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In Debt We Trust America Before the Bubble Bursts

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Silver Price Forecast 2014: Silver’s Ultimate Rally When Paper Assets Collapse

silver-barsThe relationship between the Dow and silver has been very consistent over the last 100 years. After each of the major Dow peaks (real, not necessarily nominal peaks), we eventually had major bottom in silver. Below, is a 100-year inflation-adjusted Dow chart:

In September 1929, the Dow peaked in terms of US dollars as well as in terms of gold ounces (real terms). After about 1 year and 4 months, silver made a significant bottom. While the Dow continues to fall for most of the time, silver rallied until it peaked in January of 1935. At silver’s peak, the Dow was about 30% lower in real terms than what it was at silver’s bottom. Continue reading

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“We are in great danger”: Ex-banker details how mega-banks destroyed America

Lloyd Blankfein and Jamie Dimon testify before House Financial Services Committee on Capitol Hill, Feb. 11, 2009. (Credit: Reuters/Larry Downing)

Lloyd Blankfein and Jamie Dimon testify before House Financial Services Committee on Capitol Hill, Feb. 11, 2009. (Credit: Reuters/Larry Downing)

“The power has only been more consolidated,” warns Goldman Sachs veteran Nomi Prins in an interview with Salon

“It no longer matters who sits in the White House,” former Goldman Sachs managing director Nomi Prins writes in her new book “All the Presidents’ Bankers: The Hidden Alliances That Drive American Power.” “Presidents no longer even try to garner banker support for population-friendly policies, and bankers operate oblivious to the needs of national economies. There is no counterbalance to their power.” Continue reading

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Two More Victims Of The Retail Apocalypse: Family Dollar And Coldwater Creek

Family-Dollar-300x300Did you know that Family Dollar is closing 370 stores? When I learned of this, I was quite stunned. I knew that retailers that serve the middle class were really struggling right now, but I had no idea that things had gotten so bad for low end stores like Family Dollar. In the post-2008 era, dollar stores had generally been one of the few bright spots in the retail industry.

As millions of Americans fell out of the middle class, they were looking to stretch their family budgets as far as possible, and dollar stores helped them do that. It would be great if we could say that the reason why Family Dollar is doing so poorly is because average Americans have more money now and have resumed shopping at retailers that target the middle class, but that is not happening. Rather, as you will see later in this article, things just continue to get even worse for Americans at the low end of the income scale. Continue reading

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NYS Attorney General Issues Subpoenas to Least Lawyered-Up High Frequency Traders

Eric Schneiderman, New York State Attorney General

Eric Schneiderman, New York State Attorney General

Bloomberg News is reporting that New York State Attorney General, Eric Schneiderman, has issued subpoenas to six high-frequency trading firms. The article, however, names only three firms, none of which are household names.

According to the article, Schneiderman is asking the firms, which include Chopper Trading LLC, Jump Trading LLC and Tower Research Capital LLC about the “special arrangements they have with exchanges and dark pools as well as their trading strategies.”

This is a curious approach. Why not ask the three big stock exchanges, the New York Stock Exchange, Nasdaq and BATS to hand over the names of all high frequency traders to whom they have sold expensive perks that have the effect of rigging the stock market against the average investor.

On March 18 of this year, Schneiderman gave an address at New York Law School indicating his intimate knowledge of the unfair and potentially manipulative practices taking place at the stock exchanges and, somewhat demurely, calling out Securities and Exchange Commission Chair, Mary Jo White, for not doing enough to stop these abuses.

On the subject of co-location, where the high frequency traders are allowed for a high fee to locate their own computers inside the exchange’s data centers to be close to the exchange’s main computers and shave fractions of a second off their trading speed, Schneiderman said: “In that tiny sliver of time, these firms get a first look at the direct-data feeds provided by the exchanges. They see pricing, volume, trade and order information and use it with their sophisticated technology, and algorithms that make the systems automatic, to trade on it before others can possibly react.”

Schneiderman said this co-location also allows the high frequency traders to “continuously monitor all the exchanges for large incoming orders. And if they spot a large order from an institutional investor, like a pension fund, high-frequency traders can instantaneously get on the other side of the trade — driving up the prices artificially.” (Continue to original article)

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Insiders Tell All: Both the Stock Market and the SEC Are Rigged

bombSince bestselling author Michael Lewis appeared on 60 Minutes on March 30 to promote his new book, “Flash Boys,” and explained how the U.S. stock market is rigged; and Brad Katsuyama, the head of IEX, an electronic trading platform who plays a central role in the Lewis book, did the same on CNBC a few days later, the debate has gone viral.

But Lewis and Katsuyama were not the first to blow the whistle on rigged U.S. stock markets. Sal Arnuk and Joseph Saluzzi, Wall Street insiders and co-founders of Themis Trading LLC literally wrote the book on “Broken Markets” in 2012 and have been exposing details of the rigging on their blog ever since.

Wall Street Journal reporter, Scott Patterson, mapped out the exotic and corrupt order types permitted by the stock exchanges to fleece the little guy in his 2012 book, “Dark Pools,” which follows the trading career of Haim Bodek, who has set up his own web site to blow the whistle on just how badly the stock market is rigged.

Following all the media hoopla, the FBI has recently announced that it has opened an investigation into the allegations. But under the Securities Exchange Act of 1934, the FBI is not in charge of rigged stock exchanges — the Securities and Exchange Commission is. But according to insiders, the SEC has stood down in much the same fashion that it ignored warnings about Bernard Madoff from whistleblower Harry Markopolos for years. The explanation for the SEC’s inaction, many traders feel, is that the SEC itself is rigged against Main Street in favor of big Wall Street firms. That view has found support among the SEC’s own insiders.

Since 2006, four attorneys at the Securities and Exchange Commission have put their reputations and family interests on the line by blowing the whistle on corrupt cronyism that is now so ingrained at the Nation’s regulator of stock exchanges and securities markets that it’s become part of the SEC’s business model. (Continue to original article)

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Thought Secure, Pooled Pensions Teeter and Fall

Chang W. Lee/The New York Times Carol Cascio received a letter saying that her husband’s pension plan had been “terminated by mass withdrawal.”

Chang W. Lee/The New York Times
Carol Cascio received a letter saying that her husband’s pension plan had been “terminated by mass withdrawal.”

The pensions of millions of Americans are being threatened because of trouble in a part of the retirement world long considered so safe that no one gave it a second thought.

The pensions belong to people in multiemployer plans — big pooled investment funds with many sponsoring companies and a union. Multiemployer pensions are not only backed by federal insurance, but they also were thought to be even more secure than single-company pensions because when one company in a multiemployer pool failed, the others were required to pick up its “orphaned” retirees.

Today, however, the aging of the work force, the decline of unions, deregulation and two big stock crashes have taken a grievous toll on multiemployer pensions, which cover 10 million Americans. Dozens of multiemployer plans have already failed, and some giant ones are teetering — including, notably, the Teamsters’ Central States pension plan, with more than 400,000 members. Continue reading

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You Can’t Eat Gold… But It’s Portable, Easy To Trade and Confiscation-Proof

If you’ve conducted even a preliminary investigation into the global economic situation you’ve likely concluded that something isn’t right. As noted previously, all of the evidence points to serious economic failure in the very near future as our day of reckoning approaches. The decline itself has been taking place for years and we’ve seen it happen all around us. Rather than delve into evermore evidence for why a collapse of our way of life is inevitable, the following guide from our friend Daniel Ameduri of Future Money Trends provides actionable advice designed to preserve your wealth during hard times and protect it from a government hellbent on confiscating it at the first chance they get.

What it all boils down to is owning assets of (real) value. Much of this is dependent on our individual means, but the overall strategy should be similar for everyone: diversification. This can mean long-term food stores, bartering supplies, skills development, acquisition of productive land or, ….. owning mechanisms of exchange that have been tried and tested for centuries across the entire globe. (Continue to original article)

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If it’s such a privilege, why do they have to stick a gun in your face?

stooges4irsTwo. Billion. Hours.

That’s how much time people in the Land of the Free waste each year preparing and filing their tax forms to the IRS– roughly 13 hours for each of the ~150 million individual returns filed.

And if you’re doing your own taxes this weekend, it may certainly seem like you’ve spent that 2 billion hours yourself just preparing your 1040. (Continue to original article)

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Monetary Collapse and Silver’s Not So Orderly Rise

silver.buffalo.roundsThe rise of silver and the collapse of the monetary system is inescapably linked. Therefore, if the collapse of the monetary system is not orderly, then the rise of silver’s value will not likely be orderly. Collapse by definition suggests: to break or fall suddenly. This would suggest that when the time comes, silver will explode higher suddenly; for example, it could be possible that it rises $10, $20, $100 a day, until you can suddenly not buy it with fiat money.

…….
So, if you are buying physical silver to hedge against the collapse of the monetary system, you are not buying it, and looking for the price to rise to about $30 at the end of this year. No, you are expecting a sudden explosion of price, you just do not know exactly when. (Continue to original article)

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Why The Banksters Don’t Care About Your Gold

goldSovereignPkgI regularly hear how important it is to hold silver and gold and how dangerous the central banks and their banksters (a combination of bankers and gangsters) really are. I’m sympathetic, of course, since I don’t like central banks and I do like silver and gold.

But these folks have a problem: Their plans never seem to bear any fruit. Mostly, they are waiting for the banksters to lose control, for the financial system to fall down, and for their silver and gold to save them from an apocalypse.

But it has been a lot of years now, and the banksters seem to have no concern about precious metals in the hands of average folks. In short, they don’t fear your silver and gold at all, and I think it’s important to examine why. Continue reading

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Can your ‘money-losing behavior’ be cured?

Most investors are shooting themselves in the foot, but a few reforms could help stop the bleeding.

171-0610091716-bankruptcy-protectionThe longest-running, leading study of investor behavior was released for 2014 this week, and the key conclusion is easy to see: We’re doomed!

This is not a call on the market or some forecast for a crash. It’s a simple statement that investors simply refuse to learn from their mistakes, meaning they are condemned to repeat them over and over again.

The 20th Quantitative Analysis of Investor Behavior from Boston-based DALBAR Inc. continues a line of research, dating back to 1984, that has shown that investors don’t do nearly as well as the investments they buy. A combination of buying after market upticks and selling after disappointments means average investors are routinely buying high and selling low, rather than simply capturing the long-term trends of the underlying investments.

The results, predictably, are ugly. Continue reading

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Distressed homeowners seeking mortgage relief could get stuck with a big tax bill

real_estate_foreclosureStruggling homeowners across the country could face significant new tax bills if they receive mortgage relief from their banks, a prospect that threatens to slow the housing recovery and put further strain on distressed borrowers.

The collapse of the housing market and plunging home prices left millions of people stuck owing more on their mortgages than their homes were worth. Some have worked with their banks to reduce the loan amount to avoid foreclosure or enable a sale.

In 2007, Congress adopted a law that spared those homeowners from being taxed on the amount of the loan that was forgiven.

But that tax break expired in December, and now the forgiven debt can be counted as income by the IRS. Housing advocates worry that the lapse could scare homeowners away from making a deal with their bank, which could disrupt efforts to reduce foreclosures and harm borrowers who were just getting back on their feet.

Stella Thompson said she is looking at a $30,000 tax bill on her Seattle area home. Continue reading

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Faber: ‘This will be the worst since ’87′

FaberMan who predicted 1987 stock market crash and the Great Recession claims another crash is months away

The man who predicted the 1987 stock market crash and the recent global economic recession believes the worst crash in decades will take place later in the next 12 months.

Dr Marc Faber, a Swiss investor and the author of the Gloom, Boom & Doom Report, said the cause of the crash would be overvaluing of companies within the internet and biotechnology sectors – thought to include the $400billion valuation of Google, and the $100billion valuation of Facebook. Continue reading

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Are You Prepared for a Bull Market that Will Shock Even the Most Ardent Goldbugs?

gold_FEG_bnr_01.jpgWhat we call “the economy” is really more of a casino. The money that is created isn’t getting into the real economy. The Wall Street guys with the Ph.Ds in mathematics have built pick-pocketing machines that misallocate capital into their wallets, into endlessly bigger government and further military action on the part of the United States. It’s going to end very badly. All we can do is try to prepare as best we can to protect ourselves and our families…..

An enormous amount of gold is flowing into China. And China has established a second gold exchange that will allow non-Chinese to buy and sell it. Not paper gold, which is fantasy gold, but real, physical gold. The gold price is being manipulated by the futures markets, by the very people we were just talking about, the bankers, the bullion guys, the people that really can’t afford to lose the dollar confidence game.

The Chinese want no part of this. They have enough dollars and don’t want more. Moreover, they don’t want to finance America’s military-industrial offensive, which is paid for by dollar manipulation…..

I think we’re on the verge of a secular bull market for the ages, something greater than I’ve seen in my lifetime. (Continue to original article)

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Monetary Collapse and Silver’s Not So Orderly Rise

William Jennings Bryan- Mechanical Silver BugWe are about to see the end of our current international monetary system. Based on much of the evidence that I have written about previously, this appears to be a certainty. The systematic build-up of this current monetary order went together with the gradual phasing out of silver from the monetary order.

This system, by its very nature, has been diverting value away from silver. To understand this, just imagine that silver was actually used as currency (like the paper Dollar is currently used); we would then have much less silver available for sale in the current silver market. Based on the demand and supply economic model, this would then mean that the silver price would rise significantly.

The fact that silver is not held by central banks in significant quantities(or not held at all), puts it at a further disadvantage as compared with gold, in the current monetary regime. This is one of the reasons why silver is often mistakenly ignored as real money.

The rise of silver and the collapse of the monetary system is inescapably linked. Therefore, if the collapse of the monetary system is not orderly, then the rise of silver’s value will not likely be orderly. Collapse by definition suggests: to break or fall suddenly. This would suggest that when the time comes, silver will explode higher suddenly; for example, it could be possible that it rises $10, $20, $100 a day, until you can suddenly not buy it with fiat money. Interestingly, that actually means that silver and gold will reach the same price in fiat currency. (Continue to original article)

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Noted bear foresees S&P hitting 1,950 next month

1998_the_truman_showStocks have a big upside surge left in them before they fall prey to an inevitable drop once the Fed’s quantitative easing runs dry, Nomura strategist — and noted bear — Bob Janjuah said Wednesday.

Speaking on CNBC, Janjuah said there’s room for the S&P 500 SPX to surge more than 5% over the next month despite nervousness over earnings, but that a sharp drop is still in the cards.

“For me, 1,950 is what I’m looking for on the S&P, so risk-on I guess for another month or so,” he said. Positioning and sentiment “got a little wiped out earlier this year,” he said, which means there’s space “for markets to get overboard again.” (Continue to original article)

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