ZH: Another Conspiracy Theory Becomes Fact: The Fed's "Stealth Bailout" Of Foreign Banks Goes Mainstream.

ZeroHedge.

End Gold Manipulation: The Stunner From Today's Round Table Debate To "Fix" The London Gold Fix. $TNR.v $MUX $GLD $ABX

 

Jim Puplava: The Swiss Gold Initiative With Luzi Stamm, Member of the Swiss National Council $TNR.v $MUX $GLD $GDX

  "Jim Puplava discusses the groundbreaking developments in Switzerland where the real democracy can be in action now. Even debates about the Gold and Money Printing will be unprecedented on the national level and if this decision finds the support of the people Central Planers will be in horror."

End Gold Manipulation: The Stunner From Today's Round Table Debate To "Fix" The London Gold Fix.

ZeroHedge:

Another Conspiracy Theory Becomes Fact: The Fed's "Stealth Bailout" Of Foreign Banks Goes Mainstream

Back in June 2011, Zero Hedge first posted:

• "Exclusive: The Fed's $600 Billion Stealth Bailout Of Foreign Banks Continues At The Expense Of The Domestic Economy, Or Explaining Where All The QE2 Money Went"

which we followed up on various occasions, most notably with

• "How The Fed's Latest QE Is Just Another European Bailout" and
• "The Fed's Bailout Of Europe Continues With Record $237 Billion Injected Into Foreign Banks In Past Month."

With the following key chart:

Of course, the conformist counter-contrarian punditry, for example the FT's Alphaville, promptly said this was a non-issue and was purely due to some completely irrelevant microarbing of a few basis points in FDIC penalty surcharges, which as weexplained extensively over the past 3 years, has nothing at all to do with the actual motive of hoarding Fed reserves by offshore (or onshore) banks, and which has everything to do with accumulating billions in "dry powder" reserves to use for risk-purchasing purposes (alas understanding that would require grasping that reserves are perfectly valid collateral to use as margin against purchase of such market moving products as e-mini futures, which in turn explains why traders usually don't end up as journos).

Fast, or rather slow, forward to today when none other than the WSJ's Jon Hilsenrath debunks yet another "conspiracy theory" and reveals it as "unconspiracy fact" with "Fed Rate Policies Aid Foreign Banks: Lenders Pocket a Spread by Borrowing Cheaply, Parking Funds at Central Bank"

Wait... the Wall Street Journal said that? Yup. Read more on ZeroHedge."

End Gold Manipulation: The Stunner From Today's Round Table Debate To "Fix" The London Gold Fix. $TNR.v $MUX $GLD $ABX

 

Jim Puplava: The Swiss Gold Initiative With Luzi Stamm, Member of the Swiss National Council $TNR.v $MUX $GLD $GDX

  "Jim Puplava discusses the groundbreaking developments in Switzerland where the real democracy can be in action now. Even debates about the Gold and Money Printing will be unprecedented on the national level and if this decision finds the support of the people Central Planers will be in horror."

Kirill Klip.:

End Gold Manipulation: The Stunner From Today's Round Table Debate To "Fix" The London Gold Fix.

 ZeroHedge reports on this very important topic, which I follow on my blog:

  "As those following the saga of the rigged for decades and soon to be history (in its current incarnation) London gold fix know, today was the date when the World Gold Council held its "Modernising the London Gold Fix: IOSCO and beyond" round table session.

  Specifically, as the WGC explained, "The World Gold Council will be holding a round table debate on the reform of the London Gold Fix and the modernisation of the London gold market. Many aspects of the existing price benchmark process are viewed favourably by market participants, however, other elements are in need of reform if IOSCO compliance is to be achieved. The World Gold Council is seeking views from both users and service providers on the optimal characteristics of any reformed system. We will also debate whether IOSCO compliance is enough or should the industry be seeking to modernise more than just the price benchmark?" ZeroHedge."

I Vote To End Gold Manipulation: FSA Fines Barclays For Manipulation Of Gold Price - Join Me.

 "Manipulation cannot lasts forever even if the very powerful forces are behind it. You already know that I am not talking here just about one trader, one bank or even one country. We are talking here about the highest levels of power involved in this masquerade.

   Why Gold is so important for everyone, not just for the super wealthy who can afford to put it aside for the rainy day? Gold is the most important indicator of the rate at which FIAT money are losing its value - its real purchasing power. If you can manipulate it - you can pretend that everything is fine and DOW and S&P 500 will beat All-Time-High every month as we have now. But just look below at your childhood McDonalds Menu - something is not so right, isn't it?  My personal vote is nothing, but if I am not alone it will be finished one day. Please donate your tweet for the good cause and share this post if you want to change it as well.

TNR Gold: Shotgun Gold Project - Why Do We Need New Gold Deposits?

  "This picture above is stronger than thousand words written by the FED's hired academics and even Austrian School of Economics - it cuts through the verbal mist to the bone of Inflation definition and what it really means. It means that your FIAT money are losing it purchasing power. It happens every day, day by the day. How much you can see from the McDonald's menu from 70s. 

  And below is the chart representing "Strong US Dollar Policy" in action implemented by FED from the day of its inception in 1913. Some people even think that Federal Reserve is as Federal as Federal Express, but we will not go that road today.

  Inflation is the dirty open secret of all Central Banks in the world. It creates the Inflation Tax by gradually stealing from the value of your savings and deflating the government's obligations on all social programs. It is the way for governments to finance wars and "Inflate away" their debts without taxing you "directly". Inflation follows currency debasement - organised by money printing or by QE in the iPad's century - and it is making its dirty work by itself.

  Why Gold is so important here? It is the real measure of the rate of Currency Debasement and Inflation: Gold is the Real Money, not dollars. That is why it is manipulated so heavily:

  I will address you to James Rickards' books: "Currency Wars" and "The Death of Money" to get more information in depth on these subjects and Gold Manipulation is widely discussed on the web today. Read more."

  

  This particular case is not more than a slap on the wrist for Barclays, but it is the beginning. Now Gold Manipulation will be more difficult. Will we ever have the real free market? I doubt it personally, but it is the very good start and Naked Short Selling could be the very good follow up:

Market Manipulations, NI 43-101 And How The Honest Person Can Survive In Junior Mining.

 "Manipulation is rampant in all markets: HFT Flash Boys, LIBOR, FOREX, Pensions, Energy ... Gold. Some of the former conspiracy theories are going in the court rooms now, others are still waiting for their time. But nothing could be compared with naked shorting and manipulations in the illiquid junior mining stocks. Dirty tactics are used all over the market like the banging the juniors into the close, suppressing the prices during the accumulation. You can get the idea from the reports made by Jim Puplava  on Financial Sense and the summary: Naked Short Selling: The Problem.  Not a lot of people are talking about it - not a lot of us have the voice. And that is the real problem. Read more."

Please Note our Legal Disclaimer on the Blog, including, but Not limited to:

There are NO Qualified Persons among the authors of this blog as it is defined by NI 43-101, we were NOT able to verify and check any provided information in the articles, news releases or on the links embedded on this blog; you must NOT rely in any sense on any of this information in order to make any resource or value calculation, or attribute any particular value or Price Target to any discussed securities.

We Do Not own any content in the third parties' articles, news releases, videos or on the links embedded on this blog; any opinions - including, but not limited to the resource estimations, valuations, target prices and particular recommendations on any securities expressed there - are subject to the disclosure provided by those third parties and are NOT verified, approved or endorsed by the authors of this blog in any way.

Please, do not forget, that we own stocks we are writing about and have position in these companies. We are not providing any investment advice on this blog and there is no solicitation to buy or sell any particular company.

Aden Sisters: Gold Finally Bombed Out $TNR.v $MUX $GDX $NG $ABX $RGLD

  After yesterday's huge run Gold is confirming the Head and Shoulder Bullish reversal. Weekly close above $1,317 will be very important.

 Kirill Klip.:

FED Has Found ... Sorry, Created Inflation To Save Us All - Gold Celebrates ... Quietly So Far.

"Gold and Silver are acting today like if the Chinese virus "Missing Collateral" has finally reached the London BOE vaults!"

TNR Gold: Shotgun Gold Project - Why Do We Need New Gold Deposits?

Kitco:

Gold Finally Bombed Out

Gold dropped sharply a couple of weeks ago. Many experts can’t explain why, but there are several reasons that make sense…

SAFE HAVEN?

First, gold entered a seasonally slow period. This could last for another month or so but seasonality alone doesn’t explain why the decline was so steep and sudden.

More impressive, gold’s safe haven appeal has diminished somewhat. Following the Ukraine elections, for instance, concerns eased. But with Iraq now heating up, gold could continue its current rebound rise.

THE TECHNICAL PICTURE

Meanwhile, gold had strong support at $1280. This level had been tested several times but it clearly broke.

This means gold will probably continue to hold above the $1200 area. It also suggests gold could continue forming a head and shoulders bottom (see LS, H, RS on Chart 1).

Plus, there are growing signs indicating this could end up being the bottom for this decline, which has been in force since 2011- 12.

Looking at gold’s big picture since 1968, you’ll see what we mean.

Chart 2A shows that gold’s decline of the last few years looks small in the big picture, within the mega uptrending channel since 1968. 

Note that gold has had two major bull markets, in the 1970s and in the 2000s. 

The major rise in the ‘70s didn’t break its bull market red uptrend until 1984, several years after the peak in 1980.

The bull market red uptrend since 2001, however, is still intact.  On a big picture basis, it’ll be important to see if this trend holds. That is, as long as gold stays above the lows of last year, at $1210, this trend will stay solid. 

And according to gold’s leading long term indicator (B), it’s saying that gold remains at an extreme low area... In fact, this is the lowest it’s been since the 1980s.

Since these low areas tend to coincide with bottoms in the gold price, this tells us that gold is totally bombed out and the lows of last year are unlikely to be broken.

This doesn’t mean gold will soar from here.  Eventually yes, but for now we could see more backing and filling.

All things considered, it looks more like 2015 could be the year of a strong change to the upside.

DEFLATION GAINING MOMENTUM

One important reason why is because deflationary pressures have been intensifying.

Although there has been some improvement, global economies remain sluggish, despite massive stimulus efforts from the biggest central banks in the world.

This suggests that stimulus measures will likely continue in order to boost the global economies. And even though these measures may eventually cause inflation, the current economic sluggishness is stubborn and it’s feeding deflation.

Our inflation-deflation barometer is an indicator that measures rising inflation against falling deflation by using a ratio between gold and bonds.

Historically, gold has been used to measure inflation and bonds have measured deflation.

Chart 3 shows the ratio of the two since 2003. Notice the steady rise in gold (inflation) against bonds (deflation) through 2011. Moreover, after the 2011 peak in gold, bonds began to strengthen against gold and they’ve continued to be stronger since then.

In other words, we could still see bonds strengthen even more against gold in the months ahead. This would coincide with a sluggish economic outlook. But again, that may not be the case for long.

SILVER IS CHEAP

At the same time, silver is super cheap. It’s also cheap compared to most of the other markets.

Demand for silver is also very good.  A recent report said that physical demand rose to a record last year. 

This growing demand ties in well with the technical situation in silver. It too is bombed out and, like gold, it’ll likely head higher in the upcoming months.

Mary Anne & Pamela Aden

--
Mary Anne & Pamela Aden are well known analysts and editors of The Aden Forecast, a market newsletter providing specific forecasts and recommendations on gold, stocks, interest rates and the other major markets. For more information, go to www.adenforecast.com   or  www.goldchartsrus.net"

Kirill Klip.: FED Has Found ... Sorry, Created Inflation To Save Us All - Gold Celebrates ... Quietly So Far.

 Kirill Klip.:

FED Has Found ... Sorry, Created Inflation To Save Us All - Gold Celebrates ... Quietly So Far.

  "Gold and Silver are acting today like if the Chinese virus "Missing Collateral" has finally reached the London BOE vaults!

Bullish For Metals?! Missing Collateral in China, Follow The Trail of Loans, Copper and Fraud.

  In my personal opinion, we are witnessing the same game of the rehypothecation as it is happening with FED, BIS, Investment Banks and Gold. This, actually missing metal as collateral, will be the very bullish set up for the commodities markets. After initial selling due to the margin calls and unwinding of Paper Positions in the market, Mr Market will realise that all these metal accounted for the supply and demand picture is NOT there. Industrial demand will stay in place, but Supply which was supposed to be hoarded in the warehouses is missing: the collateral was used a few times for the different transactions. You can study this subject more with explanation in plane English in the very good podcast I have published yesterday: Read more."

  FED has finally "succeeded" and Inflation is raising its ugly head. Everybody mortal, apart from the DC and FED System, who has visited at least few times any grocery shop this year knows that food prices are going up. And gas, and insurance, and electricity bills, and ... yes plasma TV prices are going down and iPads, but they are not very tasty for those on food stamps.

  We have a positive resolution today in the Head and Shoulder Bullish Reversal pattern, which we have discussed before. Closing above $1,317 this week will be very important. Nobody can manipulate markets forever. Watch the headlines tomorrow: Inflation Is Back - Gold Surges On The FED News.

I Vote To End Gold Manipulation: FSA Fines Barclays For Manipulation Of Gold Price - Join Me.

Sufiy: Gold Market And The Stock Bull Topping.

TNR Gold: Shotgun Gold Project - Why Do We Need New Gold Deposits?

  "This picture above is stronger than thousand words written by the FED's hired academics and even Austrian School of Economics - it cuts through the verbal mist to the bone of Inflation definition and what it really means. It means that your FIAT money are losing it purchasing power. It happens every day, day by the day. How much you can see from the McDonald's menu from 70s.

  And below is the chart representing "Strong US Dollar Policy" in action implemented by FED from the day of its inception in 1913. Some people even think that Federal Reserve is as Federal as Federal Express, but we will not go that road today.

  Inflation is the dirty open secret of all Central Banks in the world. It creates the Inflation Tax by gradually stealing from the value of your savings and deflating the government's obligations on all social programs. It is the way for governments to finance wars and "Inflate away" their debts without taxing you "directly". Inflation follows currency debasement - organised by money printing or by QE in the iPad's century - and it is making its dirty work by itself.

  Why Gold is so important here? It is the real measure of the rate of Currency Debasement and Inflation: Gold is the Real Money, not dollars. That is why it is manipulated so heavily:

  I will address you to James Rickards' books: "Currency Wars" and "The Death of Money" to get more information in depth on these subjects and Gold Manipulation is widely discussed on the web today. Read more."

  Investment banks are starting to connect the dots even for the clients, they are themselves all-in long time ago, as I would guess, and announcing that Inflation is ... bullish for Gold.

"Upgrade comes earlier than expected…

Canaccord Genuity North American Portfolio Strategist, Martin Roberge, has lifted his rating on the Gold Sector to Overweight, due to escalating inflation risk.

The upgrade comes slightly earlier than expected as Roberge believes that the Fed is cornered…following stronger-than-expected U.S. CPI on Tuesday and the marked jump in Roberge’s CPI diffusion index, Martin believes there is a non-trivial risk that the Fed temporarily abandons its 2% inflation target.

If the Fed is willing to take an inflation risk, investors should buy inflation-protection hedges. Already, bond vigilantes are doing so byfavouring real-return bonds (RRBs) over Treasuries. Inflationary pressures fuel inflation expectations, two positive drivers for the price of gold. Lastly, investors should note that U.S. inflation jitters are brewing while monetary reflation has gone global. World central bankers are in a race to reflate before a global bear market in bonds renders their easing policies impotent.

For those who remember, this looks like 1993 all over again and  Roberge further highlights that there are many seasonal factors that could lead to a rally in gold and gold equities in H2/14:

·         Golds tend to have a strong H2 in calendar years following a gold rout
·         2014 marks the third year of the gold bear market and the 200-week average sits at $1,500/oz
·         Roberge thinks gold stocks are cheap and should protect portfolios in a correction."

  The chart above provides you with idea why we need more Gold deposits now. Even if Major Gold Miners are squeezed on margins and divesting the projects now - it is these industry's fundamentals which will drive this market forward. Falling gold prices are the best cure from the low Gold prices. Gold miners are mining the "Gold Dust" by the 90s standards.

  Number of discoveries is going down and will go down even more with Junior Miners struggling to get access to the capital now to develop their projects. Grades and sizes of discoveries are going down as well - easy stuff is all  already found or is located in not so friendly places. We have Peak Cheap Gold in place now, whatever the Gold market massaged by BIS will tell you.

  China's buying record amount of gold last couple of years will be the very strong confirmation of Gold monetary value and recent pick up in M&A activity provides very important signal for the bottom in this mining cycle:

"China continues its buying spree of copper assets all over the Globe: last month the huge Las Bambas copper project in Peru was bought by Minmetals Group for $5.85 B and now Guandong is bidding for PanAust. Reuters reports on the deal and you can notice how the activity in M&A by Chinese companies is picking up during the "soft market". It is the very important indication of the major bottom in the mining cycle: it is cheaper "to dig" for Copper and Gold on the Stock Exchanges now, when valuations of assets in the ground of listed companies are discounted by the depressed mining markets. "

  This is another reason why I personally came into the TNR Gold - Shotgun Gold project in Alaska. Gary Schellenberg and John Harrop - our VP of Explorations, have done the great job over the years exploring this project with Nova Gold and now we have 100% of it and Nova Gold has become TNR Gold's shareholder. After our drilling results in 2012 Greg Johnson the founder of Nova Gold has joined our Board and we have published the first resource estimation on the Shotgun Gold project last May.

  It was the first confirmation of my personal dream to develop the important Gold deposit and even if it is still the very early stage of project development, this dream is not limited in size by the resource model at Shotgun Gold project at this time:

"The mineralization style observed at Shotgun Ridge bears a strong resemblance to the 40 million ounce deposit at the Donlin Gold project operated by Barrick and NovaGold," stated recently appointed director Greg Johnson, "The similar age and host intrusive rocks suggest that, with continued exploration, there is significant potential to locate larger volumes of mineralization in and around Shotgun Ridge."

  We are working on the corporate structure now, which will allow to develop Shotgun Gold with the potential new strategic partner on J/V basis like we are doing with Ganfeng Lithium in International Lithium. You can find more information in the Shotgun Gold Project presentation below, on our website and give us a call to discuss it at any time.

TNR Gold Shotgun Gold Presentation, Alaska - April 2014 from Kirill Klip

Please Note our Legal Disclaimer on the Blog, including, but Not limited to:

There are NO Qualified Persons among the authors of this blog as it is defined by NI 43-101, we were NOT able to verify and check any provided information in the articles, news releases or on the links embedded on this blog; you must NOT rely in any sense on any of this information in order to make any resource or value calculation, or attribute any particular value or Price Target to any discussed securities.

We Do Not own any content in the third parties' articles, news releases, videos or on the links embedded on this blog; any opinions - including, but not limited to the resource estimations, valuations, target prices and particular recommendations on any securities expressed there - are subject to the disclosure provided by those third parties and are NOT verified, approved or endorsed by the authors of this blog in any way.

Please, do not forget, that we own stocks we are writing about and have position in these companies. We are not providing any investment advice on this blog and there is no solicitation to buy or sell any particular company.