Saturday, August 11, 2012

We Are Now Seeing Huge Orders For Physical Gold & Silver

from KingWorldNews:

Today forty year veteran of the metals markets Bill Haynes told KWN, “Right now we are seeing very large physical orders for both gold and silver. It is very interesting because these are entities with large existing holdings of both physical gold and silver, but for some reason, right here, right now they are adding sizable quantities to their existing positions.

These are wealthy individuals that are very strong hands and they are taking the metal right out of the market, and believe me, these individuals are never sellers. They see gold and silver as a hard asset that has been money for thousands of years, and they are pulling it out of the market and putting it away.

It is also very interesting that we are seeing an equal amount of money going into both gold and silver….

Bill Haynes continues @

Greyerz – We Are Headed Right Into A Global Financial Crash

from KingWorldNews:

Today Egon von Greyerz told King World News, “Wealth has never been created by printing money, and this time, like it has before, it will lead to a financial crash.” Greyerz, who is founder and managing partner at Matterhorn Asset Management out of Switzerland, also said, “This time the financial crash will be of a worldwide magnitude.”

Here is what Greyerz had to say: “The die is already cast for the world’s current situation. It was cast many years ago and it is irreversible. This is exactly why investors need to take a look at the big picture and protect their wealth. But focusing on the short-term for a moment, markets look poised for a big move over the next few months here.”

Egon von Greyerz continues @

U.S. Government Debt Grows $10 Million a Minute: David Walker

Wealth Wire About Metals Inflation Finance Economy Energy Equities Options Liberty U.S. Banks Told to Prepare for Collapse

Regulators have instructed five of our nation's biggest banks to develop some serious plans to ward off collapse in lieu of major problems. U.S. regulators were sure to remind these banks that they should not count on any government assistance this time.

Bank of America Corp (BAC.N), JPMorgan Chase & Co (JPM.N), Goldman Sachs Group Inc (GS.N), Citigroup Inc, (C.N), Morgan Stanley (MS.N).

Perhaps those running these banks have learned from the mistakes of Lehman Brothers CEO Dick Fuld who was not quick enough to action, not decisive enough to stave off serious bank problems in the midst of financial crisis.

Reuters reports:

The two-year-old program, which has been largely secret until now, is in addition to the "living wills" the banks crafted to help regulators dismantle them if they actually do fail. It shows how hard regulators are working to ensure that banks have plans for worst-case scenarios and can act rationally in times of distress.

The documents obtained by Reuters indicate that the Federal Reserve and the U.S. Office of the Comptroller of the Currency first directed the five big banks to design some realistic recovery plans back in May of 2010.

Such plans would need to be feasibly executed within three-six months following any disaster. Without plans in place, collapse would be imminent.

Recovery plans would vary from resolution plans – which are required under the 2010 Dodd-Frank financial reform law. “Living wills aim to end bailouts of too-big-to-fail banks by showing how they would liquidate themselves without imperiling the financial system.”

So far this summer, nine global banks have sent their living wills to the Fed and Federal Deposit Insurance Corp. Public portions of these documents have been released although they have not received much publicity at all.

Reuters was only able to get their hands on the names of the banks required to submit recovery plans through a Freedom of Information Act request.

In the meantime, experts remain deeply concerned with the potential of blow-ups at big banks resulting in another damaging dose of taxpayer bailouts.

Reuters adds:

Five years after the financial crisis, concerns remain about whether blow-ups at big banks could lead to another round of taxpayer bailouts. Trading losses have cost JPMorgan nearly $6 billion so far, and scandals such as the alleged rigging of an international interest rate benchmark have only highlighted the risks lurking inside big banks.

These disasters have damaged banks' reputations, but not their balance sheets. Most are still profitable, and in recent years the five banks have improved their capital bases and liquidity. They also have been subjected to annual Federal Reserve stress tests that measure whether the banks have sufficient capital to weather severe economic scenarios.

This past March, JPMorgan Chase had a recovery plan submitted and then a presentation was organized by Harvard Law School. At the time, the media was denied access to the event and related information.

USDA Supply & Demand Report Recap

USDA Supply & Demand Report Recap

Today the USDA released the highly anticipated monthly Supply & Demand report for grains, cotton, and livestock. All eyes were on the forecasted yields for the U.S. corn and soybean crops as well as harvested acreage estimates.

To no surprise, the USDA did indeed confirm smaller crops in both corn and soybeans for the U.S. However, the government agency did confirm further decreases in demand on domestic and export front for the U.S. for both corn & soybeans. Although as I have been saying for some time now, corn has been pricing itself out of the rations and export business for several months now, I do not believe that soybeans and soybean meal have done the same as evidenced by steady oilseed complex export sales.


With such a tight carryout on U.S. and world basis, it is difficult to argue that corn futures will go down to $ 6.00 anytime soon, since we have NOT even started planting in South America. Until such time, I believe that $ 7.50 - 7.70 will probably be on the bottom of the range for Dec Corn. In the meantime, in this phase of demand destruction, we like to be be bearspread corn (CZ2/ CZ3 and/ or CZ2/ CN3) for the time being. Unless, we have a disastrous planting and growing season in South America, I do not believe that $ 9.00 to $ 10.00 corn is in the cards. 2 very negative (bearish) impacts in the corn market was the reduction in Chinese imports (due to larger production estimate) and larger projected productions in Argentina and Brazil (increase of 6 mln tons vs. last month).


On the other hand, wheat futures took a big hit today but for unexplained reasons in my mind. Although the U.S. carryout was increased, I think that the trade mostly forgot about looking at the world balance sheet as a decrease of stocks to use ratio to 25.9 %, which is the lowest since 2008/09, decrease by 1.0 % almost from last month. This to me is bullish wheat relative to other grains, especially since Russian production is being decreased to 43.0 mln mt (from 49 mln last month). (more)

Jim Rogers on The Take Away Show

Why China Is In Trouble

We have expressed doubts about China’s economy on several occasions in the past. See: ‘Can China’s Planners Do It One More Time‘ and ‘Soft Versus Hard Landing‘, where we have discussed a number of early warning signs in detail. Of course we need not really rely on the specific data describing economic history to be able to forecast within praxeological constraints that China’s economy will be in trouble: the knowledge that the country has experienced two enormous credit booms in close succession suffices to allow us to come to this conclusion. The only things that introduce an element of uncertainty are the question of timing and in China’s case specifically, the ability of the central economic planners to order the banks around.

To this point we must introduce a qualification: state control over the banking system is very extensive, so that the unwillingness of bankers to take on more risk in the face of faltering boom is certainly not a factor in restricting credit. However, one must be aware that in every bust, what is indeed a factor in restricting credit regardless of the powers of regulators and planners is the state of the pool of real savings.

China: bank credit as a percentage of GDP (source: Morgan Stanley). Since December of 2008, $5.3 trillion in additional loans have been disbursed. Relative to GDP, this is the functional equivalent of the US banking system extending about $11.2 trillion in new loans. If that had actually happened in the US, we’d have witnessed a crack-up boom that would have everybody greatly worried by now - click chart for better resolution.


Gerald Celente : Watch out for September 12, 2012 !!!!