James Turk: Global Markets & Banking System Face Major Collapse!

• Turk – Global Markets & Banking System Face Major Collapse! 
  by www.kingworldnews.com 
  With the Fed kicking off its two-day meeting, today James Turk warned King World News that investors need to be prepared for global markets and the banking system to “literally collapse.”  Turk also spoke about what Western central planners face going forward and the accompanying market risks and dangers.
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  Turk: “One of the most basic principles on which the Federal Reserve under Ben Bernanke has been operating is going to be severely tested tomorrow, Eric, when we get the Fed’s announcement after this current FOMC meeting concludes.
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  The Fed believes that its announcements can control and move the markets in whatever direction these central planners desire.  So for example, the Fed believes that expectations about inflation are more important than the speed at which it is expanding its balance sheet and the quantity of money….
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Banks Poised For Gold & Silver Turn As Central Planners Panic!

Remember the Golden Rule: He who has the gold makes the rules! Got physical gold yet?

• Banks Poised For Gold & Silver Turn As Central Planners Panic! 
  by www.kingworldnews.com
  With the Fed decision taking place, and continued volatility in gold and silver, today John Embry complained about kitco’s “gobbledygook” reporting, and he stated that central panners are panicking, which is why Bernanke is leaving the Fed.  Embry also spoke with KWN about physical gold demand, what the Chinese are up to, and what to expect from the price of silver going forward.  Below is what Embry had to say in this powerful interview. 
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  Embry:  “Yesterday was another one of those days where the stock market was up sharply and the gold market was down significantly.  It’s frustrating for anybody who recognizes what’s going on.  If they were really worried about a Fed ‘taper,’  the stock market should be getting crushed. 
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  The fact that the stock market was surging says to me that there will be no Fed tapering.  As this becomes obvious to gold market participants, the Fed will have achieved its goal of having the gold price rebound from a depressed level.  So gold remains chronically underpriced. But I think all of this is a major ‘holding’ action.  I see the second half of the year being chaotic….
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Gregory Mannarino: Is A MAJOR Stock Market Crash DEAD AHEAD! You Decide…

London Analyst: Financial System on a Hair-Trigger: Everyone Knows that Crisis Could Break Out at Any Time!

• London Analyst: Financial System on a Hair-Trigger: Everyone Knows that Crisis Could Break Out at Any Time! 
  by
  http://larouchepac.com/
   
  Everyone knew that the Fed was going to reach this point of no return — where it is just as dangerously risky to turn back as to go forward — on its QE policy, but the Fed policymakers have certainly been unexpectedly slow in even realizing just how bad a dilemma they are in, a veteran City of London financial analyst told EIR Friday. The markets are going to “punish” Bernanke if he pushes on with QE, because it is now so obvious that money pumping is the only thing keeping things going, but will also certainly fall rapidly if he starts to turn off the faucets. Bernanke is stuck, whatever he does. He might hope that distractions and some extremely ambiguous wording of his intentions will get him through the next weeks or so, but he has nothing else.
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  What is most interesting about the current situation, is how incredibly sensitive the financial mood is to even the slightest movements, such as in the bond markets — because the general fear of what is lurking just below the surface in the world economy is so great. Recent shifts in the bond and equity markets are on a much smaller scale than what occurred last year and the year before, but the international reactions have been much more extreme.
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  The reactions over recent weeks to the Bank of Japan announcement on April 4 that they would be doubling the monetary base, is an example. This wasn’t really any significant qualitative shift in policy, but, 2-3 days later, it shook up global investors as they began to confront the reality that the Fed had been tripling the money supply all along, and panic set in about the enormous scale of liquidity.
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  Tensions will rise fast in Europe again, as Greece will require more financial aid soon, and the blazing row between the IMF and EU about the disastrous consequences for Greece of this effort to save the euro at all costs, shows how deep the dissension goes. One key political battleground is in the upcoming elections in Germany, but whatever happens there, there is going to be a real “hot October” in Europe.

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Gerald Celente: QE, Gold, Silver & The Coming Financial Collapse!

• Celente – QE, Gold, Silver & The Coming Financial Collapse! 
  by www.kingworldnews.com
  For the first time top trends forecaster Gerald Celente gave King World News his predictions on exactly what will take place with future QE, the gold & silver markets, and the coming financial collapse.  Celente’s predictions regarding QE are fascinating to say the least, and they will surprise many KWN readers.  Gerald Celente is the founder of Trends Research, and the man many consider to be the top trends forecaster in the world.  Below is a sneak peek at what Celente expects going forward in this powerful and exclusive interview.
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  Celente:  “It’s all about stimulus and when it’s going to stop.  Here’s our forecast and you are hearing it (here on KWN) first:  We believe they are going to keep levels of stimulus high enough into the new year.
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  The reason (for this) is they have to boost retail sales during Christmas time.  They are going to do everything they can to keep this economy looking strong.  And then, I believe they (central planners) are going to taper back.  They are going to have to taper back. And when they taper back, that is when you are going to see the real collapse start to happen….
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Egon Von Greyerz: Silver Is Coiling For Major Upside Explosion In Price!

• Greyerz – Silver Is Coiling For Major Upside Explosion In Price! 
  by www.kingworldnews.com
  On the heels of the IMF warning the U.S. about the danger of ending QE prematurely, today Egon von Greyerz told King World News that silver is now ready for a major upside explosion in price.  Greyerz also discussed the possibility of a collapse in China as well as what is happening with gold and inflation.  Below is what Greyerz, who is founder of Matterhorn Asset Management out of Switzerland, had to say in this exclusive interview. 
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  Greyerz:  “In the short-term, Eric, European interbank loans are collapsing which means the system is under great strain.  And the major part of the Fed’s money is going to foreign banks. There is also a massive liquidity shortage in China.  It (the liquidity shortage) is now at an all-time high.  The Bank of China wants to drain liquidity, but they can’t since that would mean a collapse of the financial system….
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Billionaires Dumping Stocks, Economist Knows Why!

• Billionaires Dumping Stocks, Economist Knows Why! 
  by Newsmax Wires,
  http://www.moneynews.com/
   
  Despite the 6.5% stock market rally over the last three months, a handful of  billionaires are quietly dumping their American stocks . . . and fast.
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  Warren Buffett, who has been a cheerleader for U.S. stocks for quite some time,  is dumping shares at an alarming rate. He recently complained of “disappointing  performance” in dyed-in-the-wool American companies like Johnson & Johnson,  Procter & Gamble, and Kraft Foods.
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  In the latest filing for  Buffett’s holding company Berkshire Hathaway, Buffett has been drastically  reducing his exposure to stocks that depend on consumer purchasing habits.  Berkshire sold roughly 19 million shares of Johnson & Johnson, and reduced  his overall stake in “consumer product stocks” by 21%. Berkshire Hathaway also  sold its entire stake in California-based computer parts supplier Intel.
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  With 70% of the U.S. economy dependent on consumer spending, Buffett’s apparent  lack of faith in these companies’ future prospects is worrisome. Unfortunately Buffett isn’t alone.
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  Fellow billionaire John Paulson, who  made a fortune betting on the subprime mortgage meltdown, is clearing out of  U.S. stocks too. During the second quarter of the year, Paulson’s hedge fund,  Paulson & Co., dumped 14 million shares of JPMorgan Chase. The fund also  dumped its entire position in discount retailer Family Dollar and consumer-goods  maker Sara Lee.
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  Finally, billionaire George Soros recently sold nearly  all of his bank stocks, including shares of JPMorgan Chase, Citigroup, and  Goldman Sachs. Between the three banks, Soros sold more than a million  shares.
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  So why are these billionaires dumping their shares of U.S.  companies? After all, the stock market is still in the midst of its  historic rally. Real estate prices have finally leveled off, and for the first  time in five years are actually rising in many locations. And the unemployment  rate seems to have stabilized.
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  It’s very likely that these professional  investors are aware of specific research that points toward a massive market  correction, as much as 90%. One such person publishing this research is  Robert Wiedemer, an esteemed economist and author of the New York Times  best-selling book Aftershock.
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Japan to Adopt ‘Bail-Ins,’ Force Bank Losses on Investors if Neded, Nikkei Says!

• Japan to adopt ‘bail-ins,’ force bank losses on investors if needed, Nikkei says! 
  by www.Theflyonthewall.com, via
  http://finance.yahoo.com/
  
  Japan’s Financial Services Agency will enact new rules that will forced failed bank losses on investors, if needed, via a mechanism known as a “bail-in,” according to The Nikkei. Mitsubishi UFJ (MTU), Mizuho Financial (MFG) and Sumitomo Mitsui (SMFG) are among those proposing amendments to allow them to issue the types of preferred shares or subordinated bonds that would be used in such cases, the report noted.

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John Embry: The “Great Gold Takedown” & the Road to Hyperinflation!

James Turk: A Massive Black Swan Is Going To Rock World Markets!

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• Turk – A Massive Black Swan Is Going To Rock World Markets! 
  by www.kingworldnews.com
  With Japan’s Nikkei plunging a massive 5.5%, today James Turk warned King World News that markets may be very close to witnessing another “black swan” that would create chaos once again in the global financial system.  Turk also spoke about the recent action in gold and silver and what investors should expect to see going forward.
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  Eric King:  “James, as you know a lot of times something will come and blind-side markets that nobody really has their eye on.  Do you have anything that might be a ‘black swan’ that nobody is focused on?”
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  Turk:  “We don’t hear too much about derivatives anymore.  That’s always a potential black swan hanging over the markets.  There is always the potential for geopolitical unrest, and we are seeing a lot of that again in the Middle-East, in various countries there. I suppose the biggest ‘black swan,’ Eric, has to come from the banking system because that is the biggest threat to sound economic activity….
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Bond Bubble Threatens Financial System, Bank of England Director Warns!

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“Let’s be clear. We’ve intentionally blown the biggest government bond bubble in history,” Haldane said. “We need to be vigilant to the consequences of that bubble deflating more quickly than [we] might otherwise have wanted.” - Quote

• Bond bubble threatens financial system, Bank of England director warns! 
  by Jill Treanor, guardian.co.uk 
  Andy Haldane fears the bursting of ‘the biggest bond bubble in history’ after electronic money printing exercises by the Bank of England and the Federal Reserve in the US.
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  A key Bank of England policymaker has warned of the risks to global financial stability when “the biggest bond bubble in history” bursts.
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  In a wide-ranging testimony to MPs, Andy Haldane, Bank of England director of financial stability, admitted the central bank’s new financial policy committee is taking too long to force  banks to hold more capital and appeared to criticise the bank’s culture under outgoing governor Sir Mervyn King.Haldane told the Treasury select committee that the bursting of the bond bubble – created by central banks forcing down bond yields by pumping electronic money into the economy –  was a risk “I feel acutely right now”.
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  He also said banks have now put the threat of cyber attacks on the top of their the worry-list, replacing the long-running eurozone crisis.
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  “You can see why the financial sector would be a particularly good target for someone wanting to wreak havoc through the cyber route,” Haldane said.
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  But he described bond markets as the main risk to financial stability. “If I were to single out what for me would be biggest risk to global financial stability right now it would be a disorderly reversion in the yields of government bonds globally.” he said. There had been “shades of that” in recent weeks as government bond yields have edged higher amid talk that central banks, particularly the US Federal Reserve, will start to reduce its stimulus.
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  “Let’s be clear. We’ve intentionally blown the biggest government bond bubble in history,” Haldane said. “We need to be vigilant to the consequences of that bubble deflating more quickly than [we] might otherwise have wanted.”
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  The Bank of England later issued a statement, describing Haldane’s remarks as his “personal view” and stressed that if it raised interest rates – stuck at record lows since March 2009 – too quickly the consequences might be severe. “Any attempt to return interest rates quickly to more normal levels would recreate recession conditions,” the Bank of England. Haldane said the FPC was on alert to any bubbles created by the help to buy mortgage guarantee scheme for first-time buyers and house movers, stressing the scheme should be temporary. Referring to the US, he said: “Fannie Mae and Freddie Mac were temporary schemes and 75 years later they were still in place and blowing the world up.”
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Bank Of Japan Machinations Crash Into Reality!

• Bank Of Japan Machinations Crash Into Reality! 
  by
  http://www.testosteronepit.com/
  
  The Japanese stock market has become a case study of central-bank manipulations, and of what happens eventually as reality cannot be eliminated forever.
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  On Thursday, the Nikkei, after a horrific 800-point or 6% dive on a staircase to hell, or to 12,416, whichever came first, recovered a few hundred points, then climbed back down that staircase and ended the day at 12,445, the lowest close since April 3, down 844 points for the day, the second largest swoon so far in 2013.
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  The largest swoon this year? May 23, a 1,460-point crash, or 9.2%, from its intraday peak (after a 300-point jump that morning) of 15,943 – the highest most euphoric point since December 2008. Now the Nikkei is down 21.9% from that peak, and in bear market territory. Both the Nikkei and the Topix dropped below the 100-day moving average during the day, which in itself triggered more selling, as these technical indicators, and the buy-sell behavior they engender, become self-fulfilling prophecies (for a while), not only on the way up, but also on the way down – their raison d’être; otherwise they’d be utterly useless.
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  It took the Nikkei 50 days – from April 3 to May 23 – to make it up that far, and just 20 days to come back down. Up by escalator, down by elevator (with ear-popping speed).
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  This is what happens when a stock market gets inflated by a central bank: promises of boundless money-printing attract the hot money that causes values to balloon to ridiculous highs in the shortest time. Then something happens, some silly event, the recognition that enough money has been made, a rumor that some big hedge fund is bailing out, a disappointing statement by the Bank of Japan, something… and some of the hot money suddenly has had enough, tries to take profits, tries to bail out, just when there are not many euphoric buyers left, and what you hear is a giant hissing sound. And what you get is capital destruction and wealth transfer.
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  Thank goodness, for the Bank of Japan, there is nothing like a good stock-market crash to prop up the otherwise wilting market for Japanese Government bonds. They’ve been an awful investment recently: the 10-year JGB has been yielding below 1% even though the BOJ promised to create 2% inflation. The official plan is to hand JGB buyers a loss on an inflation-adjusted basis. So investors have been bailing out of JGBs while the BOJ has been gobbling them up through its massive bond-buying program. Yields have been jumping up and down in the most tumultuous manner, rising for the 10-year JGB from the freaky 0.315% low of April 5 to briefly kissing 1% on May 2, and panicky bondholders have been pulling out their hair along the way.
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  Since then, JGBs have “stabilized” somewhat, with yields retreating below 0.9%. But during yesterday’s stock market massacre, these despicable JGBs suddenly seemed like a pretty good deal again, given the choice between losing money fast in stocks and losing money more slowly in JGBs. In response, yields on the 10-year JGB briefly plunged from 0.88% to 0.80%, only to rise back to 0.86%.
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  In support of its machinations, the BOJ has stated repeatedly and explicitly that it is trying to inflate the stock market to create the “wealth effect” – that ephemeral and treacherous impetus for people to spend money they see on a computer screen but haven’t realized yet and haven’t paid their taxes on yet. But on average, they actually can’t spend the money they see on that screen because they’d have to sell to do so, and pull their money out of the market. It would cause a crash. And annihilate that beautiful wealth effect.
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  Instead, central banks use the wealth effect to lure consumers with a vision of wealth so that they’d spend their savings, or spend with their credit cards. And then, when the market does crash, consumers are left holding the bag: the vision of wealth has dematerialized, their savings have been decimated, and credit card bills have piled up. An insidious central bank strategy.
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John Hathaway: Gold To Shock World With Rapid $1,000 Advance!

Liberty Gold Coin

• Hathaway – Gold To Shock World With Rapid $1,000 Advance! 
  by www.kingworldnews.com
  With gold and silver under continued attack from the mainstream media, today John Hathaway warned King World News that we are at the point where global investors will be shocked as gold is quickly repriced a jaw-dropping $1,000 higher, taking gold to new all-time highs.  Hathaway also cautioned that global markets are rapidly approaching a loss of confidence in central banks which will cause tremendous turmoil in the paper currency markets.  Hathaway, of Tocqueville Asset Management L.P., is one of the most respected institutional minds in the world today regarding gold, and his fund was awarded a coveted 5-star rating. 
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  Hathaway:  “Right now I am focused on some very key markets.  Japan obviously is making the headlines, but the U.S. stock market is also giving all of the appearances of being at the beginning stages of a substantial correction.
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  When you think about what’s been a headwind for gold, it’s been the attitude of, ‘Who needs it?  We’re making money hand-over-fist in stocks.’  But I believe we are at the end of that phase now.  So right now I’m watching with the expectation that we are in the midst of substantial and adverse corrections in what have been competing assets for gold….
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Comparing Today’s Gold Market to the 1970′s: Is the Gold Rush Over? I Don’t Think So!

• Comparing Today’s Gold Market to the 1970′s: Is the Gold Rush Over? 
  by Greg Hunter’s USAWatchdog.com  
  Lots of people are comparing today’s gold market to the 1970’s.  Gold shot up to nearly $200 per ounce and crashed 9 months later to near $100 an ounce.  Of course, gold had an historic rise to $850 per ounce after that wicked pull-back.  Some, such as economist Nouriel Roubini, say “the gold rush is over,” and the seventies are not going to repeat.  The debt of today is greater by orders of magnitude from the 1970’s, and there is no end in sight.  That means gold has only one way to go (in the long term) and that’s up.
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  We had a national debt of less than $1 trillion when Jimmy Carter left office.  Today, it is nearly $17 trillion, and the so-called debt ceiling is going to need to be raised–again.  Debt in the U.S government is exploding.  So is debt in the rest of the Western World, just look at Europe and Japan.
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  Derivatives were virtually nonexistent back the 1970’s.  Today, the official total of these debt bets is around $700 trillion, and some say it’s more than twice that much.  Pensions didn’t have funding problems back then.  Today, they are at least $1 trillion dollars in the red.  You can say the same thing for student debt—also $1 trillion in the hole.
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  There are more than $12 trillion paper dollar assets (stocks, bonds and cash) held by foreigners outside the U.S.  Meaning, you couldn’t control the selling in a panic.  In the 1970’s, the U.S. was a creditor nation.  Today, it is the world’s biggest debtor.  The U.S. credit was stellar in the 1970’s.  Today, it has already suffered its first ever downgrade, and ratings agencies are threatening more. 
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Bill Holter: Signs of Economic Collapse!

• Signs! 
  by Bill Holter,
  http://blog.milesfranklin.com/
  
  As I mentioned in my earlier piece, there are now many “signs” that we are going terminal both globally and systemically.  Economies are slowing and or contracting and yes this includes China.  You can clearly see that the numbers here in the U.S. are thoroughly cooked.  If you look at “private” numbers such as “miles driven” or even something as simple as carloads of garbage hauled by the freight system it is clear that we are not growing.  If you look at the pricing for sea shipments and volumes you will see that international trade is contracting.  You can also look at unemployment numbers, housing and food assistance numbers here in the U.S and abroad. You will get confirmation of the above, treading water at best and likely systemic contraction.
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  Looking at the Central Banks of the West, they are all monetizing…because they have to.  They have to because there are few buyers for sovereign debt that must be sold to rollover past debt, fund current “programs” and pay interest.  One might say, “But the stock market is up so everything must be OK.”  Well, margin debt has never been higher than it is now, insiders are selling at a furious pace and short interest is down substantially.  We will see how this works out but I highly doubt that “optimally” will be the description.
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  Currency markets are experiencing unprecedented volatility.  How can trade work between Japan and the U.S. if their currencies are trading up or down 2% or even 3% in one trading day?  In the old days, 3% was a huge move in a month’s time, now it can happen on an opening trade!  And yes, as mentioned in my earlier piece, interest rates are beginning to rise.  It is only a matter of time in my opinion before one nation or even an entire region has their back up against the interest rate wall. Assuming that hedge funds or even investment banks themselves don’t get blown up sooner by the derivative time bombs they are all sitting on.
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  Another “sign” (or should I say sign’s’ plural) that sticks out in my mind but certainly not by the mainstream press are the scandals.  We’ve seen scandal after scandal in Europe, a scandal with the IMF’s Christine LaGarde and of course the recent 24/7 storm here in the U.S.  Coincidence that all of this dirty laundry is coming out in concentrated fashion?  Is there “infighting” amongst the elites because they are losing control?  (Before I forget, there has been a rash of resignations of banking CEO’s and high officials in the Middle East over the last 2-3 months, what’s up with this?)
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  I’d like to add one more sign to the mix and also break it down a bit for you.  Zero Hedge posted this last night regarding the run on JP Morgan’s Gold vault:
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  JPM Vault Gold Drops By 28.4% Overnight, Slides To Fresh Record Low As Withdrawals Accelerate
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  They saw 28.4% of their gold get up and leave overnight.  Well, not exactly correct.  Yes the withdrawal was 28.4% of the total but the withdrawal was entirely from their CUSTOMER side of the vault!  The customer side dropped by 217,444 ounce…only leaving 136,380 ounces of gold left.  This represents OVER 61% of JP Morgan’s customer gold leaving in one day!  By the way there was another 136 notices issued today which represents another 13,600 ounces or another 10% of the remaining which should leave tomorrow!  Is this a run on the bank (vault) or what?
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Where’s the gold?

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