Hey Silver Bugs: Is James Turk Off His Rocker?

Last years call by Goldmoney’s James Turk for gold to reach record highs during the seasonally slow summer months seemed, frankly, off the wall.  But, not only was he nearly alone in the call (James Sinclair agreed with Turk), he was right.  See BER article, On Gold: Team Sinclair-Turk 1, Marc Faber 0.

Now the gold and silver expert extraordinaire expects the silver price to double as soon as it breaks out of its ‘descending wedge’ price pattern.  He offers the chart, below, obtained on the KingWorldNews.com Web site. Sign-up for my 100% FREE Alerts

“This following weekly silver chart is really looking very powerful and as I have been saying, once silver hurdles above $35, I expect to see $68-$70 in 2-to-3 months,” Turk told King World News during the weekend.

Compare Turk’s latest call for a double in “2-to-3 months” with silver’s monstrous run of 177 percent from September 2010 through April 2011.  That eight-month move, or a 13.6 monthly compounded rate of return, is half the rate of return expected from Turk’s latest forecast of a 26 percent compound rate of return for throughout the three months.  A truly remarkable call.

However, before silver bugs can sit back and watch the fireworks, silver must overcome its descending wedge upper band, first, which, from the graph, looks like the $35 level.

“Note how the downtrend line, the $35 resistance level and the current silver price are getting ready to meet,” Turk added.  “Silver’s first attempt to hurdle $35 could happen within the next 2-to-3 weeks….”

Today, as silver trades near $33, it could break through $35 by as early as February, according to Turk.

Presumably, dollar weakness must play a part in Turk’s latest call.  The chart of the USDX, below, shows the dollar beginning to breakdown from its eight-month rally beginning in early spring, as the euro crisis escalated to a point of near hysteria.

Many bullion analysts have pointed out, however, that throughout the crisis in Europe, one would think the dollar would have manage a more meaningful rally.  An 11 percent move off its near-term bottom of 73 on the USDX, the dollar topped out at approximately 81, which, considering the intense focus brought onto the euro, day after day for eight months, the dollar’s touted ‘safe haven’ status should be considered only that: touted.

What could Turk be sure about that would warrant a frenzied buying silver fest?

A move in silver that rapid could possibly mean that a surprise deal in Europe to stabilize the euro is in the offing, or, maybe, Iran gets drawn into a kickoff to WWIII.  Or, how about the Fed panics and announces what it has been doing all along anyway, monetization of debt through more QE.

In any event, Turk expects a flight out of the dollar.  That would leave Beijing plenty of room to ease again as China fights its own real estate crash and declining exports (see BER article, GET OUT of STOCKS).

What ever triggers a Turk scenario will no doubt disturb the peace in the currency markets, between warring nations, or both.

If silver does double in price within three months following a clean break from the $35 level, Goldmoney’s James Turk should go straight to the head of the class as far as silver investors are concerned. Sign-up for my 100% FREE Alerts

GET OUT of STOCKS!

Suddenly the Baltic Dry Index (BDI), a key index that economist watch for signs of expansion or trouble ahead for the world economy, has collapsed.  Because two previous steep declines in the BDI foretold stock market crashes, one may not want to wait too long for confirmation of the dreaded Hindenburg Omen to go short stocks and long booze, cigarettes and ammunition.  Sign-up for my 100% FREE Alerts

“Today, the BDI is on the verge of making headlines once again, being that is plummeting like a wingless 747 into the swampy mire of what I believe will soon be historical lows,” regular zerohedge.com contributor Brandon Smith of Alt-Market.com wrote.

Since the inception of the BDI in 1985, economist and traders alike use the index to assess global shipping rates of dry bulk goods, a leading indicator of demand for raw materials from manufactures of finished products.

Therefore, a rise in the index suggests production managers foresee a strong economy and customer demand for its goods, while shippers raise rates to optimize revenue during the good times.  The reverse, of course, takes place as shippers cut rates to keep its carriers operating at close to full capacity as possible.

According to Smith’s research on the correlation between the BSI and equity markets, he suggests big trouble for stocks lie in the months ahead.  See chart, below.

According to the Smith, the danger zone for stocks follow a decline in the BDI  below 800.  The 1987 stock market crash, Asia currency crisis, the popping of the Nasdaq bubble, and the Lehman collapse, took place as the index was dropping toward the 800 level (quickly, in the case of Lehman), began recovering after reaching 800, or remained close to that level, as in the case of the Asian currency crisis of 2008.

A continuation of the chart, below, shows the BDI again plunging suddenly as the new year rang in.  The BDI has once again dropped into the danger zone.  A stock crash warning has triggered.

Adding to the gloom and doom comes the notorious and legendary market timer Joseph Granville, who told Bloomberg last week that the Dow is headed for a fall of 4,000 points by year end.

Granville, 88, said, “Volume precedes prices … You are seeing much lower volume. That tells you that prices are going to go much lower, much lower than most people think possible and very few people have projected.”

Presently trading at a dividend yield of 2.5 percent, a drop of 4,000 points off the Dow equates to a 31 percent haircut from today’s 12,600 level and a higher dividend yield of 3.7 percent.

Granville expects the carnage in stock to reach a climax some time during the summer months.

And if that isn’t bad enough, another pair of trusted eyes sees a lot of trouble for stocks as well.

In mid-December, another octogenarian of the stock market, Richard Russell, of Dow Theory Letter, told his subscribers to bailout of stocks and hold onto gold.  Today, stocks are very vulnerable and appear to be repeating a chart pattern of the post-1929 stock market crash period of 1929-33, according to Russell.

Russell wrote:

The great bear market rally is now about over, following a very long period of deceptive distribution.  I am warning all my subscribers again that we are back in the grip of a vicious and ruthless bear.  The bear has been held back for almost two years, due to the so-called quantitative easing of an anxious and ignorant Fed.  There’s no bear angrier than a frustrated bear.  As a result, I believe we’re going to see a brutal stock market that will shock the Fed and the bulls and the public — and all who insist on remaining in this bear market.

I think we’ll see selling of gold to cover losses (particular losses by the short sellers), but ultimately gold will be the last man standing.  But most important — GET OUT OF STOCKS.

With the BDI reaching near all-time lows and Granville and Russell warning their subscribers of a post-1929 crash replay, the remaining question is: when will traders hear that the Hindenburg Omen just triggered a warning signal?  Sign-up for my 100% FREE Alerts

$140 Silver, Figures Don’t Lie

Calls for $60, $75, $100 and $140 per ounce of silver by the close of 2012 may be very reasonable ones.  Several well-known analysts have placed their bets already on each of these numbers.  Sign-up for my 100% FREE Alerts

Sure, $140, a quadruple from today’s $33 price seems way out there.

However, after considering the ramifications of a global financial system moving more rapidly away from the U.S. dollar (witness Iran), coupled with the no. 2 reserve currency, the euro, looking vulnerable, too, half the world’s purchasing power may be forced into gold and, by proxy, silver, whether they like it, or not.

U.S. and European financial institutions have not participated in the silver bull market.  But they will—though, at much higher prices than their Asia brethren.

2012 could be the year of some shocking revelations to the mom-and-pop retail investor.  The soundness (or the lack thereof) of the U.S. dollar will redirect their attention away from NDAA and other Washington nonsense as they receive a hard study on why politicians have gone mad lately.  It’s about the U.S. dollar, not Iran’s nuclear capabilities or terrorism or anything other lie that may fit.

At any time, the lines outside the coin/bullion dealer could form, as a carefully orchestrated attack of the dollar by significant entities of the East could result as a weapon against U.S. military aggression in the Middle East or elsewhere.  That scenario, a dollar Armageddon, comes from Jim Willie.

Sounds outlandish?  Welcome to the freshman class of the Jim Willie School of analysis.  When you reach your senior year of Willie’s tutelage, however, you won’t be calling him “Crazy Jim” anymore, as past graduates will gladly attest to his previously unwarranted monicker.  He’s been correct on so many issues, dismissing his analysis is most likely a bad idea.

And all it would take for a Jim Willie scenario is for the U.S.DX to break below 72, with vigor.  Then, all hell would break loose.  The short squeeze on silver could be epic, according to James Turk, Jim Sinclair, Bill Murphy and Eric Sprott.

And anyone who’s not familiar with the huge overhang of JP Morgan paper shorts won’t understand why silver could be so explosive to the upside.  To them, analysts like Willie come off as hucksters when talking about possible 4-bagger moves in a commodity (money) in a 12-month period.  Willie isn’t calling for $140 silver; he’s calling for dollar destruction.  Who knows how high silver will go in a coordinated attack on the dollar.

If, however, Jim Rogers of Rogers Holding is right, the mega wake up call that the U.S. “preppers” are expecting won’t come until after the election, but in 2013, instead.  In which case, maybe the $60 and $75 price targets for 2012 may be more reasonable ones, as politicians furiously work overtime to push out a crisis past the election season.  One of the top silver analysts of the world, David Morgan, a conservative and thoughtful analyst, falls into this camp.

Consider the U.S.DX chart, below, and glean into why all the calls for much higher prices for silver have come out since Bernanke’s FOMC statement on Wednesday, and earlier, in anticipation of the January meeting.

If the dollar retreats from its 40-month moving average, as it has since Wednesday’s FOMC meeting, the next leg down in the dollar is expected to test the 72 level as soon as this year—maybe even before the summer.

If 72 is not held, a run on the dollar to much lower levels (62?) could soar silver much higher than that 400 percent in the 30-month move we had from the third quarter of 2008 to the second quarter of 2011.  Panic could ensue.  From the $28 low support of December X 400 percent = $140.

A move of 400 percent in less then half the time of its previous move of that stature would imply a very significant event taking place that affects the U.S. dollar.  If silver is to repeat a 400 percent return, or $140 by the end of the year, a COMEX scandal, a whopper geo-political event, a Jim Willie scenario of an attack on the U.S. dollar by a cabal of Eastern raiders, or some black swan event as a result of tensions, will be the trigger.

With the U.S. playing recklessly overseas in both geo-politics and monetary matters, anything could happen to break the U.S. dollar stranglehold.  That’s when silver turns to gold.  Whether David Morgan’s $60 call for silver turns out to be more accurate, or an Armageddon run on the dollar takes silver to who knows where, 2012 should be an interesting year for silver.  Sign-up for my 100% FREE Alerts

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Peter Schiff’s Latest Gold Price Prediction

Speaking with GoldSeek Radio host Chris Waltzek this week, Euro Pacific Capital CEO Peter Schiff expects the re-inflation trade to dominate in an unprecedented way in 2012, as money mangers send oil, gold and other dollar-sensitive assets much higher in price, or at record prices, in their effort to flee the dollar.

In particular, the former U.S. senatorial candidate from Connecticut expects gold to reach its inflation-adjusted high of approximately $2,300 this year, citing the Fed’s reaffirmation on Wednesday that it intends to further suppress rising interest rates for another three years.  Sign-up for my 100% FREE Stock Alerts

Schiff contends that the dollar will suffer greatly as a result, “fizzling” out of investor portfolios as the market realizes that the alleged dollar strength last year has been nothing but an illusion brought about by the euro’s relative weakness against the Greenback.

“In fact, it [U.S. dollar] is already fizzling,” Schiff told GoldSeek Radio.  “In fact, it’s fizzling quite a bit today after Ben Bernanke basically said zero percent interest rates will be here until the end of 2014, so we got an extra year or so of zero percent interest rates.  Although I think it [dollar collapse] is going to hit the fan before 2014, but, that’s got gold up $40 today [Wednesday].”

According to Schiff, professional traders will view the Fed’s most recent language as a signal that more debt monetization by the Fed is planned for 2012, with a lower dollar as the price paid for a Fed monetary policy of affecting artificially low interest rates in the U.S. Treasury and corporate debt markets.  But Schiff doesn’t see how the Fed getting a free lunch from its actions.

Within 24 hours of the Fed’s statement of Wednesday, the USDX has already broken below its 40-month MA support of 79.72 and has accelerated downward on Thursday to 79.21 in early afternoon trading.

“They [Fed] have to create massive inflation to keep interest rates that low, especially as prices are rising, they will continue to rise,” Schiff added.  “I think we could see record high oil prices this year.  It’s clearly the consequences of all this money printing the Fed has to do to keep buying up the bonds to keep interest rates low.”

Schiff continued, “It’s reasons to buy more gold, buy more silver,” as a weaker dollar elicits more central bank buying of gold as a hedge against heavily-weighted dollar bank reserves.

While the euro was weak against the dollar throughout the second quarter of 2011, central banks began aggressively accumulating the yellow metal as its price, in dollar terms, dropped.

However, also during the second half of 2011, U.S. money supply has again stalled, according to economist John Williams of Shadowstats.com.   That stall remains as the telltale signal to central bankers that the Fed, indeed, needs to step up purchases of future Treasury issuances, on top of maturing U.S. debt and illiquid mortgage-backed securities, if Bernanke has any chance of achieving his objective of negative real interest rates.

On Jan. 23, India-based The Economic Times stated, “The WGC, an industry-backed group, said in November it expected central banks to add some 450 tonnes of gold to their existing reserves in 2011, driven mainly by purchases from emerging economies that are seeking alternative investments to the U.S. dollar.”

Many gold analysts expect central banks to accelerate purchases of gold, led by China’s central bank, whose gold reserves continue to rise along with imports of gold from its principal supplier, Hong Kong.

Though Beijing reports its gold reserves at a considerable lag to its central bank’s activity in the marketplace, gold consultancy firm GoldCore reported earlier this month that China imported a record 102 metric tons of gold in November, as the that latest print shocked the gold community into reassessing their price targets for 2012.

GoldCore continues, “Informed speculation” suggests that some of Hong Kong’s gold exports to China include the People’s Bank of China, with one analyst telling Bloomberg following the news, “there is always the possibility that some purchases were made by the central bank.”

Gold’s $200 move off its bottom in December and breakout above the $1,700 point to a resumption of the gold rally.  The gold pundits are wrong, according to Schiff.

Without naming any analyst in particular, Schiff suggested that talk of the end of the gold market bull, as heralded by economist Nouriel Roubini and Kitco’s Jon Nadler during the December plunge, is pure nonsense.

Data show that American investors own so little gold, which indicates to Schiff and gold expert Peter Grandich (in an interview with GoldSeek this week) that the gold price has further room to run much higher before the manic stage ends at a top.

“We’re a long way from a blow-off top that you would get at the end of a bubble,” Schiff said.  “We might eventually get there, but we’re years away and thousands of dollars an ounce away.”  Sign-up for my 100% FREE Stock Alerts

Max Keiser Takes Hit from UK Censorship of Iran

It was Black Friday last week for UK fans of Max Keiser’s On the Edge.  Iranian-based Press TV, the channel which carries On the Edge, lost its license to air programming in the United Kingdom.  Sign-up for my 100% FREE Stock Alerts

The ‘official’ reasons cited by UK government’s Central Office of Information (OIC) include improper jurisdiction in which Press TV holds a license to air in the UK in addition to Press TV’s unpaid ‘ticket’ for an ‘infraction’ OIC claims Press TV made for the broadcaster’s interview with an imprisoned journalist in 2009.

Of course, the timing of the OIC decree against Press TV, as well as the hit piece  which ran soon afterward by UK’s The Register, not only wreaks of a clumsy attempt to spin a highly questionable ban of free speech, it’s an obvious ploy by The Register to spew good ol’ fashion jingoism against the Iranian government.

“Iranian government-backed broadcaster Press TV has finally got its fondest wish and lost its UK broadcast licence,” stated The Register, “but its martyrdom is self-inflicted rather than the result of any government conspiracy.”

Taking into consideration that the OIC is the sixth-largest advertiser in the UK, down from last year’s no.1 slot, The Register has no credibility to close its shameful article with, “So after tonight we’ll have to stick with China Central TV, Russia Today and Fox News for our ideologically-motivated news coverage.” [Emphasis added]

On the other hand, not all is loss in UK media.  In 2007, the UK-based The Guardian London bureau journalist Yvonne Ridley thought Press TV was a splendid idea as a means of keeping some of the radical right wing programming of Fox TV in check.

“I see it as an antidote to Fox TV that will give a different perspective to the coverage that you get from the mainstream media. It’s not shock TV, tabloid TV or propaganda promoting reactionaryism.”

Friday’s article from The Guardian about the ruling of the OIC is much more professional and balanced, and includes a quote from the outspoken George Galloway.

From Friday’s The Guardian:

George Galloway, the former MP for Bethnal Green and Bow, is Press TV’s best-known UK presenter. Galloway has previously been sanctioned by Ofcom for anti-Israeli bias in one of his Press TV shows.

Galloway, who infamously performed as a cat on Celebrity Big Brother, tweeted: “Champions of liberty the British govt have now taken Press TV off Sky. “Follow us at www.presstv.ir and other platforms.”

Could Press TV have helped prevent more than a million Iraq killings in addition to the thousands of western forces lost if the truth behind the Iraq invasion was made clear to the public in 2003?  How many are unaware of a Zionist plot to expend American and British soldiers via the creation of bogeyman of ‘gooks’, ‘towelheads’ and ‘commies’?

Iranian President Mahmoud Ahmadinejad said the goal of Press TV was to counter “propaganda” by western governments, according to a 2007 The Guardian article. “Knowing the truth is the right of all human beings but the media today is the number one means used by the authorities to keep control,’ the Iranian president said. ‘We scarcely know a media that does its duty correctly. Our media should be a standard bearer of peace and stability.”

While a cleverly disguised feudalism-based United Kingdom spats with theocracy-based Iran, Max Keiser’s superlative programming becomes collateral damage in the fray.  Or, maybe, Keiser was a target of the hit as well—a two-for bonus.

In 2007, Keiser reported that CIA agent Robert Seldon Lady led a team of U.S. operatives who illegally abducted an Egyptian citizen who had been granted asylum on Italian soil, then transported him back to Egypt in a procedure the U.S. called in its usual 1984-style vernacular, extraordinary rendition.

Italian courts later found Lady guilty in absentia for the kidnapping of the Egyptian and ordered the U.S. government to return Lady to serve nine years in an Italian prison.  The U.S. government has refused to extradite Lady.

Moreover, Keiser’s well-delivered, easy-to-understand and entertaining play-by-play accounts of banker fraud and the fascist overthrow in progress of the U.S., UK and European governments don’t play well with a criminal cabal who seek to escape justice when the time for adjudication of the Bush and Obama Administration crimes finally arrives.  In fact, Keiser’s work of exposing the heinous financial crimes of the cabal since he began his show On the Edge in 2009 is no less inspiring to viewers than the yeoman’s work of Alex Jones of InfoWars.com, among others.

Though Keiser’s programming is riddled with amusing commentary, the work he does is very serious.

According to the co-author of Reagonomics and former Assistant Secretary of the U.S. Treasury Paul Craig Roberts under President Ronald Reagan, the incremental fascist overthrow of the U.S. (UK and Europe) will end in some form of confrontation, either political or otherwise.

“There is probably more democracy in China than there is in the west. Revolution is the only answer … We are confronted with a curious situation,” Roberts was quoted.  “Throughout the west we think we have democracy, we hold ourselves up high, we demonize China, we talk about the mafia state of Russia, we talk about the Arabs and so on, but where is the democracy here?

“The militarism of the U.S. and Israeli states, and Wall Street and corporate greed, will now run their course. As the pen is censored and its might extinguished, I am signing off.”

The 72-year-old Roberts is now retired, leaving Ron Paul as the only bastion of freedom on the official political front in the U.S.  In the UK, the Leader of the UK Independent Party Nigel Farage serves as the ‘tip of the spear’, politically.

As broadcasters, Keiser and Jones have also picked up the baton in the continuous fight for liberty, doing their part as high-profile icons of the freedom movement, worldwide.  Keiser’s specialty centers on the financial intricacies of the crimes committed, a job he performs quite well.

Max Keiser has taken a hit by the ‘establishment’ in this latest assault on freedom of speech perpetrated by the UK government.  However, UK viewers can still watch Max Keiser and Stacy Herbert at the following Internet addresses:

http://maxkeiser.com

www.presstv.ir

http://rt.com/programs/keiser-report/

Max Keiser Channel on YouTube.com

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Eastman Kodak Silver Scandal?

As we move into the next silver delivery month of February and the controversy surrounding the MF global bankruptcy still swirling in the minds of investors, the world’s largest consumer of silver, Eastman Kodak, files bankruptcy.  Sign-up for my 100% FREE Stock Alerts

The timing of Eastman Kodak’s bankruptcy, the massive amount of silver it consumes each year, as well as the consulting firm hired to sort out the mess will most likely make for another interesting conspiracy theory, indeed.

Eastman Kodak filed for Chapter 11 bankruptcy on Jan. 19.  The 131-year-old company manufactures photography equipment and paper, printers and other products.  According to Bloomberg News, Eastman Kodak consumes approximately 8.5 million ounces, or $300 million worth of silver, each year for its manufactured goods and supplies.

Though 8.5 million ounces of silver doesn’t appear to be a lot of consumption each year, at this time of questionable supplies, it could be quite significant, especially when demand from investors and China for the white metal is rising at an alarming rate, while alleged inventories at the COMEX hover at 35 million ounces of unencumbered silver.

Economist and author of Red Alert: How China’s Growing Prosperity Threatens the American Way of Life, Stephen Leeb, believes Sprott Asset Management’s recent communique to investors (mere days before the EK bankruptcy) that stated the Sprott’s Canada-based silver PSLV fund intends to purchase 10 million ounces of silver, an amount slightly more than Eastman Kodak’s annual 8.5 million ounces, is quite a big deal.

“What people don’t realize about silver is how illiquid silver is, and how little physical silver that is available in the market,” Leeb explained.  “Now you have the Canadian, (Eric) Sprott, who has really been spot on for more than a decade, Sprott has just raised money and needs to take delivery of another 10 million ounces of silver.  My question is, from whom?  That’s the question.

“Who is he going to buy it from?  The Chinese, who need it for solar?  It’s not around.  10 million ounces doesn’t sound like such a big number, but when you have such illiquid markets, it is a big number.  In reality, it’s a very big number, especially when you already have shortages.  People are already hoarding silver.  The Chinese are also hoarding silver.

“When you have a situation like that, you haven’t seen anything yet in the way of a bull market in silver.  There’s no way of saying how high silver is going to go, but this is going to become an exceptionally scarce commodity.”

The Internet is already abuzz at the timing of the EK bankruptcy, and for obvious reasons.  If it weren’t for the mysterious and troubling case surrounding the MF Global scam, the EK bankruptcy would probably have gone away quietly into the night as the latest example of U.S. hegemonic decline.

But, like the handlers of the MF Global bankruptcy, who have demonstrable ties to the ringleader of the silver cartel, JP Morgan, EK’s bankruptcy will be handled by a ‘turn-around’ specialist from FTI Consulting, Vice Chairman Dominic Di Napoli, a man who has been unfortunate enough to have worked for the most sleazy operators of the financial industry, behind the kingpins of JP Morgan and Goldman Sachs.

“The company [EK] . . . named Dominic Di Napoli, a vice chairman at FTI Consulting Inc., as its chief restructuring officer to help steer the company through bankruptcy court,” the Wall Street Journal reported on Thursday.

From its Web site, it appears that FTI Consulting sports a rather long list of well-known financial clients, including JP Morgan, with several consultants listed and assigned to JP Morgan.  But the most interesting consultant at FTI Consulting is Dominic Di Napoli, himself.

From the FTI Consulting Web site:

Before joining FTI Consulting, Mr. Di Napoli led the consulting practices at PricewaterhouseCoopers (“PwC”) and Coopers & Lybrand. While at PwC, he also served as the managing partner within its U.S. Business Recovery Services practice, where he initiated the discussion that led to the subsequent acquisition by FTI Consulting. Emphasis added.

A review of PwC’s involvement in scandal reveals quite a few.  In fact, PwC has been the auditors of the most notorious financial scandals of the past 15 years, with the most recent black eye coming from its involvement with MF Global and the theft of client money by another cartel operative ‘The honorable’ Jon Corzine.

MF global is only the latest of PwC’s trail of ‘negligence’ and ‘bad behavior.’  According to Wiki, PwC was involved in improprieties with the companies AIG, Refco, General Re Corp, Berkshire Hathaway, Tyco, the Sityam fraud, Yukos prosecution scandal, the Global Trust Bank misconduct (leading to a one-year ban by India’s central bank from doing business in India), the Transneft Russia scandal and Britain’s Northern Rock case.

Prior to PwC, Mr. Di Napoli worked diligently for another firm, which apparently couldn’t play it straight either.  That firm is Zolfo Cooper, a company for whom he worked in the 1980s, according to Crain’s NY Business, but this fact was neglected as a mention on Di Napoli’s biography on the FTI consulting Web site.

“The Jersey City native and Montclair State College graduate joined Price Waterhouse’s fledgling corporate recovery division in 1984 after practicing at a bankruptcy boutique firm, Zolfo Cooper & Co,” Crain’s wrote in a ‘puff piece’ regarding the up-and-coming superstar of auditors, Dominic Di Napoli.

Zolfo Cooper, the same Zolfo Cooper whose partner, Neil Cooper, has been indicted in the Carroll Trust case, a case dubbed by Global Forensics Magazine as “bigger than Madoff.”

International News Networks reported:

New sensational disclosures in the Carroll Foundation Charitable Trust huge fraud scandal has revealed that Zolfo Cooper LLP the insolvency and restructuring firm’s principle partner Neil Cooper an accountant is understood to be confronting serious ongoing criminal allegations of conspiracy to defraud and racketeering following new revelations exposed in the American and British media reports on the case. It is understood that the FBI Washington DC field office has obtained explosive further Carroll Trust case files which are thought to contain Coutts Bank Gerald Carroll fraudulent accounts “linked” to dummy fraudulent HSBC International offshore corporations which effectively impulsed this massive offshore tax evasion fraud heist operation which stretches the globe.

So what is the point of all of this and Di Napoli?  Maybe nothing.  But couldn’t someone else have handled the EK bankruptcy case?  Couldn’t Bilderberg Group member Laura Tyson, an EK board member who resigned her post a couple of months before the bankruptcy announcement, have suggested someone else to handle the impending bankruptcy who wouldn’t possibly remind us of a criminal cartel operating in the global financial system?  Sign-up for my 100% FREE Stock Alerts

Marc Faber’s latest take on the Gold Price

After gold’s nearly $150 rebound from its December low, Marc Faber continues to believe that gold is not done with its correction, but he recommends the precious metal during an environment of negative real yields on U.S. Treasuries engineered by a Bernanke Fed. Sign-up for my 100% FREE Stock Alerts

Speaking with Fox Business on Jan. 17, the publisher of the Gloom Boom Doom Report suggests that, in response to record-low interest rates, investors should accumulate a “little bit” of gold each month instead of trying to pick a bottom in the gold price and going all in.

For approximately a decade, Faber has liked assets, which have historically benefited from widening U.S. current account deficits and central bank money printing, especially following 9-11.  For most investors, today, that means holding stocks and precious metals.

“Well, I think that eventually you want to be positioned more in equities than in government bonds, and you want to own some precious metals as well,” Faber said as a response by investors to future inflationary pressures he expects as a result of rapid money supply expansion and continued $1+ trillion U.S. budget deficits.

When asked about a gold price within range of $1,650, Faber took the contrarian viewpoint held by many gold market analysts and technicians.

Taking the opposing position of those held by 40-year veteran Jim Sinclair of JSMineset.com, currency specialist Jim Rickards, and another veteran gold analyst GoldMoney’s James Turk (who believe the lows in gold had been reached in early January), Faber apparently still harbors the notion that gold could drop to as low as the $1,100 to $1,200 range before beginning its next move to all-time highs.

“Well, I like it [gold], yes, but I think the correction is not over yet,” he said.  “I think, we had a big correction from the peak September 6 when gold hit $1,921.  We went down to around $1,522 at the end of December.  Now we’ve rebounded above $1,600.  I think we can have another leg down.”

In September 2011, Faber told CNBC, ““We’re now close to bottoming at $1,500, and if that doesn’t hold it could bottom to between $1,100-1,200.”  So, Faber remains unconvinced that the gold price has bottomed.  See BER article, Marc Faber Releases Gloom Boom Doom Report.

In countless previous interviews, Faber has said he would never sell his gold due to its special historically based role as insurance against profligate government spending, expansionary central bank monetary policy or financial disaster.

“If I were an investor or a saver I would buy every month, a little bit, and not everything at the same time, because what you want to essentially have is an insurance policy,” Faber suggested.

As no surprise to those already familiar with Faber’s thinking, he has recommended that investors stay far away from U.S. Treasury debt, a viewpoint also held by another popular investment guru, Jim Rogers of Rogers Holdings—who, by the way, is short U.S. bonds.

Faber has said repeatedly that at some point bonds will fall and interest rates will rise, but he doesn’t know when that will happen.

“It’s very difficult to tell when the central banks are manipulating and keeping interest rates artificially low,” he said.

Though not asked during this interview, Faber routinely gives a similar response to journalists who ask him how high gold can go before the gold bull market comes to an end.  His pat response is usually, “I don’t know; you’ll have to ask Mr. Bernanke.”  Sign-up for my 100% FREE Stock Alerts

Persian Gulf Crisis Staged for Fed Bailout of European Banks

As Italian bank UniCredit hangs by a thread as the potential European version of a Lehman Brothers collapse, but many more times over, one has to wonder about the timing of other seemingly unrelated events in the Persian Gulf.  Sign-up for my 100% FREE Alerts

Newsletter writer Jim Willie Ph.D of the Hat Trick Letter told the Silver Doctors radio show that UniCredit is the bank to watch for its Lehman-like potential in the Eurozone.  A collapse of UniCredit most assuredly will trigger the feared financial Armageddon scenario within an economic block representing approximately 22 percent of world GDP, an event the U.S. and China do not want to happen.  For them, a European credit collapse immediately moves the crisis to the U.S. and China.

“So next on tap is UniCredit going bad, going bust, failing, turning to dust. And when that happens look for at least another couple Italian banks to also go bust,” Willie said.  “And when that happens look for the French banks to go bust. The three major French banks. Credit Agricole, BNP Paribas, and Societe Generale. And when that happens look for at least one or two London banks to go bust- they’re all inter-connected!”

Founder of Global Resource Investments, Rick Rule, told King World News he senses something in the wind suddenly from OPEC’s swing producer, Saudi Arabia.

“One of the major developments in the oil sector is the recently announced and official Saudi Arabian position that they were able to produce another 2 million barrels a day in case Iranian crude is shut out of the market,” Rule told KWN host Eric King. “They also stated they could identify another 500,000 to 700,000 a day, which they would be able to produce in 9 months.

“The interesting thing in that press release was the fact that the Saudis were targeting 100 U.S. dollars per barrel,” Rule continued.  “The earlier Saudi indications were $75 a barrel.  It’s fascinating that the Saudis are now interested in establishing a floor price for oil in the triple digits.”

U.S. and Russian warships cruising around the Persian Gulf, Israel pretending to be the unleashed mad dog of Washington’s strategic plans against Iran, and a lot of saber rattling—again! — from all sides, higher and higher oil prices appear to be serving as the mechanism for a worldwide tax collection effort by Washington and the Fed to bailout Europe.  And who collects the oil price tax? The Middle East.

“Aabar Investments PJS, the Abu Dhabi-based sovereign wealth fund, plans to increase its stake in UniCredit SpA to 6.5 percent through the lender’s rights offer, which would make it the bank’s biggest investor,” Bloomberg reported on Jan. 18.

That, in addition to the half-billion dollar currency swap with Europe has Fed-driven foreign policy fingerprints smeared all over artificially high oil prices.

U.S. warships raise the price of oil for its friends in the Middle East, who then help the Fed bailout European banks while providing support to the dollar.

In his essay of December 2006, titled, Hysteria Over Iran and a New Cold War with Russia: Peak Oil, Petrocurrencies and the Emerging Multi-Polar World, author William Clark explained that the Fed must somehow continue to create demand for the U.S. dollar to continue the Treasury Ponzi scheme, which may at times include the use of the U.S. military in order to continue to fund debt, deficits and military spending.  And the demand for the petrodollar is critical to maintaining artificially low interest rates, according to Clark.

What Clark may not have seen in 2006 is the dramatic collapse of the global debt Ponzi scheme.  The euro is indeed a threat to the dollar as a reserve currency, but now the euro must not be allowed to collapse overnight, a point suggested by Jim Rickards in his book, Currency Wars—a book published after the collapse Lehman Brothers of 2008.

Ironically, this leaves the Fed no choice but to bail out Europe to save the dollar, thus the UniCredit bailout scheme with the Middle East.  Surely, in future more Arab nations will pick up some of the sudden slack from China’s and Japan’s reduced exposure to Europe and the U.S. debt markets, all thanks to a windfall of higher oil revenue generated in the Middle East.

Clarke wrote in December 2006:

The petrodollar-recycling system allows the Federal Reserve to effortlessly expand global credit to enforce U.S. financial control and continue massive debt-financing to pay for U.S. military control. If petrodollar-recycling begins to break down, then financial and military control will also begin to decline. Ergo, petrodollar recycling can not be allowed to diminish as it will undermine U.S. supremacy. The major oil-producers that have expressed interest in petroeuros or a “basket of currencies” for oil transactions and thus pose the greatest threat have been Iraq (under Saddam), Iran, Venezuela and Russia. Iraq received regime change via a military invasion; Iran is the current target for economic and geostrategic reasons, Venezuela was subjected in April 2002 to an unsuccessful coup d’état with covert U.S. backing, while Russia’s political establishment remains relatively insulated from U.S. interventions. But Russia’s peripheral states are, however, subject to U.S. meddling via “color revolutions” as part of Washington’s encirclement strategy.  China remains in the background as an interested but somewhat enigmatic actor. (Bold text added)

After it became clear that European leaders weren’t going to easily come to the position of the U.S. to aggressively monetize debt with a blessing of Germany in the EU, suddenly the multi-year-long rhetorical lambasting of Iran for its nuclear enrichment plants has escalated to warships cruising the Persian Gulf–and at a time when the last thing the EU and U.S. economies need are higher oil prices.  Sign-up for my 100% FREE Alerts

America’s Mohandas Gandhi: Ron Paul

In a dramatic turnaround in Cuban Missile Crisis II in the Persian Gulf, the U.S. appears to have backed off its threatening pose in favor of a retreat, assess and rethink of the timing of a military confrontation with Iran.  Sign-up for my 100% FREE Alerts

From Bloomberg News:

^ ISRAEL, U.S. POSTPONE MILITARY EXERCISE, ISRAEL RADIO SAYS

^ JOINT EXERCISE POSTPONED FOR BUDGET REASONS, RADIO SAYS

^ U.S.-ISRAELI EXERCISE PLANNED TO BE BIGGEST EVER, RADIO SAYS

^ EXERCISE WAS TO TAKE PLACE IN NEXT FEW MONTHS, RADIO SAYS

Moreover, Reuters reports that Japan and Europe are less than sanguine with the American-led sanctions against Iranian oil exports and the resulting energy price shocks an embargo would inflict on these already-weak economies.

But, as we’ve come to learn from past geo-political events, there always seems to lie that rest of the story behind the ‘approved’ story—a story told that inevitably  ends with the ‘good’ guys beating the ‘bad’ guys.

But aside from the predictable future documentaries, which may shed some light on Israel’s intelligence agency Mossad’s hand in many false-flag ‘terrorist’ activities, there lies a story even more profound, yet a positive and refreshing one for America. That tale centers on America’s Congressman Ron Paul of Texas and his fight against the American Empire.

“Europe and Japan just yanked the legs out from the plan to provoke Iran with oil sanctions,” wrote blogger Michael Rivera of WhatReallyHappened.com.  “The U.S. government will likely not raise on this busted flush because Ron Paul’s success in the primaries, despite the concerted efforts of the corporate media, the GOP, and Israel, has sent a clear and unambiguous message to the status quo that starting yet another war for Israel is going to cost incumbents their jobs come November.”

Though the threat of an oil price spike and the economic catastrophe of higher gas prices on the U.S. economy and its allies’ economies of Europe and Japan was no doubt an important factor in Washington’s call for a retreat, astute observers of Ron Paul’s political movement have suggested that the ‘incorruptible’ Paul (as he’s been labeled by both his supporters and others) could rival Iran as a threat to Washington power, maybe no less than India’s Mohandas Gandhi’s grass root threat to the declining British empire during the days of colonized India.

Though no reference to the eerie comparison between the Gandhi threat to a crumbling British empire and the noticeably vulnerable U.S. empire and its covert fight against Ron Paul has been made, Trends Forecaster Founder Gerald Celente picked up on Ron Paul’s robust message of liberty to America.

“Ron Paul, in his speech after the New Hampshire primaries, he picked up the call that I’ve been calling for and have written about in the Trends Journal, Celente told Jeff Rense of the Jeff Rense Radio Show on Friday, “ . . . and that was my call for an intellectual revolution.  That’s right, that’s what Ron Paul called for in his speech—an intellectual revolution . . . This is the battle of the minds; it’s the battle of the spirit; it’s the battle of the soul.  It’s not a battle of guns.

A man is but the product of his thoughts what he thinks, he becomes.
—Mohandas Gandhi

A nation’s culture resides in the hearts and in the soul of its people.
—Mohandas Gandhi

“Isn’t it ironic, the United States, the great peacemaker, has the most guns, the most armaments,” added Celente.  “That’s not a peacemaker, that’s a bully . . . This is a revolution about thinking, not manning the barricades.”

I suppose leadership at one time meant muscles; but today it means getting along with people. —Mohandas Gandhi

Celente said the speech delivered by Ron Paul on the night of the New Hampshire primary was the best he’s “ever heard”, especially the part of the speech which makes reference to a trend Celente sees for America—an intellectual revolution.

Following the results of the NH primary, Ron Paul said, “What we are involved in will not go unnoticed.  Let me tell you.  I think the intellectual revolution that’s going on now to restore liberty in this country is well on its way and there is no way they’re going to stop the momentum that we have started.”

Celente concluded about Ron Paul, “Anyone who calls themselves a moral person and believing in one of the basics out there, do onto others as you would have them do unto you, could not in clear conscience not vote for Ron Paul, because the United States government is killing innocent people around the world.”

Is it not enough to know the evil to shun it? If not, we should be sincere enough to admit that we love evil too well to give it up. —Mohandas Gandhi

Whether America is ready for a President Ron Paul may be too early to tell, but there is little doubt that he’s making history before our eyes with the same message that toppled the British Empire in India.  After declaring independence from the British Empire in 1776, it’s time to declare independence from the American Empire in 2012, according to Celente.

Celente declared, “2012 is our year.”  Sign-up for my 100% FREE Alerts

Iran Could Make Silver Bugs Filthy Rich

If the first year of the Iraq War of 2003 offers up some clues to the potential move in the silver price following an invasion of its neighbor Iran, then grab as much of the white metal as you can and enjoy the ride.  This ride could be for the record books.  Sign-up for my 100% FREE Alerts

On the officially day of the U.S. invasion of Iraq on Mar. 20, 2003, silver traded at the lowly price of approximately $4.35.  On the first anniversary of the invasion, the silver price reached nearly $8.00, for an 83 percent return (see graph, below).

But an attack on Iran could make an 83 percent return seem miniscule.

Backing up for a moment, however, an obviously important question, first, should be: how likely is an imminent attack on Iran?

With reports of American troop movements into Israel, along with Reuters reports of two U.S. aircraft carriers headed to the Persian Gulf and a lot of chatter from Washington command appearing on television as salesmen for an attack, a military strike on Iran is likely, according to Jim Rickards, adviser to government personnel on U.S. national security issues and frequent guest of King World News.

“Eric, this really could not be more serious,” Rickards told Eric King’s KWN.  “The fact that we, meaning the United States, are on a path to a war with Iran is very clear at this point.  It does seem the countdown has begun and it’s coming to a head sooner rather than later.”

And following Iran’s announcement that it will no longer accept U.S. dollars for Iranian oil, the U.S., really, must respond (1).  If not, OPEC gets the green light to dump the dollar and it’s game over for the U.S. without a shot being fired.

Consider, too, recent data from the Fed, which show clearly that foreigners aren’t buying enough Treasuries to even remotely match the increase to the central bank’s balance sheet.  In fact, according to the chart, below, a war with Iran is a most likely stab at coaxing global money back into preventing a waterfall in the dollar after bond vigilantes are done with Europe.

Source: zerohedge.com, Foreigners Sell Record $85 Billion In Treasurys In 6 Consecutive Weeks – Time To Get Concerned?

But here’s why the silver price could triple, or more!

The difference between the Iraq War and a war with Iran is:  Iran isn’t Iraq!  Saddam Hussein’s regime had no friends in the region, and certainly didn’t attract meaningful help from Russia or China before, or during, the conflict.

Hussein was essentially a rogue operator, according to William Clark, author of Petrodollar Warfare: Oil, Iraq, and the Future of the Dollar, which, by the way, offers a good foundation to Jim Rickard’s book, Currency Wars: The Making of the Next Global Crisis.

Because of the well-known and long-standing commitment from Russia and China to defend Iran, a war with Iran could turn into a proxy for WWIII, a notion widely offered in the public domain.

In other words, if Iran is attacked, the move in the silver price could be monstrous—with two and three-bagger returns very likely, with oil and other commodities soaring to unthinkable levels as China utilizes one of its financial weapons in response to military aggression.

The cost of a war with Iran will soar off the charts to an already hopeless U.S. debt level.  In fact, a planned dollar devaluation could be the motive behind an Iranian attack.

According to a policy paper penned by Felix K. Chang and Jonathan Goldman for the U.S. Army and posted on the U.S. Army Web site, titled Meddling in the Markets: Foreign Manipulation, the threat by China, Russia and sympathetic nations against U.S. aggression, a war with Iran will not be a cakewalk by any stretch of the imagination.  Link to document file, here.

According to Chang and Goldman, Iran puts at risk the U.S. dollar in a very meaningful way.

The simultaneous dramatic devaluation of the U.S. dollar and a sharp increase in oil prices would immediately unsettle global equity and bond markets. During such times of uncertainty, institutions and investors normally seek a safe haven where their assets will hold value. For much of the twentieth century, that haven has been the dollar. In this hypothetical, however, the dollar would be at the epicenter of uncertainty, as China unloads its U.S. Treasury securities in favor of gold or euros. Aggravating the situation, institutions and investors of all stripes would magnify the selling pressure as they tried to shed their own devalued U.S. assets—liquidity would rapidly disappear. [emphasis added.]

While many of traditional media may repeat the mantra that precious metals are risky investments, the facts about war and money show otherwise.  At risk here is the dollar.  Sign-up for my 100% FREE Alerts

Footnote:
(1) The Invasion of Iraq: Dollar vs Euro: Re-denominating Iraqi oil in U. S. dollars, instead of the euro

The unprovoked “shock and awe” attack on Iraq was to serve several economic purposes: (1) Safeguard the U.S. economy by re-denominating Iraqi oil in U.S. dollars, instead of the euro, to try to lock the world back into dollar oil trading so the U.S. would remain the dominant world power-militarily and economically. (2) Send a clear message to other oil producers as to what will happen to them if they abandon the dollar matrix. (3) Place the second largest oil reserve under direct U.S. control. (4) Create a subject state where the U.S. can maintain a huge force to dominate the Middle East and its oil. (5) Create a severe setback to the European Union and its euro, the only trading block and currency strong enough to attack U.S. dominance of the world through trade. (6) Free its forces (ultimately) so that it can begin operations against those countries that are trying to disengage themselves from U.S. dollar imperialism-such as Venezuela, where the U.S. has supported the attempted overthrow of a democratic government by a junta more friendly to U. S. business/oil interests.