"A major stock market event will occur later this week when Facebook goes public," TrimTabs chief Charles Biderman notes in a new video (largely transcribed at Forbes). "Stocks and gold likely will ke..."A major stock market event will occur later this week when Facebook goes public," TrimTabs chief Charles Biderman notes in a new video (largely transcribed at Forbes). "Stocks and gold likely will keep selling off until the Facebook offering hits the market. And everything else being equal, I then expect a sharp rebound in stocks and gold after the offering. I personally will be buying Facebook and gold on the IPO day."
http://www.blanchardonline.com/investing-news-blog...
With global stock markets tumbling, along with gold and silver, today King World News interviewed John Embry, Chief Investment Strategist of the $10 billion strong Sprott Asset Management. Embry disc...With global stock markets tumbling, along with gold and silver, today King World News interviewed John Embry, Chief Investment Strategist of the $10 billion strong Sprott Asset Management. Embry discussed gold and other major markets, but first, here is what Embry had to say regarding recent derivatives turmoil: “This makes me very uncomfortable because I’ve always been very wary of the whole derivative situation. I believe the notional value of the outstanding derivatives is comfortably north of one quadrillion dollars. The Bank of International Settlements changed the definition, so they said there is only $700 trillion worth of them, rather than one quadrillion.”
John Embry continues:
But it doesn’t make any difference, these (derivatives) are many, many multiples of the world GDP. If these things get in any trouble, and I think the JP Morgan thing may be the first sign of significant trouble again, it’s fantastically important to the whole financial situation. In a rational market the gold price should have been up $100, not down $40 in the wake of this.
I would defer to Jim Sinclair, who I have the utmost respect for on this one. He has said for a long time that the derivative situation ‘guarantees quantitative easing to infinity,’ which is one of the great statements of all-time....
“I think this JP Morgan revelation just confirms that everything Jim’s been saying for a long time on this subject is dead right. The fact that we will have QE to infinity would suggest that an intelligent person would be buying every single ounce of gold and silver he can get his hands on at these prices.
They are trying to sell this idea that gold goes down on the ‘risk off’ trades that we are experiencing now. And that the ‘risk off’ buyers all go running into the US dollar and the US bond market. I think those are two of the riskiest things on the planet. But somehow they are still getting this ‘Pavlovian response’ that when things are bad out there, you should sell your gold and buy US bonds. It’s ridiculous.
It’s important, at this time, that people who have been around, and have a pretty good grasp of what’s unfolding, should express their views to the public just to counteract the propaganda they are receiving from mainstream media. It’s tough enough out there without being lied to all of the time.”
Embry had this to say regarding gold: “What they want to do is keep it (gold) in a range. Right now that range is $1,550 to $1,900. Can it go below $1,550? Sure, in the short-run it could. But the fact is the big move coming from these levels is going to be to the upside.
Trying to pick a bottom is always a difficult thing to do. Put it this way, you’re a lot closer to a significant bottom than you are to a top.”
Embry also added: “North America was a great place to live in the post-war era and I think it was one of the greatest eras in history. I think a lot of us took that for granted because that’s all we knew. It’s coming to an end.
It’s a terrible development because if you destroy the entire middle class, you are going to turn into a third-world country. And you run the risk, in the worst circumstance, of revolution.”
Frank Holmes - CEO and chief investment officer of US Global Investors
5 reasons why this gold selloff is a buying opportunity
1) It is precisely the debt strangling the euro zone which will dri...Frank Holmes - CEO and chief investment officer of US Global Investors
5 reasons why this gold selloff is a buying opportunity
1) It is precisely the debt strangling the euro zone which will drive gold demand over the longer term. The side effect to
Today's Gold Lady News!
Highly respected economist and strategist David Rosenberg has told the Financial Times in a video interview that gold “will go to $3,000 per ounce before this cycle is over.”...Today's Gold Lady News!
Highly respected economist and strategist David Rosenberg has told the Financial Times in a video interview that gold “will go to $3,000 per ounce before this cycle is over.”
Markets are repeating the downtur
Unemployment Rate in Europe Hits 15-year High:
Is this Where America Is Headed?
~ by Michael Lombardi, MBA
The unemployment rate in the eurozone reached a 15-year high in March at 10.9%, up from th...Unemployment Rate in Europe Hits 15-year High:
Is this Where America Is Headed?
~ by Michael Lombardi, MBA
The unemployment rate in the eurozone reached a 15-year high in March at 10.9%, up from the previous record set just a month earlier at 10.8% (source: The Guardian, May 2, 2012). This is the highest unemployment rate since the inception of the eurozone.
March 2012 marks the 11th month in a row that the unemployment rate has increased among the 17 nations that make up the eurozone.
The European Central Bank (ECB) kept interest rates at one percent at its last meeting saying that its policies need to change so that growth is given as much emphasis as austerity. (It would have been nice if the ECB would have thought of that a year ago, before hundreds of thousands of more people joined the unemployment lines.)
I spoke about the quickly deteriorating conditions in Spain recently in these pages. It is worse than most could have imagined. Spain holds the highest unemployment rate in the eurozone. As of March 2012, almost one in four people is unemployed: 24.1%. Spain also has the second-highest youth unemployment at 51.2%.
One in two young people under the age of 25 is unemployed in Spain…an absolutely mind-numbing statistic.
In Greece, the latest unemployment figures available are for January. Its unemployment rate stands at 21.7%.
I’m going to list the youth unemployment rates for March 2012 for the eurozone (except for Greece, whose latest statistics are for January), so my readers understand that some of these countries are placing their youth in a severely dangerous position of being a lost generation. Or this will be the center of the social unrest and the reason why the eurozone will unravel?
Country Youth Unemployment Rate
Greece 51.2%
Spain 51.1%
Portugal 36.1%
Italy 35.9%
Ireland 30.3%
France 21.8%
Germany 7.9 %
(Source: Reuters)
Going back to the regular unemployment rates…the unemployment rate in Portugal is 15.3%, while the unemployment rate in Ireland is 14.5%. Some analysts have been saying Germany would be able to decouple from the rest of the eurozone and experience strong economic growth. I don’t but this. In fact, I believe Germany’s economy is contracting while its manufacturing numbers continue to deteriorate.
Germany cannot decouple from the rest of the eurozone as much as the U.S. can decouple from the global economic slowdown. The big question on my readers’ minds: How bad will unemployment eventually be here in the U.S. as world economic growth falters?
The pressures in the eurozone are mounting. Something will have to give soon, as the situation is clearly unsustainable. This weekend, France took a big step to the left and ushered in a socialist government led by new French President Francois Hollande. The new President campaigned on a variety of promises, including an easing of austerity measures.
A reduction in austerity measures…so where will the money come from? Better crank up those money printing presses again.
Ron Paul: "Central Bankers Are Intellectually Bankrupt"
:My Note: Steve Forbes suggested today that Ron Paul replace Ben Bernanke as the new Fed Chairman
The financial crisis has fully exposed t...Ron Paul: "Central Bankers Are Intellectually Bankrupt"
:My Note: Steve Forbes suggested today that Ron Paul replace Ben Bernanke as the new Fed Chairman
The financial crisis has fully exposed the intellectual bankruptcy of the world’
Tearing the U.S. GDP Number Apart: The Real Picture
~ by Michael Lombardi, MBA
U.S. gross domestic product (GDP) growth in the first quarter of 2012 came in at 2.2%, down from the three-percent GDP g...Tearing the U.S. GDP Number Apart: The Real Picture
~ by Michael Lombardi, MBA
U.S. gross domestic product (GDP) growth in the first quarter of 2012 came in at 2.2%, down from the three-percent GDP growth of the fourth quarter of 2011 (source: Bureau of Economic Analysis). Economists had expected first-quarter GDP growth of 2.2%, so the numbers disappointed. But, in all reality, 2.2% GDP growth is good considering the state of other economies around the world: Europe and the U.K. are officially in a recession, while China is slowing considerably.
After two consecutive monthly declines, real disposable personal income in the U.S. (removes taxes and inflation from income to provide a better gauge of a consumer’s real purchasing power) increased by a mere 0.2% last month.
So, if consumer spending makes up 70% of U.S. GDP, and there has been no real growth in personal income, how did GDP grow 2.2% in the first quarter of this year? The answer: Consumers dipped into their savings, sending the savings rate to the lowest level since before the crisis, in 2007.
There was no strong income growth to justify consumer confidence and GDP growth; consumers dipped into their savings. I doubt consumers can keep tapping their savings for the remainder of the year to keep GDP growing.
The news gets worse. Business investment in infrastructure spending actually declined in the first quarter. So we have the consumer getting into more debt and the job creation engine of business not investing in infrastructure, which means little chance of job creation in future quarters.
“Everything's fine with the U.S. economy and GDP growth,” is what one would believe reading the mainstream media. Be very careful, dear reader.
A total of 0.6% of the 2.2% GDP growth in the first quarter came from inventory building. This number was surprisingly high considering how inventory build-up made the fourth-quarter GDP growth numbers look stronger than they actually were.
The shelves are full of inventory, but consumers are very indebted and real disposable income is declining, which means consumer confidence will not materialize. The only hope was to create more jobs, but business investment fell in the first quarter.
Obviously, U.S. GDP growth in the first quarter outperformed that of many countries around the world, especially considering the fact that the U.K. and many countries in Europe are already back in recession. However, once the U.S. GDP growth figures are looked at closely, there really is nothing to smile or cheer about.
We are far from out of the woods with the U.S. economy. Again, many European countries are back in recession. China’s economy is slowing quickly. It will not take much for the U.S.’s already weak GDP numbers to collapse…putting us back into recession much faster than most people think possible.
For all the kidos out there (and in us too), we all need to know that inflation is the silent killer of our wealth!
Duck Tales Inflation Lesson
An episode of Duck Tales dealing with the negative consequences of inflation. for more information visit
www.mises.org
THE INFLATION TRADE IS ON: BERNANKE HAS BROKEN THE DOLLAR RALLY
http://goldscents.blogspot.com/2012/05/inflation-t...
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