Saturday, October 27, 2012

Financial Astrology: Metals Under Accumulation

By Karen Starich

The recent pullback in silver is counter intuitive to the HUI and suggests something is not jiving with the paper price of silver.  There are currently very strong aspects with Jupiter (silver) and Saturn (gold and mining) to the U.S. chart that would suggest institutional investors acquiring large amounts of the precious metals.  There could be more backwardation going on behind the scenes as the miners look bullish while the paper prices are moving lower.  Silver Wheaton (SLW),  Pan American Silver (PAAS),  Mag Silver (MVG), and Coeur D Alene (CDE) have not pulled back in line with the paper price and continue to look bullish.

I would have expected more of a bounce with the paper price along with the Jupiter/Saturn aspects, and that has not materialized.  There is another opportunity for the silver price to move higher near November 6th-23rd, so we will have to see how that plays out.  We may continue to see smaller incremental moves for silver into the end of 2012.

There is a transit to the Federal Reserve chart from the planet Hades that could be very debilitating to the price of silver and gold.  Hades (rules banking) is opposing the Federal Reserve Sun in Capricorn (gold and mining) and suggests an intensifying tug of war over the control of the metals. Hades moves very slow so this transit will be hanging around until mid 2014.  The influence is very exhausting as neither side wants to give in.  We have the bullion banks on one side manipulating through paper transactions and lease agreements, and the gold and mining bugs on the other with their vast network of investors and website propaganda machines.

In order to get another very bullish run we will have to have some very strong transits with Uranus to throw the banks off balance.  That may happen in April of 2013 when Uranus will square the U.S. Sun then oppose the U.S. Saturn while at the same time making an inconjunct to the Federal Reserve Moon.  The setup suggests there could be a change of leadership coming within the Federal Reserve and we could see an explosive move for silver near April 4th-10th of 2013.

The Dollar is Doomed: Asian Economies Turn to Yuan

by Gao Changxin, China Daily:
A “renminbi bloc” has been formed in East Asia, as nations in the region abandon the US dollar and peg their currency to the Chinese yuan — a major signal of China’s successful bid to internationalize its currency, a research report has said.
The Peterson Institute for International Economics, or PIIE, said in its latest research that China has moved closer to its long-term goal for the renminbi to become a global reserve currency.
Since the global financial crisis, the report said, more and more nations, especially emerging economies, see the yuan as the main reference currency when setting their exchange rate.
And now seven out of 10 economies in the region — including South Korea, Indonesia, Malaysia, Singapore and Thailand — track the renminbi more closely than they do the US dollar. Only three economies in the group — Hong Kong, Vietnam, and Mongolia — still have currencies following the dollar more closely than the renminbi, said the report, posted on the institute’s website.
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Hard-Pressed Canadian Homeowners Just Close Their Eyes and Borrow Some More

by Kelly McParland
National Post

Canadians will learn an ugly lesson if they keep piling on debt the way they are at the moment.
The Bank of Montreal report that came out Monday and noted that almost three-quarters of homeowners would feel a significant squeeze from even a small rise in interest rates shows just how close Canadians are to falling over the edge of their finances. What it means, in essence, is that 73% of the people surveyed can’t afford their own homes. And a lot of them are already feeling the pinch.
A third have cut back on other spending so they can make the mortgage payment. One in six has been forced to raid their savings to pay current costs. This is at a time when interest rates are at historic lows, which means they can only go up from here. That they will rise, eventually, is inevitable. Yet 16% of the people in the survey said they might not be able to make their payments if rates rose by even a tenth.
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Chinese stocks are going to rise whilst the DJIA falls...the InvesTRAC model shows that the decline in the SSE/DJIA ratio which peaked at 0.4566 in January 2008 bottomed at 0.1489 last month after an almost 70% underperformance...this means that the ratio is now going up as the SSE (Shanghai All Share index) beats the DJIA hands down. The SSE has fallen from a high of 6429.6 to a low of 1749 and it is in the process of correcting this decline whilst the Dow is busy correcting its rise. The chart of the SSE/DJIA ratio above shows this year's history and whilst the SSE needs to beat resistance at 2138 to keep rising, the ratio has clearly reversed and is headed higher. If you want to be in equities you know what to do...the InvesTRAC model says be long SSE and short DJIA. ...check the Global Seven scorecard at

The Nuclear Situation Nobody is Talking About

We're in a new era. I call it the era of scarcity.

Around the world, literally billions of people are all fighting for the same limited resources.

Once you burn a barrel of oil or a ton of coal, it's gone forever. Demand keeps going up, and supplies keep shrinking, leading to steady price increases for these expiring resources.

But that's not a reason to fear. It's an opportunity to profit. And right now, there's a situation of scarcity that almost no one is talking about. Yet the consequences could be felt by every American. And only savvy investors who are ahead of the game will be ready to profit.

Here are the details...  (more)

The Road To Bullion Default: Part II

by Jeff Nielson
Bullion Bulls Canada

In Part I, readers were reminded yet again of the totally unsustainable parameters in the gold and silver markets. To be specific, manipulating gold and silver prices lower (for several decades) is resulting in the collapse of inventories – with the only possible long-term outcome being the collapse of the bankers’ fraudulent paper-bullion markets.
As with any other item, the collapse in inventories (and the increasing scarcity that implies) means that gold and silver prices must concurrently soar as the banksters’ paper-bullion scams collapse. Putting these two factors together, readers will soon see that the final rupturing of the paper-bullion markets does not necessarily have to result from any sort of formal default event.
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If Romney Wins, Expect the End of Quantitative Easing

It’s been nearly eight years, since Fed chief Ben Bernanke told the Senate Banking Committee at his confirmation hearing, that “with respect to monetary policy, I will make continuity with the policies and policy strategies of the Greenspan Fed a top priority.” The former Princeton University professor who served as a Fed governor from August 2002 to June 2005 before accepting the post as President George W. Bush’s top economic adviser, also pledged, “I will be strictly independent of all political influences,” Bernanke said.

History will show that Bernanke did follow in the footsteps of his mentor for the first 3-½ years of his tenure. The infamous “Greenspan Put,” or the knee-jerk reaction by the Fed to rescue the stock market whenever risky bets went sour, - through massive injections of liquidity and reductions in interest rates, - was seamlessly replaced by the “Bernanke Put.” Since Bernanke gained control over the money spigots, the Fed continued to expand the MZM money supply by +65% to a record $11.3-trillion today. That’s an increase of about +9.4% per year, on average. The yellow metal never traded a nickel lower since Mr Bush tapped Bernanke to become the next Fed chief in Nov 2005, when the price of Gold was $468 /oz. Today, Gold is hovering around $1,735 /oz, up +370% for an annualized gain of +57%, - highlighting the most devastating blow to the purchasing power of the US-dollar of all-time. 

Following the stock market crash of 2008, Bernanke decided to take US-monetary policy down a very dangerous path that his predecessor had never explored. Bernanke experimented with the nuclear options of central banking, - unleashing powerful weapons for the first time in the US, such as “Quantitative Easing,” (QE), the Zero Interest Rate Policy (ZIRP), and “Operation Twist.” These weapons were forcefully deployed in order to artificially re-inflate the value of the US-stock market, and in turn, help to boost President Barack Obama’s chances at winning re-election. Bernanke borrowed the blueprints of the Bank of Japan, - the original pioneer in QE and ZIRP, dating back to March of 2001. The Fed was able to engineer a doubling of the S&P-500’s market value in just three-years, for a gain of $7-trillion, from the bottom of the brutal Bear market that came to a merciful end in March of 2009.

However, the Fed chief broke his promise to stay above the political fray, when on Sept 13th, Bernanke and his band of super doves, decided to unleash “Infinity QE-3” or the unlimited printing of money, at an initial rate of $40-billion per month, with less than eight weeks left in the race for the White House. The Fed crossed the line by brazenly supporting the President in his bid for re-election. By jolting the stock market higher, Fed aimed to conjure-up the illusion among the general public of an economic recovery looming on the horizon that would in the short-term, boost consumer confidence, and the opinion polls for Barack Obama.  (more)

Foreclosures fall in 62% of U.S. cities

NEW YORK (CNNMoney) -- Foreclosures fell in nearly two-thirds of the nation's largest metro areas during the third quarter, according to RealtyTrac Thursday.

With 62% of the nation's 212 largest markets seeing foreclosure activity shrink during the latest quarter, the ongoing decline is yet another sign that the housing market is starting to stabilize.

During September, foreclosure activity in 58% of the major metro markets had even dropped below September 2007 levels.

The numbers indicate that "most of the nation's housing markets are past the worst of the foreclosure problem," Daren Blomquist, RealtyTrac's vice president said in the report.

Major cities like San Francisco, Detroit, Los Angeles, Phoenix and San Diego saw foreclosures fall by double-digit percentages of 26% or more. (more)