Saturday, July 21, 2012

London Trader: The LBMA Gold Price Fixing Scheme Is OVER

from KingWorldNews:

With many global investors still concerned about the recent price action in gold and silver, today King World News interviewed the “London Trader” to get his take on these markets. The source told KWN that “… the LBMA’s price fixing scheme is coming to an end.” The source also said that because of this, the eventual “move in gold and silver will literally frighten most people.”

Here is what the source had to say: “It is now beginning to be discussed, openly, that the unallocated gold is not at the banks. This is definitely the case with many of the allocated accounts as well. The reason I’m pointing this out is you have a more ‘open’ disclosure that’s taking place with regards to this.”

Caesar Bryan continues @

Why You Should Watch Your Blind Spot For An Oil War

feature photo

It's usually the thing you're NOT thinking about that catches you most by surprise. Of course the previous statement is a tautology. What we're trying to say is that your ultimate enemy in a bear market is complacency. In order to avoid unnecessary losses, you have to force yourself to think about the things you're not thinking about!

What is it everyone has forgotten or become complacent about? Well, we would never presume to speak for everyone. Speaking for ourselves, we realised this morning how complacent we've become about the fact there's a war raging in the Middle East between Saudi Arabia and Iran. And it's getting worse by the day.

You probably won't see the escalating civil war in Syria described as a war between Iran and Saudi Arabia, but that's exactly what it is. This is a repeat of the same scenario that's played out across the Arab world since the Arab Spring began when Mohamed Bouazizi set himself on fire in Tunisia in December 2010. Authoritarian regimes (previously supported by the US and European allies) have melted away and left a power vacuum contested by Sunnis, Shias and other groups.

Five years ago, any hint of civil insurrection in the Arab world was enough to send the oil price up. The 'geopolitical' premium in oil was a huge factor in its run to US$145 in 2008. Then you had a combination of the financial crisis and the huge drop off in growth. Oil prices went into free fall.

They've recovered some since then, as the chart below shows. In fact, the recent price action caught our attention. The spot price of Brent Crude is up 15% since late June. The chart shows Brent consistently oversold for the last month, with the Relative Strength Index (RSI) under 30. And for what it's worth, the daily price has crossed above the 50-day moving average, which is usually a bullish sign.

Source: StockCharts

We generally leave the technical analysis to Murray, but all we'd like to point out here is that the oil price is moving again. And it can't be moving because of bullish growth forecasts from the world's major economies. Could the rise in Brent Crude be the first signal that the simmering war between Saudi Arabia and Iran is about to boil over in Syria? (more)

Weather Manipulation Causing Drought - Food Shortages on the Way!

This is the broadcast from Tuesday July 17, 2012. Joe Joseph and Gwen Caldwell discuss the menacing drought afflicting most of the U.S. and what it means in terms of food shortages , It explains why crops are failing, why food and gas prices will go up in the fall and fresh water is disappearing . The U.S. just announced a state of emergency in 26 states because of drought, which has dramatically effected the corn supply. this mono crop mega agro may fail.The price of food across America will skyrocket due to inflation caused by a year of irregular weather patterns. Start Storing Survival Food . Make a plan early and prepare. US soil requires crude oil to grow, not sustainable. Buy seeds and supplies and a small plot to garden on. Biospharms develop small sustainable mini farms off the grid in tropical countries where the soil is good. Have an emergency retreat at low cost and no maintenance. Your family depends on you.

Short winter and severe drought will cut expected 2012 corn crop in HALF. Corn is used in thousands of products - either as filler or via corn syrup. Plus, it is a major food source for livestock. That means, the price of all kinds of food will jump as the year comes to an end. What the well intentioned guest fails to mention is how the Chicago Mercantile exchange has significant influence on food prices. Some people feel the word is over populated – the problem is not over population; the fact is the world is underdeveloped. If mankind only cooperated together and lost the thirst for war, the sky would be the limit to what he could achieve. We have no one to blame but ourselves and the vast mismanagement of the world’s resources; this is a mathematical reality.

Median Wealth And Those Wealthy Canadians

This chart on Median Wealth is making the rounds, from an article in the Washington Post based on a recent report on global wealth from Credit Suisse.

Please note that this is median wealth, not total and not per capita.

Americans' first reactions seem to be, 1. Australia is in a housing bubble and they'll get theirs, and 2. we're less well off than Canada?! No one likes to see their little brother doing better than they are.

I think Australia is in the China bubble overall, and there may be some decline in the cards there.

But since this is median wealth, a more useful comparison would be to look at the difference between median and average for each country, to get a better idea of how each nation's public policy decisions have been affecting total wealth distribution, and additionally compare that to growth vector.

Perhaps if I get amibitious I will do it. Here is the original Credit Suisse report.

Here is the original article that sourced this chart from the Washington Post. Are Canadians Richer Than Americans?

The only change I made to this chart from the Washington Post was to redo the names in a larger font, for those who are not adept at reading the original micro-print.

The Price Of Corn Hits A Record High As A Global Food Crisis Looms

from The Economic Collapse Blog:

Are you ready for the next major global food crisis? The price of corn hit an all-time record high on Thursday. So did the price of soybeans. The price of corn is up about 50 percent since the middle of last month, and the price of wheat has risen by about 50 percent over the past five weeks. On Thursday, corn for September delivery reached $8.166 per bushel, and many analysts believe that it could hit $10 a bushel before this crisis is over. The worst drought in the United States in more than 50 years is projected to continue well into August, and more than 1,300 counties in the United States have been declared to be official natural disaster areas. So how is this crisis going to affect the average person on the street? Well, most Americans and most Europeans are going to notice their grocery bills go up significantly over the coming months. That will not be pleasant. But in other areas of the world this crisis could mean the difference between life and death for some people. You see, half of all global corn exports come from the United States. So what happens if the U.S. does not have any corn to export? About a billion people around the world live on the edge of starvation, and today the Financial Times ran a front page story with the following headline: “World braced for new food crisis“. Millions upon millions of families in poor countries are barely able to feed themselves right now. So what happens if the price of the food that they buy goes up dramatically?

Read More @

Richard Russell - Get Rid Of Debt & Prepare For Tough Times

With continued uncertainty in global markets, the Godfather of newsletter writers, Richard Russell, issued the following warning: “This is the time to cut back on needless expenses -- get rid of all the debt you can, and prepare for tough times. I don't like the utter calm and complacency that I see today. The last few generations can't conceive of drastic changes and hard times.” (more)

Why This Energy Stock Could Triple in Three Years

For a multitude of reasons, there are times when a company trades at a considerable discount to the value of the underlying business. Within the energy sector, I think I've found a stock that the market may be unfairly discounting. It's a small-cap oil-focused producer with some very valuable assets. And it could be significantly undervalued.

A natural-gas-focused beginning
I'm talking about Oklahoma City-based SandRidge Energy (NYSE: SD ) . Before I get into the details of why I think it's undervalued, let's talk about some of the great moves the company has made since its inception six years ago.

CEO Tom Ward started SandRidge in 2006 after leaving Chesapeake Energy, where he served as chief operating officer. The company's first purchase was a gas field in West Texas. As Mr. Ward recounts, SandRidge was originally a natural gas story, predicated on the then-prevalent belief that natural gas prices would stay above $7/mcf.

The early shift to oil
But by 2008, the company's management believed natural gas prices were headed much lower. Later that year, SandRidge hedged all of its natural gas production for two years with a new and steadfast focus on oil. Since that time, the MMBTU price for natural gas has fallen to just a fraction of the price of oil. With the benefit of hindsight, this was an incredible strategic move. (more)

EXCLUSIVE – Bill Murphy’s London Source: “BIG, BIG Gold & Silver Moves Are Coming in August”

This is a breaking report with GATA’s Bill Murphy: Bill’s source in London, one of the wealthiest men in Europe, is telling him that JP Morgan is having a hard time extricating themselves from their silver short position. The source also claims that big, big gold and silver moves are coming this August.