- The game is up for the bullion banksters. Their silver and gold raids for the past few weeks have failed spectacularly! Everybody and their dog seem to be waiting to buy silver every time the bullion banksters bring prices down!
Anatomy of a short squeeze
by Alasdair Macleod
The shortage of gold and silver is the driving force behind the bull markets in these metals. Quite simply, the outstanding obligations in these commodities exceed the stock available. I vividly recall a rare example of a similar situation during my stockbroking days, which will serve to illustrate this point.
In the UK’s property crash of 1974, the shares of property companies fell by as much as 90%, but one share that resisted this trend was London Bridge Securities. LBS shares remained stubbornly high, because as it turned out, the directors and their cronies were buying them. Eventually, however, they were swamped by short-sellers, and the share price fell heavily. The directors of London Bridge Securities then realised that they and their friends owned more than 100% of the company. This state of affairs arose because the short-sellers were unable to deliver any scrip, and none of the existing shareholders were prepared to lend them any. The result was a buying-in procedure involving an auction on the floor of the stock exchange, where the price was bid up to a level where holders of the shares were prepared to sell.
The short was closed out at about three times the share price of earlier that morning. The squeeze on the bear position had nothing to do with the company’s underlying value: it occurred because one big speculator got into an impossible position that had to be resolved. And that more or less is where gold and silver appear to be today.
Silver offers the closer parallel with the London Bridge example. There are a few banks with large short positions in silver on the US futures market in quantities that simply cannot be covered by physical stock. The outstanding obligations are far larger than the stock available. The lesson from the London Bridge example is that prices in a bear squeeze can go far higher than anyone reasonably thinks possible. The short position in gold is less visible, being mainly in the unallocated accounts of the bullion banks operating in the LBMA market. But it is there nonetheless, and the bullion banks’ obligations to their bullion-unallocated account holders are far greater than the bullion they actually hold.
But there is one vital difference between my example from the property market of 1974 and gold and silver today. The bear who got caught short of London Bridge Securities was right in principal, because LBS went bust shortly afterwards; but in the case of gold and silver, the acceleration of monetary inflation is underwriting rising prices for both metals, making the position of the bears increasingly exposed as time marches on.
Perhaps the most important lesson we can learn from the LBS situation – and highly applicable to the situation today in precious metals, which could be developing into the largest short squeeze in history – is that very few other people in the investment community actually understand what is happening. This is something to bear in mind when taking investment advice.
- Most people have a rather antiseptic view of reality. This is because they are fed a bunnch of lies constantly by the MSM. The tussle we see over the USD and a new monetary world order, is not a friendly spat between friends. It is the battle for world domination and control. It is the battle for a New World Order, World Government, Global Supra-National Central Bank and World Currency. It will lead to World War 3!
- The western Illuminati which has been in control of most of the world will fight tooth and nail to maintain their global financial and monetary hegemony. Most central banks are Illuminist owned via the Satanic Rothschild bloodline. They will not allow any new comer: BRICS or anybody to threaten their Luciferian grip on humanity. This is simply 2 snakes: western Illuminati vs Russia-China Illuminati, fighting to see who gets to control the world. Major strategic chess moves in MENA have just been made by the western Illuminati via US-NATO, it will all lead to the Satanic World War 3 Plan!
BRICS make move to shove dollar aside!
By David Marsh, MarketWatch
BOAO, China — China and four other leading high-growth economies have taken landmark steps toward lowering the importance of the dollar in international financial transactions — part of a seminal shift in the move towards a multicurrency reserve and trading system.
Mind you, you wouldn’t get an idea of anything dramatic from reading the official Chinese press on the conclusion of a summit meeting of the so-called BRICS economies (Brazil, Russia, India, China and South Africa) in the southern resort twin of Sanya in southern China last week.
“Leaders call for peace and prosperity” was the front-page headline in the China Daily. Stirring stiff. Even more striking was the prominent story the previous day that China’s President Hu Jintao and visiting Brazilian President Dilma Rousseff had agreed to quicken trade procedures for “gelatin, corn, tobacco leaf, bovine embryos and semen.” At least we know there’s no holding back the Chinese rhetorical flourishes on these issues.
The five countries agreed to expand use of their own currencies in trade with each other — an important step toward putting the dollar into a new downsized place. One key influence is the annual expansion of China’s trade volume with other core countries by 40% in 2010 — and the buoyancy looks set to continue. The BRICS’ state development banks, including the China Development Bank, agreed to use their own currencies instead of the dollar in issuing credit or grants to each other — and they will also phase out the dollar in overall settlements and lending among each other.
Chinese officials at the annual Boao Forum at the end of last week voiced cautious optimism about the possibilities for far-reaching international monetary reform proposals taking a step forward when the G-20 meet in Cannes in November at the behest of French President Nicolas Sarkozy. Chief among these is for enhancing the special drawing right of the International Monetary Fund through the inclusion of emerging market currencies.
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- The Chinese are sweating in their sleep when they think about the US$1T exposure to US debt. They have themselves to blame for keeping their currency undervalued for far too long. I am, however, sympathetic to their predicament. They did so to boost employment and thus boost prosperity for the low income masses. We should, in no way think that the coming US treasuries meltdown will only affect countries like China and Japan because of their large US treasury holdings. It will reverberate around the world and the USD will tank. Everyone will be affected to varying degrees. It will eventually lead to World War 3!
China urges U.S. to protect creditors after S&P warning
by Kevin Yao and Judy Hua, Reuters
BEIJING (Reuters) - China’s Foreign Ministry said on Tuesday that the United Statesmust take “responsible” measures to protect investors in its debt after Standard & Poor’s threatened to lower its credit rating on the United States due to a bulging budget deficit.
“We hope the U.S. government will take responsible policies and measures to safeguard investors’ interests,” the ministry said in a statement. China’s foreign exchange reserves, already the world’s biggest, rose by nearly $200 billion in the first quarter to $3.05 trillion. About two-thirds are estimated to be invested in dollars.
Beijing has repeatedly warned that loose U.S. monetary policy threatens the dollar, but it has continued to accumulate dollar assets at the same time, adding about $260 billion of Treasury securities last year, according to U.S. data.
GEAB N°54: Global Systemic Crisis – Autumn 2011 – Budget / T-Bonds / Dollar, The Three US Crises Which Will Cause The Very Serious Breakdown of The Global Economic, Financial And Monetary System!
- I have warned repeatedly about the coming global economic, financial and monetary meltdown. As we approach the end of 2012 (Pastor Lindsey William’s Dollar death schedule), the world will experience greater and greater economic and financial earthquakes! Gold is hitting record highs because fiat currency is fleeing debasement towards hard assets. Silver is hitting fresh 31 year highs daily. It may be a matter of a few weeks before it reached the all time high of US$50/oz. Both precious metals are calamity indicators. Their rise portend trouble ahead. Make sure you accumulate as much physical gold/silver as you can as insurance against the coming global collapse!
GEAB N°54 is available! Global systemic crisis: Autumn 2011 – Budget/T-Bonds/Dollar, the three US crises which will cause the Very Serious Breakdown of the global economic, financial and monetary system
The 15 September 2010, GEAB N°47 issue was headed « Spring 2011: Welcome to the United States of Austerity / Towards the very serious breakdown of the world economic and financial system ». Yet at the end of summer 2010, most experts believed first, that the debate on the US budget deficit would remain a mere subject of theoretical discussion within the Beltway (1) and secondly, that it was unthinkable to imagine the United States engaging in a policy of austerity because it was sufficient for the Fed to continue to print dollars. Yet, as everyone has been able to see for several weeks, Spring 2011 really did bring austerity to the United States (2), a first since the Second World War and the setting up of a global system based on the ability of the US engine to always generate more wealth (real from 1950 to 1970, increasingly virtual thereafter).
At this stage, LEAP/E2020 can confirm that the next stage of the crisis will really be the “Very Serious Breakdown of the world economic, financial and monetary system” and that this historic failure will occur in autumn 2011 (3). The monetary, financial, economic and geopolitical consequences of this “Very Serious Breakdown” will be of historic proportions and will show the crisis of autumn 2008 for what it really was: a simple detonator.
The crisis in Japan (4), the Chinese decisions and the debt crisis in Europe will certainly play a role in this historic breakdown. On the other hand we consider that the issue of government debt of countries on Euroland’s periphery is no longer the dominant European risk factor here, but it is the United Kingdom which will find itself in the position of the “sick man of Europe” (5). The Eurozone has in fact established and keeps improving all the monitoring systems needed to address these problems (6). Management of the Greek, Portuguese and Irish problems will therefore take place in an organized fashion. That private investors must take a haircut (as anticipated by LEAP/E2020 before summer 2010) (7) does not belong to the category of systemic risks, displeasing the Financial Times, the Wall Street Journal and Wall Street and City experts, trying every three months to rerun the “coup” of the early 2010 Eurozone crisis (8).
In contrast, the United Kingdom has completely missed its attempt at “preventive budgetary amputation surgery” (9). In fact, under pressure from the street and particularly more than 400,000 British who roamed the streets of London on 03/26/2011 (10), David Cameron is forced to lower his target for reducing health care costs (a key point of his reforms) (11). At the same time, the Libyan military adventure has also forced him to rethink his goals for Defense Ministry budget cuts. We already mentioned in the last GEAB issue that the British government’s financing needs continue to rise, reflecting the ineffectiveness of the measures announced whose implementation is proving very disappointing in reality (12). The only result of the Cameron / Clegg (13) duo policy is currently the relapse of the British economy into recession (14) and the obvious risk of the ruling coalition imploding after the next referendum on electoral reform.
In this issue, our team describes the three key factors that mark out this Very Serious Breakdown of autumn 2011 and its consequences. Meanwhile, our researchers have begun to anticipate the progression of the Franco-Anglo-American military operation in Libya which we believe is a powerful accelerator of global geopolitical dislocation and that it usefully illuminates some of the current tectonic changes in the relationships between major world powers. In addition to our GEAB $ index, we expand on our recommendations for dealing with the dangerous quarters to come.
Basically, the process that is unfolding before our eyes, of which the US entry into an era of austerity (15) is a simple budgetary expression, is a continuation of the balancing of the 30 trillion of ghost assets which had invaded the global economic and financial system in late 2007 (16). While about half of them had disappeared in 2009, they have been partially resurrected since then due to the volition of the major global central banks, and the US Federal Reserve in particular and its “QE 1 and 2″. Our team considers, therefore, that 20 trillion of these ghost assets will go up in smoke beginning autumn 2011, and very brutally, under the combined impact of the three US mega-crises in accelerated gestation:
. the budgetary crisis, or how the United States plunges willingly or by force into this unprecedented austerity and takes whole swathes of the global economy and finance with it
. the crisis in US Treasury bonds, or how the US Federal Reserve reaches the “end of the road” which began in 1913 and must face up to its bankruptcy whatever accounting sleight of hand is chosen
. the US Dollar crisis, or how the jolts in the US currency that will characterize the ending of QE2 in the second quarter of 2011 will be the beginnings of a massive devaluation (around 30% in a few weeks).
Central banks, the global banking system, pension funds, multinationals, commodities, the US population, Dollar zone economies and/or dependent on trade with the United States (17) … everyone structurally dependent on the US economy (of which the government, the Fed and the federal budget have become central components), assets denominated in dollars or commercial dollar transactions, will suffer the head on shock of 20 trillion in ghost assets purely and simply disappearing from their balance sheets, from their investments, and causing a major decline in their real incomes.
Around the historic shock of autumn 2011 which will mark the definitive confirmation of significant trends anticipated by our team in previous GEAB issues, the main asset classes will experience major upheavals requiring the increased vigilance of all players concerned for their investments. In fact, this triple US crisis will mark the true exit from the “world after 1945″ which saw the US play the role of Atlas and will, therefore, be marked by many shocks and aftershocks in the quarters which follow.
For example, the dollar may experience short-term effects of strengthening value against the major world currencies (especially if US interest rates rise very quickly following the ending of QE2), even if, six months after that, its 30% loss of value (relative to its current value) is inevitable. We can, therefore, only repeat the advice that has appeared at the head of our recommendations since the beginning of our work on the crisis: in the context of a global crisis of historic proportions like the one we are experiencing, the only rational objective for investors is not to make more money, but to try to lose as little as possible.
This will be particularly true for the coming quarters where the speculative environment will become highly unpredictable in the short term. This short term unpredictability will be particularly due to the fact that the three US crises that trigger Very Serious Breakdown in the world in autumn are not concurrent. They are very closely correlated but not linearly. And one of them, the budget crisis, is directly dependent on human factors with a big influence on the timing of the event; whilst the other two (whatever those who see the Fed officials as gods or devils think (18)) are now, for the large part, included in the significant trends where US leaders’ actions have become marginal (19).
The budget crisis, or how the United States plunges willingly or by force into this unprecedented austerity and takes whole swathes of the global economy and finance with it.
The numbers can make the head spin: “6 trillion in budget cuts over ten years” (20), said the Republican Paul Ryan, “4 trillion in twelve years” retorted the 2012 candidate Barack Obama (21), “all this is far from sufficient”, bids one of the Tea Party referents, Ron Paul (22). And anyway, sanctions the IMF, “the United States is not credible when it speaks of cutting its deficits” (23). This unusually harsh remark from the IMF, traditionally very cautious in its criticism of the United States, is in any case particularly justified in terms of the psychodrama which, for a fistful of tens of billions of dollars, nearly shut down the federal state absent any agreement between the two major parties, a scenario that will, moreover, soon take place again over the federal debt ceiling.
The IMF is only expressing an opinion widely shared by creditors of the United States: if, for a few tens of billions USD in deficit reduction, the US political system reached that degree of paralysis, what will happen when, in the coming months, cuts of several hundred billion dollars a year will be required? Civil war? This is the new California governor Jerry Brown (24) opinion in any case, who believes that the United States is facing a regime crisis identical to that which led to the Civil War (25).
The context, therefore, is no longer mere paralysis but really an all-out confrontation between two visions of the country’s future. The closer the date of the next presidential election gets (November 2012), the more the confrontation between the two sides will intensify and take place regardless of any rule of good behaviour, including safeguarding the country’s common good: “Whom the gods would destroy they first make mad”, says the ancient Greek proverb. The Washington political scene will increasingly resemble a psychiatric hospital (26) in the coming months, making “the bizarre decision” increasingly likely. If, in order to reassure themselves about the dollar and Treasury bonds, Western experts repeat in turn that the Chinese would be crazy to get rid of these assets which would thus only hasten their fall in value, it’s that they haven’t yet understood that it’s Washington and its political mistakes that can come to the decision that hastens this fall. And October 2012, with its traditional annual budget vote, will be the ideal moment for this Greek tragedy which, according to our team, won’t have a happy ending because this isn’t Hollywood, but really the rest of the world which will write the scenario’s sequel.
Whatever the case, by political choice, by closing down the federal government or by irresistible outside pressures (27) (interest rates, IMF + Euroland + BRIC (28)), it is really in autumn 2011 that the US federal budget will massively shrink for the first time. The continuation of the recession coupled with the ending of QE2 will cause interest rates to rise and thus significantly increase federal debt servicing costs, against a backdrop of falling tax revenues (29) caused by a relapse into a deep recession. Federal insolvency is now just round the corner according to Richard Fisher, president of the Federal Reserve Bank of Dallas (30).
- Zionist ’666′ Israel is a Satanic counterfeit. Ashkenazi Khazars (80%-90% of modern Jewry) are not the Jews of the Bible! They were never the chosen race and their ancestors were never in Palestine! What these Zionists do to the Palestinians is called: genocide and ethnic cleansing! See also: The Zionist Story! Genocide And Ethnic Cleansing of Palestine! Through The Eyes of An Ex-Israeli Soldier!
1980 Jewish Almanac
“Strictly speaking it is incorrect to call an ancient Israelite a ‘Jew’ or to call a contemporary Jew an Israelite or a Hebrew.”
(1980 Jewish Almanac, p. 3)
The Jewish Encyclopedia:
“Khazars, a non-Semitic, Asiatic, Mongolian tribal nation who emigrated into Eastern Europe about the first century, who were converted as an entire nation to Judaism in the seventh century by the expanding Russian nation which absorbed the entire Khazar population, and who account for the presence in Eastern Europe of the great numbers of Yiddish-speaking Jews in Russia, Poland, Lithuania, Galatia, Besserabia and Rumania.”
The American Peoples Encyclopedia
… for 1954 at 15-292 records the following in reference to the Khazars: “In the year 740 A.D. the Khazars were officially converted to Judaism. A century later they were crushed by the incoming Slavic-speaking people and were scattered over central Europe where they were known as Jews.
“You shall neither mistreat a stranger nor oppress him, for you were strangers in the land of Egypt.”
“Also you shall not oppress a stranger, for you know the heart of a stranger, because you were strangers in the land of Egypt.”
‘And if a stranger dwells with you in your land, you shall not mistreat him.’
The stranger who dwells among you shall be to you as one born among you, and you shall love him as yourself; for you were strangers in the land of Egypt: I am the LORD your God.
‘When you reap the harvest of your land, you shall not wholly reap the corners of your field when you reap, nor shall you gather any gleaning from your harvest. You shall leave them for the poor and for the stranger: I am the LORD your God.’
You shall have the same law for the stranger and for one from your own country; for I am the LORD your God.
22 It shall be that you will divide it by lot as an inheritance for yourselves, and for the strangers who dwell among you and who bear children among you. They shall be to you as native-born among the children of Israel; they shall have an inheritance with you among the tribes of Israel. 23 And it shall be that in whatever tribe the stranger dwells, there you shall give him his inheritance,” says the Lord GOD.
- The so-called Star of David is a Satanic symbol. Satanists and occult practitioners use it for calling Satan and demons!
Former Satanist, Bill Schnoebelen (now born again Christian)
“A hexagram must be present to call forth a demon” and ” it is a very powerful tool to invoke Satan”.
“To the sorcerer, the hexagram is a powerful tool to invoke Satan.” In fact, the word “hex” — as to put a “hex” or “curse” on people — comes from this word.
If you examine the so-called “Star of David,” or hexagram, closely, you will discover something astonishing. It has six points, forms six equilateral triangles, and in its interior forms a six sided hexagon — thus it reveals the number of Satan’ antichrist beast, — 6 points, 6 triangles, and the 6 sides of the hexagram — 666 !!!
Marc Faber is spot on as usual:
Be Your Own Central Bank; Own Gold, Silver: Marc Faber
Famed investor Marc Faber, Editor and Publisher of The Gloom, Boom & Doom Report said investors “should be their own central banks and gradually accumulate gold reserves as a currency”, rather than speculating in gold.
According to Faber once the Federal Reserve’s quantitative easing ends in June, the central bank will come under pressure to announce another round of easing, or QE3. While he acknowledged the greenback may see a temporary rally, he said long-term the dollar would to continue to decline. ..
“The value of the U.S. dollar will be precisely its intrinsic value — namely zero, precisely zero,” said Faber. That in turn would boost demand for gold and silver. Spot gold .. hit a record high of $1,4880.50 on Monday, while silver.. rose to a 31-year high of $43.34 as concerns about rising inflation and the euro zone’s debt problems boosted safe haven demand.
Another factor that would boost gold prices were negative real interest rates in emerging economies. He said interest rate hikes in countries such as India and China would not keep up with the rising cost of living and that would make assets such as gold and property attractive.
Faber recommended holding physical bullion over other gold assets such as ETFs or gold mining companies. However, he advised against holding gold assets in the U.S. because of the risk of “expropriation” of gold assets by U.S. authorities.