft Buys Eugenics Technology From Merck, Becomes Drug Development Partner With Top Global Vaccine Manufacturer

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See also:

– Bill Gates Funds Technology To Cause Instant Male Infertility

– Bill Gates In Global Push To Vaccinate Every Child On The Planet

– Bill Gates Admits Vaccines Are For Depopulation

– Microsoft buys eugenics technology from Merck, becomes drug development partner with top global vaccine manufacturer (Natural News, Feb. 2, 2012):

When you buy Microsoft products, you are now promoting the pharmaceutical industry and its global vaccine agenda. That’s the new reality in which we live, where the world’s largest software company is “in bed” with the world’s largest vaccine pusher.

Read moreMicrosoft Buys Eugenics Technology From Merck, Becomes Drug Development Partner With Top Global Vaccine Manufacturer

‘Gold Rush’: China Bought Around 500 Tons Of Gold In 2011 To Diversifiy Its Assets (RT – Video)

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In 2011 China bought not less than 490 tons of gold

– Chinese ‘gold rush’: Country diversifying assets (RT, Feb. 1, 2012):

China is the world’s fifth-largest holder of gold and seems to be in the market for more. Analysts believe Beijing snapped up around 500 tons of gold in 2011, double what it bought in 2010.

China does not release official gold trade figures, but the Hong Kong Census and Statistics Department announced last month that in November alone, China imported 102,779Kg of gold from Hong Kong which comes as a significant increase from October’s 86,299Kg.

Experts say in 2011 China bought not less than 490 tons of gold, while the figure for 2010 was only 245 tons. Financial expert Francis Lun told RT that the reason for the Chinese “gold rush” is simple – the country wants to diversify its assets.

Read more‘Gold Rush’: China Bought Around 500 Tons Of Gold In 2011 To Diversifiy Its Assets (RT – Video)

The Impending Undeclared Default Of 5 Major US Banks (Video)

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YouTube Added: 30.01.2012

Description:

http://www.ellismartinreport.com
http://www.jsmineset.com
https://twitter.com/#!/EllisMartinRprt

Breaking News: January 30, 2012. In this unedited interview with Ellis Martin, Jim Sinclair reveals an impending undeclared default of 5 major US banks this week per the ISDA International Swaps and Derivatives Association related to events in Europe. Listen and learn.

Greece Warns It Will Soon Be In ‘Condition Of ABSOLUTE POVERTY’

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… as intended by the elitists.

– Greece Warns It Will Soon Be In “Condition Of Absolute Poverty” (ZeroHedge, Feb. 1, 2012):

And while the bankers (on both sides of the table) haggle about how to best leech Greece even dryer (with a solution due any hour, day, week now), the actual people are starting to wave the white flag of surrender. Because the opportunity cost of every additional coupon payment is having a direct, immediate and increasingly more dire impact on virtually every aspect of the economy. Kathimerini reports that “about 160,000 jobs will be lost this year in the commerce sector, according to the National Confederation of Greek Commerce (ESEE) as the constant decline in disposable income has led to a sharp drop in turnover and a steep rise in the number of enterprises shutting down.” Indicatively, the latest Greek employment figures per the IMF, show  that 4.156MM people are employed. So commerce alone is about to lead to a 4% drop in total jobs. As the chart below shows, net of just this sector, Greek jobs are about to go back to 2010 levels. What this means for the Greek unemployment rate, and for GDP we leave to our readers, although the ESEE does a good job of summarizing what to expect: the “ESEE warns that soon Greece will be in a condition of absolute poverty.” And that, ladies and gents, is how Europe slowly but surely reentered the Feudal age, and what every other country in the European periphery that has a massive debt load, and no surplus (actually make that every country in the world), has to look forward to: absolute poverty, aka debt slavery.

From Kathimerini:

The jobs to be lost concern 60,000 employers and 100,000 employees in the sector, ESEE expects. Given the data for a 6.2 percent fall in household consumption in 2011 and the Eurostat forecast for a further decline by 4.3 percent this year, ESEE warns that soon Greece will be in a condition of absolute poverty.

With 60,000 enterprises having shut down since the start of the crisis to date, their number is set to double by the end of this year, ESEE estimates.

Once again, it appears that Chuck Palahniuk will be proven right when stating that it’s only after we’ve lost everything, that we are free to do anything; and it will be up to the Greeks to prove him right.

PIMCO’s Bill Gross Explains Why ‘We Are Witnessing The Death Of Abundance’ And Why Gold Is Becoming The Default ‘Store Of Value’

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– ‘King Of Bonds‘ Bill Gross Explains Why “We Are Witnessing The Death Of Abundance” And Why Gold Is Becoming The Default “Store Of Value” (ZeroHedge, Feb. 1, 2012):

While sounding just a tad preachy in his February newsletter, Bill Gross’ latest summary piece on the economy, on the Fed’s forray into infinite ZIRP, into maturity transformation, and the lack thereof, on the Fed’s massive blunder in treating the liquidity trap, but most importantly on what the transition from a levering to delevering global economy means, is a must read. First: on the fatal flaw in the Fed’s plan: “when rational or irrational fear persuades an investor to be more concerned about the return of her money than on her money then liquidity can be trapped in a mattress, a bank account or a five basis point Treasury bill. But that commonsensical observation is well known to Fed policymakers, economic historians and certainly citizens on Main Street.” And secondly, here is why the party is over: “Where does credit go when it dies? It goes back to where it came from. It delevers, it slows and inhibits economic growth, and it turns economic theory upside down, ultimately challenging the wisdom of policymakers. We’ll all be making this up as we go along for what may seem like an eternity. A 30-50 year virtuous cycle of credit expansion which has produced outsize paranormal returns for financial assets – bonds, stocks, real estate and commodities alike – is now delevering because of excessive “risk” and the “price” of money at the zero-bound. We are witnessing the death of abundance and the borning of austerity, for what may be a long, long time.” Yet most troubling is that even Gross, a long-time member of the status quo, now sees what has been obvious only to fringe blogs for years: “ Recent central bank behavior, including that of the U.S. Fed, provides assurances that short and intermediate yields will not change, and therefore bond prices are not likely threatened on the downside. Still, zero-bound money may kill as opposed to create credit. Developed economies where these low yields reside may suffer accordingly. It may as well, induce inflationary distortions that give a rise to commodities and gold as store of value alternatives when there is little value left in paper.” Let that sink in for a second, and let it further sink in what happens when $1.3 trillion Pimco decides to open a gold fund. Physical preferably…

From PIMCO’s Bill Gross:

Life – and Death Proposition

‘Supercommittee That Runs America’ Urges End To The ‘Zero Bound’, Demands Issuance Of NEGATIVE YIELD BONDS!

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You can’t make this stuff up!

– “Supercommittee That Runs America” Urges End To The “Zero Bound”, Demands Issuance Of Negative Yield Bonds (ZeroHedge, Feb. 1, 2012):

One of the laments of the uberdoves in the world over the past several years has naturally been the fact that interest rates are bound by Zero on the lower side, and that the lowest possible rate on new paper is, by definition, 0.000%. Which is what led to the advent of QE in the first place: in lieu of negative rates, the Fed was forced to actively purchase securities to catch up to a negative Taylor implied rate. This may be about to change, because as the just released letter from the Treasury Borrowing Advisory Committee, or as we affectionately called the JPMorgan/ Goldman Sachs Chaired committee, the “Supercommittee That Runs America”, simply because it alone makes up Tim Geithner’s mind on what America needs to do funding wise, demand, “It was broadly agreed that flooring interest rates at zero, or capping issuance proceeds at par, was prohibiting proper market function. The Committee unanimously recommended that the Treasury Department allow for negative yield auction results as soon as logistically practical.” And what JP Morgan and Goldman Sachs want, JP Morgan and Goldman Sachs get. And once we get the green light on negative yields at auction, next up will be the push for the Fed to impose negative rates on all standing securities, which means that coming soon savers will be literally paying to hold cash. And that will be the final straw.

Not only that, but beginning in just 4 short months, the Treasury may launch a brand new product: a Floating Rate Bond. From the TBAC:

Read more‘Supercommittee That Runs America’ Urges End To The ‘Zero Bound’, Demands Issuance Of NEGATIVE YIELD BONDS!

President Obama’s Mortgage Plan Is ‘Dead On Arrival’

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– As A Reminder, The President’s Mortgage Plan Is “Dead On Arrival” (ZeroHedge, Feb. 1, 2012):

Obama’s latest attempt to stimulate the housing sector and inflate home prices “before waiting for them to hit bottom” (which they never will as long as central planning tries to define what clearing prices are) is a noble reincarnation of now an annual, and completely ineffectual, theatrical gambit. There is, unfortunately, one major snag. It is Dead on Arrival (just like every single iteration of the Greek bailout), for the simple reason that it has to get congressional approval. Which it won’t. And that’s not just the view of biased political pundits. Wall Street agrees.

Courtesy of the WSJ, which summarizes the prevailing views on this topic:

Edward Mills, analyst, FBR Capital Markets: “We believe that this program would be dead on arrival in Congress, as congressional Republicans are opposed to additional intervention in the mortgage market and are philosophically opposed to a bank tax. This should be confirmation that the administration realizes that a mass-refinance program can only be achieved by legislation and not by regulatory fiat.”

Read morePresident Obama’s Mortgage Plan Is ‘Dead On Arrival’

Silver Surges 21 Percent in January, Demand Is ‘Diminishing A Supply Surplus’

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‘Diminishing A Supply Surplus’

Oh, sure!

ROFL!


Lunar Dragon 2012 coin issued by the Perth Mint in Australia.

– Silver Surges 21% in January – Silver Demand Is “Diminishing A Supply Surplus” (ZeroHedge, Jan. 31, 2012):

There continues to be no coverage of silver in the non specialist financial media and little coverage of silver in the specialist financial media. However, both the Financial Times and Bloomberg cover silver today which might be a harbinger of short term weakness.

The majority of articles on silver are bearish and most bank analysts remain bearish on silver again in 2012 – as they have been in recent years. Prices will average $37.50/ounce in Q4, according to a survey of 13 analysts by Bloomberg.

The lack of coverage of silver and consequent “animal spirits” in the silver market is of course bullish from a contrarian perspective.

Analysts look set to get the silver market wrong again as recent rocketing industrial demand for silver, from solar panels to batteries to medical applications and growing investor demand for coins, and small & large bars is “diminishing a supply surplus” according to Nicholas Larkin of Bloomberg. This has led to silver’s best January gains in 30 years with silver up over 20% from below $28/oz to nearly $34/oz.

Barclay’s estimates that manufacturers will need a 2.5% increase of the metric tons used last year and investment demand continues to grow due to risks posed by both inflation and systemic risks.

Silver like gold – cannot go bankrupt and will always have a value.

Silver supply shortages are something we and other analysts who are bullish on silver have been warning of for some time. This is because the silver market is small versus the gold market and tiny versus equity, bond, currency and derivative markets.  This is why we believe silver should rise to well over its nominal recent and 1980 high of $50/oz in the coming months.

While focus has been on silver’s fall from $50/oz last year – there is very little focus on silver’s long term performance and how silver has massively outperformed most asset classes in recent years

Iran, Gold and Oil – The Next Banksters War

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“I was personally present when the deputy economics minister of Iran was talking to a foreign society in Berlin”

“And the gentleman said very openly to the shocked audience ‘OK.

You don’t want to buy our goods. Well, the Chinese do.”

– Christoph R. Horstel

– Iran, Gold and Oil – The Next Banksters War (Batr, Jan. 29, 2012):

Remember the real reason why Moammar Gadhafi is dead. He dared to propose and started creating an alternative currency to the world reserve U.S. Dollar. The lesson learned in Libya is now ready for teaching in Iran. Forget all the noise about going nuclear, the true message is that the banksters rule and nation states serve their ultimate masters. The hype and disinformation that surrounds the push for war is best understood by examining the viewpoint of Iranian MP Kazem Jalali. The Tehran Times quotes him in saying,

“The European Union must be aware that it can never compel the Islamic Republic to succumb to their will and undermine the Iranian nation’s determination to achieve glory and independence, access modern technologies, and safeguard its rights, through the intensification of the pressure.”

“The European Union is seeking to politicize the atmosphere ahead of nuclear talks with Iran and is aware that sanctions on Iran’s oil exports cannot be implemented since the world is not limited to a number of European countries”

Many political commentators warn that an embargo is an act or war. Chris Floyd provides this observation of the recent oil embargo against Iran.

“This week, the warlords of the West took yet another step toward their long-desired war against Iran. (Open war, that is; their covert war has been going on for decades — via subversion, terrorism, and proxies like Saddam Hussein.) On Monday, the European Union obediently followed the dictates of its Washington masters by agreeing to impose an embargo on Iranian oil.

The embargo bans all new oil contracts with Iran, and cuts off all existing deals after July. The embargo is accompanied by a freeze on all European assets of the Iranian central bank. In imposing these draconian measures on a country which is not at war with any nation, which has not invaded or attacked another nation in centuries, and which is developing a nuclear energy program that is not only entirely legal under international law but is also subject to the most stringent international inspection regime ever seen, the EU is “targeting the economic lifeline of the regime,” as one of its diplomats put it, with admirable candor.”

The most important aspect of the Iranian response lies in the way that changes oil settlement for delivery and the futile effect of the US/Anglo/EU imperialist dictates have in the marketplace.

Debkafile reports that India (and probably China) will pay for Iranian oil in gold.

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