Dr. Paul Craig Roberts: If the Currency Collapses & You Try to Flee Into Gold, There Won't Be Any GLD, TNR.v, MUX, GDX

  Dr Paul Craigs Roberts talks about all markets being manipulated and presents the big picture of the Gold market and ongoing QE by the FED. Gold price action became the threat to the FED's policies and Gold was smashed down to preserve the status quo and save US Dollar. Markets can not be manipulated forever and now we have the situation when bullion goes to the East and to China particularly with the very dear geopolitical consequences. There is no recovery in U.S. economy and there is no Jobs creation - we would like to mention that this interview was recorded before yesterday disaster with Jobs numbers of only 74k being created and collapse in labour participation numbers.

Bloomberg: China May Become The Third-largest Holder Of Gold GDX, TNR.v, MUX, GDX

"Here it comes and a lot of people will be taken totally by surprise. Record buying of Gold by China last year will be translated in the much higher Gold holdings by PBOC. Bloomberg reports that these holdings could surpass now those of Italy and France - Jim Rickards talks about the announcement by Chinese Central Bank of 5,000 t of Gold holdings in the nearest future. It will be the game changer and puts Gold solidly into the investment game as well. Yesterday shock with Jobs numbers can be the sign of the real state of US Economy and it means that FED does not have any real exit strategy from QE permanent state. In another news Royal Mint in UK has run out of gold coins due to the exceptionally high demand."

Peter Schiff: Gold & Dollar - An Imaginary Recovery Does Not Create Real Jobs

"Huge miss in Jobs numbers with only 74k created vs estimated well north of 200k can not be just dismissed as a blip in the data. Peter Schiff discusses that FED can not really Taper now, there is no real recovery and FED does not have the exit strategy. Gold is waking up to these developments. What if this data is the real state of the economy? Once people will realise how wrong is the expectation about the recovery Gold will go straight up. COMEX data shows that Gold shorts will be in trouble very soon."

Toby Connor: Another Bubble Looking for a Pin GLD, MUX, TNR.v, GDX

ZeroHedge.

  Toby Connor provides a very interesting set of charts and market observations. Nothing grows up to the sky and he reminds us that every parabolic move ends in correction. This Friday extremely volatile FOREX moves are the first sign of repositioning by the major players. 10 Year Yield has reached 3.0%, mortgage rates are already going higher and mortgage applications are collapsing - markets can not be sustained by only rising Twitter and other social media. Janet Yellen will be tested very early in her rein and idea that QE can be actually extended is not so crazy any more.

Rob Kirby: When China Doesn't Get Their Gold - That's When This Ends GLD, MUX, TNR.v, GDX

  "Greg Hunter has conducted another very interesting interview and Rob Kirby points out one more time to the elephant in the room - derivatives market, which can be on fire once interest rates will start going up. With 10 Year Treasury Yield crossing today 3.0% line in the sand we have very interesting time ahead of us. Now, finally, Gold goes vertical with US Dollar under pressure today."

The Big Squeeze - Mystery Hand Scoops Up Copper MUX, TNR.v, GDX, CU

"Interesting time comes for the Copper plays. Commodities are so much hated asset class now, that the move could be very unexpected for many people, when rotation starts from overpriced equity markets into the real assets plays."

Kitco:

Another Bubble Looking for a Pin

Well the Fed in its infinite wisdom has gone and done it again. They've created another bubble. And this bubble is arguably the 6th in the last 13 years (tech, real estate, credit, bond, oil, and now stocks - again). And let’s footnote the Fed’s creation of the present echo bubble in housing, for good measure.

If one steps back far enough they can see what's really happening. The Fed has now manufactured a parabolic move in the stock market. This parabola is much more aggressive (and thus even more unsustainable) than witnessed at either the 2000 or 2007 stock market tops.

Now here is the problem - parabolas always collapse. There are never any exceptions. When the pin finds this bubble it's going to take down not only our stock market, but unleash a destructive force on the global economy. 

At some point profit taking starts as nervous professionals fearing a regression to the mean event start to lock in profits. As the big institutional money starts to come out of the market the selling begins to accelerate and the losses quickly mount.

The steeper the parabola the quicker the losses once the parabola breaks. It's not unusual to see 3-6 months of gains evaporate in the space of days when one of these structures collapses. I have a pretty good idea the level to which this market will fall initially, once the break begins; more on that in a minute.

The path creating this unsustainable market behavior began in 2011. If the Fed had just allowed the market to correct naturally and drop down into its 4 year cycle low in 2012 we would probably now be on a sustainable path into another secular bull market. 

Unfortunately the Fed made a catastrophic mistake. Instead of allowing the market to function naturally they began operation Twist, then LTRO, then QE3 and QE4. The result as you can see in the first chart is they've created a huge unsustainable parabolic move in the stock market. Try as they have to prevent corrections, the longer they allow this to continue the more devastating the crash is going to be when the market breaks.

Based on the extremely stretched nature of the current intermediate cycle (week 27) I'm looking for a top and the start of the collapse early next year. Possibly as we begin earnings season. If one is in the market trying to catch the last few percent of this upside price movement, please understand we are not in an investor environment this late in the bull market. This is short term trading only and at the first sign the crash has begun, get out and stay out.

Margin debt and money market funds are at levels indicating retail investors are now all in like they always are at market tops.

Source: sentimentrader.com

I expect we are going to see the market fall precipitously to test the previous bull market tops and erase most of last year’s gains in a matter of days or weeks. At that point Yellen will panic and all thoughts of tapering will vanish. As a matter of fact I expect the Fed will increase QE, maybe drastically, to try and reflate the parabola.

But the Fed’s likely attempt to reflate and sustain the stock market will be futile, as the damage will already have been done. All they will accomplish is a violent echo rally common to all collapsing parabolas. From there the bear market will have begun and the more QE the Fed throws at the market, the more and faster the liquidity will leak into the commodity markets until inflation completely destroys the economy and the next recession gets underway.

The Fed thinks they are creating a "wealth effect". All they've really done is sow the seeds of the next crash. 
By Toby Connor, 
GoldScents"

US Dollar And Gold This Week - Janet Yellen: "There Are No Bubbles And More To Be Done." GLD, MUX, TNR.v, GDX, SLV

  CS. After Janet Yellen's testimony fundamental picture for Gold is very bright, QE is assured "until the economic data will justify the opposite". Even after The Taper, we will have the credit expansion in the monetary base ongoing and, maybe, velocity will increase finally with money flowing through financial system. 

  Question of Taper is still more than open - with Bernanke in office until Jan 31, 2014 we are very doubtful that he will make any decision on part of the FED. With Janet Yellen coming into the picture we can expect even more accommodation until economy will provide the clear signs of improvement in the real economic growth. The main take out for us from Janet Yellen's testimony is that "There Are No Bubbles And More To Be done." 

  In all normal circumstances Gold will be flying over $2000 long time ago, but we do not have the luxury of free markets with "The FED's 100-Year War Against Gold." Market can not be manipulated forever, particularly when underlining Demand is growing with the suppressed Gold price. China and other Asian countries are more than happy to accumulate cheap Gold and it is flowing from The West To The East at the disturbing record rate. COMEX is running on fumes now and LBMA banks are exposed to the Gold Bank Run with all-time-high leverage of 69 owners per ounce of deliverable Gold.

  In all normal market circumstances the Gold chart above will provide a good formation for the higher prices with Bullish free white candles coming out from the very important support - which can confirm the higher low -  and momentum indicators turned to the Upside. The reason for it is the US Dollar chart below withvery strong Bearish Reversal candle formed last week. Despite very weak data from Europe US Dollar was not able to overcome the reversal so far and its momentum indicators are turning Down. The follow up next week will be very important.

  There are a lot of calls for Gold to go down to $1000 level and it could be another very good contrarian indicator. Basically all the events are confirming the ongoing US Dollar debasement case: reduced buying by foreigners of US Treasuries, record level of buying US Treasuries by the FED. Taper talk - which means less Bid from FED for USTs, less demand in the market and higher interest rates and Janet Yellen on the mission with More To Be Done. Debt Ceiling debate entertainment is coming back very soon and Raised Debt Ceiling Does Mean More Debt, whatever spin you would like to put on it.

Below we have another interesting confirmation of the Gold demand action printed on the Weekly chart.

  We have three Higher Lows so far - after the infamous attack on Gold to break the $1550 support level in April - and the very strong bullish candle last week, forming the third low now. With the follow through with the higher Gold prices we need to make the weekly close above the level of previous high of $1450. You will be totally surprised how investment sentiment will turn on a dime with this kind of action.

  Can the Gold be the victim of another Hit and Run accident in the DC area again? By all means, unfortunately, but COMEX numbers and Record Outflow of Physical Gold from The Western financial system makes it more and more difficult. LBMA needs to balance its books and at 69 leverage it is almost impossible at this level of Gold prices. Only higher Gold prices will provide more Gold supply and we are not even talking now about the long term damage to the Gold industry. Where the Gold will come in the future if Majors are cutting back their projects and Juniors are closing down any exploration and development? 

  Another very important input is coming from China this week after the conclusion of The Third Plenum. Details are still scarce, but what is coming out is nothing less than groundbreaking. China will relax its one child policy, abolish labor camps and will allow more private capital participation alongside with the state. Our take is that China is very serious now to build its internal market and will concentrate on the long term plan of the stimulating the transition to the Internal Growth oriented model. Walmart results are showing that FED QE wealth transfer policies can not make U.S. food stamps nation to prosper in any meaningful way and nobody can rely on it any more. What it means? Higher Yuan in the end and higher commodities prices in the dollar terms. That is why China is so active in securing the best available hard assets all over the world including Gold, Copper and Lithium.

  Silver is the poor men's Gold and its action is following the Gold, but with much more leverage in the system. We have as well very strong candles printed last week's action with all the caveats we have discussed above.

  Gold Bugs Index HUI is sitting on the higher Low so far after the Double Bottom reversal printed in July October Lows and is waiting for direction from Gold. We need here the weekly close above 250 level to bring the excitement back into the picture, after that you can be surprised again how fast the memories about the Dead Wood Gold Miners can fade away.

  It was a good week for McEwen Mining and should our observations materialise for Gold and Silver in the positive direction next week this company is very well positioned for the upside. Huge short position can provide the fuel for the explosive upside move. TNR Gold is now depends on Rob McEwen Midas Touch and we like this company as we have discussed before. Read our full disclaimers always do you own DD and have a pleasant week ahead of us!

Brutal Past 24 Months For Precious Metals Investors, Nearing A Bottom – Rob McEwen MUX, TNR.v, GLD, GDX, SLV, CU

"Rob McEwen can not control Gold, Silver or Copper prices, but he can control the management of his company. McEwen Mining has delivered solid results in the very tough environment and shows very entrepreneurial approach to advance its business plan."

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FED Chronicles: Just For The Record - Janet Yellen on Asset Bubbles

Peter Schiff On Gold Catalyst: Janet Yellen Exposed Part 2 - The Truth Behind the Myth GLD, MUX, TNR.v, GDX

Peter Schiff On Gold Catalyst: Janet Yellen Exposed - The Truth Behind the Myth GLD, MUX, TNR.v, GDX

"Peter Schiff separates truth from the mass media hype about Janet Yellen's real track record. As we have discussed before, her core beliefs are even more neo-keynesian than those of Ben Bernanke. The new play book for the FED is written by Michael Woodford and it will be even more fundamentally positive for the Gold. We can expect continuation of "pro-growth policies" with very little regard for the created bubbles along the way.

  Peter was right about the Housing Bubble in 2006, he was right about the "Tapering" in September, what will happen if he is right again with his Call on Gold? We will provide his discussion on Gold and our entry on Michael Woodford to dig it out more for interested."

Peter Schiff: With ECB Rate Cut FED Has More Room To Increase QE Now GLD, MUX, TNR.v, GDX, SLV

  Peter Schiff warns everybody: do not be fooled by all this Taper talk, the moment FED removes the QE we are going in recession. ECB Rate Cut gives more room for FED to increase QE now.

  The action in Gold and Gold miners will be the very good indicator of the real state of the financial markets. Any discussions will stay only the words without money flowing into the sector. China is buying record amount of Gold this year and now you can add countries like Thailand and Turkey into the mix as well. Thailand's biggest domestic gold importer expects to more than double purchases this year to 200 t from 92 t last year. Turkey's gold imports have doubled this year and purchases have reached already 251.4 t from January - the biggest tonnage increase since at least 1995, according to ZeroHedge.
  What do they know the others don't? The real situation with Gold at the Central Banks being leased out or Record Low COMEX inventories?

Comex Registered Gold Falls To New Low at 640,552 Ounces - Claims Per Ounce Still Around High of 59 GLD, MUX, TNR.v, GDX

  Jesse reports another New Low at COMEX. With this rate of outflow COMEX will be empty very soon - can we assume that now higher Gold prices will come to save it?"

Taper Anyone? China, Interest Expense On The U.S. Debt Outstanding And Gold. GLD, MUX, TNR.v, GDX

"What is the best cure from the Taper Impulsive Disorder?  - Higher Interest Rates."

Gold Miners Are Ready For A Launch GLD, MUX, TNR.v, GDX, RGLD

 "We have the very interesting action today in Gold and Gold Miners. With Gold hammered down on the bad news for the sector: "very strong payroll numbers" - which should imply Taper Impulsive Disorder again - Gold miners refused to sell off and made the reversal with many names closing Up for the day. It will be important this time to see for how long Gold will stay below $1300 again. This kind of diversion in Gold and Gold Miners is the very good sign, when Gold Miners are leading the Gold prices Up.

On this chart we can see HUI relative to the Gold price and all this bear market Gold miners were sliding with faster pace than the Gold price. Now we can see the bottoming process with all momentum indicators turning Up from July."

Chris Martenson: FED, QE And The Taper

  Chris Martenson comes here with one of the most simple and elegant explanations: why The Exit from QE is all but impossible without total rupturing of the market. Everybody is happy when FED buys - it means that they are coming in almost every time at the higher prices. But to whom are they going to sell, when this process means more supply and Lower prices for sure? Or who is going to buy when FED will start To Taper and reduce its buying?

Taper Anyone? China, Interest Expense On The U.S. Debt Outstanding And Gold. GLD, MUX, TNR.v, GDX

 "US Dollar is running wild today trying to understand the FED's talk. "We will taper at some point data permitting, but will keep ZIRP until 2016 now" - with this kind of double talk from the both sides of the mouth anyone can get confused very soon. What is the best cure from the Taper Impulsive Disorder?  - Higher Interest Rates.ZeroHedge reports that they are moving up fast with the first sign of Taper confusion in the headlines and below you can find the reason why it is impossible to Taper anything now. 

  Amount of US debt is so huge at 17.1 Trillion, that interest expense is one of the largest on record even with record low interest rates and stands at 415.7 Billion in 2103. Now double it and apply to US Economy general statistics, then do the same after listening to John Williams from shadowstatistics.com about the real numbers. We guess that Chinese have run these numbers long time ago and buying all physical Gold now they can get."

Gold Catalyst - John Williams: Very Serious Trouble in this Next Year - Weaker Dollar and Hyperinflation GLD, MUX, TNR.v, GDX

Max Keiser: Alasdair Macleod Investigates The $640 Million Sell Order Of Gold. GLD, MUX, TNR.v, GDX

"In this episode of the Keiser Report, Max Keiser and Stacy Herbert, discuss the EBT 'free lunch' card chaos at Walmart when an 'unlimited' benefits glitch causes card holders to pile shopping carts high with 'free' goods, while on Wall-Street, the 'free lunch' card of Quantitative Easing has caused a similar misallocation of capital into property and toxic debt instruments. Finally, they discuss the world about to shut off America's 'free lunch' card, otherwise known as the Exorbitant Privilege' of having the world's reserve currency. In the second half, Max interviews Alasdair Macleod of GoldMoney.com about the $640 million sell order of gold. They also discuss Alasdair's new theory on money supply (FMQ) and his differences with Professor Fekete, a recent guest on the Keiser Report, regarding whether or not there is deflation."

  We continue to follow The Crime Of The Century - Gold market manipulations. Today we have Max Keiser who investigates with Alasdair Macleod the 640 million Sell order of Gold which disrupted the trading session on Friday 11th and was supposed to Kill the rest of the confidence in Gold safe heaven status. Chinese are not buying into it any more and moving fast now with their state level long term plan of diversification its Reserves out of US Dollar denominated assets.

Gold Catalyst: 9 Signs That China Is Making A Move Against The U.S. Dollar GLD, MUX, TNR.v, GDX

"Michael Snyder provides a great summary of the latest developments with China and former Reserve Currency Of Choice - US Dollar.  All pieces are coming together now in this "Art of War" - state level long term implementation of plan for China Peaceful Rising. West distracted by corruption, wars and created Debt is losing its grounds to the East with every Gold bar shipped to China now."

Andrew Maguire: Gold Smashdown, FED Defends The Dollar And How Goldman Sachs Operates. GLD, MUX, TNR.v, GDX

"Andrew Maguire presents to us the chronicles of ongoing war behind the curtain with FED defending the US Dollar at the crucial level 0.80 and how the FED's #1 Gold Prime Dealer Goldman Sachs operates in the Gold market. Now we have more information on why Goldman Sachs has issued the Sell Call on Gold last Wednesday. 

   All these revelations will never lead to the higher Gold prices without Buyers and one can argue that this manipulation can go forever. According to the Andrew Maguire the key crucial difference now is that Central Banks are buying and, particularly, China is taking all available Gold for physical delivery now."

Have You Sold Your Gold?

Gold Catalyst: Chinese agency downgrades US credit rating GLD, MUX, TNR.v, GDX

  "We have the downgrade of the US rating where it matters most: by the Buyers of US IOUs. S&P or Moody's will not dare to make the move as DOJ was very fast to remind S&P who is in charge, but Fitch this time was more following the real mess coming out of Washington, DC with its Negative Watch for US rating.

  Now the desire of China to buy all available physical Gold can be put into perspective of long term state-level planning to diversify its currency reserves out of US Dollar based assets."

McEwen Mining & TNR Gold: Las Bambas Copper Bidding From China Heats Up TNR.v, MUX, LCC.v, GDX, CU

“It is a good choice to invest in mining assets, which is a much better choice than investing in one government’s bonds – especially when this country cannot guarantee to pay even its own employees”

 Gu Liangmin, head of copper at Minmetals.

Jim Puplava: Janet Yellen to the Chair And Michael Woodford Is The New FED's Play Book. GLD, GDX, MUX, TNR.v

  

Bloomberg: Central bankers around the globe look to the economic theories of Michael Woodford for extraordinary methods to spur growth when interest rates are already near zero. Photograph: Ryan Pfluger/Bloomberg Markets

  Jim Puplava is talking about "FED's Big Flip Flop" in his big picture this week. He is calling for Janet Yellen to be the next Chairperson of the FED. Her dovish  monetary policy will be highly beneficial for our Gold Bull. Jim sees the transition from unemployment target to the GDP based target for the FED's monetary policy. Quite surprising in its honesty were two remarks from Bernanke: about unexpected tightening effect on the markets after FED's announcement about the tapering of QE - when interest rates have almost doubled from the spring low. And Ben's admission that unemployment rate does not provide the clear employment picture and is affected the employment participation rate. 

  Michael Woodford has become the new FED's play book after his monetary theories were widely adopted by the central banks around the world after Jackson Hole in August 2012. You can find his Bloomberg profile here.

  Now we have more clues to understand why Eric Sprott is selling Art in order to buy more shares of Gold and Silver mining companies.

  

Jim Puplava’s Big Picture: The Fed’s Big Flip Flop

Charles Nenner to Moneynews: US Headed for Recession and It's 'Going to Be Bad'

  

  Charles Nenner talks about the potential of another recession in the U.S. and his Call must be taken seriously. Surging rates these days even before the beginning of the Tapering will put enormous pressure on the consumers and coupled with high gas prices his prediction can become true again.

Adam Hamilton: Gold and GLD Exodus Reversal MUX, TNR.v

"Adam Hamilton provides now a very compelling case for the General Equity Markets and GLD relationships and correlations and if you do not think that trees can grow straight up to the sky we are at the historical point in the markets development in the age of FED central planning now." 

Charles Nenner Research: Cycles Say Gold is Bottoming.

"If the history is of any guidance, today's BOE statement and Pound Slaughtering is the sign of things to come in the US Former Reserve Currency Of Choice Land. We will remind everybody that QE was first started by BOE and it was called as it is: Money Printing."

Money News:

Charles Nenner to Moneynews: US Headed for Recession and It's 'Going to Be Bad'

Monday, 19 Aug 2013 

By Glenn J. Kalinoski and Kathleen Walter

Technical analyst Charles Nenner didn’t mince words when asked about the United States facing another recession.

"It's going to be bad," Nenner told Newsmax TV in an exclusive interview.

"It's very scary because we didn't have a lot of growth and when this economic expansion is over, we're going to be in trouble," the founder and president of the Charles Nenner Research Center said.

Watch our exclusive video. Story continues below.

"We didn't leverage enough. Cycles go up, go down, take three and a half, four, five years, but if you almost don't jump up and then you're jumping down, then you've jumped down from a much lower level."

He said that "the economy is not going to do much this year. It's going to pick up a little bit next year into the third quarter and then it's going to be messy again."

The economy will be fairly stable until the end of next year, "then we're going back into recession," said Nenner, who correctly called the 2007 downturn.

He also warned that the economy faces other problems as well, such as deflation, commonly defined as a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0 percent.

"Deflation is a very serious problem we can still have to deal with and that's much worse than inflation," he said. "So my fear is deflation, not inflation. Inflation will come, it will take another three years until it starts."

He added that he doesn’t see much improvement when it comes to the nation's unemployment level.

"The problem is structural," he said. "There was a lot of outsourcing and then a lot of jobs … don't need a lot of people anymore because of the Internet and IT and all of the technology. People have to think a little bit in a different way and it's going to be very hard to get the unemployment down."

The wide-ranging interview turned to the outlook for gold. "It's a short term trade because it's going to bounce around," he said.

"Until we really have inflation coming, I don't see gold going back to the highs. It will go two and a half thousand. It's just making a bottom slowly, and we are boost[ing] longer term on gold, but it will take time."

He also discussed his outlook for stocks.

"We had a target of 1,720 on the S&P, so once we were [at] about 1,700 we sold all the stocks," he said. "The sentiment [is] too extreme. The market is very risky, so we don't go in anymore. We've been out now for the last three, four months and we're just standing aside."