vlogolution network » gold

Bernanke says no QE3? So why didn’t markets tank??

Alexander P Morris — Sun, 04 Mar 2012 01:27:41 +0000

(Robert Sinn) “When the economic data and financial markets soften the Fed strikes a more dovish tone, and as we saw yesterday when things improve the Fed Chairman does not mention the idea of additional stimulus and acknowledges the potential for a short term spike in inflation due to higher gasoline prices.”

Bernanke says, “Since these projections were made, gasoline prices have moved up, primarily reflecting higher global oil prices – a development that is likely to push up inflation temporarily while reducing consumers’ purchasing power.” And despite the fact that Bernanke didn’t mention “quantitative” once — here or anywhere else in his testimony — the media was quick to hype the Fed’s mere acknowledgement of “potential inflation” as a change in stance.

Full Story: Bernanke’s Poker Game (RobertSinn)

However, the majority of the mass media conveniently overlooked the real story of the day…

(WSJ) “The European Central Bank handed out €529.5 billion ($712.81 billion) in cheap, three-year loans to 800 lenders, the central bank’s latest effort to arrest a financial crisis now entering its third year.

Wednesday’s loans were on top of the €489.2 billion of similar loans the ECB dispensed to 523 banks in late December. The ECB’s goal is to help struggling banks pay off maturing debts and to coax them to lend to strained governments and customers. The takeup of this week’s loans was roughly consistent with what bankers, investors and analysts had expected.”

Full Story: ECB Gives Banks Big Dollop of Cash (WSJ)

WOW! So the same day Bernanke is noticing some possible inflation, most news sources completely overlooked one of the greatest liquidity injections ever on the very same day… And in hyping up the wrong story to “help” cover it all up, the media also gave these same banks the opportunity to park their free cash right back into the stock markets at a short-lived “NO QE3″ discount.

(Jim Sinclair) “Because of the volatility you experienced in gold today, and the absolute fact that it was an MSM cover operation of today’s covert operation, which was one of the largest injections of QE liquidity into the Euro banking system ever, you must know the facts.”

“If, in fact, what Bernanke attempted to tell the investment world today, that QE may not be necessary because of a modest improvement in the statistics of unemployment, if that was truly to be believed, then the stock market should have been off 800 points while gold was gold was down $100. Because the same thing moving the stock market is what’s moving the metals and that is pure liquidity.”

Full Story: Today was a Cover-Up By the Fed & Mainstream Media (JimSinclair)

So for those of you worried about an end to quantitative easing, alleviate your fears. QE and cheap easy money for the well-connected kleptocrats is alive and well and not likely to end all that soon…

Where do Billionaires Park Their Cash and Assets?

Alexander P Morris — Sat, 21 Jan 2012 04:53:37 +0000

(BloombergMarketsMagazine) “Cash generates minuscule returns. Commodities, especially gold, can soar or tumble in an instant. In these perplexing times, Bloomberg Markets magazine in its January issue asked 10 billionaires 14 questions covering their views on the global economy, where they see opportunities and who gave them the best advice.”

Some highlights:

John Paul DeJoria (Primary Assets: Stakes in John Paul Mitchell Systems and Patron Spirits Co. Residence: Los Angeles Industry: Retail):

“Influential indicators? Beauty salons. Typically, customers will visit every six weeks; in downturns, that drops to every eight weeks. When the frequency starts to go up again, it indicates the economy is improving.”

“Where to park $1 million in cash? Twenty-five percent in gold, 25 percent in silver, 25 percent in NYSE blue-chip stocks that pay a dividend and 25 percent between Asian and European blue chips that pay a dividend.”

Eli Broad (Primary Assets: Investments, art Residence: Los Angeles Industries: Banking, real estate):

“Influential indicators? Consumer confidence, unemployment and political gridlock.”

“Best investing advice? Don’t bet the farm.”

“Margin in portfolio? Not in this uncertain world.”

“Where to park $1 million in cash? High-quality multinational consumer companies such as Procter & Gamble Co., Coca-Cola Co., Kraft Foods Inc. and Johnson & Johnson. (JNJ)”

Peter Hargreaves (Primary Asset: 32.2 percent of Hargreaves Lansdown Plc, the U.K.’s biggest retail broker Residence: Bristol, England Industry: Financial services):

“Fixed-income investments? German bonds for the currency play when the euro implodes”

Where to put $1 million in cash? $500,000 in Singapore dollars and $500,000 in Norwegian krone.”

“Is there a money manager you would trust with your entire portfolio? Me.”

Full Story: Billionaire Prokhorov Touts Gold as Trump Embraces Foreclosures (BloombergMarketsMagazine)

MF Global Proves Sanctity of Segregated Funds is Just a Myth

Alexander P Morris — Fri, 18 Nov 2011 19:48:09 +0000

Interview with Trends Research founder Gerald Celente, who had his own six figure gold investment account completely looted by MF Global‘s chapter 11 trustees, and he is fighting to get it back. Also interesting is how certain higher-profile clients such as the Koch brothers and others clearly must have known of the cratering positions and imminent collapse of MF Global, as $$billions of dollars of accounts were “coincidentally” withdrawn just before the MF “house of cards” collapsed.

I don’t believe that people truly understand the ramifications of what has happened over at MF Global. People still seem to believe that clients who had money with MF were basically gamblers and “should have known better” by placing their money with “more secure” entities such as Interactive Brokers. That’s not to say Interactive Brokers is not secure (especially as they “seem” to practice extremely sound risk management). But what happens when one of their banks or counterparties also decides to “waive” their account holders’ rights? And what exactly would have given customers of MF any less reason to believe that MF Global would be any less secure, especially since the Federal Reserve granted them “Primary Dealer” status last year? Regulations are very strict on “segregated funds”. Those funds “should” actually be “SAFER” than a straight-up bank account (because the funds should generally be locked away at either the CME as margin or sitting in Treasury Bills so the banks can’t even lend that money out in REPO markets). If an Occupy Wall Street protester stole a sandwich, they’d probably be thrown in jail for 5 years. Jon Corzine recks New Jersey, and a year later, wrecks MF Global and steals HUNDREDS of MILLIONS from 150,000+ client accounts to cover more reckless gambling debts, and he’ll probably end up being the next secretary of the treasury. This guy should be hanged and held up to the standards of the Hammurabi Code (If a builder build a house for some one, and does not construct it properly, and the house which he built fall in and kill its owner, then that builder shall be put to death). If such a “code” were implemented, I’d bet such horrendous thefts and shenanigans would all but disappear. Instead, we have banks stealing $$BILLIONS from clients through cockamamie schemes, then paying $100 MILLION to the SEC without admitting or denying guilt while they pocket the rest, still leaving the clients/investors out most if not all of their losses. This is likely the tip of the iceberg, as there is no way to know how many other firms may have also made similarly reckless bets with client funds (or are unknowingly directly connected to others that do).

To help clarify what this really means, here is the “Safety of Funds” assertions by two reputable futures clearing firms:

(DormanTrading) “The funds in your account with Dorman are held as “Customer Segregated” funds. Our principal bank is Harris, NA, a subsidiary of BMO Financial Group of Toronto Canada. The segregated funds that Dorman holds at Harris, are primarily invested in US Treasury Bills, with the remainder in cash or deposited with the Chicago Mercantile Exchange as margin deposits. The Treasury Bills at Harris are specifically identified to Dorman and on Dorman’s books they are specifically identified to those accounts that have asked us to invest their funds.

The segregated account structure of your futures trading account protects you from suffering a loss, should your broker, your clearing firm, Dorman, or Harris file for bankruptcy. This segregated structure means that your funds on deposit are not subject to any offset, indebtedness, obligation, or the liabilities of any entity besides the customers themselves. These regulations are in place so that neither your clearing firm, Dorman, nor their bank Harris can dip into the customer segregated funds to offset losses elsewhere.” – Dorman Trading Safety of Funds

(RCG-Direct) “Pursuant to the Commodity Exchange Act and Commodity Futures Trading Commission (CFTC) regulations, Rosenthal Collins Group LLC (RCG), a Futures Commission Merchant (FCM), is required to treat all customers’ money, securities and other property received to margin, guarantee or secure futures or options on futures trades, as customer property. With regard to futures and options on futures accounts, RCG is required to account separately for and segregate customer money, securities and property and not to commingle those assets with RCG’s own operating assets. Customers’ segregated assets cannot be used to margin any other person’s trades. These segregation requirements apply to futures and options trades on exchanges located in the United States.” – Rosenthal Collins Group Customer Protection

Understanding Big Money, Banks, and the REPO Market…

(MartinArmstrong) “When you deal in REAL money, there is a problem. How do you store it? You can’t just put a billion on deposit at a bank. They will sell it every night and don’t have to tell you. If the REPO market blows up and you go to the bank and say I want my billion, they lost it, and so you turn to FDIC to collect your $100,000. Right! The ONLY way to park serious money is in treasuries.” – Will a Downgrade of USA FROM AAA Really Mean Anything? (MartinArmstrong)

(PeterBrandt) “According to the Commodity Exchange Act (the overarching law governing futures trading) customer funds at futures commission merchants ‘shall not be commingled with the funds of such commission merchant or be used to margin or guarantee the trades or contracts…of any customer or person other than the one for whom the same are held.’ CFTC Regulation 1.25 provides that:

‘No futures commission merchant and no clearing organization shall invest customer funds except in obligations of the United States, in general obligations of any State or of any political subdivision thereof, or in obligations fully guaranteed as to principal and interest by the United States. Such investments shall be made through an account or accounts used for the deposit of customer funds and proceeds from any sale of such obligations shall be re-deposited in such account or accounts.’ ” – MF Global: Proof that the U.S. government is not able or willing to protect investors (PeterBrandt)

Why People Don’t Buy Gold, and Why it’s Stupid to Think for Yourself

Alexander P Morris — Sat, 26 Mar 2011 20:50:14 +0000

Why people don’t buy gold, and why it would have been smart to buy a house at the top of the market, so long as everyone else was doing it, and famous well-known economists like Alan Greenspan, Ben Bernanke, and others said real-estate would never go down. Learn why it’s stupid to think for yourself. Very funny video, and with our current state of affairs, sadly quite true…

On the other hand, it also helps explain why there is so much opportunity in the markets, as people make the same mistakes over and over again, as they try to avoid “feeling stupid”, or being called “strange and weird”.

Note: Posting this video wasn’t meant to suggest that NOW is the best time to buy gold (alas, it is already up over 6 fold over 10 years), and in fact in the past I’ve suggested that silver would likely be an even better investment longer term (as does seem to be the case so far). However, perhaps for the real point… don’t be one of the lemmings running out to buy it when everyone’s finally talking about what a great investment it is and how it too can’t ever go down. There is a time and cycle for everything. In the meantime, study, research, make up your own mind, and possibly consider picking some up when it’s unfavorable or unfashionable to do so. (You can also check out some of the related links I posted below).

As Benjamin Graham once said, “You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right.”

Great Historical Overview of Currency Failures and Hyperinflation

Alexander P Morris — Sat, 19 Mar 2011 20:00:51 +0000

Great video presented by Timothy Terrell at the Mises Circle at Furman University: “The Coming Currency Crisis and the Downfall of the Dollar”. For those who are interested in better understanding fiat currencies and reckless inflation from a history perspective, this video provides a terrific overview.

You’ll also gain a better understanding of the magnitude of damage and theft inflation perpetrates against a country’s people (and especially against its middle and lower classes who least understand its disruptive effects).

Everyone’s thrilled when Apple’s iPad2 provides a greater bang for the buck for less money than the original. So why do governments and central banks try and convince people that higher prices are good for everything else?

“Fear the Boom and Bust” a Hayek vs. Keynes Rap Anthem

Alexander P Morris — Fri, 19 Nov 2010 01:25:22 +0000

I had posted this awesome rap video on my facebook page earlier this year, but never got around to making a blog post about it. Another great video that lays out the craziness of the “boom and bust” cycle in modern economies. What’s more crazy is that the twisted version of Keynesian economics pursued by governments today would have Keynes himself rolling in his grave in disgust. Somehow politicians conveniently forgot that key little detail that governments are supposed to SAVE when times are good. Instead, politicians spend like nuts in good times, and SPEND LIKE MANIACS when times are bad. Why let such key details interfere with the opportunity for politicians to promote their own agendas… Enjoy the show!

ps. If you enjoyed this video, be sure to check out the links below for the sequel!

Quantitative Easing Video Explains Q.E.2 in terms everyone can understand – with Transcript

Alexander P Morris — Mon, 15 Nov 2010 19:48:37 +0000

This awesome and quick video explains quantitative easing in a simple and easy way for everyone to understand, and it’ll keep you laughing (or crying) the whole way through…

One note, granted this video hits heavily on Ben Bernanke, it’s certainly not all his fault – not by a long shot. Living beyond our means can only go on so far, and politicians are more than happy to take advantage of public sentiment to fulfill their own agendas and help their “friends” through gargantuan spending programs and greater controls enacted under the guise of serving the “greater good”.

Martin Armstrong on Market Predictions and Objective vs Subjective Analysis

Alexander P Morris — Wed, 11 Nov 2009 08:01:52 +0000

Martin Armstrong is the author of the Economic Confidence Model based on an 8.6 year business cycle theory inspired by the work of Nikolai Kondratieff. Two years ago, the cycle once again accurately predicted the peak of the last economic cycle years in advance. February 26, 2007 yielded some of the tightest credit spreads ever (easy access to credit), and the housing market had already begun its sharp decline.

He is currently in prison, indicted in 1999 on charges of defrauding Japanese investors. His trial would have made more sense had it taken place in “Alice in Wonderland”. Without getting into all the details here, just the fact that he was in jail for seven years for contempt of court should be enough to make any American cringe and wonder how that’s possible in the great ‘ole USA. He finally caved in and plead guilty in 2007 to the fraud charge. In return, he was given an additional five year prison term in addition to the seven he had already served! Now, if this were any ordinary American schmo, perhaps he could be written off for one reason or another as just another guy with a crazy “they’re out to get me” sob story. However, when you look deeper into the facts, and then consider that Mr. Armstrong was also one of the most respected financial research advisers to scores of powerful figures from central bank executives to heads of multinational corporations to heads of state, it really makes you wonder what’s going on with the “Rule of Law” — the real glue that holds our country together. Armstrong even authored the most insightful and thorough analysis of the 1929 crash ever assembled on behalf of the Reagan administration in the ’80s.

From his jail cell, Martin Armstrong continues to write some of the most insightful and interesting essays I’ve come across on a variety of topics from market cycles, to rule of law, to the history and cycles of politics and war. Since he has access to little more than an old typewriter (and no whiteout), you must understandably have a bit of patience with his “what I’m thinking about now” writing style. Would I be showing my age if I can still recall the nightmare of using a typewriter for school papers? It’s horrible.

Regardless, I’ve learned more useful knowledge about world history (and our own history) from Armstrong’s essays than I ever learned in school. And it’s more fascinating than you can even imagine. Everything’s been done and tried before. And here’s some food for thought… in the six thousand or so years of civilized history, can anyone find one example where socialism actually succeeded with a happy ending? But I guess that’s why most politicians don’t bother to learn any of history’s lessons. It would just interfere with their agendas and other questionable motives.

The following text is an excerpt from Martin Armstrong’s latest essay entitled “Objective vs Subjective Analysis” (pages 10-12). I’ve also taken the liberty of making some small corrections here and there to make the text more readable while still hopefully maintaining Mr. Armstrong’s full meaning and intent.

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Join Ron Paul’s Drive to Audit the Fed and Shut it Down with HR 1207

Alexander P Morris — Tue, 26 May 2009 03:54:23 +0000

With many Americans slowly waking up to the reality that our government and banking system are entirely under the control of a criminal elite of private bankster crooks, Ron Paul has once again taken it upon himself to push for an audit of the Federal Reserve, the outcome of which would likely be so incomprehensibly shocking that the Fed may finally be forced to shut down for the greater good of our country and its citizens.

The Federal Reserve was originally created under the guise of being an “impartial” entity separate from the government that could be called upon to stabilize our economy in times of panic, while protecting and maintaining free market principles. The sick twisted irony is that the Fed is the precise antithesis of what free markets are really about. And since the Fed’s inception, it has done nothing but DESTABILIZE our economy with increased volatility by manipulating interest rates, along with leverage ratios used by the banks (in cahoots with those who control the Fed and the SEC).

It still boggles my mind that the SEC implemented the “Pattern Day Trader” rule to “protect the little guy” by forcing more active traders and investors to maintain at least $25,000 in a trading account or face severe trading restrictions. I guess the SEC also forgot that they came into power largely because a big part of the 1929 crash was caused by the extension of 10:1 credit to investors (which couldn’t have happened without the Fed’s easy money policies). So to make amends, the SEC goes on to serve and protect “the little guy” some more by allowing ONLY the largest (and most politically-connected) “too big to fail” investment banks pump up their balance sheets with over 40:1 leverage.

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NY Hard Assets Conference Review 2009

Alexander P Morris — Wed, 13 May 2009 12:48:34 +0000

While I didn’t have a chance to get down to the NY Hard Assets Conference in New York City May 11th-12th, Daryl Montgomery of the NY Investing Meetup did attend. Honestly, I counted on him releasing a good summary and review of the conference so that I could focus on trading and managing positions in this crazy market! (did I say that out loud?!) He didn’t let me down, and wrote an excellent summary of the conference on his blog, along with his take of the “experts” in attendance and their “predictions”. It’s definitely worth reading the full article. Some key points are included below:

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ANY PORK IN THIS STOCK MARKET FOR ME?

Alexander P Morris — Wed, 22 Apr 2009 21:53:54 +0000

Video interview and update on the current State of the Markets, as well as the overall State of the Economy with Daryl Montgomery of the NY Investing Meetup (interviewed by Alexander Morris of moMoneyTV and PassMeThePork.com). Watch NOW to learn if there are any opportunities currently offered by the markets. We have the answers for what’s on everyone’s mind, “Is there any room in the stock market for it to PASS ME THE PORK??!”

AIG BUTTERFLIES COMMERCIAL PARODY – HOPE TO STILL BE HERE

Alexander P Morris — Sun, 21 Sep 2008 22:00:00 +0000

With the constant stream of unprecedented Federal bailouts of “AAA-rated” Wall Street companies, this parody of a recent AIG commercial featuring worry-free butterfly watching seems most fitting given the collapsing house-of-cards of one “rock-solid” institution after another… Watch at your own risk, or more prescient, risk your money in these institutional Behemoths at your own peril… When all’s said and done, who’ll be left to bail out the United States of America and its people? Who’s for REAL CHANGE?

Music: “Twinkle” by VannWestfold

America’s Perfect Little Goldilocks Economy – or is it? A deeper look into government statistics

Alexander P Morris — Sun, 04 Nov 2007 22:00:00 +0000

An interesting interview with Daryl Montgomery of the New York Investing Meetup (http://investing.meetup.com/21), discussing the realities behind our perfect little Goldilocks Economy as repeatedly portrayed in the financial media. We also explore the truth behind government inflation, GDP, monetary, and other economic statistics, and how the methods of calculation seem to keep changing to suit their “greater” purpose – and NEVER in favor of the public’s “greater” good.

The U.S. Dollar connection to inflation, the economy, and boatloads of debt

Alexander P Morris — Sun, 28 Oct 2007 22:00:00 +0000

An interesting interview with Daryl Montgomery of the New York Investing Meetup (http://investing.meetup.com/21), discussing how the U.S. Dollar and monetary policy relates to inflation, the economy, and the government’s out-of-control spending spree.

Global Perspectives on the Decline and Fall of the US Dollar

Alexander P Morris — Wed, 24 Oct 2007 22:00:00 +0000

An interesting interview with Daryl Montgomery of the New York Investing Meetup (http://investing.meetup.com/21), discussing how foreign markets such as China have fared since the Fed’s last rate cut, along with the potential global repercussions to come.

Saving our Economy by Destroying the Dollar – the Absurdity of Federal Reserve Policy

Alexander P Morris — Wed, 17 Oct 2007 22:00:00 +0000

Another interesting interview with Daryl Montgomery of the New York Investing Meetup (http://investing.meetup.com/21), describing what has happened to the value of the dollar since the Fed cut rates back in mid-September.

The Truth about the Federal Reserve – Money out of Nothing

Alexander P Morris — Mon, 08 Oct 2007 22:00:00 +0000

The Federal Reserve is neither Federal nor a Reserve. Owned by a corrupt group of International Bankers, it is a privately owned monopoly, largely responsible for creating America’s National Debt. It is also a parasitic and unnecessary entity that literally creates American currency out of nothing and then collects interest on the backs of taxpayers for doing so.

SO WHO OWNS THE FEDERAL RESERVE? The Rothschilds of London and Berlin; Lazard Brothers of Paris; Israel Moses Seif of Italy; Kuhn, Loeb and Warburg of Germany; and the Lehman Brothers, Goldman Sachs and the Rockefeller families.

The Culprit Behind the Housing Bubble – abridged version

Alexander P Morris — Fri, 05 Oct 2007 22:00:00 +0000

“In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold.” You’ll be shocked to learn that it was actually Alan Greenspan who authored these words, before he became Chairman of the private Federal Reserve Bank. What are the implications of his actions, contrary to his initial beliefs, into the future? We are only beginning to find out…

This abridged version contains only my synopsis, and does not include Alan Greenspan’s article on “Gold and Economic Freedom”. It does, however add an extra bit about 2007′s top performing Stock Market in Zimbabwe! It’s up over 12,000% in 12 months! Of course, the country’s consumer price index was rising (i.e., the purchasing power of currency declining), was also rising at a rate of 1,729% a year. So how much are all those Zimbabwees worth anyway, even in dollars?

The Real Culprit Behind the Housing Bubble – The Truth about Gold and Economic Freedom

Alexander P Morris — Tue, 02 Oct 2007 22:00:00 +0000

“In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold.” You’ll be shocked to learn that it was actually Alan Greenspan who authored these words, before he became Chairman of the private Federal Reserve Bank. What are the implications of his many actions, contrary to his initial beliefs, into the future? We are only beginning to find out…

Protecting Yourself from Inflation and the Credit Bubble with Daryl Montgomery of the NY Investing Meetup

Alexander P Morris — Wed, 26 Sep 2007 22:00:00 +0000

Very interesting interview with Daryl Montgomery of the New York Investing Meetup (http://investing.meetup.com/21) on inflation, the real-estate/credit bubble, where we may be headed, and how you can protect yourself (and potentially profit) from our currently accelerating inflationary environment.

M3 money supply figures are back, well, unofficially – and the fed credit cycle

Alexander P Morris — Mon, 11 Dec 2006 22:00:00 +0000

Apparently it’s possible to extrapolate the current rate of the M3 money supply figures pretty accurately after all, even after the Fed decided to “de-emphasize” its role. Let’s see what the current rates would have been expected to be, and what they suggest for the economy and the stock market… I also discuss the credit cycle and the effects of easy credit and leverage on the transfer of wealth.

Cheap Man-Made Diamonds Will Revolutionize the World!

Alexander P Morris — Mon, 05 Jun 2006 22:00:00 +0000

New techniques to create perfect diamonds cheaply and quickly lead the way to newer and greater discoveries.

Inflation and Excess Taxes: The True Hidden Enemy of Savings

Alexander P Morris — Sat, 03 Jun 2006 22:00:00 +0000

Taxes Taxes Everywhere and how our wallets did shrink… Even our Savings are Taxed, and in time it won’t even amount to a drink.

No Inflation? – You too can make a 2.2 Million% Percent return in the stock market!

Alexander P Morris — Tue, 18 Apr 2006 22:00:00 +0000

No Inflation? – So what’s up with the Exploding Money Supply! The fed inflates our money, reduces our buying power, but at least they can let us know the current level of M3!
Also, learn how you too can make a 2,210,369% return in the stock market!