Loading ...inside edge of what would look like a rhino horn…kinda what a lot of gold stocks formed in their charts in late April/early May of 2006. A sure sign to sell at least one-third. The “inside edge” or “backside edge” would be seen from the rhino’s perspective, as if through his eyes…
have to subscribe to a belief in total ignorance for those who think Obama represents leadership. This guy is a hatemonger extraordinaire, dishing it out in spades but not able to take it himself. He has no track record of accomplishing anything, other than getting elected. He is an economic ignoramus who will take us deep into Carter territory but on a more fearful and damaging level. How people can think this guy has anything worthwhile in his cranium is beyond belief.
No, I am NOT a republican nor a demopublican or anything remotely resembling a “mainstream” party. They are all idiots, sold out, and corrupt. Except for Bob Barr, our bud Ron Paul (although he provides evidence every now and then of a screw loose).
It’s all kinda moot now as no matter who gets in, its gonna be nightmare. But such inane comments by Cara undermines his credibility as a thinker and a sound money, limited government guy. but then, maybe he is a liberal airhead when it comes to politics - who knows???
can’t trust that day ..
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Investors at Risk of Losing Everything
by: Bill Cara posted on: June 08, 2008
It was not so long ago that I opined that unemployment in the US would start to surge. A few of you doubted me. The Friday Jobs Report is proof of concept. This problem is now front burner. So-called “rebates” are not jobs. They are also not wage and salary increases.
With respect to the Middle East, if hot-headed politicians cannot resolve their differences on a diplomatic level, and choose more war, the real problem will be worse than inflation, recession/depression and stock market crash. The average person, and tax-payer, will start to revolt.
The people have had enough. If allowed to fester and unemployment levels build to where I anticipate, and oil prices stay at the $138 level or higher, I believe the West is headed for broad general strikes and internal strife that will include domestic bombing and burning.
Interesting to me that the leadership that America needs, and is likely to get from Barack Obama, will now be headed for four or five months of intensely disrespectful dirty politics. The world, I think, is soon to witness a smear campaign in politics that will not make Americans look good in the eyes of others. Do they care? Probably not, but they should.
With regard to capital markets, investors who are locked by debt into long-term asset holdings are suffering and at risk of losing everything.
The opening on Monday should be interesting.
Choose your poison.
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www.youtube.com/watch?v=H7KrlDZ5Hkw
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abtd
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The Varanus Island gas explosion and subsequent loss of around 30 percent of the state’s gas supplies is creating serious problems for the state’s massive mining industry and will affect productivity and supply for months, rather than weeks.
Author: James Regan
Posted: Sunday , 08 Jun 2008
PERTH (Reuters) -
Western Australian miners, which supply the world with metals and iron ore, fear sharp falls in productivity and lay-offs after a gas-plant explosion robbed them of power, industry and local government officials said on Sunday.
“This is very serious,” Reg Howard Smith, head of the state’s Chamber of Minerals and Energy, said after crisis talks with some of the world’s biggest resources firms, including BHP Billiton BHP..AX(BLT.L), Rio Tinto (RIO.AX)(RIO.L) and BP (BP.L).
“We’re seeing some stand-downs of staff occurring and we’re still deciding what needs to be done,” Smith told Reuters.
Western Australia lost about a third of its energy supplies last week when an explosion crippled a gas-handling plant on the tiny island of Varanus, about 100 km (62 miles) off Australia’s northwest coast. The Varanus plant, close to offshore gas fields, is operated by a unit of U.S.-based Apache Corp (APA.N).
Tim Wall, managing director of Apache’s Australian unit, said on Sunday he was sticking with an earlier estimate of “months, not weeks” before damage to the plant and associated gas pipelines was repaired and operations could restart.
Western Australia’s state government is trying to import more diesel from Asia to offset the drop in gas supplies, state premier Alan Carpenter said, noting that BP, which operates a diesel refinery in the state, was already at maximum production.
But getting diesel to remote, outback mines could take time.
“There is no wand to make this crisis disappear,” Carpenter told reporters on Sunday. “It’s one thing to get the diesel here on ships and another to where it’s needed by truck.”
Western Australia supplies about a third of the world’s iron ore, 20 percent of the gold and tens of thousands of tonnes of copper, nickel, zinc, lead and other industrial staples.
Carpenter said stepped-up gas production from other gas suppliers would help but it could not eliminate the problem.
Smith of the Chamber of Minerals and Energy said large sectors of industry hurt by the shortage could expect little if any relief, even if more diesel arrived.
“There are large parts of our industry that are involved in processing, where there is no substitution for the gas they need,” he said.
Nickel smelting and refining had been among the hardest hit, since those operations can only run on gas, Smith added.
BHP runs the Kalgoorlie nickel smelter in Western Australia, one of the world’s largest, churning out 100,000 tonnes of the steel-alloying metal each year. A BHP refinery 800 km (500 miles) away, near Perth, refines a further 65,000 tonnes annually.
“This comes at a very critical time for the nickel miners, who are struggling to keep on top of demand,” said Eagle Mining Research analyst Keith Goode.
“The impact on supply is still not clear.”
BHP said late last week it was so far coping by conserving gas and finding other suppliers, though another nickel miner, Minara Resources Ltd (MRE.AX), which produces about 33,000 tonnes of nickel annually, said employees normally working on making nickel had switched to plant maintenance during the crisis.
Other industries also dependent on gas for production included ammonium nitrate for explosives, cyanide used in gold mining and other key parts of the mining process, Smith said.
“Those issues of how to keep up are going to take a long time to work through,” Smith said.
Western Australia’s biggest source of gas supply was cut off after two pipelines feeding offshore gas ruptured, causing an explosion at the Varanus island plant. Apache has since invoked a force majeure clause in its contracts.
no point at all ..
when I read the
first two words of your
14:01 it triggered
my memory of
that old song..
and thought those of
our era might enjoy..
glad you did my Friend
________________
Richard
You know anything about these
double long shares ??
DGP - NYSE
New players
Luckily, there’s a way to play the short side of the gold market without using margin. A suite of gold-tracking exchange-traded notes was launched by Deutsche Bank just before the metal’s March peak. Half of the new instruments offer inverse or short exposure to gold futures, a first for retail investors.
The DB Gold Short Exchange Traded Note (NYSE Arca:DGZ) and the DB Double Short Exchange Traded Note (NYSE Arca:DZZ) were launched on February 27 along with the
“”{{ DB Gold Double Long Exchange Traded Note (NYSE Arca:DGP) }}”" to complement the existing PowerShares DB Gold Fund (AMEX:DGL). The Deutsche Bank offer added length and depth to the roster of gold trackers dominated by the streetTRACKS Gold Shares (NYSE Arca:GLD) and the iShares COMEX Gold Trust (AMEX:IAU) grantor trusts. Both GLD and IAU hold physical bullion rather than gold futures.
All the Best Richard
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abtd
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newtogold
rhino horn = parabolic move up,,
you’ll know it whenever we see one..
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and sell 0ne third on the rhino horn as per Sinclair. Can someone explain to me what a “rhino horn” is?
The Great Privateer has titled his early June Global Report—–CDS = CATASTROPHIC DEBT SMASH
He writes:
Credit default swaps (CDS) are intended to cover losses to banks and
bondholders if and when companies that have issued debt are unable to
pay it back. The global growth of the notional value of such contracts
grew by 81 per cent last year to reach a value of $US 62,200 Billion, that’s
$US 62.2 TRILLION! Eight years ago in 2000 when Credit Default
Swaps first emerged, their total notional value was $US 900 Billion.
If there are now $US 62 TRILLION “worth” of CDSs out there as a form
of insurance, it is clear that US and other commercial banks see a gigantic
debt smash up ahead. Why else would they have bought insurance?
You out riding this weekend? 
PMs barely up or down–stocks stable–oil down a buck-the $ up a few ticks–no panic–that’s how it used to be in response to a crisis for all of the 90s–but things are different now. EVERY single country in the world has a recognized and widely discussed problem with inflation and debt/credit–couple that with the alarming action in the energy market, I just can’t see how the financial community can keep creating the illusion that “all is fine”-I fully expect to see panic buying to the upside in PMs this week–forget about $150 oil–all we need is for oil to just hold these levels–
Now that video looks like fun! I have no problem playing with the edges of the envelope if you have enough altitude to recover. I was up 5k ft. agl when my instructor got me into a stall-spin. Nearly broke my neck when it snapped, and the instructor took his hands off and told me: “Now what you gonna do?” Four turns rotation and a thousand feet lower I pulled out of the dive with airspeed again. But to do that climbing out of the ground at less than 1000ft altitude is just plain suicidal! Risk management indeed.
JUST SAY NO TO THE SILVER ETF
Rube Goldberg Strikes Again
by Stephen Kovaka
April 27, 2007
I just read the recent Rubino/Turk article on SLV, the silver-backed ETF.
So it seems that the SLV Investor(1) owns the iShares(2), which are issued by the Trust (Bank of New York)(3), which hires a Custodian (JPM Chase Bank)(4), which can have any number of Sub-Custodians, Agents or Depositories(5), where the silver(6) might be held. Compare this schematic with the true silver owner(1), who owns and controls his own silver(2).
JP Morgan Chase, as I’m sure we all know, was implicated in the Enron accounting fraud, the Blanchard/Barrick lawsuit, and many other high-finance scams too numerous to recount. I guess that makes them a perfect choice for this assignment.
You might have innocently thought that all this 100+ million ounces of silver is sitting quietly in one place in a New York vault. Maybe it is.
But, if there should ever be an audit, JPMC has TEN DAYS to round up enough silver to satisfy the auditors. Even then they don’t actually have to have it on hand for inspection by the auditors, or anything as tedious as that. This is the 21st Century! All they have to do is to say it is located at one of those Sub Custodians and it would be too much trouble and expense to move it.
This is just custom-made to allow real silver to do double and triple duty. If the auditor wants to get snotty and insist on seeing all the silver assembled in one place, JPMC has to be assured of payment by “somebody” for the trouble and expense of doing so.
Never happen.
On the other hand, the auditor could just accept a document swearing that a certain amount of silver located in a certain place is part of the SLV hoard. It might even be “true”, on that particular day.
And to top it off, the Custodian (JPMC) is absolved in advance for erroneous accounting entries and has the explicit right to make and reverse provisional entries and to back-date any necessary corrections. So no matter how much their records may differ from reality, it can all be fixed later on with no penalty. With this kind of accounting, the question of who owns what silver on any particular day becomes extremely hypothetical.
Gosh, this kind of thing makes the CRIMEX start to look good.
Now add to this the recent publicity by Patrick Byrne of the very widespread epidemic of naked short selling of stocks. So widespread and epidemic, in fact, that the stockbroker industry has tacitly admitted that they have no hope of ever cleaning out all those counterfeit shares known as FTDs (failures to deliver the promised stock). So, just live with it. Since SLV is nothing more than another share, I’m sure it is entirely possible to naked-short the exchange traded fund as part of a program to hold down the price of silver.
ANOTHER “WALL OF SEPARATION”
The net result of all this is that precious metals are to remain stored away in vaults and under centralized control as usual, while those interested in owning precious metals are systematically separated from those metals by elaborate financial structures subject to behind-the-scenes manipulation. The whole scheme is being sold to the retail investor on the basis of Convenience, and they are taking the bait. Come to think of it, Convenience has been used as bait to sell a long list of Centrist initiatives. Even slavery could be pitched as Convenient, since you’d have no responsibility for anything ever again, and all your food, clothing and housing would be provided to you for free.
The irony is that the SLV buyer is really only interested in convenience and FRN price appreciation. But by allowing control of the metals to remain in centralized hands, they are creating the conditions for more price manipulation, which will NOT be to the upside. At the same time, they increase their exposure to accounting swindles, bankruptcy, market closings, confiscation, rule changes, special taxes and what-have-you when the Emergency arrives.
I’m not telling you anything new, but the price suppression in precious metals is aimed at people who just want to see their stuff go up - people who, essentially, just want more FRNs. If it doesn’t go up, they get antsy. If it goes down, they dump it. Unfortunately, this speculator/trader mind-set is extremely easy to manipulate and control.
On the other hand, the wise investor understands the value of his assets whether they “go up” this month or not. These are the people who add to their holdings on price weakness and wait for the fundamentals to make themselves felt - people who accumulate real wealth, and look beyond the ephemeral FRN price tag on that wealth to something more like true value.
CONCENTRATED OWNERSHIP THREATENS LIBERTY
I conclude that gold and silver can only be fairly valued to the extent that physical control is decentralized. That creates the conditions for a true free market in precious metals. This is the logic of our Constitution in requiring the US Mint to provide free coinage of circulating silver and gold money.
The distribution of precious metals into retail hands seems to be happening in spite of the CRIMEX, SLV and similar pseudo-metallic schemes, but they are certainly slowing it down. Unfortunately for America, too many of those hands reside on the other side of the world. Americans have the freedom to own precious metals and thereby undo monetary centralization; they just don’t yet have the understanding or the will to do so. As in so many other things, the power to break our chains lies unused in our own hands.
Or as Bob Dylan once put it:
Freedom? “Just around the corner” from you.
But with Truth so far off, what good will it do?
It is reported that in the Persian Empire, in the days before Alexander the Great, all gold and silver resided in it’s rightful place in the King’s treasuries, not even guarded, while the serfs had to invent their own worthless scrip to use for exchanging their daily necessities.
Aberration in Clear Thinking by
JP Morgan
by: Michael Shedlock posted on:
June 08, 2008
on Friday morning, with unemployment jumping the most since 1986 (see May Jobs: Unemployment Skyrockets to 5.5%) I thought there was absolutely no way to put lipstick on this pig.
I was wrong. Check out this amazing call: Buy Stocks as Investors ‘Misread’ Jobs, JPMorgan Says.
The biggest rise in the unemployment rate since 1986 is an “aberration” and investors who sold equities today are “completely misreading” the outlook for economic growth, according to JPMorgan Chase & Co.
The Dow Jones Industrial Average fell as much as 412 points today after the Labor Department said the jobless rate increased by half a percentage point to 5.5 percent, the highest since October 2004, as an influx of students into the workforce drove the biggest jump in teenage unemployment since at least 1948.
“The surge in unemployment is probably an aberration,” Thomas J. Lee, the New York-based chief U.S. equity strategist at JPMorgan, said in an interview. {{”It’s not because there were fewer jobs, it’s because there were more people looking for jobs.}} { Huh !! } Stocks are completely misreading the situation.”
Lee, 39, wrote in an e-mail that “stocks should be up” after the report, which also showed payrolls fell by 49,000 in May, a smaller decline than economists surveyed by Bloomberg News had forecast.
“Surges in unemployment happen at the end of the cycle,” Lee said.
“Stocks Will Rally On The Report”
Anyone can get that kind of call wrong. Predicting day to day stuff is very fraught with error. Instead, I am calling Lee for thinking this is the “end of the cycle”. In my opinion that is a horrendous call.
Consumers are 75% of the economy. They are tapped out, foreclosures are rising, banks and financial companies are laying off workers, airlines are laying of workers, and many real estate agents have have not made a sale for months.
Wal-Mart Capital Spending At Low End Of Estimate
Market_watch is reporting Wal-Mart sees growth both in U.S., overseas.
Chief Financial Financial Officer Tom Schoewe also said it’s “highly likely” that Wal-Mart’s capital spending this fiscal year will be at the low end of its previous estimate of $13.5 billion to $15.2 billion, helping the company generate free cash flow to put back to its business.
Today, service sector jobs came close to contracting. Only government jobs saved the day. Wal-Mart, Target, Home Depot, etc have all cut back on expansion plans. Wal-Mart has repeatedly scaled back plans even though it is in a relatively favorable position given consumer’s desire to shop thriftier.
I wish Pollyannas like Lee would once come out and explain where these jobs are going to come from. Or even why they are going to come. The Shopping Center Economic Model Is History. How can Lee not see that?
Furthermore, banks are tightening credit because they have to. The FDIC is expecting a wave of bank failures. And then there is this not so trivial problem of $5 Trillion Hidden Off Bank Balance Sheets.
Those assets will come back on bank books, and when they do it is going to cause more shareholder dilution, and there will also be less lending. This was the biggest credit boom in history fueled by insane lending practices. A 30 year boom is not corrected in 6 months of pain.
5.5% is not going to mark the top in unemployment, and I doubt 6.5% does either. Housing is not going to bottom for years. There is no source of jobs, and without jobs exactly how are consumers going to keep spending and how are corporations going to make money?
Dow Weakly Chart
tinyurl.com/4fafwo
If that neckline breaks (and there is every fundamental reason to believe it will), we are looking at a potential decline to 10,000. The S&P could easily fall back to 1200. And there is no guarantee it stops there.
This was a once in a lifetime credit binge. To expect anything other than a once in a lifetime credit bust is being far too Pollyannaish. There was indeed an “aberration” today, an “aberration” in clear thinking by Thomas J. Lee, chief U.S. equity strategist at JPMorgan.