Archive for the ‘Market Analysis’ Category

GOLD AND WHORES

August 10, 2015

Summary

  • On August 6, 2015, Goldman Sachs, which has issued very bearish forecasts on long-term gold prices, took delivery of a 3.2-ton purchase of physical gold.
  • On August 6, 2015, HSBC which also claims to be bearish, took delivery of a 3.9-ton purchase of physical gold.
  • In both cases, the purchases are registered as being for the benefit of the bank’s own house account, rather than the accounts of customers.
  • Investors should do as the banks do, not as they say.

read more…

UPDATE

FINANCE – THIS STRANGER!

December 16, 2014

From the Saker:

I have asked for expert opinions and I hope to get them soon.  In the meantime, here is my own take on this which, caveat emptor, is backed by ZERO personal expertise in these matters.  Still, for whatever it’s worth, my own speculations:

1) The Ruble is falling due to three completely separate reasons:
i) The recession in the West which triggers a drop in oil prices
ii) The AngloZionist pressures on OPEC not to cut production
iii) The impact of western sanctions

The first reason given by the Saker is wrong. The second reason is wrong as well. The third reason is as wrong as the previous two.

There is an illogical thought habit in economic reasoning today which sees the finance as a branch of economy, a derivative one furthermore. That is, the belief that financial outcome depends on the economic choice made or undergone by the economic agent, that what happens in the financial markets is the direct consequence of underlying economic interactions. Nothing can be further from the truth!

Modern finance or, better yet, post-modern finance is nothing else than a gigantic superstructure conceived for the purpose of domain over the economic and political processes by the issuer of the reserve currency. It’s totally detached from economic input and obeys exclusively to the agenda of those who printed on the dollar bills the writing “e pluribus unum” (Christians know very well that it’s really the opposite: e Uno plures et omnia). 

It does not follow, it leads economic upheaval. It’s designed above all to cause fictive perceptions as a mean to impose alien choices and agenda on the economic agents targeted, or to force them out of the arena, with the juicy corollary to create for a selected few enormous profits exploiting the wild fluctuation of “prices”. Yes, because this post-modern finance, totally dependent on the reserve currency (credit) issuer(s) is just this: the ultimate price fixing scheme!!!

There is one and only one reason for the current free-fall of the ruble: selected few people and entities selling gazillions of rubles that they DO NOT HAVE in coordination. It’s the same reason for the falling price of oil, the ludicrous current price of gold and silver, the valuation of some enterprises at two times their EBITDA or at 30% of their book value and the specular valuation of other enterprises at 50 times their sales, and so forth and so on.

Therefore, the hike in the ruble interest rates by the Central Bank is theoretically not a wrong move, but it’s inane to do it in little steps over a period of time: the interest rates must be hiked at 150% overnight to get the desired effect!

However, you have to insulate your domestic economic agents and your people at large from such rates. You should do it in any case! Economy, entrepreneurs, workers, people, should be set free from the tyrannical leash of the banks! You can put as much money as you want in circulation, economic agents will never benefit if that money goes only where the banks want to!

You can survive against the Leviathan of post-modern finance only if you can ignore the fiction it produces. You can ignore it only if you make immune your people and your economy to their financial holograms. You make immune them only taking in your hands the circulation of blood (money/credit) in your economic veins. Ultimately, that can be done only with a real sovereign monetary emission, respecting all the postulates it requires!

In the meanwhile, however, you can come up with very, very useful surrogates. Therefore, i must repeat here:

The solution to the current most urgent needs of the Russian economy and financial system is very simple. All of the current turmoil can be fixed overnight with two very simple provisions:

1) Create a State Bank for Economic Development, whose ONLY activity is to provide loans to every domestic non-financial enterprise, for investment and working capital purpose, and to families, for the purchase of the home or flat where to live, with interest rates charges capped at 2%. The Russian foreign currencies reserves alone can provide this bank with a loaning firepower of several trillions dollars. Of course, the loans must be granted and repaid in the domestic currency.

2) Forbid by law any short sale (i.e. the sale of what you DO NOT HAVE, in unlimited quantities, reserved to a selected few; in short, the ultimate price fixing scheme) of any financial securities (stocks, bond, currencies). Reserve the short sale of tangible commodities ONLY to the producers of the same commodities, limited to one year of current production.

That’s all! You shall not fight against your enemies, internal and external; they will die a natural death. You don’t need the Central Bank nor government’s cooperation for that, you need only two very simple laws and you have a strong majority in the Duma. If the Kremlin wants it, it can be done in a week! With that, interest rates on the ruble can stay high, it will add pain to the scoundrels and it’s good for savers (generally, the middle class) and savings are an investment in themselves.

With that, you don’t need the verbose proposals of Glaziev too. Glaziev is very interesting, a good reading. It’s clear that he has a good understanding of the basic functioning of economy and finance, moreover he describes very well the modality of the systematic plunder, operated by what we’ll term the “international banking cartel” for convenience of presentation, against the working and productive classes (the contraposition between workers and entrepreneurs is artificial, one of the countless false dialectic fabricated by the progeny of the devil to divide society and parasitically dominate), not only in Russia but everywhere. Over and above, he draws a good portrait of the absolute inanity and incompetence of modern “economists” and financial bureaucrats (even if I doubt that somebody can be SO stupid, so that I’d rather talk of treason, not stupidity).

Anyway, when he comes to the solutions he goes a little astray, falling for a plethora of academic, verbose and hazy proposals, which could be a recipe for disaster, relying too much on the good will of too much persons to be implemented.

Do not hold your breath waiting for the Saker’s experts too. Another very useful law would be the one forbidding every public financial or economic institution to hire people with a degree in economics or finance! But maybe I am a bit too radical here…..

MAKE IT EASY

December 13, 2014

This piece by Sergei Glaziev is very interesting, a good reading. It’s clear that the writer has a good understanding of the basic functioning of economy and finance, moreover he describes very well the modality of the systematic plunder, operated by what we’ll term the “international banking cartel” for convenience of presentation, against the working and productive classes (and almost everybody else, in fact!), not only in Russia but  everywhere. Over and above, he draws a good portrait of the absolute inanity and incompetence of modern “economists” and financial bureaucrats (even if I doubt that somebody can be SO stupid, so that I’d rather talk of treason, not stupidity).

Anyway, when he comes to the solutions he goes a little astray, falling for a plethora of academic, verbose and hazy proposals, which could be a recipe for disaster, relying too much on the good will of too much persons to be implemented.

The solution to the current most urgent needs of the Russian economy and financial system is very simple. All of the current turmoil can be fixed overnight with two very simple provisions:

1) Create a State Bank for Economic Development, whose ONLY activity is to provide loans to every domestic non-financial enterprise, for investment and working capital purpose, and to families, for the purchase of the home or flat where to live, with interest rates charges capped at 2%. The Russian foreign currencies reserves alone can provide this bank with a loaning firepower of several trillions dollars. Of course, the loans must be granted and repaid in the domestic currency.

2) Forbid by law any short sale (i.e. the sale of what you DO NOT HAVE, in unlimited quantities, reserved to a selected few; in short, the ultimate price fixing scheme) of any financial securities (stocks, bond, currencies). Reserve the short sale of tangible commodities ONLY to the producers of the same commodities, limited to one year of current production.

That’s all! You shall not fight against your enemies, internal and external; they will die a natural death.

After that, start seriously implementing a real sovereign monetary emission, following all the N-E-C-E-S-S-A-R-Y postulates for its success.

Then, give alms for my sins!

IT TAKES A DUCK TO QUACK

April 10, 2014

“A capitalist may wish to sell drinking water, but Mammon wants to poison all water in order to force everybody to buy drinking water.”      (Israel Shamir)

I could spend ten years and use millions of words, but I would never be able to illustrate the difference between Capitalism and the current economic and financial system better than those few words above from Israel Shamir.

For years I’ve protested the labeling of the current economic system as capitalistic. Capitalism (as teached by the Austrian School and sistematically exposed by von Mises, teaching which has anyway a major flaw in the alleged neutrality of money – see my essay on Economic Goods and Money as a Good) is  the only correct economic theory and is just a theory!

To have it  in practice, you should have all men obeying at least the last half of God’s Decalogue (do not kill, do not steal, do not lie, do not covet, etc.). That’s not possible, as men are always free to make a moral choice; there’s no such a thing as an economic agent, you have always a moral agent!

The moment he chooses evil (and it’s inevitable if the only goal  is his economic gain), the market ceases to be free and the foundation of capitalism collapses. Moreover, beyond a certain threshold accumulation of capital, if not widespread, becomes uneconomic for the system, not least because it makes the latter less and less free. You have just to look around to see empirical evidences of this.

In fact, the current economic system does not even pretend to be capitalistic. Its monetary foundations lay on so-called money called out of thin air, outside any economic process. The process is not even rational, as this money gets its value exclusively from the State’s guarantee but the State (i.e. the citizens) must pay to get it; it’s difficult to imagine something more idiotic and criminal!

Therefore, the nature entirely parasitical of the production of the most important economic good, whose property is given to a select few, who can so create at will claims immediately due on every goods, works and services for their exclusive advantage, deny ab initio any capitalistic pretension of the current economic system. The freedom of the markets and their acting people is destroyed to the root!

As an aside, it must be stressed that only in this case it’s correct to call usury the charging of interest, namely in the case of blatant usurpation of the monetary sovereignty, when so-called money is entirely loose from any economic process or work, i.e. entirely parasitical in its production and appropriation. It’s clear that when that production and appropriation comes from free and legitimate economic process and work, money is just another economic good, even if a special one, and every economic good can legitimately require its price. (cfr. Matthew 25, 27)

Beyond this, the freedom to undertake economic activity has become just a myth in modern western demonocracies (it’s not a refuse, that’s the only correct denomination for the current western political system). Today, to make just one example, in New York you need a dozen different permits to sell lemonade. Only big fishes, sanctioned by the High Parasite (the international banks’ gang), are free to bribe their way to “economic success”; the rest are allowed to swim as much as necessary to become adequate food for the Worm’s unquenchable hunger.

Not only! The responsibility for one’s own actions again apply only in case of petty malfeasance and never against a member or a vassal of the High Parasite, unless he pisses off the pot. Crime is the only thing that pays in the current western economic environment, but only big crime!

The only freedom that common people have is to scramble all day to get the privilege to scramble one day more.

Therefore, to sum it up, if it does not look like a duck, if it does not move like a duck, if it does not quack….. well, then IT’S NOT A DUCK!!!

The current economic system is not capitalistic, it’s a slavery system, and you must be extremely stupid if you wonder why its outcome is that one percent of people control ninety percent of riches!

No man can serve two masters: for either he will hate the one, and love the other; or else he will hold to the one, and despise the other. Ye cannot serve God and mammon.

P.S. – A capitalist may wish to sell GMO for food, but Mammon wants a compliant politician to pass a law preventing people to know they are buying GMO for food (after people had made very clear that they want to know).

THIN ICE

January 26, 2014

If less than 1% of COMEX outstanding contracts stand for delivery, there will not be enough gold to meet the delivery requirements.

comex stocks

MONEY AND CONFETTI

January 4, 2014

Gold: the year that was.

2013 closes as the worst year for gold on record, but in terms of physical gold supplies (at least represented by the COMEX warehouses and the gold ETFs) an investor wouldn’t be able to tell. Usually when we have a big drop in price, that is because there is a lot of that particular asset available for purchase and that nobody wants it, and they are trying to find buyers anywhere to purchase it – thus we would expect to see rising inventories. But we’ve seen the opposite at the COMEX warehouses, inventories dropping to levels that may be dangerously low even as claims per registered ounce skyrocket.        (link)

AMERICA TODAY

December 22, 2013

……the large decline in registered stocks caused the owners-per-registered ounce ratio to jump to its highest ever at 91.8 and approaching the unbelievable 100 owners-per-registered ounce level. Let us repeat that – it means that for every 91 ounces of contracted gold only ONE ounce is actually available for delivery. This is really uncharted territory and shows the vast amounts of claims that are now present on fewer and fewer ounces of registered gold – 100 claims per ounce is high by any historic standard.

HAVE YOUR CAKE AND EAT IT TOO

December 19, 2013

Taper… do not taper….
taper a little….
a little more…. a little less….
a little more of a little less….
taper the tapering…..

whatever…..
it’s good for stocks, it’s bad for gold!

Plenty of smart, oh sooo smart, people out there ready to explain you the reason why.
And they even manage to don’t laugh doing it…..

CRIMEX EXPLAINED IN A SINGLE PICTURE

December 8, 2013

Crimex

MADNESS

November 29, 2013

madness