Dennis Gartman is a Fraud—in Yen Terms

In his typical pompous, weak-chinned facade, alleged gold expert Dennis Gartman has declared that the decade-long bull market in gold is dead—again—and again.  He penned in his newsletter, Gartman Letter:

“ . . . in retrospect it does appear that gold has not been in a bull market but has indeed been in a bear market” since peaking at $1,920 in August 2011. Sign-up for my 100% FREE Alerts

“Since then,” he continued “each new interim low has been lower and each new interim high has followed. How, we ask, had we missed that fact!”

Apparently, Gartman misses a lot of facts, but he doesn’t miss an appearance on CNBC to drum up more suckers to his newsletter.  He figures since investors don’t bother with due diligence on stock recommendations, they won’t research Gartman’s most-abysmal track record either.  See chart, below.

In keeping with the CNBC’s Steve Liesman cadre of phony economic theorists and Fed sycophants, Gartman reminds his fellow bourgeoisie that he should never be mistaken for a dreaded gold bug proletariat, nor should anyone even think for a moment that he could actually be a closet ‘prepper.’

“I don’t like being long of gold. I don’t like the gold bugs,” he said, affirming his allegiance to CNBC producers.  “I’m not a believer that the world is coming to an end.”

“Nonetheless the trend in gold in all sorts of currencies, whether in dollar terms, euro terms, yen terms, has been…from the lower left to the upper right,” he stated, contradicting his previous assessment that gold’s chart pattern indicates a bear market in the precious metal.

Gartman, a gold bug?  No.  Mr. Gartman is a sophisticated man, with all of his teeth and education to prove he is no rube who owns at least a shotgun.  Moreover, he sports a beard to match Bernanke’s and Krugman’s—the Smith Brothers trio of the Church of Keynes.

“They genuflect in gold’s direction; we merely acknowledge that it exists as a trading vehicle and nothing more. There are times to be bullish, and times to be bearish … to every season, as Ecclesiastes tells us,” stated Gartman.

However, Gartman neglected to quote Deuteronomy, Genesis and Revelations, all of which tell us that he is as full of bull as Bernanke and Krugman are.

Deuteronomy 23:19  Thou shalt not lend upon usury to thy brother; usury of money, usury of victuals, usury of any thing that is lent upon usury.

Genesis 2:12 And the gold of that land is good: there is bdellium and the onyx stone.

Rev 3:18 I counsel thee to buy of me gold tried in the fire, that thou mayest be rich; and white raiment, that thou mayest be clothed, and that the shame of thy nakedness do not appear; and anoint thine eyes with eyesalve, that thou mayest see.


Ultimately, when the dollar collapses and gold can’t be pried loose from the public at $5,000 per ounce (400,000, in yen terms), Gartman can be expected to start quoting Romans 13 in his newsletter. Sign-up for my 100% FREE Alerts

Gerald Celente: Housing to Take Another Nosedive

As signs of a real estate market recovery creep back into the monthly data, along with a long-awaited settlement reached in the robo-signing scandal finalized, it appears that underneath the seemingly good news is a second round of foreclosures, instead, spelling more trouble for US housing prices and an already-anemic US economy, according to Trends Research Institute Founder Gerald Celente. Sign-up for my 100% FREE Alerts

“Now that the banks have done a deal with the government after that so-called robo-signing scandal, they’re at it again and they’re on the foreclosure march,” Celente told Coast-to-Coast AM host George Noory.

In a landmark case, Wednesday, Judge Rosemary Collyer ordered five banks, Wells Fargo, Citigroup, Bank of America, JPMorgan Chase and Ally Financial, to revamp the process by which these banks negotiate resolutions with delinquent borrowers.  The settlement against the banks is reported to be worth $25 billion.

In essence, the settlement states that banks must now write down mortgages for select borrowers and help others through lower interest rates.  In addition, the ruling grants previous borrowers restitution for losses incurred from previously  foreclosure practices, of which the judge has determined as fraudulent.

On the surface, tougher foreclosure rules on the heels of better-looking monthly data could suggest a rebound in residential real estate may be around the corner.

Not so, according to Celente. He believes the settlement only serves as a green light for banks to restart foreclosure proceedings on millions of home that were on hold awaiting clarification of the foreclosure process handed down by the judge in the case of U.S. v. Bank of America (BAC).

Round two of foreclosures comes this year, Celente speculated, which apparently jibes with the expectation of the Federal Reserve as well.  The need to step up mortgage-backed securities purchases in addition to US Treasuries has been voiced publicly by some Fed board members following the Mar. 13 FOMC meeting.  Market observers anticipate an announcement of further purchases by the Fed in the mortgage market in the coming months.

“We’re looking this year, George, about some 10 million homes are at the risk of default, some 12 million borrows or more than their homes are worth; they call it being underwater” he said.  “And when you look at this, you know this is worse than the Great Depression.

“You know, adjusted for inflation, home prices are down 40 percent from their 2006 peak.  So, no, this isn’t over by a long shot.”

When Noory asked whether prospective home buyers should wait or take the plunge now and buy a home, Celente said the critical aspect of the decision comes down to affordability as well as the particular property in question.

“It depends on my financial situation is [referring to prospective buyers].  If you really need a place to live and you can afford it, why not . . and it’s a great place, you know those are considerations to take,” he suggested.

Celente noted the cost of rental housing is on the rise as the demand for rentals  has increased from the millions who lost their homes during the avalanche of foreclosures that began following the bubble pop of 2006-7.  Though construction starts for multifamily house has risen and remains the only bright spot of the housing market, the supply of these units hasn’t kept pace with rising demand.

“And also, when we’re looking at the rental market, that’s skyrocketing too, in terms of people cannot afford homes now, so they’re going into rentals,” Celente concluded.  “So it may be cheaper at some point to buy rather than rent again. . . It really becomes an affordability issue.  If you can’t afford it, I wouldn’t buy it.” Sign-up for my 100% FREE Alerts

Source: Coast-to-Coast AM

Gerald Celente: New Reserve Currency After 2012 Election

Get positioned for the dethroning of the U.S. dollar as the primary reserve currency, according to Trends Research Institute Founder Gerald Celente.

Since the balance of global trade has changed quite dramatically from 1944, the year of the Bretton Woods agreement and the introduction of the dollar standard, Celente sees the tend of competing currencies taking on more of the dollar’s role for international trade accelerating. Sign-up for my 100% FREE Alerts

As far as when western powers will move to a new currency, which has been speculated to include a weighted basket of currencies as well as a gold component, it won’t happen during an election year, Celente speculated.  Politics comes first.

“I would expect it to happen after the presidential elections,” Celente told Russia Today.  “They’re going to do everything they can to try and keep this thing going and try to sooth any kind of ripples coming from around the world.”

The transition away from a rapidly declining dollar as the primary global central bank asset has been slow in coming, too slow, in fact, prompting today’s fastest growing economic powers, the BRICS nations, to make other arrangements between themselves without the assistance or cooperation of the US.

Presently, Brazil, Russia, India, China and, the newcomer, South Africa, which comprise the BRICS, collectively, surpass the US in total economic output, population and central bank reserves.

As Brahma Chellaney of the Centre of Policy Research put it in her article published in Hindustan Times, “The BRICS grouping, after all, represent more than a quarter of the Earth’s landmass, over 41% of its population, almost 25% of world GDP, and nearly half of all foreign-exchange and gold reserves. [...] BRICS represents the first important non-western global initiative in the post-Cold War world.”

At the time of Bretton Woods, nearly 70 years ago, the choice of the dollar as the world’s trading and reserve currency made sense at that time, according to Celente.  As the aftermath of the war in Europe left Britain and the rest of continental Europe to shambles, the US industrial base, on the other hand, remained intact.

Moreover, outside of Europe and the US, none of the BRICS during the 1940s represented any meaningful impact to global trade and GDP.

But through the years, the US has fallen steadily from grace, with no end in sight  as US budget deficits continue to grow and complaints of dollar devaluations go unanswered.  So, with little patience remaining, the BRICS have decide to ditch the dollar.

As the latest example, late last month in New Delhi, India, the five-nation block recently completed an agreement at the Fourth BRICS Summit that paves the way for the emerging economic juggernauts to settle trade with their own currencies.  And that hasn’t been the first agreement reached that effectively dethrones the dollar, and it won’t be the last; it’s an ongoing trend, Celente reckons.

“So what we’re seeing is the decline of America and the building up of really a twenty-first century economy,” Celente said, and added, “So, what this means to Americans is continued decline of quality of life.”

But, until Election Day, the Fed and the US government are determined to utilize all means available to them to put off the inevitable resumption of the dollar’s demise.  However, after the election, higher food and gas prices are expected to resume due to further devaluations of the dollar at the hands of the Fed.

“The books are being cooked; the numbers are a lot worse then they are,” Celente concluded his interview.  “And all the Federal Reserve is doing, I believe, is pumping this up to make it so that looks like there’s a recovery up until Election Day.”

Through, he is not and investment adviser, Celente has said in past interviews, however, he likes holding gold during the difficult transition years expected ahead for the US dollar.  Sign-up for my 100% FREE Alerts

Source: Gerald Celente on the decline of Empire America

Bernanke to Engineer a ‘Shock & Awe’ to Save the Fed

After nearly 100 years of manipulating and fixing the cost of money, the Federal Reserve is now threatened with the prospect of a groundswell revolution by the people against its privileged role as the alleged institution of providing the world’s banks stability as well as the savior from occasional Black Swan bank runs and collapses.  Sign-up for my 100% FREE Alerts

That nonsense, that central banks offer financial stability, has been debunked ad nauseam by many who know a thing or two about the inherent evils of central banking, including G. Edward Griffin, Lew Rockwell and Congressman Ron Paul, three men of many more who serve as today’s teachers of the nature of money and credit.  For decades, these men have warned us of central bank power and the reasoning behind the clauses of the Constitution regarding the nation’s money.  Few listened.

However, for the first time since its inception in 1913, the majority of Americans now know that the Fed is not really a government agency or department of the federal government, at all, and that the Fed, itself, contributes to banking instability and the disparity of wealth.  Today, many listen to a tale of deceit, treachery and even treason behind the Federal Reserve Act of 1913.

Here’s the problem for the Fed: After two rounds of so-called ‘quantitative easing’ and soaring food and energy prices as a result soon after, how does the Fed survive, politically, as it prepares for even greater amounts of money printing required to re-inflate the burst Ponzi scheme?

“ . . . we need to consider that the Fed is now so politically toxic that Ben Bernanke is literally going on the campaign trail to attempt to convince the American people that the Fed is an honest and helpful organization,” Phoenix Capital Research’s Graham Summers penned in a recent essay for GoldSeek.com.  “Put another way, there is NO CHANCE the Fed can announce a large-scale monetary policy unless a massive crisis hits and stocks fall at least 15%.”

Gloom Boom Doom Report editor and publisher Marc Faber agrees with Summers’ assessment of the colossal size of the Fed’s next round of QE planned for this year.  In previous interviews, he, too, has outlined the political dilemma facing the Fed.

“It [QE3] would have to be very significant to boost all asset prices including homes, stocks, bonds and commodities…Much larger [than QE1 and QE2],” Faber told CNBC, Monday, in response to a question asking for his outlook for more Fed intervention.

Back to Summers.  “ . . . if the Fed were to announce a new policy it would have to be MASSIVE, as in more than $2 trillion in scope,” he added.  “Remember, the $600 billion spent during QE 2 barely bought three months of improved economic data in the US and that was a pre-emptive move by the Fed (the system wasn’t collapsing at the time).”

As far as the palliative effects to the economy during the Fed’s previous two QEs, Summers stated they were negligible.  But the $600 billion QE2 program did bring on some serious food and energy price increases, instead.  In fact, the Fed (as well as other central banks which followed the Fed in money printing) created enough consumer price inflation to trigger civil unrest in Tunisia, Egypt, Libya and a dozen other nations across the globe, including the US with its OWS movement.

So, during an election year, the Fed simultaneously must engage in QE3 to prevent a collapse of the US Treasury market while at the same time contain commodities prices from rising too high.  A Fed failure could easily take Obama down in a George H. W. Bush-esque second-term attempt fiasco of 1992, as well as drive the final nail in the coffin of the Fed, gladly delivered by a legion of Congressman Ron Paul supporters and others hostile to Bernanke and his colleagues.

“This is an election year.  And I’m so sorry to say this Jim, but I expect somewhere down the road we’re going to see some type of drop in energy prices,” Brian Pretti, Managing Editor at ContraryInvestor.com, told Financial Sense Newshour, Tuesday.  “How that’s engineered, how that comes to pass, I really don’t know.” [emphasis added]

Pretti goes on to say that the previous attempts to jawbone commodities prices down, especially within the energy markets, have failed, including Saudi press conferences which were orchestrated to collapse prices at the behest of the White House and the Fed.  The oil market has simply ignored the The House of Saud’s gesture, according to him.

And Pretti isn’t the only one who notices the tightrope the Fed must navigate from now until November—as well as going forward after the election.  The Fed may even come under more attack after the election.

“Washington has urged ally Saudi Arabia to cover potential shortages when new U.S. and European Union sanctions are expected to reduce Iranian oil exports from July,” Matthew Robinson and Jonathan Sau of International Movement for a Just World wrote in a report.  “The Obama administration has considered releasing strategic oil inventories, potentially as part of a bilateral deal with Britain.”

News of that bilateral agreement between the US and the UK failed to drop oil prices significantly.  The markets aren’t buying what the politicians are selling.  WTI Crude still trades above $100 without an announcement by the Fed regarding a QE3.  Though Pretti is convinced a QE3 announcement is on the way in time for the 2012 presidential election, but not if it means higher oil prices from today’s elevated levels.

“You know Mr. Bernanke is sitting on the advisory board of Mr. Gross and friends down at PIMCO,” Pretti said.  “You know, Bill came out a little while ago and said we’re going to see the FOMC announce [QE3] in the April meeting.  And I said, you know, you’ve got to be kidding me—not at oil at a $100 and change and Brent even higher.”

Within that context, then, how does Bernanke print what is estimated to be $2 trillion more dollars to service the grand Ponzi scheme under threat of collapse, while at the same time deliver somewhat reasonable commodities prices going into the political season?

Some ‘shock and awe’ event to knock down commodities prices must be in the works to accommodate the Fed’s next QE announcement.  It’s unlikely Obama can win in November with oil prices at $150+ and gold at $2,100, and moving higher, while the Fed props up the US Treasury market with a colossal expansion of its balance sheet and soaring commodities prices.

Somehow the Fed must look like a hero by saving the economy, again, if it’s possible to replay another Lehman and get the credit for saving the global financial system.  But what will be the ‘shock and awe’ event that could provide cover for the Fed?  Sign-up for my 100% FREE Alerts

Marc Faber: Brace for “Massive Wealth Destruction”

Reminiscent of the 1970s and the U.S. fiscal and monetary conditions which soared gold from $35 to $875 per ounce by Jan. 1980, Marc Faber, author of the Gloom Boom Doom Report warned investors of the dire implications of the world’s central banks presently engaged in a global currency war.  Sign-up for my 100% FREE Alerts

But unlike the 1970s and the problems with the U.S. dollar, this time, in addition to the dollar, the euro, pound sterling and yen are also devaluing against everything of tangible value.  And the speed at which these currencies depreciate in the coming years will most likely dwarf the decade which included the Vietnam War, Middle East conflicts, U.S. budget deficits and resulting stagflation.

“Somewhere down the line we will have a massive wealth destruction that usually happens either through very high inflation or through social unrest or through war or credit market collapse,” he told CNBC, Monday. “Maybe all of it will happen, but at different times.”

Though the Iraq War didn’t ignite massive protests as witnessed during the Vietnam protests of the 1970s, the extent of the financial damage to the federal budget grossly eclipses the Vietnam War, not just in nominal terms, of course, but in real terms, after inflation.

In December 2011, The Wall Street Journal reported studies at Columbia and Harvard universities estimate the U.S. has already spent approximately an average of $18.5 billion on the Iraq and Afghanistan Wars throughout nine years of conflict.  That’s more than three times the cost in inflation-adjusted monthly costs of the Vietnam War, according to research published by Foreign Policy in Focus.

“ . . . studies at Columbia and Harvard universities, estimate the U.S. has already spent $2 trillion on the wars after including debt interest and the higher cost of veterans’ disabilities,” wrote the Journal’s Christopher Hinton.

So, the “massive wealth destruction” Faber expects as a result of war is already baked into the federal budget, contributing to an annual budget deficit of approximately $1.4 trillion, or 10 percent of U.S. GDP.  And today’s federal debt has reached $15 trillion.  And now the U.S. threatens to go to war with Iran.

In contrast, the culmination of the dollar crisis in 1980 included a $60 billion deficit against a $2.8 trillion U.S. economy, calculating to a meager two percent deficit to GDP.  By 1986, U.S. GDP rose to $4.46 trillion and the budget deficit peaked at $220 billion, or approximately a five percent deficit to GDP.

Total federal debt as a percentage of GDP during the blowout deficit spending of the Reagan years peaked at 39 percent—a far more manageable debt load than today’s 100 percent—with expectations of another 10 percent of GDP tacked on for fiscal 2013.

With U.S. GDP still expected to remain flat to negative for 2012 (see ShadowStats.com to access more accurate data), and those very same baby boomers who protested the Vietnam War begin drawing on Social Security and Medicare in greater numbers each year, there’s no other means of funding U.S. obligations short of draconian federal spending cuts.

The overall consensus among economist is, that won’t happen anytime soon, as the Keynesian prescription to a sluggish economy includes further deficit spending, not to mention the political suicide politicians would be expected to make by campaigning on budget cuts to avert a crisis.

The only option left to fund deficit spending will need to come from the Federal Reserve, according to Faber.  That means QEIII, much larger than QEII, and more asset-price inflation expected as an outcome.

“It [QEIII] would have to be very significant to boost all asset prices including homes, stocks, bonds and commodities…Much larger [than QE1 and QE2],” he said, suggesting that the only hope the Fed believes it has of generating U.S. consumer spending, therefore GDP, is to raise asset prices as a means of recreating a wealth effect and consumer confidence that has traditionally been generated through higher stock and real estate prices.

In the end, the Fed’s plan won’t work, according to Faber.  He believes investors will balk at higher stock prices after earnings disappointments begin to come in.

Basically I think that earnings may begin to disappoint. That corporate profit margins could deteriorate. And I think we still have a lot of issues. Don’t forget we have QE1, QE2 and Operation Twist. I think in order to really hold asset prices across the board much more QE3 would have to be gigantic. I’m not ruling out that stocks can continue to go up but I doubt they will go up at the same rate as the first quarter. And if you look at the technical under underpinnings of the market, they have deteriorated. The list of new highs is deteriorating. The short positions are way down. And we have an overbought condition in the market if we measure the number of stocks above the 50-day and 200-day moving average. So, generally I would say maybe April is traditionally still a month of seasonable strength but somewhere in the next six months I think you can buy the whole market much cheaper.

Faber recommends accumulating gold on a monthly dollar-cost-averaging basis, as well as buying foreign stocks (Asia) yeilding a dividend. Sign-up for my 100% FREE Alerts

Silver Bugs: Toughen Up & Hang Tight

In his latest comments on King World News, Trader Dan Norcini of Jim Sinclair’s JSMineset.com makes a great point—a point which may turn out to be the most critical to newcomers of the silver market.  Volatility has been tremendous lately in all commodities markets. But in the silver market, volatility is the norm.

Bottom line for silver investors: if volatility scares you, get over it, or get out!  Sign-up for my 100% FREE Alerts

Unless you’re in this thing for the long haul, trade AAPL or some other stock, because the Fed is intentionally creating volatility in the commodities markets to keep wimps, amateur traders the uninformed out of the silver market.  In fact, Bernanke would like to punish traders.

“We have tremendous whipsaw action in commodities.  It’s so wild right now in terms of the trading swings. . . ,” Norcini told King World News, Friday.

“In my opinion, the Fed and the Working Group on Financial Markets have been actively manipulating key markets.  The Fed has been doing this manipulation in an attempt to push investors back into the stock market and out of commodities and hard assets.”

If you’re new to the silver market because due diligence brought you to the precious metal, stick to the buy side, first of all.  Second, don’t be a fool and trade it.  You must exhibit discipline.  And third, stop waiting for wonderful prices!  Anything below $50 is a wonderful price, if your research has told you anything.

As a suggestion, Google “Stephen Leeb site: kingworldnews.com” or go to FinancialSense.com and listen to Leeb’s past three interviews.  You feel good at buying silver at $30, $40 or $50.  So, at $32, silver, according to Leeb, is a joke.

Back to Norciini: “The Working Group on Financial Markets (aka Plunge Protection Team—PPT) then goes in and starts putting heavy pressure on key commodities, which triggers a cascade of sell orders,” Norcini added.

So the point is: unless you’re privy to the PPT’s next attack, stop trading silver!  The Max Keiser Casino Gulag is stacked against the trader in the silver market.

Norciini rightfully points out as well that, part of the Fed’s plan of incrementally capping commodities prices is to make the markets very volatile for the 90 percent of the public who can’t take the heat—the wimps, if you will.  If you’re looking for another smooth ride from a lifeboat off this sinking Titanic, too bad, there’s is none.

“The Fed is literally undercutting the value of the dollar and they are causing a lot of repercussions around the globe. . . ,” Norcici continued.  “The other countries are not run by fools and they understand the destructive policies of the Fed.”

Norcini makes another good point:  Mom and pop investors have traditionally played the fool.  Nation states with lots of capital move money into extended macro trends, and so should you.  As prices fall, sovereign wealth funds go to work by accumulating what they want.  Copy the flows of the big money and you’ll be carried along for the ride, not whipsawed.

And finally, if you’ve listened to Jim Sinclair for any length of time, you should be laughing each time the Fed threatens to stop its so-called ‘quantitative easing’ or Bernanke suggests that the U.S. economy is on the mend, which would then preclude further money printing.

When the aforementioned wimps panic out of the silver market because they continue to play the mom-and-pop fool to Bernanke’s lies and deceit, you better be buying with the Chinese on the pullbacks.

The only troubling decision to be made in the silver market is when to ultimately sell your stash, if it all.  Buying the metal and holding it should be a very easy thing to do.  Sign-up for my 100% FREE Alerts