Gold Corridor From Dubai To China Sought By China

By Mark O’Byrne – Re-Blogged From http://www.Gold-Eagle.com

Gold corridor from Dubai to China sought by Chinese Gold & Silver Exchange Society
– New Asian gold trading corridor could boost demand for 1 kg gold bars
– Should increase turnover for yuan-denominated gold coins and bars – President
– Secure supplies of physical gold from Middle East and Asia for China
– China positioning itself as leading gold trading and owning nation

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Time For A New Gold Standard For Asia

By Alasdair Macleod – Re-Blogged From http://www.Gold-Eagle.com

Over half the world’s population, living in the Eurasian land mass, understands that gold is money. The leaders of the Asian nations also know that this is true as well. The leaders of the security and economic alliance of the Shanghai Cooperation Organisation, which now incorporates most of these peoples, also know that to become independent of Western hegemony and to forge their own way, they must abandon Western financial systems and markets, replacing them with a new monetary order, serving their own needs. This is demonstrated in the establishment of parallel multinational financial institutions, duplicating and replacing dollar-centric development banks and settlement organisations.

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End of Empire

By Alasdair Macleod – Re-Blogged From http://www.Gold-Eagle.com

In last week’s Insight article, America’s Financial War Strategy, I described how the Chinese government viewed the geopolitical scene. It is clear from earlier remarks by the Peoples Liberation Army’s senior strategist, Major-General Qiao Liang, that the view in Beijing is that America perpetuates her empire through the financial benefits to America from America’s actions against other nations, friend or foe. These actions can be either military or financial, or even both. This week, similar views were expressed in Moscow by Sergey Glazyev, a senior advisor to President Putin.

There are many questions that arise from last week’s analysis that I chose not to address, in the interest of focusing on the main theme. It concentrated on geopolitics and economics as the Chinese see them, financial and currency issues mentioned in passing. This article addresses perhaps the most important subsidiary issue, and that is how China visualizes the future, in terms of monetary policy.

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Silver’s New Bull Market

By Adam Hamilton – Re-Blogged From http://www.Silver-Phoenix500.com

Silver officially entered a new bull market this week, decisively crossing the necessary +20% threshold.  Speculators and investors alike are returning as awareness spreads of how radically undervalued silver is compared to prevailing gold prices.  When silver awakens to a new bull market after a long bearish slumber, massive gains are usually unleashed.  Silver’s tiny advance so far is just the tip of the iceberg.

This Tuesday, silver surged 4.4% higher on strong Asian bidding in parallel with gold.  The catalyst was fascinating, China finally launching its long-awaited yuan-denominated gold benchmark.  China is the world’s largest gold producer, importer, and consumer, a commanding position that should grant it much bigger say in the gold industry.  The new yuan gold price will ultimately challenge London’s century-old hegemony.

The prospects of more Chinese with their deep cultural affinity for precious metals having easier price discovery and access catapulted silver into bull-market territory.  Its previous best close of 2016 about a week earlier was only 18.5% above its 6.4-year secular low in mid-December leading into the Fed’s first rate hike in 9.5 years.  Tuesday’s big Chinese silver rally boosted this young upleg’s gains to 23.7%.

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…They Lit The First Candle

By Bill Holter – Re-Blogged From http://www.Gold-Eagle.com

Many of us have waited for today, April 19, as we anticipated the new Chinese daily gold fix and the opening of the ABX physical exchange.  Some may be disappointed, others, ecstatic.  I will say I am personally pleased because it was almost exactly as I suspected.

Much has happened over the last couple of weeks — and a lot of it has to do with “truth” being exposed.  The “markets” are no different.  China, in my opinion, is simply trying to aid in markets determining prices of gold and silver.

Last Friday we got horrifying (from a contrarian standpoint) COT numbers with nearly record numbers for commercial shorts.  With history as any guide, gold and silver should have already been slaughtered, they have not been.  In fact, we now have silver and gold at nearly one-year highs and mining equities exploding.  Yesterday saw a dozen or more juniors up 25%++ for the day!

As I have maintained, I believe today’s action will become more frequent with the Shanghai physical demand pushing prices higher.  I believe they lit the first candle of truth today, other candles will follow until the light switch gets flipped on.  COMEX/LBMA will either go along in price or they will be arbitraged completely out of inventory.  As I wrote several weeks back, “what good is a contract that cannot perform”?  It is very possible China will let this “stew” for a while and allow the markets time to adjust to real and free pricing …only then do I see China coming out with a gold backed yuan.  If they were to do that today, it would be a declaration of war on the U.S. hegemon, if they wait, they can have cover and say “hey, it was global free markets that pushed gold out of sight”.

As mentioned above, commercials are very short gold and silver now…and they have lost $billions just today.  Maybe they continue to throw paper at gold and silver, but Shanghai ain’t buyin’ it!  No matter what the apologists say, COMEX can and will default when they can no longer deliver metal.  They say “cash settlement” is not a default …who are they kidding?  This is the rally you never sell …until you are offered a different “paper” (one that is backed by something, anything) that can be trusted.  China may be making this offer in the near future!

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THE RAPIDLY APPROACHING LAYOFF TSUNAMI

By Andrew Hoffman – Re-Blogged From blog.MilesFranklin.com

Well, I may not have had “much” to say yesterday, but I SURE DO TODAY!  My god, have the “horrible headlines” multiplied in the past 24 hours (it’s early Tuesday morning), which the following two pictures summarize perfectly – in spades.

a1 a2

Yes, the Baltic Dry Index plunged 6% last week to a new all-time low, down a whopping 70% in the past five months.  Meanwhile, the Shanghai Stock Exchange, despite yet another “record liquidity injection” by the PBOC, plunged 6.4% today alone – down 46% from June’s hyper-bubble top, as it sliced through August’s spike-bottom low of 2,850 like a hot knife through butter.  The 10-year Treasury yield is back below 2.0% – “rate hike” and all; WTI crude plunged an astounding 8% yesterday alone, again, to below $30/bbl; whilst the PPT was routed in yesterday afternoon’s trading.  And how about that?  Yet again gold and silver prices rose.  Not to mention, U.S. Mint gold and silver Eagle sales; which, based on early-year results, are on pace to set new annual records.

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Are Teachers Putting Green Indoctrination Ahead of Education?

By Eric Worrall – Re-Blogged From http://www.WattsUpWithThat.com

[US results also were mediocre, compared with other countries, especially Asian countries. -Bob]

There have been a number of stories recently about how Australian schools are doing wonderful things. Sadly, few of these wonderful things seem to involve educating the nation’s children.

According to Australian SBS;

Australian schools going green to combat climate change

A trial program is hoping to shine the spotlight on schools and show them how they can help to combat climate change.

A Perth high school was the first in Australia to be accredited carbon neutral, but the school still wants to do more.

South Fremantle Senior High School in Perth’s south signed up to the Low Carbon Schools Pilot Program to help reduce its carbon footprint.

Fifteen-year-old Taylah Kippo told SBS News the time to act on climate change was now.

She said she was worried about her own generation, but also the ones after.

“You see the effects of climate change every day in our life now at the moment,” she said.

“You see it in many other countries including Australia in areas like farming and many different areas from the changing of the climates.

“It’s not good.”

Fellow Year 10 student Lauren Hunter said her school, which uses photovoltaic cells and has air conditioners on timers, could do more.

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A Visit to the Most Expensive House in America

By Bill Bonner – Re-Blogged From http://www.LewRockwell.com

BALTIMORE, Maryland – Today, a first-hand account of a visit to America’s most expensive private house… and what it tells us about our nation’s fictitious economy.

But first, a headline from Bloomberg yesterday:

Screen Shot 2015-08-21 at 12.27.54 PM

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CRITICAL Support Has Failed!

cropped-bob-shapiro.jpg   By Bob Shapiro

[I’m on vacation this week with my family, including grandkids, and I’ve just located a WiFi hotspot.] The US stock market has been down the last couple of weeks. With the Chinese market losing 9%(!) yesterday, and the US market down 367 more points as I write, it looks like the US downturn may continue to correct from the market’s unsustainably high levels. A “Mean Reversion” to more normal PE levels of 14 could lop off another 6000 points from the Dow. Mean Reversions seldom stop at “Normal Levels,” so an eventual drop over the next couple of years, to Dow 7000 or so, is not out of the question.

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China’s Stock-Bubble Burst

By Adam Hamilton – Re-Blogged From http://www.Gold-Eagle.com

China’s stock bubble has burst, with its stock markets utterly collapsing after rocketing parabolic.  The failure of this popular speculative mania has grave implications for the global stock markets.  It shatters the universally-believed myth that central banks can nullify normal market cycles.  No government has more power over its stock markets than China’s, yet not even it could magically eradicate greed and fear.

Even before their recent calamity, the Chinese stock markets had been the most-interesting financial story of 2015.  Having the world’s second-largest economy, China is immensely important in global markets.  And its stock markets were soaring, as evidenced by China’s flagship benchmark stock index.  It is the Shanghai Stock Exchange Composite Index (SSEC), the local equivalent of the US S&P 500.

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Markets’ Ups and Downs

cropped-bob-shapiro.jpg   By Bob Shapiro

Stock markets in the US, and those around the world, go up – and they go down. There are various names for the size and speed of the downdraft which inevitably follows an up move. Pullback, correction, crash, and bear market are some of the terms used.

But, why do markets go up and down? “In the long term, markets are a weighing machine. In the short run, markets are a voting machine.” I’ve read that quote numerous times, attributed to several different people.

The gist of it is that, a company’s earnings and growth over the long haul are what will cause one company’s stock to double (or more!) while another’s goes down the toilet. But, since growth and earnings are measured in quarters, years, and longer, in the short run, it is how investors feel  about those fundamentals – market participants’ sentiment – which causes the wiggles along the way. Sometimes those wiggles can be major temporary moves, but they still are just wiggles based on sentiment.

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What “Exit Door?”

By Bill Holter – Re-Blogged From http://www.Gold-Eagle.com

Often times I like to write about an event or someone else’s article because of the importance to the overall picture.  Today I will do something a little different.  Below is an e-mail I received last Thursday from a friend.  I have the utmost respect for his thought process and his knowledge.  The writer is “plugged in” if you will, he has very high and powerful contacts in both China and London while he operates out of North America.  The following is chilling to say the least because it comes from someone who “knows”, it is not a speculation on his part because he is seeing it real time!  I will add my comments afterward.

I have been pounding the drum for some time about shrinking liquidity and what the impact will be. Well, I can tell you that we are almost there and a real crisis is developing far faster than what I envisioned that is impacting the 75 Trillion Shadow Banking sector which is on the verge of implosion. Focus on Europe as the real crunch will spread like a wildfire from there seizing up all credit markets.

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The Spread between Stock Prices and GDP is Blowing Out

By Michael Pento – Re-Blogged From http://www.pentoport.com

On a fundamental basis stock prices are reflective of both economic and earnings growth. When growth is strong, stock prices should increase in value. And when economic activity decelerates or turns negative, stock prices should go down. Of course nothing is that simple—especially today, when all markets are so highly manipulated by governments and central banks. Beginning in 2008 the markets followed the Fed on a magical journey down the rabbit hole into a wonderland where bad news is good news; and economic fundamentals and stock prices no longer move in tandem.

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Triggers By Russia And China

By Bill Holter – Re-Blogged From http://www.Gold-Eagle.com

The big story regarding the Asian Infrastructure Investment Bank was the application by the Israelis.  This came just prior to the deadline and of course at the displeasure once again to Washington.  Britain was the early defector followed by Germany, France and Italy.  Eyebrows were raised when Saudi Arabia made their announcement…but I believe what was truly missed was the application by Taiwan.

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