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Gold & Silver Prices: Only So Low Before The Car(tel) Get’s Stuck

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Some have said the volume in silver is not supportive of further price rises, but volume picked up noticeably this week:

And when compared to the beginning of the year, it has been a slow move creep higher with silver up from $16 to $17.

Over the last two weeks now, we have seen that silver has done something it has not done all year – consolidation:

The range is between $16.90 and $17.30. The consolidation is healthy, because it shows that the white metal is forming a base for the next move higher.

Although there is an ugly sign on the daily that silver has to deal with first:

Silver desperately needs a close above $17.50. With silver putting in that golden cross a few weeks back, traders understand that price is going up. However, $17.50 was defended as a stout line in the sand once it was about to be breached on Monday. The cartel, however, may have bit off more than they can chew, because once silver closes above $17.50, that daily is going to look very bullish. Yet if somehow they succeed in crushing price below $16.60, poor sentiment will be putting it lightly.

That is why the consolidation has been so important over the last two weeks. There is now stout support at $16.90. The cartel truly is stuck and the longer they let price consolidate here, the stronger the foundation.

The GSR is showing strength in silver:

Two attempts to cross the fifty and then the  denial.

That is what we watched unfold on the gold-to-silver ratio this week. After falling decidedly on Monday as silver nearly broke $17.50, the GSR moved back up to it’s 50-day moving average. However, today, with gold stalling and silver coming off of a big move higher yesterday, the ratio fell back down.

This is what we want to see with the ratio. As Rick Rule told Silver Doctors the other day, the silver market is much more accessible to the average investor, so just a small percentage increase in interested investors, coupled with such a tiny market to begin with, and the silver price can really get going.

Over the long term, gold is shaping up nicely in terms of monthly price action:

We can see now why the cartel freaked out so much on September 8th when gold hit $1362 intra-day. When gold closes above $1360 on a monthly basis, that long term chart will show the cartel is no longer able to contain the downside pressure. Those candles are drawn out over one month. They are very slow and long to develop. And to think we were right there in early September.

While the long-term prospects are certainly all bull and no bear, there are, however, immediate concerns:

That candle is bearish and downright nasty. Traders understand it means that price is going lower, and if the price action holds to the chart pattern, there are two points to on the chart to consider. First, $1270 would not be a good sign for short-term bullishness, but $1252.80 would be downright awful. It could take us some time to recover from a drop below that price level.

But in keeping perspective, we’ll see how next week play out. If, on the other hand, we go down somewhat as indicated by that last candle, but we rally and close above $1310, that would be just as awesome on the bullish side as the previously mentioned downside sentiment-killing move would be.

And by the looks of it, the worse may be over when looking at the two other precious metals:

Looking at platinum, it seems that there is a lower-low that has formed on the daily. Anybody looking to spend some hard-earned fiat may want to consider platinum due to the over-soldness of the latest move. Then again, any precious metal right now reflects something that is feeling so much un-love, that they all have the potential for dramatic returns one the march higher continues.

And that’s talking about just normal rises due to fundamental and technical analysis. Add in some sort of monetary, currency, or other world-wide fiat currency event, and all bets are off.

To get a perspective on the big picture of what such an event would mean, check out the article that looks at the significance of a monetary reset, either done in house with the ‘two things EVERYBODY missed” article, or the awesome Willem Middelkoop interview.

Crude looks to be catching up to copper of late:

Said differently, the price action in crude oil looks to be confirming the price action in copper. Once both of these highly used commodities start rising in earnest, the only natural direction for the precious metals is higher. It is hard to mine for gold in silver barely at cost or for under cost, and if the price of diesel rises, it will be even harder to do so.

Though the dollar could continue to keep a lid on the metals for some time:

If there is a slow inverse ‘head and shoulders’ patter forming, albeit slowly, on the DXY daily chart, the dollar index could be headed for 96. Head and shoulders patterns are generally not that drawn out on the daily time-frame, but there were several days of trading action at the 96 level. it is quite possible that we could get up to that level again, even if for technical reasons.

The one thing to keep in mind, however, is that every time the dollar looks to be rolling over, it ends up moving higher. While it is highly unlikely we are on the cusp of a trend-change in the dollar, there is certainly a compelling case to be made now that the dollar is going higher than most have thought.

On the other hand, the treasury market is sending a ‘wait-and-see’ signal:

The yield on the 10 year not has been squarely stuck in a range of 2.3 to 2.4. Since we are once again on the top end of that range, yield is going to either break-out or break-down again.If yields break-out, then that would add to the dollar bullish case, but a break-down in yield could see the dollar rally either fade or fizzle.

Finally, well, as per tradition:

Not one but two gap-ups this week! How do you spell “melt-up”?  D-O-W.

Even if our President spells it “M-A-G-A”:

Vía Max Keiser http://ift.tt/2irRZGU

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Which Rotten Fruit Falls First?

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To those of us who understand the entire status quo is rotten and corrupt to its core, the confidence of each ideological camp that their side will emerge unscathed by investigation is a source of amusement. The fake-progressives (fake because these so-called “progressives” support Imperial over-reach and a status quo whose only possible output is soaring wealth and income inequality) are confident that a “smoking gun” of corruption will deliver their most fervent dream, the impeachment of President Trump, while Trump supporters are equally confident there is no “smoking gun.”

One camp is confident that the wily Clintons and their army of enablers, from former FBI Director Comey on down, will finally be brought to long-evaded justice for their various perfections of corruption and collusion: pay to play, and so on.

Clinton supporters are equally confident that there is no “smoking gun” that will bring down the House of Clinton, and by proxy, the organs of the Democratic Party.

The implicit historical model each camp is anticipating is of course Watergate, which unfolded with a dramatic inevitability that in retrospect almost seems scripted: a minor burglary led to the hubris of cover-up which led to the destruction of the Nixon presidency.

Often overlooked in this history is the key roles played by insider informants (such as Deep Throat) and the wider political demands for greater transparency the scandal triggered. The Church Committee ended up investigating the illegal campaigns of the FBI and CIA against the anti-war and civil rights movements (COINTELPRO etc.), and a small dent was made in the federal government’s decades-long reliance on official secrecy to cover up official corruption, collusion, malfeasance, lies, etc.– the ugly underbelly of agencies protecting the Empire from any inconvenient leaks of truth.

I submit that Watergate will not be the template for the multiple investigations being pursued in the present. It seems highly likely to me that who and what gets taken down by the investigations is much less predictable than in the Watergate template, which distilled down to an escalating campaign of cover-ups and stonewalling which simply compounded the crimes previously committed.

I submit that the investigations launched with an implicit intent of bringing down selected targets may well end up destroying people and institutions that weren’t in the crosshairs. The reason why this seems so likely is that the entire status quo is corrupt: the fraud, pay-to-play, lies and collusion are institutionalized and system-wide, and once some investigation drills a hole in the dam of secrecy and collusion, the hole may quickly widen as the fetid gush of hidden truths pours out.

In other words, when the entire status quo is corrupt and hiding its collusion, gathering evidence to nail one target inevitably tugs loose other threads, threads that the original investigators reckoned could be safely left untouched.

It doesn’t work that way, folks. Insiders end up releasing more than investigators bargained for, and all it takes is one insider and one journalist who isn’t beholden to a colluding-insider corporate boss to widen the hole in the dam into a veritable flood.

Longtime readers know I have long made the case that the Deep State has fractured into competing camps. For example:

Is the Deep State Fracturing into Disunity? (March 14, 2014)

Surplus Repression and the Self-Defeating Deep State (May 26, 2015)

Public investigations are one field where this conflict plays out, but unfortunately for the players, it’s a game that’s easier to start than to control.

For this reason, I predict the current investigations will widen and take a variety of twists and turns that surprise all those anticipating a tidy, narrowly focused denouement. Which of the many rotten fruits will fall first? How many will fall by the time the investigations have burned through a corrupt status quo that’s exquisitely vulnerable to a single lightning strike? Only one lightning strike is needed to ignite the combustible corruption and trigger a conflagration tha quickly escapes the handlers’ control.

If you want a recent example of this dynamic, consider Harvey Weinstein, a mere brush fire that may well spread further and faster than the handlers expect.

For more on the systemic nature of corruption in our status quo, please check out my books:

Resistance, Revolution, Liberation

Why Our Status Quo Failed and Is Beyond Reform

Vía Max Keiser http://ift.tt/2yVTLau

Gold Up 74% Since Last Market Peak 10 Years Ago

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– 10 year anniversary of pre-Global Financial Crisis market peak in S&P 500 on October 9th
– Gold up 74% since the last market peak a decade ago; 11% pa in USD, 9.4% pa in EUR and 12.4% pa in GBP
– Precious metal has climbed $736/oz on Oct 9th 2007 to $1278.75 ten-years later
– S&P 500’s 102% climb is thanks to asset-pumping policies by central banks, rather than value
– Gold’s performance is slowly forcing mainstream to re-consider gold
– “Notion of gold as a hedge against serious risk aversion is true… ” – Bloomberg analyst

Editor Mark O’Byrne

Ten years ago last week the U.S. stock market hit a peak before crashing during the financial crisis. That now seems a like a distant memory but with stocks making new record highs every day recently, it is prudent to step back and evaluate the long term performance of assets and indeed the outlook in the coming years.

Today the S&P 500 continues to make headlines as it repeatedly reaches new highs, most notably in September as it pushed past 2500 despite North Korean/Trump war drums.

Quietly in the background gold has been putting in its own stellar performance. Although few would have known, given the lack of interest most market participants have paid to it in recent years.

Decade run for gold

Since the last peak of the S&P500 the precious metal, and ultimate hedge against inflation, has climbed over 74%.

After massive gains during the financial crisis, it fell quite sharply in all currencies in 2013 prior to consolidating at lower levels in 2014 and 2015 and then eking out gains again in 2016 and so far in 2017.

Click here to read full story on GoldCore.com.

Important Guides

For your perusal, below are our most popular guides in 2017:

Essential Guide To Storing Gold In Switzerland

Essential Guide To Storing Gold In Singapore

Essential Guide to Tax Free Gold Sovereigns (UK)

Please share our research with family, friends and colleagues who you think would benefit from being informed by it.

Vía Max Keiser http://ift.tt/2l1KDLf

GDP Is Bogus: Here’s Why

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The rot eating away at our society and economy is typically papered over with bogus statistics that “prove” everything’s getting better every day in every way. The prime “proof” of rising prosperity is the Gross Domestic Product (GDP), which never fails to loft higher, with the rare excepts being Spots of Bother (recessions) that never last more than a quarter or two.

Longtime correspondent Dave P. of Market Daily Briefing recently summarized the key flaw in GDP: GDP doesn’t reflect changes in the balance sheet, i.e. debt.

So if we borrow money to pay people to dig holes and then fill them with the excavated dirt, GDP rises to general applause. The debt we took on to fund the make-work isn’t accounted for at all.

Here’s Dave’s explanation:

Once I learned about accounting, I figured out why the GDP metric wasn’t sufficient. What is missing?

The balance sheet.

Hurricanes are a direct hit to your nation’s balance sheet. The national income statement goes up because of increased spending to replace lost assets, but the “equity” part of the national balance sheet ends up taking a hit in direct proportion to the damage that occurred. Even if you rebuild everything just the way it was, your assets remain the same, while your liabilities have increased.

We know this because we use the balance sheet equation: equity = assets – liabilities. Equity is another word for wealth.

Before hurricane:

wealth = (house + car) – (home debt + car debt)

After hurricane, you rebuild your house, and buy a new car, using borrowed money:

wealth = (house + car) – (2 x home debt + 2 x car debt)

Wealth (equity) has declined by the sum (home debt + car debt)

So when you see pictures of a hurricane strike, you can now look through all that devastation and see the impact on the balance sheet. National equity (wealth) just dropped by the amount of damage inflicted by the hurricane. Whether it is ever rebuilt doesn’t actually matter; that equity is just gone. Destruction is always a downside for equity – even if there is a temporary positive impact on the income statement.

Isn’t it interesting that the mainstream economists, who don’t use banks, debt, or money in their models, largely ignore balance sheets and instead just looks at the income statement alone? Its almost as if the entire education system was organized so that people paid no attention to banks, debt, and money. Who do you think might benefit from our flock of PhD economists ignoring the extremely profitable debt-elephant in the room, and its purveyors, the banks?

Thank you, Dave, for an explanation we never see in the mainstream. And here’s a chart of our fabulous always-higher GDP, adjusted for another bogus metric, official inflation:

 

If you found value in this content, please join me in seeking solutions by becoming a $1/month patron of my work via patreon.com.

Vía Max Keiser http://ift.tt/2yDp1dl

Silver Price Spiking & Gold Pushing Higher On The 30th Anniversary Of Black Monday

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The intra-day “bull flag” formed in silver:

 

Here’s a closer look at silver with good volume:

Which makes us wonder if this short-term bottom is in?

Here’s gold on the 3 minute chart:

And the dollar, which is struggling to maintain 93:

It is the anniversary of Black Monday:

And it appears it is indeed risk off:

And something is indeed spooking the markets. Though not exactly the President, the MSM narrative is wearing thin:

Here’s Bloomberg featuring this (in)famous day 30 years ago highlighting statements of many famous investors of the time:

PETER BORISH, head of research at Tudor Investment Corp. and Paul Tudor Jones’s No. 2:

We were tracking exponential moves in the equity market. The main one was the equity move in the 1920s, and the market in 1987 looked almost identical. The week before Black Monday, the technical and fundamentals aligned, and so we thought Monday would be the day.

ALLAN ROGERS, head of government bond trading at Bankers Trust Co.:

In the first half of 1987, the bond and stock markets diverged for seven months. Bonds went straight down, equities straight up. These sorts of divergences always get my attention. In August and September, I persuaded management to cover all of our hedged short positions in sovereign fixed income, and we built up a long position in notes and bonds.

MICHAEL LEWIS, bond salesman at Salomon Brothers:

A week or two before Black Monday, Salomon announced job cuts. They chopped a few departments, including the municipal and money-market groups. It felt ill-considered and rushed. Nobody completely understood why. [Ed. note: Lewis is a Bloomberg View columnist.]

ROGERS:

Nippon Tel, the Japanese telephone company, was going to do an IPO in mid-August. I thought that would pull money from other segments of the equity market. In early October there was another IPO, which I think was a very large British company. These IPOs were a big deal to me, because the main thing I pay attention to is changes in global money flow.

NASSIM NICHOLAS TALEB, FX options trader at First Boston who later wrote The Black Swan, a book about the impact of unpredictable events:

Currency options were very inexpensive during that period for some reason, especially OTM [out-of-the-money] options, so I had accumulated a few of these. I had accumulated a lot of OTM options in Treasuries and eurodollars, for no other reason than that they were cheaper than I had seen in a long time. [Ed. note: Eurodollars are U.S. dollars deposited in commercial banks outside the United States and futures tied to the interest rates paid on them are among the most-traded contracts in the world.]

ERIC ROSENFELD, vice president in the U.S. fixed-income arbitrage group at Salomon Brothers:

On Friday night, Oct. 16, the Dow was down 4 percent on the day and 10 percent on the week. I remember going to dinner with my wife, and the couple next to us were a young guy and gal out on a date. He was telling her how he was going to make a killing, because he’d put all of his money into the market on the close. And I’m thinking to myself, “I’m not so sure she should want to date this guy …”

BORISH:

That Monday morning was probably the greatest demonstration of trading skill that I have ever seen in my life. Even though we had this model saying Monday was the day, Paul was willing to add to the position.

LEWIS:

We were in One New York Plaza still, and everything seemed off from the time I arrived. I wasn’t exactly working. I was based in London at the time, and they’d asked me to come to New York to give a talk at the Salomon Brothers training program. I had free run of the place, so I was almost like a reporter who was wandering around the firm watching and talking to people.

DRUCKENMILLER:

On Monday morning, I took advantage of a very brief rally to sell the equities that I had bought on Friday.

JIM LEITNER, Bankers Trust FX trader:

During the day, the noise level in the trading room got quite ferocious. The chairman of the bank, who at one point had been a trader, walked onto the trading floor and stood behind my chair, which was a first.

LEWIS:

I remember walking from the 41st floor down to the 40th floor. The 41st floor was this cathedral of bonds, and then you walked down to 40 and were in this cramped, low-ceiled, dark place that was the equity department, with a lot of guys who were named Vinny and Tommy and Donny. They’d been around forever, and they had Brylcreem in their hair and big guts and they smoked too much and they were lovable. And they were all going through this visceral animal experience. People were screaming and going absolutely crazy in ways I’d never seen before. It was the first time in my career at Salomon Brothers where I was actually interested in standing beside the equity department and watching these people do their job.

EDWARD THORP, managing partner at Princeton Newport Partners:

We didn’t use Black-Scholes for option prices; we had our own model. And we didn’t model prices using a lognormal distribution—instead we had found a distribution that better fit the historical stock price data. We were trading off of those models. So even though I was surprised by the drop, I wasn’t nearly as shocked as most.

JIM CHANOS, founder and CIO of Kynikos Associates:

I had scheduled a marketing trip to Texas and flew from New York to Dallas on Monday morning. When the plane landed I called my brother, who was a stockbroker in Wisconsin. He mentioned a conflict with Iran in the Persian Gulf involving some oil platforms. “That’s making this whole thing worse,” he said.

ROGERS:

We hadn’t been able to sell our long Treasury position or make markets because of the fire drill. So we came back up and I think by the end of the day, 3 o’clock or whatever, we finally sold our long bond position. That fire drill saved us a fortune.

LEITNER:

In the afternoon, I went out and I bought a bunch of Japanese bonds, which were still yielding 6 percent. And I said, “If the world is really going to hell in a hand­basket, interest rates will collapse and at some point I’ll be able to sell those bonds at a higher price.”

LEWIS: It was right around then that I was selling my book, which would become Liar’s Poker, and I was absolutely aware that this was literary material. I remember grabbing scraps of paper and writing down notes, so I had it if I needed it.

ROSENFELD:

I remember talking to Mike Halem, the proprietary equity trader. I was urging him to do these basis trades. It was tough to do futures vs. stocks, because you couldn’t execute the trades simultaneously. So I was telling him to do futures vs. the most liquid stocks and not worry about the fact that he wasn’t doing exact arbitrage. I was talking to him about futures vs. IBM or futures vs. GE, and forget about anything else.

THORP:

By the time I left the office in Newport Beach, Calif., for lunch with my wife, the market was off 7 percent. I remember noting that was about half the decline of the two largest previous ones—Oct. 28 and 29, 1929, which signaled the start of the Great Depression. I then got a call at the restaurant that the market was down 18 percent. My wife thought maybe I should go back to the office, but I stayed and finished my lunch. There was nothing I could do.

SHIELDS:

There was one big pension fund that had 10 pieces of $100 million sales that came in the last hour and that just kept pressure on the market, so it closed at the bottom.

BORISH:

I think that Paul’s greatest skill was realizing that people were going to drive to the place of most liquidity, and that was going to be fixed income.

JONES:

I decided to get very long fixed income on the close on Black Monday, as I knew the Fed would react.

BORISH:

We were concerned about a lot of the counterparties and their liquidity, so the best place to be was in fixed-income futures, because if worse came to worst, we could always take delivery of the bonds.

ROGERS:

I was so scared that I got $10,000 out of the bank, took it home, and stored it in the rafters. When I moved out, I forgot that I’d stashed the money. I think it’s still there.

JONES:

I was feeling guilty about our success. I thought we were going into the Great Depression.

BORISH:

I had 1929 on my mind. Paul and I were concerned about our friends and people who were struggling that day.

ROSENFELD:

That night, [Salomon Brothers Vice Chairman] John Meriwether and I had dinner at Il Mulino in Little Italy with Vinny Mattone, the head of repo at Bear Stearns. For us, a key element to these longer-term convergence trades is making sure that you can hold the trade until convergence. Our worry was that clients were getting so skittish that they would pull their repo lines. The outlook from Vinny was dismal. It reinforced that we had to rethink the portfolio.

TALEB:

I started calling my friends to see if they were OK. I couldn’t leave the apartment, because Hong Kong might call, so I was calling anyone to chat. My cousin called and said the police were outside. It turned out a guy had committed suicide at 72nd Street and First Avenue, so it hit close to home.

THORP:

I went home and thought about what had happened. There was a huge difference between S&P futures, which were trading at 185 to 190, and the corresponding price of the S&P index, which was at 220. This difference was previously unheard of. Arbitrageurs usually kept it in line.

BASSMAN:

I had bought 100 bps out-of-the-money call options for a tick [1/32nd of a point] a month prior for a thrill. They had a few weeks to expiry. As the bond market exploded higher, my options started moving into the money. I ran over to the Treasury desk to sell some Treasuries to hedge my position, and in the time it took me to run over to the desk the market had rallied another point. That’s how fast the Treasury market was moving.

TALEB:

I had a huge delta in eurodollars. I remember vividly offering eurodollars at a price and selling them for much higher—it was like in Trading Places. We spent the day liquidating our positions and selling above our offers all morning. Currencies went wild and the USD collapsed.

BASSMAN:

I could use the Treasury basis—the relationship between cash and futures—to figure out where futures should be trading and, by extension, where options on futures should be priced. So I started trading futures options vs. cash, which the locals on the exchange couldn’t do. The spread was huge, and it was quite profitable.

SHIELDS:

Finally, Howard Baker [President Ronald Reagan’s chief of staff] called and said he’d just seen the president. And this is a direct quote, he said, “I’ve just been to see the president, and the president understands that you have to do what you have to do to protect your people. However, the president of the United States would very much prefer if the New York Stock Exchange could see its way clear to remain open.”

SHIELDS:

I think there was something that came out of either the Fed or Treasury that the New York Stock Exchange was not closing. And at that point, I think someone called somebody. My guess is it would have been one of the monetary people that would have done it; they would have known where to go. And the MMI started rallying, carrying everything along with it.

HULL:

“What will you buy 100 at?” a trader from Drexel [Burnham Lambert] asked. “285,” I said. And the Drexel trader said, “You own them.” I swallowed hard; it trades 287, 288. A few minutes later he asks, “Will you buy another 50 at 285?” And I said, “Yes.”

STRAUS:

On Tuesday, we were all watching, and it looked like the decline would continue—and then someone bought the MMI, the small index in Chicago, and that started to stabilize the whole market.

HULL:

These trades with me were really whisper trades—in other words, he sold them to me knowing that I was the only buyer. He didn’t want to hold an auction because there would have been a mass panic. I ended up buying 150 contracts at 285.

BORISH:

The early part of Black Monday was probably due to portfolio insurance, but the second part of the day was due to fear.

Oct. 19, 1987 remains the biggest one-day stock market drop in history.

ROSENFELD:

The need for dynamic trading from portfolio insurers exceeded the liquidity. The standby capital that usually comes in during these times was slow to come in. In that sense, circuit breakers do help. It allows the standby capital to assemble.

LEWIS:

It makes everybody uncomfortable when something dramatic happens with prices, and no drama in the world could explain such movement. It makes the market seem absurd. And so that was the feeling. To me it was like, Corporate America is not worth whatever percent less today than yesterday.

MARKS:

People think that if stocks went down 20 percent in a day, it must be the end of the world. That is, they impute intelligence to the market—and that’s a mistake.

JONES:

Black Monday’s 33 percent decline in S&P 500 futures taught newly baptized regulators what old-school commodity traders had known for a hundred years: Limits on trading of stock futures were obligatory. They learned the hard way that markets, left to their own devices, can and will break down into panic and chaos.

LEITNER:

It was the first time we gave a lot of thought to counterparty risk. Had the Hong Kong Futures Exchange [which was closed for nearly a week and subsequently bailed out by the Chinese government] gone belly-up and those futures contracts not been honored, I probably would have been fired.

BORISH:

Afterward, Paul seconded me to the New York Fed to help with the Brady commission. To Paul’s credit, he put a lot of resources into getting data and computers. We’d be in there on weekends with screwdrivers taking out floppy drives and putting in hard drives. We hired summer interns to type data into spreadsheets, which only had 3,000 rows at the time. We provided all of our data to the Brady commission; Goldman didn’t have it, J.P. Morgan didn’t have it. The chapter on the market break mostly came from Tudor.

ROSENFELD:

There wasn’t this global perspective that you see today with correlations being so high, and I think that’s what saved the marketplace that day. It wasn’t the circuit breakers that saved the day; it was that the markets were siloed. If that were to happen today, who knows what would happen.

BORISH:

If you look at Greenspan’s behavior during the Long-Term Capital Management crisis 10 years later, he moved quickly to provide liquidity to the system. So like every good trader, he learned from his prior mistakes. He thought, “We’re going to get out there, we’re going to get in front of it, and we’re going to provide liquidity to the system.”

TALEB:

If the Fed hadn’t stepped in on Tuesday morning, we would have a lot cleaner financial system today, but it would have been a complete bloodbath then.

SilverDoctors.com has been on the leading edge of Gold News and Silver News Since 2011. Each month, more than 250,000 investors visit SilverDoctors.com to gain insights on Precious Metals News as well as to stay up-to-date on World News impacting the metals markets.

Vía Max Keiser http://ift.tt/2yzjq7h

How Gold Bullion Protects From Conflict And War

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– Gold and silver’s historical role in conflict shaped the world today and the modern financial system
– Gold played an important function in the great conflicts up to and throughout the 20th century
– Gold and the effective use of bullion played a crucial role in the outcome of the American Civil War
– Gold was an important economic agent in both World Wars, conferring a huge advantage on the allies
– In a world beset with risks of war both in the Middle East and with North Korea, Russia and China … gold will protect

Editor Mark O’Byrne

Gold and silver have played important roles during periods of conflict and have protected people but also protected nations and conferred power. HSBC Chief Precious Metals analyst James Steel has written a fascinating piece for this month’s Alchemist about this.

The article takes us through the major wars and conflicts from the 15th century to modern times. Each major war serves as a reminder that success is as much down to the management of bullion and finance as it is about the role of gold and silver.

…the way bullion was used, moved, stored and shifted had profound effects on long-term economic or military success. Indeed, the role of gold and silver in wars not only in influenced the shape of the world today, but laid the foundations for the modern financial system.

When managed effectively we see how important gold and silver were for victorious countries. Central bankers and politicians of today should use the following historical examples of military successes to appreciate the importance of a strong source of bullion and conservative financial planning both in and out of peacetime.

Click here to read full story on GoldCore.com.

Important Guides

For your perusal, below are our most popular guides in 2017:

Essential Guide To Storing Gold In Switzerland

Essential Guide To Storing Gold In Singapore

Essential Guide to Tax Free Gold Sovereigns (UK)

Please share our research with family, friends and colleagues who you think would benefit from being informed by it.

Vía Max Keiser http://ift.tt/2imV5MD

Fraud, Exploitation and Collusion: America’s Pharmaceutical Industry

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America’s Pharmaceutical industry takes pride of place in this week’s theme ofThe Rot Within, as the industry has raised fraud, exploitation and collusion to systemic perfection.

What other industry can routinely kill hundreds of thousands of Americans and suffer no blowback? Only recently has the toll of needless deaths from the opioid pandemic finally roused a comatose corporate media and bought-and-paid-for, see-no-evil Congress to wonder if maybe there should be some limits placed on Big Pharma and its drug distributors.

The Drug Industry’s Triumph Over the DEA (WaPo)

Explosive ’60 Minutes’ investigation finds Congress and drug companies worked to cripple DEA’s ability to fight opioid abuse

What other industry can raise prices any time it wants because, well, it can?Longtime correspondent/physician J.F. recently submitted a chart of medication price increases (below)–nothing special, nothing out of the ordinary, just the usual because we can price increases.

What other industry has such complete control over the federal government? Dr. J.F. reminded me that the law enacting Medicare Part D prescription drug coverage specifically prohibits the U.S. government from negotiating lower prices on the immense volume of medications it purchases through Medicare (not to mention the Medicaid and Veterans Administration programs).

J.F. also submitted this investigative report from CNN, The little red pill being pushed on the elderly.

Here’s the money-shot:

“The combination of two generic drugs that makes up Nuedexta — a cough suppressant and heart medication — was once available from specialty pharmacists willing to combine the ingredients for less than $1 a pill, according to a US Senate report on rising prescription drug prices. Now the FDA-approved medication costs as much as $12.60 a pill.”

If this isn’t fraud, exploitation and collusion, then what is it? Please don’t say “good old free-market capitalism,” because competition is nowhere in sight.

The pharmaceutical industry is a crony-capitalist cartel that buys whatever political influence it requires to maintain its power and profits. Isn’t it obvious? Or have we become so distracted and drugged that we no longer care?

Ho-hum, just another 20 times the rate of inflation increase in medication prices by Big Pharma: nothing to see here, folks, just move along and take your meds….

We’re number one! — in drug-induced deaths per million residents: isn’t it amazing that this raises no eyebrows at all in our “leadership” or the citizenry?

Can we be honest for a change, and just admit that profits are way more important in our status quo than a couple hundred thousand deaths in America’s permanent underclass?

The rot within manifested by the pharmaceutical industry almost defies description. That we tolerate this as business as usual (BAU) shows that ours is a society and economy afflicted with the sickness unto death.

‘Worse Than Big Tobacco’: How Big Pharma Fuels the Opioid Epidemic 

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Vía Max Keiser http://ift.tt/2xOgtw4

Silver Bullion Prices Set to Soar

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Silver bullion prices are expected to jump as solar and smartphone demand rises and the Fed tries to stave off economic weakness

by Myra Saefong via Barrons

Gold prices have far outpaced gains in silver so far this year, but silver will emerge as the winner for the second year in a row.

With a per-ounce price of $17.41 for silver futures as of Friday, analysts say the white metal is poised for a big climb, particularly as the gold-to-silver ratio stands well above historical averages. “Silver is definitely undervalued compared to gold and as a stand-alone investment. I consider it likely to be the most undervalued asset in the general investment markets,” says Paul Mladjenovic, author of Precious Metals Investing For Dummies.

The best barometer of its potential gains comes from its value relative to gold. The long-term average gold-to-silver ratio runs around 15 to 1, while the modern average going back a century is roughly 40 to 1, says Mark O’Byrne, research director at precious-metals storage provider GoldCore. The ratio, which reflects how many ounces of silver bullion it takes to equal the value of one ounce of gold, stood at a whopping 75 to 1 on Friday.

That steep ratio suggests “it’s a good time to buy silver bullion,” says O’Byrne. He explains that the “huge amount of silver used up in industrial applications” suggests the ratio should fall over the long term: “It’s likely that the gold/silver ratio will gradually return to below the 100-year average of 40 to 1.” At the current gold price, that would put silver at nearly $32 an ounce, O’Byrne says.

So far this year, however, prices of gold futures have risen nearly 12%, while silver has gained roughly 6%. Last year, silver’s climb of about 16% outpaced gold’s rise of almost 9%.

Click here to read full story on GoldCore.com.

Important Guides

For your perusal, below are our most popular guides in 2017:

Essential Guide To Storing Gold In Switzerland

Essential Guide To Storing Gold In Singapore

Essential Guide to Tax Free Gold Sovereigns (UK)

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The United States of Weinstein: Complicity, Greed and Corruption Is the Status Quo

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The sordid story of Harvey Weinstein is being presented as an aberration. It is not an aberration; it is merely a high-profile example of how the status quo functions in the USA, a.k.a. The United States of Weinstein, in which complicity, greed and corruption reign supreme in every sector and in every nook and cranny of power. 

The dirty secret of America’s status quo is that power and wealth are both extremely concentrated, which means there are gatekeepers who must be bribed, sated or serviced if you want to claw your way up the wealth-power pyramid. Mr. Weinstein’s alleged conduct and payoffs of those he exploited is par for the course in the corridors of power in the USA.

As a gatekeeper in Hollywood, Mr. W. could make or break careers with absurd ease.

Gatekeepers are the key functionaries in a rentier economy in which the few at the top skim the wealth of the many. Want to play in the big leagues of Hollywood, Washington D.C., the Pentagon, or the various HQs of Global Corporate America? You have to pay the Gatekeepers what they demand.

It might be the casting couch or a slice of the profits, or a vote in committee, but the price of admission will always include complicity–silence about the crimes committed and the endemic corruption, and a sacrifice of moral standards. This is the minimal price of “success” in the elite circles of wealth and power in America.

If you doubt this, dig deep into any concentration of power in America and see what you find. Outsiders won’t find anyone willing to talk, of course; that’s how complicity works.

The overheated engine of complicity is greed. Hollywood kept quiet about Mr. Weinstein because insiders and wannabes alike hoped to score a plum role in Mr. W.’s next hitmaking production, or secure a couple of points of the gross. (1 point = 1%.)

This is the evil fruit of a system that ruthlessly concentrates power and wealth, not just in Hollywood and Washington D.C. but in the judiciary, in higher education, in Big Pharma, the National Security State, Corporate America and yes, the Deep State, which is comprised not of the bureaucratic functionaries (sorry to pop your balloon) of the state but those one level above the gatekeepers.

Every American has a simple but profound choice. Either place your integrity above all else, and refuse to climb the putrid pyramid of wealth and power, or succumb to greed and become complicit in an empire of greed, complicity and corruption.

If “success” means a fat salary, points of gross, invitations to A-list parties, access to the inner circle, being the right-hand boy/girl of someone powerful, a seat on the private jet, etc., then you will be required to service the gatekeepers and sacrifice whatever integrity you once possessed.

If integrity means more than any of these baubles, then prepare to fail. You won’t clamber up the putrid pyramid, you won’t get past the gatekeepers, and you won’t be invited to join the elite skimming the nation’s wealth for its own gratification and greed.

But you will still have yourself, your pride, and your integrity.

It’s not an easy choice. Choose wisely. As Orwell observed about a totalitarian oligarchy, some are more equal than others. But the sacrifices required to become more equal than than the bottom 99.5% are irrevocable–you will have to sacrifice everything but your greed, your appetite for corruption and your willingness to hide the truth from the outside world.

True success lies outside the empire of greed, complicity and corruption.

 

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About That Oil For Gold-Backed Yuan Contract: Two Points EVERYBODY Has Missed

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The first point (and a half) is a counter to this statement which everybody accepts as doctrine:

Anybody can buy gold with dollars at any time – no gold backed oil contract needed.

I won’t name names. We’re all on the same side here, but for some reason this topic is more polarizing than it should be.

Let’s think about “anybody can buy gold with dollars now” for a moment.

Dollars come from the United States. The benchmark global gold price in dollars comes from the United States.

It makes sense that if a company/country is selling a crap-ton of barrels of oil for dollars, said company/country would be most efficient in purchasing their physical gold on the COMEX with those dollars.

It’s not like a company or country can walk into some local coin shop with $350,000,000 in U.S. dollars and scoop up a 259,259 Chinese Gold Pandas.

They need the COMEX.

Here’s the problem:

If the U.S. futures market price of paper gold is nothing more than a debt based fiat currency price for something that never actually gets delivered, but rather, gets cash settled with more debt based fiat currency, then the company/country that just sold their oil for dollars is not really able to just take those dollars and buy gold as the “matter-of-fact” statement claims.

Secondary note to the first point (this is the half point):

We see what happens to world leaders when they announce or  begin to sell their oil for something other than dollars.

Anybody who is not familiar with this, the answer is death of said leader and destruction/plundering of the country by the war machine.

There is a flip-side to the oil-for-gold proclamations that we are missing:

Say Oil producers Canada or Mexico, or pick some non-bedfellow countries that attract the war machine, such as Turkey, Syria, Iraq, or Venezuela, who all of the sudden decide, “We are selling our oil for dollars, but we will immediately take them and buy physical gold from the COMEX with all the proceeds.”

Are the neo-cons, the deep state, the ESF, the Fed, the gold cartel and the other nefarious players just going to sit by and say:

“sure dude, whatever floats your boat”.

Not a chance. Said groups will spring into action, most likely of the swift and violent type.

Back to the main first point:

While theoretically possible to just “take those dollars and buy gold”, in practice this does not happen.

Between the levered-up, fractionally reserved “paper gold” which the bullion banks can naked short with a supply of unlimited paper, what company/country is going to want to get a futures contract and jump into that firefight, with the full brunt of market manipulation and precious metals price suppression bearing down on them, and backed-up by the war machine when all else fails?

To say “anybody can buy gold now” with their dollars misses the point.

And that’s the point.

Theoretically I can build a vast array of underground cities connected by public transporton submarines, or I can build an office building 39,000 feet tall, with a rotating restaurant on top for a 360 degree view of the clouds, but in coming down to earth a bit, we all know that in both practice and for all intents and purposes, neither of those things are possible. Much less just converting massive oil revenues into physical delivery from the COMEX, which is probably the least possible of all the scenarios I just mentioned.

The second point is even simpler:

The bigger picture that everybody keeps missing has to do with one of the principle reasons that people will use an un-backed, debt based fiat currency:

CONFIDENCE

Whether the oil for gold contract is true or false, myth or fact, it misses the point that China is looking for confidence in something other than the dollar.

Confidence builds very, very slowly, and it is bursts in a ball of flames.

Everybody understands what it means to have, and then to lose confidence in the currency. Loss of confidence is why un-backed, debt based fiat currencies always suffer death by hyperinflation.

No doubt we are in the growing pains of a paradigm shift in the global monetary system. Every single time, without fail, the world always goes back to gold and silver. We have been going through several years of pain, and perhaps, disbelief, much like the Brits went though a hundred years ago up until Bretton Woods.

This time is somehow different?

How ’bout a global twist in the “gold backed” story with President Trump ending the “temporary” convertibility of dollars for gold:

We do know that President Tump understands gold:

And we know Donald Trump accepts payment in gold:

Which is why, for the first time ever, Trump will accept today gold bullion instead of dollars for a lease deposit from his newest tenant in one of his marquee properties, 40 Wall Street, a 70-story skyscraper in Manhattan’s Financial District that at one time was the tallest building in the city until the Chrysler Building surpassed it. Trump will accept the gold at an event in the lobby of the Trump Tower at 725 Fifth Avenue.

And we do know that sooner or later, bullies (as in the US War Machine forcing the world to use dollars) will make a mistake, become weak, become complacent, or have opponents in numbers that band together.

There is a reason they say “Even a dog knows the difference between getting tripped over and getting kicked”.

It’s only possible to kick a dog so many times. At some point, the dog is going to get so angry that it will not take another.

The question is:

Is there one more kick coming, or is the dog about to bite? 

Vía Max Keiser http://ift.tt/2kZe0ht