$3000.00 Gold - "The Purest Play Against the United States Dollar."

US auto industry pushes for $50b loanEmail Print Normal font Large font September 8, 2008 - 6:18AM

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Auto industry allies hope to secure up to $US50 billion ($A61.69 billion) in US government loans this month that would pay to modernise plants and help struggling US carmakers build more fuel-efficient vehicles.

With Congress returning this coming week from its summer break, the industry plans an aggressive lobbying campaign for the low-interest loans. The situation is growing dire after months of tumbling sales, high gasoline prices and consumers' abandoning profitable trucks and sport utility vehicles.

Lawmakers authorised $US25 billion ($A30.85 billion) in loans in last year's energy bill to help the companies build fuel-efficient vehicles such as hybrids and electric vehicles. With credit tight, automakers and suppliers now want lawmakers to come up with the money for the program - and expand the pool of money available to $50 billion over three years.

Industry leaders have argued that the loan guarantees are not a government bailout because it would hasten production of fuel-efficient vehicles and reduce dependence on imported oil.

"This is not about benefiting Wall Street," said Ford Motor Co's President of the Americas Mark Fields, referencing recent federal support for the investment firm Bear Stearns and troubled mortgage companies Fannie Mae and Freddie Mac. "This is benefiting Main Street, the working men and women. The auto industry is part of the backbone of the US economy."

The low-interest loans, at rates of about 4 per cent to 5 per cent, would pay for up to 30 per cent of the cost of retooling plants to build hybrids, plug-in hybrids, electric cars and other alternatives.

Ford and General Motors Corp's credit ratings have fallen below investment grade, making it difficult for the companies to borrow money at affordable rates. Chrysler, which has been heavily dependent upon truck sales, has been privately held since last year and faces similar problems accessing capital.

"This industry could fall down, literally, or be absorbed if they don't get something in place very soon. I think it's that severe," said Representative Joe Knollenberg, a Michigan Republican. "Something has to happen pretty quickly because they can't compete paying 15 to 20 per cent (interest)."

Industry lobbyists pressed the issue at the recent Democratic and Republican presidential conventions, and members of Michigan's congressional delegation have talked to legislative leaders and the Bush administration about the program. Discussions surround a three-year plan that would make $US25 billion ($A30.85 billion) in loans available in the first year, followed by $US15 billion ($A18.51 billion) the second year and $US10 billion ($A12.34 billion) in the third.

To provide $US50 billion ($A61.69 billion) in loans, Congress would need to set aside about $US7.5 billion ($A9.25 billion) to guard against a loan default.

Automakers want to secure the money for the loans before November's election because a new president and Congress could delay the companies' ability to access the loans.

The White House said last week it was talking to members of Congress and the industry about the financing. The issue, meanwhile, has gained a foothold in the presidential campaign in states with many auto workers such as Michigan and Ohio.

Democrat Barack Obama has criticised Republican rival John McCain for not supporting the full $US50 billion ($A61.69 billion) loan program. McCain said last week he supported fully covering the $US25 billion ($A30.85 billion) loan program in the energy law.

Congressional leaders have said they are open to an expanded program. But the industry will face a compressed schedule in an election year when many lawmakers will push to leave Washington so they can campaign for re-election this fall.

"We're hopeful that we're making an effective case to get this done between now and the end of this session," said John Bozzella, Chrysler's vice president of external affairs and public policy.

The loans would be available to foreign automakers, but the companies are not expected to seek the money because they are in a better financial situation and priority would be given to companies with plants 20 years or older.

© 2008 AP

Lehman Brothers Holdings Inc. fell 35 percent in New York trading after talks about a capital infusion from Korea Development Bank ended. The Wall Street firm is continuing to negotiate with other potential investors, a person briefed on the matter said.


Lehman's market capitalization of $11.2 billion is almost equal to the value of its asset-management arm, which includes Neuberger Berman Inc. That leaves its main business of trading stocks and bonds as having little worth. The numbers are similar for Merrill Lynch & Co.:

Take out its retail-brokerage and asset- management businesses, and the investors' valuation of the rest of the third-biggest U.S. securities firm is zero.

Goldman Sachs Group Inc. analyst William Tanona estimates another $12 billion of losses for the three firms in the third quarter. Those probably will wipe out any trading revenue for the period.

"Uncertainty requires a discount," said Roger Lister, New York-based chief credit officer for financial institutions at DBRS Inc., a Canadian credit-rating company. "Equity investors are worried about writedowns resulting in more dilution. That swamps longer-term valuations. Similarly, the credit-default swaps on these banks' debt are treated like junk."

Lehman would be crippled more than its rivals if it sold its asset-management division, he said. While Morgan Stanley and Merrill have retail-brokerage divisions to bring in revenue, Lehman would be hard-pressed to replace the income it earns from asset management.

Investors are having a hard time valuing the rest of the business at Lehman because there's no transparency about the mortgage securities on their books, said Janet Tavakoli, author of "Credit Derivatives & Synthetic Structures." Lehman, Merrill and Morgan Stanley borrowed heavily to fund their mortgage investments, which is coming back to hurt them, she said. The three investment banks' total assets were about 30 times their capital levels last year.

"When you're highly leveraged, you need to be very careful about the quality of your fixed-income assets," said Tavakoli, president of Chicago-based Tavakoli Structured Finance Inc. "Even if you held Treasuries, you could lose big money when interest rates moved against you. When you take credit risk as well, which was the case with mortgage bonds, then you're really in trouble."

From The Trading Desk

MORE stupid bullshit from a MASTER of Bullshit!



-

news like that makes me want to finger my brown town

How many people bot Lehman puts on 9/10 after I posted that Lehman was worth zero?

The Law of Supply & Demand is Broken: Demand Soars and Prices Plummet!
For the first time in history, record demand in a commodity was helpless to stem plummeting prices and in fact, contributed to further price declines.

Two Parallel Markets For Gold & Silver: Paper Markets & Future Markets


Note from Rayelan:
This is a really long article on gold. Anyone who is interested in buying or who owns gold, needs to read it all the way through. I put in some of the more important snips that stood out to me. If you really want to understand what is happening to gold, click on the link below and read the entire article.

The Law of Supply and Demand Is Dead for Gold and Silver
by: J. S. Kim posted on: September 15, 2008

[link to seekingalpha.com]

snip

“We are definitely witnessing a surge in demand for gold in Dubai and physical shortages have been reported by many dealers,” said Ian MacDonald, the Dubai Multi Commodity Center’s executive director for gold and precious metals. “We are also seeing demand being driven by currency concerns in the region as many investors perceive the precious metal as one of the few strong currencies.”

Gold jewelry sales in Abu Dhabi soared 300 percent in volume and almost 250 percent in value in August from a year earlier after the metal dropped to nine-month lows, the emirate’s industry group said on Monday.

snip

Abu Dhabi Gold and Jewelry Group Chairman Tushar Patni told Reuters.“We had never expected (emphasis mine) that if gold fell below $800 an ounce we would see a 300 percent increase in volume and 250 percent in value, especially as many buyers are abroad on holiday.”



For the first time in history, record demand in a commodity was helpless to stem plummeting prices and in fact, contributed to further price declines.
snip

When this inexplicable anomaly was pointed out (at least inexplicable according to the supposedly irrefutable Law of Supply and Demand), gold and silver analysts employed by Wall Street to spread disinformation responded only to stories of shortages being reported in the United States and did not address record sales of physical gold in various countries in the Middle East and in Asia. They responded to reported U.S. shortages of bullion and coins by stating that dealers had supply but were simply not being honest about their supply numbers because they did not want to sell any more stock at such depressed prices.

snip


During this Correction, Gold & Silver Steady or Much Higher Many Days in Asia, Down Markedly Lower by Close of New York Markets


Here's the link to the entire article.

[link to seekingalpha.com]

Print it out and make sure you read it. If you don't own gold or don't plan to... then what are you going to use for money when the dollars are worthless?

THE LOOTING OF SOCIAL SECURITY TO BALANCE THE FEDERAL BUDGET


HOLLINGS: Well, the truth is...ah, shoot, well, we all know there's Washington's math problem. Alan Sloan in this past week's Newsweek says he spends 150%. What we've been doing, Mr. Chairman, in all reality, is taken a hundred billion out of the Social Security Trust Fund, transferring it over to the spending column, and spending it. Our friends to the left here are getting their tax cuts, we getting our spending increases, and hollering surplus, surplus, and balanced budget, and balanced budget plans when we continue to spend a hundred billion more than we take in.

I put this back up in reply to a reader email which expressed relief that their Social Security money was still safe since it had not been invested in Wall Street.

But, the sad reality is that the Social Security fund that the Baby Boomers are just starting to rely on is filled with government IOUs going back to the Clinton years; money borrowed to balance the budgets and promised to be repaid "when things got better."

They didn't get better.

The following excerpt is from the 1998 Senate Budget Committee session. Note the underlined portions.

BEGIN EXCERPT

U.S. FEDERAL RESERVE BOARD CHAIRMAN ALAN GREENSPAN: .....making sure that surplus is there.

U.S. SENATOR ERNEST F. HOLLINGS (D-SC): Yeah, making sure that surplus is there. I'm telling you, Dr. Greenspan, that's music to my ears.

GREENSPAN: Well, I remember you taking this song a long way over recent years, and I must say, Senator, a number of us were skeptical that was even discussable, figuring we would never get to unified surplus that we said which you were preaching was very interesting, scientifically sound, but unrealistic. I apologize.

HOLLINGS: Well that's all right, because your Greenspan Commission report in section 21 says just exactly what you're saying here. That was in 1983; here now, in 1999, on page two, "simply put, enough resources must be set aside over a lifetime of work to fund retirement consumption." Now that section 21 said set it aside. President Bush, in section 13 3 01 on November the 5th, 1990 signed that into law. And we making headway. Let's understand, though, that we're still running deficits. 'Cause I'm not going along with this monkeyshine about unified. 'Cause unified is not net, the debt still goes up, is that correct?

GREENSPAN: If you're...it depends on whether or not you wish to create the savings...

HOLLINGS: I'm not asking what you're trying to create. The simple fact is the debt has been going up at least $100 billion for the last several years.

GREENSPAN: Outside, on budget, that is correct.

HOLLINGS: That's right, on budget, you're spending a hundred billion more than you're taking in.

GREENSPAN: Correct.

HOLLINGS: And this president's budget spends another hundred billion more than we take in.

GREENSPAN: I haven't seen it yet.

HOLLINGS: You haven't seen it? You're testifying about it now.

GREENSPAN: I haven't seen the budget. You haven't seen it either.

HOLLINGS: Well, you know his plan. Look you think he's going to spend less than a hundred billion more?

GREENSPAN: I will wait to see what the numbers look like.

HOLLINGS: Well, the truth is...ah, shoot, well, we all know there's Washington's math problem. Alan Sloan in this past week's Newsweek says he spends 150%. What we've been doing, Mr. Chairman, in all reality, is taken a hundred billion out of the Social Security Trust Fund, transferring it over to the spending column, and spending it. Our friends to the left here are getting their tax cuts, we getting our spending increases, and hollering surplus, surplus, and balanced budget, and balanced budget plans when we continue to spend a hundred billion more than we take in.

That's the reality, and I think that you and I, working the same side of the street now, can have a little bit of success by bringing to everybody's attention this is all intended surplus. In other words, when we passed the Greenspan Commission Report, the Greenspan Commission Report only had Social Security in 1983 a two hundred million surplus. It's projected to have this year a 117 million surplus. I've got the schedule, I'll ask to put in the record the CBO report: 117, 126, 130, 100, going right through to 2008 over the ten year period of 186 billion surplus. That was intended; this is dramatic about all these retirees, the baby boomers. But we foresaw that baby boomer problem, we planned against that baby boomer problem. Our problem is we've been spending that particular reserve, that set-aside that you testify to that is so necessary. That's what I'm trying to get this government back to reality, if we can do that.

We owe Social Security 736 billion right this minute. If we saved 117 billion, we could pay that debt down, and have the wonderful effect on the capital markets and savings rate. Isn't that correct? Thank you very much, Sir. Thank you, Mr. Chairman.

END EXCERPT

It should be obvious from the above that the government has for decades been taking the money intended to pay Social Security benefits and spending it as general revenue. The Social Security trust fund is filled with Government IOUs, and those people who insists Social Security is solvent are operating in the faith that T-bills are always good, because the taxpayer can always be forced to redeem them.

But there is a problem. There are so many T-bills in the Social Security fund that when the baby-boomers start applying for benefits, the sudden surge of T-bills being presented for payment would collapse the Federal System, because there are not enough young taxpayers to carry the extra load.

Regardless of the mechanism, the bottom line is that the government looted the retirement funds of Americans, and that means one of two things has to happen (and maybe even both). Either Americans will be taxed twice for the same benefits, or the benefits will be cut.

:flag waver:

Should the U.S. nationalize its own money supply?

Hell yes and the sooner, the better. It's way past time to take back control of our money supply from the Wall Street shysters, bunko artists and con men that have deliberately manipulated our money into fabulous wealth for a handful of these Mammon worshipping gnomes.

A manipulation that was all reward and no risk for the private bankers of the federal reserve, thanks to numerous bail-outs by the federal reserve, using OUR money.

Webmaster's Commentary:
When this nation was founded, the US Government had control of the money supply. The dollar had a fixed value. "Dollar" is actually a weight measure of silver, 371.25 grains, to be exact. Our American silver dollars are actually heavier, since other metals were added for durability. But that 371.25 grains of silver WAS the dollar, matching in weight an unbroken chain of accepted monetary units that reached back through the Spanish Milled Dollar, the Dutch Daller, back to the German Thaler; the product of a silver mine which sold its product in coins of an exact weight. The Coinage Act of 1792 defined our dollar to exactly match in weight the silver dollars in use around the world, and then defined the gold dollar to be that amount of gold which would equal the worth of silver in a silver dollar, 24.75 grains, 1/15 the weight of the silver in a silver dollar.

When you, as a citizen, hold a silver dollar or a gold dollar in your hand, you hold that actual worth of metal. Nothing the government can do can change the worth of the money in your control.

The problem with this system from the point of view of the government or the banks is that it limits the amount of money they can work with. When the bank runs out of silver or gold (or the equivalent certificates) it can no longer lend any more money with which to earn interest. When the government runs out of gold or silver (or the equivalent certificates) it can no longer spend money (just like the rest of us).

Over the Christmas break in 1913, a bunch of Congressmen went into the capital building, voted to suspend the quorum rule, then passed the Federal Reserve Act, transferring the creation and management of the nation's money supply to a privately owned bank.

Here is how the swindle works.

The Federal Reserve Bank hires the US Treasury to print up some money. The Federal Reserve only actually pays the treasury for the cost of the printing, they do NOT pay $1 for each 1$ printed. But the Federal Reserve turns around and loans out that money (or creates a credit line in a computer) to banks at full face value, those banks which have exhausted their deposits then loan that Federal Reserve fiat money to you, and you must repay it in the full dollar value (plus interest) in work product, even though the Federal Reserve printed that money for pennies, or created it out of thin air in a computer.

As the Federal Reserve overprints more money, the money supply inflates, and too much money starts chasing too few goods and services, which means prices go up. But contrary to the charade put on by the Federal Reserve, inflation doesn't just come and go due to some arcane sorcery. The Federal Reserve can halt inflation any time it wants to by simply shutting down those printing presses. It therefore follows that both inflation and recession are fully under the control of the Federal Reserve. This means the cycle of inflation and recession is an intentional one; a gigantic heartbeat that pumps paper certificates out to the working class, while pumping real wealth in to the owners of the banks.

Over time, that excess of printing has destroyed the value of that dollar you think you have. If you want to know by just how much, see how many "dollars" it takes to purchase 371.25 grains of silver right now.

SPOT MARKET IS OPEN
closes in 3 hrs. 28 mins.
Sep 17, 2008 13:47 NY Time
Bid/Ask 858.60 - 860.00
Low/High 777.10 - 860.90
Change +80.90 +10.40% 30daychg +59.90 +7.50%
1yearchg +143.90 +20.13

Hey Mathetes the Troll, your comments Mr. Koolaid man.

Wednesday, September 17, 2008



Money Market Fund Breaks $1, Suspends Withdrawals


Bloomberg is reporting Reserve Money Fund Falls Below $1 a Share, Delays Withdrawals


Reserve Primary Fund, the oldest U.S. money-market fund, became the first in 14 years to expose investors to losses after writing off $785 million of debt issued by bankrupt Lehman Brothers Holdings Inc.

Shareholders pulled more than 60 percent of the fund's $64.8 billion in assets in the two days since Lehman folded. Losses on the securities firm's debt forced the fund to break the buck, meaning its net asset value fell below the $1 a share price paid by investors, New York-based Reserve Management Corp., its closely held owner, said yesterday in a statement. Redemptions were suspended for as long as seven days.

Assets in money-market funds, considered the safest investments after cash and bank deposits, rose to a record $3.59 trillion this month as stock and commodity markets fell.

"This is going to unsettle investors and probably create further runs on other money funds," Geoff Bobroff, a mutual- fund consultant in East Greenwich, Rhode Island, said in an interview.

The $260 million Colorado Diversified Trust has also fallen below $1 a share because of losses on New York-based Lehman's debt, according to the S&P statement. The fund pools investments for state and local governments and schools, according to its Web site.

Reserve Primary held $785 million in Lehman commercial paper and medium-term notes. The fund's board decided yesterday that the debt was worthless. That pushed the fund's net asset value to 97 cents a share, the company said in the statement. Investors who requested redemptions by 3 p.m. New York time yesterday will get all their money back.

Money-market funds, which are regulated in the U.S. by the Securities and Exchange Commission, strive to preserve the $1 a share net asset value, meaning that investors can always get back their principal, as well as interest earned by the fund on its investments. They are required to hold debt that matures in 13 months or less, with a weighted average maturity of 90 days or less. The securities must have top short-term corporate debt ratings.

"We'd all forgotten that any investment comes with risk and we're learning it the hard way now," said Kiyoshi Ishigane, a Tokyo-based senior strategist at Mitsubishi UFJ Asset Management Co., which oversees about $61 billion. "Even the safest investments, like the money-market funds, are starting to pose risks and that shouldn't be a surprise given the crisis in the financial industry."

Seven Day Freeze

MarketWatch is reporting Money market giant freezes redemptions

One of the first and largest money market funds has put a seven-day freeze on redemptions after the net asset value of its shares fell below $1. Primary Fund (RFIXX) a $62 billion fund managed by money market fund inventor The Reserve, said Tuesday afternoon that its $785 million holding of Lehman Brothers Holdings debt has been valued at zero. As of 4 p.m., the value of the fund's share is 97 cents. The Reserve said that redemption requests received before 3 p.m. Tuesday will be paid out at $1 a share.
What Happened?

What happened is a couple of fund managers who arguably should have known better, relied on continually hopeless ratings by Moody's, Fitch, and the S&P. It took the big three an actual bankruptcy to downgrade Lehman as noted in Moody's, Fitch, S&P, SEC are Useless. The rating agencies only downgraded AIG one notch, and are pathetically behind on rating mortgage backed securities.

Expect to see more blowups likes these, especially with any money market fund making a claim of "high yield". The only way to achieve high yield is to take risks. A 3% loss does not sound steep except there are not supposed to be (and there should not be) any losses at all.

The only truly safe place at the moment is in US treasuries held to duration, CDs held to duration, checking accounts, and savings accounts. The CDs, checking accounts, and savings accounts have an additional stipulation that they must be under the FDIC limit.
Mike "Mish" Shedlock
[link to globaleconomicanalysis.blogspot.com]

ETFS Precious Metals dropped 50.68%, ETFS All Commodities dropped 54.7%.

(snip)

On its website ETF Securities says it has assets of $7.65bn under management in exchange traded commodities. These products track commodity prices using financial instruments mainly provided by AIG-FP which are backed by AIG.

This morning ETF Securities issued a statement saying that AIG was continuing to honour its obligations. However it warned that AIG faced the risk of further downgrades and said: “A number of firms who were making markets in the Commodity Securities stopped doing so yesterday afternoon.”

The note said: "The ETFS group is actively working on possible ways of providing investors with liquidity."

One of the Frequently Asked Questions on the ETF Securities website is: “What is the credit risk for investors?" The reply is: “ETFS Oil Securities and ETFS Commodity Securities are backed by commodity contracts purchased from AA-rated third parties. Currently, these third parties are Shell and AIG.”

More on link below:
[link to www.investegate.co.uk]

(It may be wise to sell yout ETFs in gold and buy the physical grams or coins.)

Gold vs. Debt
The Death of Paper Money
by Douglas V. Gnazzo, Honey Money Report | September 17, 2008

Today we are witnessing why in paper fiat-land debt is a four letter word; and a nasty one at that. The only thing the Federal Reserve has accomplished since its creation in 1913 is the loss of 95% of the dollar’s purchasing power; and they are hard at work destroying what little is left. Incompetence does not even begin to describe their actions.

This means that you and I – all of us, except the elite few – are becoming poorer by the day. Our standard of living is decreasing – not increasing. We owe more than we own: a prescription for debt-servitude – not the accumulation of wealth.

The Fed was supposedly created to prevent bank runs and financial disasters commonly known as depressions. Yet within 20 short years of its creation the greatest depression ever to visit our shores occurred – The Great Depression of the 1930’s. It seems today they are trying for a new record.

Another reason the Fed was created was to supply an elastic money supply – one that could easily be expanded whenever the powers that be, in their all-knowing wisdom, determined more money was needed. There are a few points here that miss the mark.

First, it is impossible for a few individuals to know what is best for the market. The market is much wiser and all-knowing than any group of bankers, as the market’s recent actions clearly show. Such delusional thinking is pure elitism.

Second, when money ceases to be gold and silver coin – hard money, and becomes paper money, i.e. Federal Reserve Notes, the supply of money can expand, as the elite wanted, on a whim; however – there is a price to pay.

Funny money is a funny thing, the more you expand the supply of it – the more its purchasing power lessens: it is known as the debasement of the currency – it loses value. Suddenly it takes more units (quantity) of money to buy the same amount of goods.

Money is no longer the means to pay off debt, paper money is debt. The United States has gone from being the world’s largest creditor nation to the largest debtor nation in the world. Weekly we are witnessing the unwinding of the paper fiat money system, as it reverberates around the world.

Banks our going under, financial institutions are falling; hedge funds are collapsing, bail outs are needed on a regular basis. Who pays for all this mismanagement? We do – you and me.

The government gets money in one of two ways: they tax the people or they issue (sell) debt (T-bonds). Federal Reserve Notes are the currency of the realm. United State’s T-bonds “secure” FRN’s. T-bonds are paid for with FRN’s. Do you see the conflict of interest here – the moral hazard? Debt is being used to secure debt. Credit is used to create more money and more debt: promises back promises. It is a mug’s game.

This is why the Constitution states that gold and silver coin is money – not paper money. Nowhere in the Constitution does it allow for paper money to circulate as the currency. As a matter of fact, the Constitution has an express disability prohibiting bills of credit (paper money) from being used as legal tender between the states.

Section 10. No state shall enter into any treaty, alliance, or confederation; grant letters of marque and reprisal; coin money; emit bills of credit; make anything but gold and silver coin a tender in payment of debts; pass any bill of attainder, ex post facto law, or law impairing the obligation of contracts, or grant any title of nobility.

When you look around and see all the financial problems occurring daily, it is ultimately caused by the fact that our money is paper fiat debt-money, when it should be gold and silver coin, as the above quote from the Constitution expresses.

A paper fiat monetary system can only do what we are witnessing – self-destruct, as the more of it that is issued – the more it loses purchasing power. It is like a cancer that eats its host from within. What is occurring is the systemic destruction of money, of the “system” – of paper fiat debt-money.

No bail out or lending facility, no white knight or band aid is going to save paper money, its fate was sealed the day it was created; it is simply playing out the hand that was dealt.

The only answer for our economy and way of life is a new system – the system the Constitution mandates: gold and silver coin: honest weights and measures; and no bills of credit. The book Honest Money explains all this in detail.

Come visit our website: Honest Money Gold & Silver Report

New Book Now Available - Honest Money




Copyright © 2008 Douglas V. Gnazzo

too many words....please someone summarize...

:bushhitler:

EMERGENCY ALERT

Bush-Clinton Crime Family Syndicate Continues to Loot the U.S. Treasury

by Tom Heneghan
International Intelligence Expert


Wednesday September 17, 2008

United States of America – At this hour it can now be reported as we bring you this intelligence briefing that the entire U.S. economic system is on the verge of collapse as the conspiratorial Federal Reserve headed by Ben Bernanke and U.S. Treasury Secretary Henry Paulson continue to print money and destabilize the U.S. dollar as the United States of America has turned into a third world Banana Republic.

TRAITORS
Henry Paulson, Bushfraud, Ben Bernanke
AP by Gerald Herbert


A minority of Justice Department officials, still loyal to former Assistant U.S. Attorney General James Comey, have instituted criminal referrals against the now bankrupt Lehman Brothers, Federal Reserve Chairman Bernanke, Treasury Secretary Paulson and current Security and Exchange Commission (SEC) Commissioner Christopher Cox.

TRAITOR
Jeb Bush aka Bushfraud's brother


Listen to this folks. Also listed in the criminal referrals is none other than scumbag and year 2000 election fixer, the former governor of Florida and current equity advisor to Lehman Brothers, Jeb Bush aka Bushfraud's brother.

DOJ investigators have fingered Lehman Brothers for their role in criminal fraud, i.e. the use of CIA proprietaries for the theft of U.S. Treasury funds now placed in various SECRET offshore accounts tied to the Bush-Clinton Crime Family Syndicate.
This evidence was provided to the Department of Justice by former Federal Reserve Chairman Alan Greenspan, who has now completed a plea bargain and is cooperating with members of the Justice Department.

The CIA proprietary accounts in question are called the Giga account headquartered at a major Italian bank and the Malaga account with a tie to King Juan Carlos of Spain.


TRAITORS
Christopher Cox and Bushfraud

DOJ investigators are now questioning SEC Commissioner Cox, i.e. his role in authorizing $78 BILLION of funds that were transferred from the Central Bank of Iraq to the King Juan Carlos-George W. Bush administered Malaga account and into a Federal Reserve administered bank in St. Louis, Missouri.

These funds were then used to bail out American Insurance Group (AIG).

BBC uncovers lost Iraq billions

By Jane Corbin
BBC News

A BBC investigation estimates that around $23bn (£11.75bn) may have been lost, stolen or just not properly accounted for in Iraq.

A US gagging order is preventing discussion of the allegations.

The order applies to 70 court cases against some of the top US companies. MORE

[link to news.bbc.co.uk]

Note: American Insurance Group (AIG) has been linked to pre-9/11 short selling.

Greenspan has fingered both the Bushes and Clintons in using offshore entities to create private piggy banks for all members of the Bush-Clinton Crime Family Syndicate.

Stay tuned for a thorough update over the weekend.



EMERGENCY BREAKING NEWS



HIGH TREASON

AGAINST THE AMERICAN PEOPLE

At this hour, U.S. Military Flag Officers are now considering arresting White House occupant Bushfraud for HIGH treason, along with his Vice pResident Richard Cheney, who has been out of the country facilitating this massive money laundering, which is wrecking the United States of America and its entire financial underpinnings.

The American People can no longer tolerate these conspiratorial traitorous scumbags on these various media network outlets that continue to LIE and DECEIVE the American People to protect the TREASONOUS Bush-Clinton Crime Family Syndicate and to undermine our Constitution and our American way of life.

. . .

"Al Qaeda is nothing more than an extension of the apparatus linked to U.S. intelligence that was allowed, by script, to remove itself as a rogue breakaway entity of the U.S. government; allowed to de-compartmentalize from oversight, and was run instead by Gary Best's rogue black ops specialists for scripted activity outside the U.S. government, with its funding being orchestrated through the Pakistani secret police—an entity of the U.S. government." Tom Heneghan, International Intelligence Expert

"The Bush-Clinton Crime Family Syndicate and ALL of their co-conspirators face unprecedented, monumental prosecutions for massive HIGH TREASON against the American People;

thus, before the 2008 election, they are plotting 'False Flag Attacks' in the U.S. with expectations of nullifying and eradicating individual and States rights and freedoms protected by the U.S. Constitution,

via martial law and subjugation of the American People,
in order to stay in control of the compromised U.S. Justice Department to continue sealing Federal Grand Jury (We the People) indictments and hiding them from the American People to avoid convictions and public punishment with due prejudice." Tom Heneghan, International Intelligence Expert

Thursday, September 18, 2008

Central Banks Announce Global Coordinated Liquidity Measures

Global Central Banks announce coordinated measures to address liquidity condition.

For release at 3:00 a.m. EDT

Today, the Bank of Canada, the Bank of England, the European Central Bank (ECB), the Federal Reserve, the Bank of Japan, and the Swiss National Bank are announcing coordinated measures designed to address the continued elevated pressures in U.S. dollar short-term funding markets. These measures, together with other actions taken in the last few days by individual central banks, are designed to improve the liquidity conditions in global financial markets. The central banks continue to work together closely and will take appropriate steps to address the ongoing pressures.

This effort of $180 Billion being injected into the financial system will fail.

This issue is not liquidity but solving the problems related to solvency.

On Kitco for the last month or so, gold Eagles carried a premium of $41 per ounce over the bid on sell side.

This week the spread has increased to $47 per Eagle.

It is becoming harder and harder to find Eagles to sell to hungry buyers.

and I am sooooooooo hungry
what am I going to eat?!

(Folks, clear out those brokerage accounts and have the stock certificates mailed to you in "bearer form")-Berkut



Hidden inside the AIG bailout funding package, surely hastily cobbled together, but carefully enough to include a totally corrupt clause, was a handy dandy clause that permits raids. The conglomerate financial firms are permitted at this point to use private individual brokerage account funds to relieve their own liquidity pressures. This represents unauthorized loans of your stock account assets. So next, if the conglomerate fails, your stock account is part of the bankruptcy process.


Panic, Consolidate, Game Over

By Jim Willie CB
Sep 18 2008 4:48PM

www.GoldenJackass.com



Use the above link to subscribe to the paid research reports, which include coverage of several smallcap companies positioned to rise during the ongoing panicky attempt to sustain an unsustainable system burdened by numerous imbalances aggravated by global village forces. An historically unprecedented mess has been created by compromised central bankers and inept economic advisors, whose interference has irreversibly altered and damaged the world financial system, urgently pushed after the removed anchor of money to gold. Analysis features Gold, Crude Oil, USDollar, Treasury bonds, and inter-market dynamics with the US Economy and US Federal Reserve monetary policy.

We are in historically unprecedented times. The foundation is being laid for a default of USTreasurys in the wake of the greatest regulatory failure in modern history, and the collapse of the US financial system. Anyone who cannot see that suffers from poor vision, chronic nostalgia, low mental wattage, a paycheck from Wall Street, a post in financial press media, or owning an Economics advanced degree. So many changes come with each passing day, not week, that it boggles the mind.

Many of us predicted $100 updays for gold, and we almost saw one. The wheels came off the US financial wagon long ago, but only now that fact is being recognized. The monetization largesse finally has gone beyond the corrupt bailouts of fraud kings on Wall Street. My longstanding forecast has been that when the monetary inflation machinery spits output beyond the sanctimonious walls of the Wall Street whorehouses, INTO THE MAINSTREAM, that the gold price would rise substantially.

That process has begun, starting with Fannie Mae & Freddie Mac, and now moving to AIG. Only when phony money floods the system where people live, not where the elite conmen with strangehold control the counterfeit processes, will gold shine. So many unexpected upcoming events will occur, enough to make a forecaster dream. Let’s begin with the most important. Much more details are provided to Hat Trick subscribers.

RAIDS OF INDIVIDUAL ACCOUNTS

This is so important a topic, that it deserves top billing!!! Hidden inside the AIG bailout funding package, surely hastily cobbled together, but carefully enough to include a totally corrupt clause, was a handy dandy clause that permits raids. The conglomerate financial firms are permitted at this point to use private individual brokerage account funds to relieve their own liquidity pressures. This represents unauthorized loans of your stock account assets.

So next, if the conglomerate fails, your stock account is part of the bankruptcy process. Finally the corrupt USGovt and corrupt Wall Street houses are desperate enough to put into policy, stated by the US Federal Reserve, outlining the authorized raid of your money. Beware. A good route would be to remove your money, start a subscription here, and open a GoldMoney account, then purchase physical gold or preferably silver with my offered discount. That cannot be taken from you, and will rise 5x for gold and 10x for silver in the next two to three years.

The actual evidence for legalized stock account raids by the financial firms can be found in recent articles in Financial Times and Wall Street Journal. So this is not a wild claim. The September 14th article on the Wall Street Journal entitled "Wall Street Crisis Hits Stocks" was the first exposure.

The runs on US banks are in progress. See Washington Mutual, where private email messages have been shared by WaMu bank officers. WaMu alone could deplete the entire Federal Deposit Insurance Corp fund for bank deposit coverage. Eventually the FDIC will compete for USGovt federal money for bailouts and nationalizations. Eventually, bank deposits will not receive 100 cents per dollar, in a compromise. Next the bank runs will push banks into failure, at a time when stock accounts are under raids, without broad public knowledge.

GOLD TAKES LEAD IN CURRENCY WORLD

Did anyone notice that on Wednesday the 17th, gold was up big, like over $50, silver was up big, like over 70 cents, but the USDollar was essentially flat, even up a smidgeon? By afternoon, the gold rise intensified, and the USDollar fell hard. THE MESSAGE IS CLEAR: GOLD IS LEADING MOVEMENTS IN CURRENCY PRICES.

The world did flock to the USTreasurys, surely led by mangled confused central bankers who have lost control. However, gold is finally being seen as a safe haven. It will become highly amusing to observe a clueless cast of corrupted minds attempt to explain why gold vaults past the 1000 mark, and why silver vaults past the 20 mark. They will offer up reasons, and if lucky, they will touch on at most three or four of the twenty relevant reasons. Their confusion includes observation of the decline in the crude oil price. Their eye is off the monetary panic.

Moral hazard is just an obstacle to be side-stepped in such times. Today, Bill McCullum of PIMCO actually said “We should not give one thought to inflationary consequences.” He was referring to gargantuan rescue packages and now global lending lines to central bankers. And people wonder why gold shot up $80 yesterday, and why silver silver shot up over $1 yesterday. PREPARE IN THE VERY NEAR FUTURE FOR GOLD TO RISE OVER $100 ON SUCCESSIVE DAYS, AND FOR SILVER TO RISE OVER $2 ON SUCCESSIVE DAYS.

Inflation is soon to be seen as the remedy to prevent monetary collapse. Gold just hit 900, and silver has reached 12.70 today. The euro has risen 500 basis points just since Friday morning. Gold is not rising sharply due to inflation concerns alone, although plenty of monetary inflation is set to continue flying through the money pipelines. THE REAL REASON WHY GOLD IS RISING IS FOR THREAT OF SYSTEMIC FINANCIAL FAILURE CENTERING IN THE UNTIED STATES.



What factors are key to gold rising? Perhaps because the US financial system is imploding. Perhaps because the USGovt nationalization demands are accelerating. Perhaps because the threat of default for USTreasurys is seen as inevitable, even imminent. Perhaps because nitwits who have highjacked the White House and USMilitary are planning something truly reckless on the military front in Iran.

Perhaps because the US Federal Reserve is depleted and secretly insolvent, even as they put word out of an INFINITE BALANCE SHEET. Perhaps because enormous demand has come in physical gold & silver, despite the low price set by corrupt US PaperHangers. Perhaps because fear has entered the room globally.

CONSOLIDATION AMONG THE DEAD

The financial firms are not just dead, they are corrupt to the core. Perhaps one or two Wall Street firms will be left standing in a year or more. Has anyone figured out why foreign pursuit of Wall Street firms is blocked? Partly because foreigners cannot assess the value of such complicated opaque assets, intertwined within nests of acid pits. The other reason is that US banking authorities wish to keep the protected corrupt evidence within the Manhattan fold. The South Koreans wanted a piece of Lehman Brothers, the best pieces. But they would have had access to evidence needed eventually in criminal prosecutions.

See the KfW case of €300 million theft, possibly soon to emerge against Lehman crooks. The German insurance titans wanted a piece of AIG, the dead insurance giant. But they would have been handed access to evidence of extreme vulnerability or criminality. Why were officers at Lehman permitted to remove box after box from their building, when it should be treated as a crime scene with yellow cordon tape? The answer has to do with the Fascist Business Model, the merger of state with business, where the syndicate facilitates fraud in deep collusion.

Why did Morgan Stanley stock go down hard after they announced early their quarterly earnings? Possibly because nobody believes they are honest. Morgan Stanley might be kept afloat longer, so as to enable theft of brokerage account funds. Lehman does not have private stock accounts, mostly bonds of the acidic type. So Lehman is free to enter the trash heap of liquidation and the de-bone process for assets. Meat is to be separated from bone.

John Mack of Morgan Stanley had better be careful, as he appeals for a Chinese role in a merger. That could give the Chinese an important toe-hold in US mortgage bond ownership. They are looking to convert mammoth USTBond garbage paper into hard assets, as a foundation to a possible migration of one hundred thousand to one million elite Chinese, to California, Arizona, Las Vegas, and Florida. It is called colonization.

The moral of the consolidation story is that the dead are marrying the dead. The Bank of America merger with Merrill Lynch struck me as hilarious. Each is dead from insolvency. Each has big counter-party risk from coverage of failed bonds. So they will now serve as each other’s guarantor of counter-party risk? Not in this world! Imagine two fat men absent of musculature tossed overboard a ship. They tell each other, “Stand on my shoulders and you will be fine for breathing in this vast sea.” They both sink.

The end game for such ludicrous indefensible consolidation is that the Wall Street fraudulent corporations go down all together. A friend called last night from the analyst community. He wondered aloud that nobody could expect the speed of the breakdown. My response was to point out a strong message mentioned here repeatedly. Since the Bear Stearns bailout killjob merger by JPMorgan, all Wall Street investment banks are aligned in similar fashion, with common bond risk and common counter-party risk. So when one Wall Street firm goes down, several will immediately go down, and AIG is the umbilical cord to the Main Street economy.

This point was borne out as wickedly true when the Lehman funding bailout failed. The parties trying to bail them out, offering funds, all found themselves as subject to writedowns immediately. The funds they offered were not available, since the loop of price reality reduced the level of the offered funds!!! That means they are all in the same boat, and if one fails, they all fail. So the system will desperately attempt to avoid any failing. Thus, the entire system fails.

As simple citizens, people should be concerned that the US Federal Reserve and US Dept of Treasury have begun to take actions far outside their own legal powers. The bailout of AIG was made illegally. The USFed cannot act to aid non-bank entities. Senator Jim Bunning has drafted Congressional legislation to limit the USFed action outside the banking realm. The system is losing control, especially with the law.

The parade of doomed deals continues. Talks have begun for JPMorgan taking over Washington Mutual. Could the JPMorgan ‘Garbage Can’ be inadequate soon? Bank of America has entered talks to take over Merrill Lynch, apparently striking a deal. Could BOA serve as the alternative ‘Garbage Can’ next, whose service would be as squire to JPMorgan? Now Morgan Stanley is in talks to take over Wachovia. The disaster du jour today seems to be State Street, which was down over 50%. The dominos are falling. THE MESSAGE IS CLEAR: THE DEAD ARE MARRYING THE DEAD. It is unclear what music to play at such events. My suggestion is something from "Phantom of the Opera" would be apt.



A SHORT ‘TOLD YOU SO’ HERE

The US financial sector became unglued this week. In last week’s article, the point was made that the financial system had just that one week to lift the USDollar, to raid private accounts with games like yanked credit and a raft of paper naked short gold & silver future contracts. Then next week the brown excrement hits the fan.

Over the weekend, deals were attempted to be forged into the night. Nobody seemed to ask the question why they were all acting like in an emergency. What emergency? A condition ordered by whom? My maintained point is that the Bank For Intl Settlements ordered the US bankers to fix it or flush it!

Big news was expected from my analysis, and my Hat Trick Letter newsletter. We got it! By the way, AIG was not on the radar for numerous analysts. It was on my radar, a secondary radar. The big banks are primary for my observation and monitor. WE ARE WITNESSING A CONCENTRATION OF RISK, OF RUINED CORPORATIONS, AND OF THEIR ACIDIC BALANCE SHEETS THAT IS SO GREAT THAT THE RISK OF US FINANCIAL IMPLOSION GROWS BY THE DAY !!!

Blame for speculators continues, as nitwit players within the fraud centers accuse others of speculation, and threaten prosecution by their watchdogs on leash. Recent research failed to disclose any collusion or illegal activity in the crude oil market. That does not stop continued claims, with hue & cry.

These criminals are pathetic, if not consistent. Just when failed regulation is at the core of the financial crisis, Wall Street conmen and clueless Congressional legislators argue for more regulation and control, when the regulators and controllers deserve prison terms. Instead, prosecute the regulators and controllers, and begin with Alan Greenspan, and his knights of the Stupid Table at the Federal Reserve.

The financial crisis continues each day. Last Friday the currency markets smelled what was cited in broad terms as the end of the OPEN WINDOW for the US banks. The euro currency rose over 220 basis points that Friday, and the pound sterling rose over 330 basis points. Gold and silver firmed in price. Something tipped them off, like huge flows of private money out of the Untied States. This week, AIG and Merrill Lynch and Morgan Stanley dominate the news.

On two different days this week, the NYSE Dow Jones Industrial index fell over 400 points. Today, when the Dow Jones Index was up 170 points, in a phone call to a trusted friend, we both agreed that the index would turn negative before the afternoon, and close down. So far, that call looks correct, as it was minus 100 points before now being up 50 to 60 points.

By the way, important option put stock positions are in place against Goldman Sachs. They point to a strong likelihood of the GSax stock falling to 80 or 85 imminently. The knock on GSax is that they have lied about their subprime mortgage exposure, and soon will be forced to come clean. The ‘GS’ stock shares plummeted from 160 in early September, now to under 100. Justice is served. My guess is their executives will profit privately from shorting their own stock. Even their 6-month corporate paper must pay out 20% in bond yield in order to attract funds.

UNIVERSAL MONETARY INFLATION

OK, so finally the US Federal Reserve has opened the monetary spigots to England, to Europe, to Switzerland, to Japan, and later to Canada. Not only is the monetary spigot overflowing inside the Untied States, it is overflowing from the US to the world. At least to the world affected (infected) by US control. The total central bank infusions of liquidity (translated: phony money) is $180 billion in the last several hours alone!!

This huge amount is not enough to quiet the LIBOR or the 2-year USTreasury swaps. Gold is rising versus the pound sterling, the euro, the yen, and Canadian Dollar, aka the loonie. This trend is new and powerful. Central bankers are growing desperate. Their measures to open numerous lending facilities have not stopped lending constraints. Even commercial paper has fallen by $52 billion last week.

Clownish anchors and analysts cannot seem to comprehend what is going on with the central bankers, liquidity injections, market tanking, USDollar decline, and gold & silver zoom. They wonder why the USDollar would continue to fall after central bankers reacted responsibly. BECAUSE THE USTREASURY IS DOOMED FROM INSOLVENT BANKS, EXTREME DEMANDS FROM NATIONALIZATION, AND RECESSION, AGAINST A BACKDROP OF ENDLESS WAR FOR PRIVATE SYNDICATE BENEFIT. It is obvious! Gold smells a systemic failure.

FOREIGN CREDITORS UNITE

A hidden initiative has been in progress for the last two weeks. Foreigners are forced to supply credit for the Untied States. Nations led by Russia, China, Arabs, and Japanese are meeting to form a formal committee. They have a common purpose, to maintain and manage massive US$-based debt securities in danger.

Their continued credit support is hampered by three magnificent factors, each a show stopper. 1) The US banks are insolvent, 2) The Wall Street bankers export fraudulent bonds, and 3) The USMilitary has acted with chronic aggression in violation of established contracts, international treaties, and disrespect for sovereign boundaries. So they are working to organize a committee of giant USTreasury Bond creditors. They wish to confront the US debtor with a single voice. Regard this important step as a prelude to possible default of the USTreasurys.

It is one thing to be in trouble from insolvency. Add corruption from export of fraud, and you have a bigger problem. Throw in military aggression, complete with misreporting by a controlled press, and you have a crisis in need of almost immediate remedy. My argument has been made for four years, that foreign held US debt creates a threat to national sovereignty. Since when are the Chinese our friends and allies? They are business partners turned rivals, now adversaries. Since when are Russians our friends and allies? They are energy and metals suppliers, betrayed by treaty violations, now adversaries, even on the military front.
Since when are Arabs our friends and allies? For three decades an uneasy partnership has been in existence, one that has turned into a blatant protection racket. The endless concocted war on terrorism is seen by Arabs as a war on Islam.

USTREASURYS AT RISK

Don’t be fooled by the drop in USTBond yields. That is a symptom of collapse in my view. Yesterday, it was with great disillusion yet satisfaction that my eyes and ears witnessed an interview by a Standard & Poor analyst. He said there was no imminent danger of a USTreasury debt security downgrade, but he did say that if pushed, the S&P would put them on NEGATIVE WATCH. Interpret that to mean the USTreasurys will soon be downgraded.

Never is a denial of such importance made without coming to fact and fruition later. Why else is the topic even discussed? This line of thinking is basic when ripping the BS from US financial propaganda. Notice the Credit Default Swap price for USTreasury Notes. The price is around 0.24% for the AAA-rated USGovt debt.

Without colossal continued corrupt pressure against the ratings agencies by the US thugs in financial orifices, the USGovt debt would have been downgraded immediately with the launch of the Iraq and Afghan Wars, or years earlier. The Shock & Awe should have been reflected in USTBond risk.

CHECK OUT THE 1-MONTH USTBILL YIELD

The US bankers have lost control badly. Even ill-equipped USFed Chairman Bernanke admitted recently as having lost control. He spoke to economist David Hale at a Florida financial conference last week. Bernanke said, “We have lost control. We cannot stabilize the dollar. We cannot control commodity prices.”

The age of central bank control, ala Soviet Politburo, is coming to an end. GOLD RECOGNIZES IT. Check out the 1-month USTreasury Bill yield. Incredibly, it closed under 0.1% yesterday. This ultra short-term bond yield testifies to lost control and the advent of extreme conditions, the prelude to an historical storm.

Just what should the USTreasury maturity yield curve look like before a default? Let me check, and get back to you. Ooops, no precedent! The TED Spread (difference between USTreasury and EuroDollar yield) has jumped up, another signal of banking turmoil. In recent days, the tight grip control of certain commodities has been lost by the Evil Ones. Even Morgan Stanley has been forced to close down its trading desks at the Platts Window, where they trade crude oil. The USCongress is equally lost.

Today, a quote came from Senate Majority Leader Harry Reid. They are unlikely to pass new legislation to overhaul financial regulations this year. He said, “No one knows what to do. We are in new territory, this is a different game. [Neither Federal Reserve Chairman Ben Bernanke nor Treasury Secretary Henry Paulson] know what to do, but they are trying to come up with ideas.” Gee! Maybe the chief architects of this grand failure have a solution? They should be ignored then imprisoned. Perhaps they are seeking final opportunities to steal, raid, and pilfer from the public till during the final months of this Administration.

The 2-year USTBill yield has also plummeted, but not as drastically. It is now far below the official USFed Fed Funds 2.0% rate. Some thought the USFed might cut rates in an act of desperation this week, me included.

My guess is for two reasons, why they did not. 1) They did not want to project an impression of lost control, not after the Fannie Mae & Freddie Mac bailout, not after the failed Lehman Brothers deal, not after the shotgun wedding for Bank of America & Merrill Lynch, not after the secret eloped marriage in the works for JPMorgan & Washington Mutual, not after the merger of cadavers planned between Morgan Stanley & Wachovia. And 2) the Bank For Intl Settlements in Switzerland might have forbidden a USFed rate cut.

My maintained position is firm, that the BIS ordered the US to fix it or flush it! Let’s watch to see if the 2-year TBill yield continues lower, a signal of even more lost control.

THE USELESS INFLATION VS DEFLATION DEBATE

My greatest impatience is shown for those who attempt to argue whether inflation or deflation is winning, and where we stand. Such pursuits of chasing one’s tail serves to illuminate nothing and to waste time. We have both, will continue to have both, as both intensify. The key is for monetary inflation to enter the mainstream, which is underway finally.

One can benefit little from putting the unique crisis into convenient cans for purposes of organization. This is not simple, and people should not attempt to simplify the ongoing collapse of the Great American Experiment in Counterfeit Monetary Systems. To be sure, we have gone past a tipping point. The move to flood the monetary pools of phony money beyond Wall Street is the big event. To be sure, the bankruptcies and deep insolvent events are accelerating. To be sure, the desperation for attempted mergers is palpable. To be sure, central bank activity with lending, swapping, and even accepting stock equity as collateral is a sign of total absence of any safeguard toward respect of moral hazard.

Looking for inflation vs deflation labels when the failure and default of USTBonds and receivership occur TOTALLY MISSES WHAT IS GOING ON. This is a death event for the US finances, US banking system, USEconomy structure, and USTreasurys, all rolled together like a gigantic vortex hurricane. Looking for (in) vs (de)flation in this environment is like observing color schemes on walking dead as they attempt to merge at a ceremony. They are of DEAD PARTIES ATTEMPTING TO SHARE COUNTER-PARTY RISK. Looking for (in) vs (de)flation when dead partners are marrying is like DECIDING WHETHER A HONEYMOON SHOULD TAKE PLACE IN THE CARIBBEAN OR FRENCH COAST.

They both go to the recycling cemetery instead. The place to be now is in gold and silver, preferably silver since central banks own none and because silver has strong industrial demand. Besides, a silver default of sorts has been in effect for several months.

It is with pleasure to attend again the upcoming Cambridge House conference in Toronto on October 4 and 5. Thankfully, my Frequent Flyer miles were used to cover the airfare from Costa Rica, where the rainy season is coming close to an end. POR FIN! Is that inflationary or deflationary? With absolute certainty, one can say WHO CARES?

Buy gold, buy silver, do NOT use borrowed money or leverage, and rest comfortably at night, since it cannot be taken from you. Then patiently wait for gravity to work, for night to follow day, for evil to be unmasked, for foreign creditors to arrive with hatchets.

[b]Comex Raises Margin Rates on Gold Contracts by 47%, Silver 20%


This is designed to discourage people from leaving the stock market and sheltering their wealth in metals.

POWERFUL NEW PHASE OF INVESTMENT’

Citigroup metals analysts ask why gold is not already at $2,000/oz


As the United States wades through a deep and murky morass of financial uncertainty and turmoil, Citigroup suggests that gold is entering a powerful new investment demand phase tied to safe-haven and monetization.

Author: Dorothy Kosich
Posted: Friday , 19 Sep 2008

RENO, NV -

Citigroup asserts that gold will benefit from both the "gloom & doom" and "muddle-through & monetization" scenarios, possibly regaining $1,000 per ounce at year-end and even doubling or tripling in the long term.

"Frankly, we're surprised, that gold is not already at $2,000 an ounce," declared Citigroup analysts John H. Hill and Graham Wark.

In an analysis published Wednesday, Hill and Wark suggested, "Gold appears to be entering a powerful new phrase of investment demand tied to safe-haven and monetization themes."

"We have been surprised that gold has been so heretofore quiet, and have expected a much strong and more immediate response to the government takeover of GSE [Government Sponsored Enterprises]/mortgage insurance entities, and broker-deal bankruptcies," they wrote. "It is notable that hard-core goldbugs have been proven correct in the decade-long contention that an overwhelmingly vast and complex pool of nested financial derivates would ultimately result in cascading defaults and ruin for major portions of the banking system. Frankly, we're surprised that gold is not already at $2,000 per ounce."

"Our sense is that gold has been temporarily depressed by a series of ephemeral, short-term trading dynamics that served to mask strong physical off-take in what is ultimately a tiny market," the analysts said. "We continue to regard as a barometer in the grand battle between hard assets and paper assets."

Benefiting in "Gloom & Doom" and "Muddle-through & Monetization" scenarios

Should the U.S. lapse into a deep recession that spills over to BRIC countries, Citigroup advises that "gold and precious metals would prove to be one of the few safe havens for capital preservation particularly given likely low to negative real interest rates in such a scenario. In this case we would expect gold to double or triple from more current levels."

"A more likely macro outcome involves slow-growth accompanied by the monetization and socialization of derivatives losses," the analysts said. "Actions such as the U.S. takeover of GSE/mortgage and insurance entities and lending/guarantees to derivatives-laden banks, replicated globally, are likely to act to the detriment of paper currencies relative to hard assets and gold."

Bullish on gold

"As we have maintained for months, gold seems to be badly mis-priced and uniformly dour sentiment for industrial metals and coal," Hill and Wark said. "We remain positive on gold, based on a mix of macro and supply-demand drivers."

"The forces that have propelled gold for the past five years are firmly in place, and policy prescriptions for the credit crisis seem powerfully and uniformly re-flationary. Prices are up in the Euro, Yen and Rupees, a crucial credibility test. Gold is below constant-dollar peaks of $1,800-3,000/oz, and has lagged bulk/base metals since the 2001 trough. Appreciation remains muted relative to other metals and oil. Ultimately, gold is a small market with motivated Indian/Asian and petrodollar-fuelled buyers."

The analysts forecast that the gold price will go higher through 2009-10 and maintain year-average forecasts of $950/1,000 per ounce.

"Should the macro environment deteriorate more seriously than Citi economists expect, we would not be surprised to see gold climb to multiples of these levels. In the near term, we expect gold to be highly sensitive to macro developments, given the potential for safe-haven investment demand to ride on top of seasonal strength in physical fabrication offtake."

Equities

Citigroup asserted that gold equities are mirroring investment in physical gold. However, the analysts observed that gold mining shares are down 30% in the third quarter while gold bullion has only declined 7%.

Noting that gold equities remain near levels seen when gold prices were in the low $600s, Hill and Wark said, "Lamentably, the equities have shown a strong beta to falling gold, and a weak beta to upside moves."

"Action in gold equities tends to mirror investment demand in bullion. Should retail investors return to gold, the share should participate," they predicted, adding that gold stocks have seen "near-record volatility."

MINEWEB UPDATES ITS SITE THROUGHOUT THE DAY - FOR THE LATEST MINING AND METALS NEWS AND ANALYSIS ARTICLES CLICK ON WHAT'S NEW

....................................................high gold prices have tanked the gold jewery making industry.....................................................​........gold jewery makers used to account for half of all pure gold sales..911 gold was 211.00 .........overpriced gold always crashes because other vital industries refuse high gold prices ..average consumers cannot afford gold jewery now........................that s why gold will crash again as it did in the 80s after a high of 800.00 from Arab Middleast and Opec drama.in early 80s to a (((( 911 high of 211.00 .....))))))))) do not fall for the gold rush.it is a pyramid scheme ...warn all...get out of gold now.....buy instead vital long lasting goods..or forclosed properties at very cheap prices..in excellant areas...that will exceed gold..in time always...((((((( gold fluxtuates ..many lost lots of money on gold by mid the 1980s when gold fell by half of its it 800.00 high..)))))))))) do not get suckered to gold...

Weimar Replay - Infinite
Bailouts, Infinite Money Supply
Potential Infinite Bailouts To Explode Money Supply
By Jim Sinclair JSMineset.com

9-19-8

Dear Friends,

1. Today's reported potential infinite bailout of all and any portends, if adopted, is the largest increase in dollars outstanding since the Jurassic Age.

2. It closely models actions undertaken regarding the production of currency liquidity seen in the "Weimar Republic."

3. It is reported now that more than 1000 hedge funds are on the rocks. This has the potential for a significant financial impact.

4. The only way to hide the numbers from the statistics produced by the suspected actions of the Fed is to value the indebtedness purchased at 100%, claiming a wash transaction.

5. The only conclusion is that when the smoke clears and the advertised actions have been adopted, nothing more dollar negative than this has ever occurred due to the potential expansion of T bills and therefore dollar supply explosion.

6. Gold is the only currency with no liability attached to it which, as you have seen recently, will be selected as the currency of the people. ***

SPOT MARKET IS OPEN
closes in 1 hr. 18 mins.

Sep 22, 2008 15:57 NY Time

Bid/Ask 906.70 - 907.70

Low/High 864.10 - 909.90
Change +34.90 +4.00%
30daychg +84.50 +10.28%
1yearchg +175.70 +24.04%