“Market Shock” Coming This Fall: UK Telegraph Sources

By Dominique de Bailleul

“I think we are heading for a market shock in September or October that will match anything we have ever seen before,” an unnamed source at a major European bank told the U.K Telegraph, Friday.

With the fear of, yet, more war—especially with Iran, a likely spark for WWIII —liquidity-trapped central bankers, political squabbling within German and between eurozone members over the fate of the euro, solid evidence of a global economic catastrophe lurking, and a nasty U.S. presidential election between two grotesque candidates nearing, any hopes of consumer spending or capital formation to come to the aid of an insolvent banking system has already been thoroughly discounted in the price of the bank stocks.

And of course, it was the smart money skipping town during the two-year-long phony ‘rebound’, leaving the inevitable ‘act II’ of despair to the retail investor and captured institutionals as the usual bag holders.

“A more severe crash than the one triggered by the collapse of Lehman Brothers could be on the way,” according to the Telegraph journalists, Harry Wilson and Philip Aldrick.

Contrary to the paid cheerleaders of U.S. economy, no one is in the mood to commit to anything productive or able to consume the products (if he could) during the most tumultuous times since the Great Depression, leaving the middleman, the banks, with nothing to do.

“The problem is a shortage of liquidity – that is what is causing the problems with the banks.  It feels exactly as it felt in 2008,” a senior London-based banker told the Telegraph.

Whether the problem is a shortage of liquidity or an abundance of banks with an overabundance of bad assets, several very big banks are on the brink of failure—again.  And all the banker insiders know who is who, and who isn’t going to make it unless the money printing and bailouts increase more rapidly—and soon.

This time, the world’s no. 1, 5 and 10 ranked European banks (by assets) are in trouble, with combined assets totaling $7.6 trillion.

“Credit default swaps (CDS’s) on the bonds of Royal Bank of Scotland (no. 10), BNP Paribas (no. 5), Deutsche Bank (no. 1) and Intesa Sanpaolo, among others, flashed warning signals on Wednesday,” stated the Telegraph.

The article goes on to quote that the CDS rates on RBS paper reached record highs, Wednesday, surpassing the spike premium paid during the height of the global financial meltdown of October 2008.

So, ‘act II’ of the global financial crisis is about to begin, just as George Soros had warned.  According to Soros’ SEC 13-F (ending Jun, 30), the billionaire insider reported selling all of his fund’s banking sector shares, and showed his appetite for holding gold increased markedly.

Therefore, the question doesn’t appear to be whether the Fed will be there to save the U.S. banking system (it will), the question is whether the ECB will be allowed to copycat the Fed.  We’ll know on Sept. 12, when the German high court rules on the constitutionality of participating further in eurozone bailouts.

And a further question is: when will the central banks overtly announce more easing?  Will the ECB (assuming Germany somehow gives it the green light) and the Fed wait for something to ‘break’ before acting, or will the central bankers preempt the inevitable collapse?

We’ll find out in September and/or October.  In the meantime, there are always the black and gray swans of war (or something out of the blue) to further complicate any expectation of a direction to these markets.

Source: UK Telegraph

Get Your Money Out of Morgan Stanley—Fast!

By Dominique de Kevelioc de Bailleul

With the stock price of Morgan Stanley (NYSE: MS) inches from its Armageddon lows of Oct. 2008, whispers of the imminent overnight collapse of this U.S. broker-dealer begin to surface.  Client funds, again, are at risk.

“I’m hearing rumors that another major financial house is going to implode,” says TruNews host Rick Wiles.  In fact, the name I’ve been given is Morgan Stanley . . .

“It’s going to be put on the sacrificial alter by the financial elite.”

Beyond the evidence of a teetering stock price—Morgan Stanley’s troubles may never go away—leading to bankruptcy, if traders can glean anything from the financial activities of front-running insider George Soros, the man who warned in Jun. 2010 that the global financial crisis has entered “act II.”

According to Soros’ 13-F filing (ending Jun. 30) with the SEC, the billionaire financier reported that his fund sold nearly all shares of JP Morgan, Goldman Sachs and Citigroup—not paring back his holdings of financials, but completely dumping them.

And, as if to yell that the F.I.R.E economy is, indeed, on fire, the 82-year-old Soros also reports loading up on gold—adding a bit of poetry to Charlie Munger’s bizarre comment (1) in reference to investors who seek out gold in times of trouble.

Well, Soros’ act II has yet to crescendo to its tragic end, but “when a major global player with direct ties to the White House, Wall Street, and the banking system starts off-loading stocks and starts stacking gold, it suggests a very serious market move is set to happen,” says blogger Mac Slavo.

Adding to the speculation of a Morgan Stanley collapse, Bloomberg coincidentally pens an article on Aug. 23—the following day of the TruNews broadcast—in which the author Bradley Keoun recounts the dark days of Morgan Stanley at the height of act I of the financial crisis in 2008.

“At the peak of Morgan Stanley’s Fed borrowings, on Sept. 29, 2008, the firm reported that liquidity was ‘strong,’ without mentioning how dependent its cash stores had become on the government lifeline. . .” states Keoun.

“Neither Morgan Stanley nor its competitors in prime brokerage – Goldman Sachs Group Inc. (GS), JPMorgan Chase & Co. (JPM), Citigroup and Credit Suisse Group AG – disclose the size of their hedge-fund balances, leaving shareholders dependent on regulators who previously failed to rein in the risks. [Emphasis added]

But here’s where strong advice from Trends Research Institute founder Gerald Celente and former commodities broker Ann Barnhardt should be heeded.  Both consumer-friendly analysts implore investors and savers, alike, to withdraw from the financial system, warning that allocated brokerage accounts are not truly allocated. (2)

Bloomberg’s Keoun goes on to quote a former Financial Accounting Standard Board (F.A.S.B) member Adam Hurwich, who states, “It [Morgan Stanley's balance sheet] remains a black box,” referring to Morgan’s disclosure of whether allocated accounts at the firm have been re-hypothicated.

Regulators were asleep at the switch in the cases of MF Global and PFG Best, both filing bankruptcy post 2008, taking customer funds with them to the financial grave.  Why not Morgan Stanley?

“They don’t give you the information to be able to decipher whether they have changed anything,” adds Hurwich.

“Prime brokerage was presumed to be a pretty secure business, where the funding was not actually part of the liquidity of the bank,” Bloomberg quotes Frank Suozzo, president of FXS Capital LLC. “So if clients pulled their money out, the view was that money had not been lent out, so the cash would have been sitting there able to hand over. It turns out that that was not entirely correct.”

As the financial community found out in the case of MF Global, “prime brokers were able to reuse clients’ assets to raise cash for their own activities,” according to the financial crisis commission report, published Jan. 2011.

That’s a big red flag for investors to close their accounts with their brokerage firm—fast, especially accounts held at Morgan Stanley.

Why an establishment cheerleader such as Michael Bloomberg would allow an article which serves to remind investors of Morgan Stanley’s financial problems at this time may lend some credence to Rick Wile’s sources, who hear chatter about the impending doom of Morgan Stanley.

Like financial systems that could not be saved in the past, the banks must be then consolidated—that done, of course, after the bankruptcy, where the small investor gets wiped out and the ‘system’ acquires the remaining performing assets of the carcass.

The timing of the Bloomberg article is no coincidence.  Michael Bloomberg is only doing his part for the global banking cartel by tipping off that Morgan Stanley is ready for the “sacrificial alter.”  Get your money out.

(1) In early May, Munger told CNBC, “I think gold is a great thing to sow in to your garments if you’re a Jewish family in Vienna in 1939, but I think civilized people don’t buy gold.”  George Soros is a Jew, living in Hungary during the rise of the Third Reich.

(2) You can’t trust anybody and the entire system is collapsing.  What’s the takeaway from this?  It’s to make sure you have every penny in your pocket. —Gerald Celente, after losing 20 percent of his allocated brokerage account with MF Global.

“If you don’t understand what ‘get the hell out’ means, there’s not much I can do for you.” —Ann Barnhardt, after reviewing an appeals court ruling in the case of Sentinal Management Group, ruling that clients funds can be used to settle secured loans initiated through the banking industry.

Silver $150, “This Will Happen,” Says Swiss Money Manager

By Dominique de Kevelioc de Bailleul

If there was ever a sleeper asset poised to moonshot, it is silver.  And $150 is the target price for the white metal on this next major move higher, says Swiss money manager Egon von Greyerz

“We could see those levels ($4,500 – $5,000 on gold) within a year and possibly much faster,” von Greyerz tells King World News, Thursday.  “This autumn we are going to have a very strong move.

“If we look at silver, silver is going to move a lot faster than gold.  The same technical target for silver is $150.  That would move the gold/silver ratio down to 30/1.”

With PIMCO’s bond king Bill Gross going on the record today on CNBC, saying an open-ended quantitative easing program by the Fed is all but a “done deal”, silver investors can expect, not only a massive and unprecedented short squeeze in the silver market, but momentum traders and value-based accumulators hopping on board the silver bullet, as well—a veritable trifecta of rocket fuel presently under-appreciated by the casual investor, according to von Greyerz.

A move in the silver price, from $30 to $150, is “hard for investors to comprehend, but this will happen because we have had an energy building up in these markets for almost a year,” von Greyerz continues.

von Greyerz outlook for the silver price is, indeed, the most optimistic of King World news legion of forecasters, but the chart shows that his assessment has much technical evidence to support his thesis, given the fundamental backdrop of bizarre monetary and fiscal policies endemic to both major reserve currencies, the dollar and euro, which, together, comprise 89 percent of all global currency reserves.

Consider the ramifications of two formally announced QE’s by the Fed and the response exhibited in the silver market since the fall of Lehman Brothers in Sept. 2008.  Silver’s eye-popping move of 486 percent, to a few cents of $50 in late April 2011, from an intraday low of approximately $8.50 at the height of global market hysteria in Oct. 2008, captivated the global financial community to such an extent that, even CNBC couldn’t ignore the story—a sure sign of an intermediate top was in for the price.

Today, after months of relentless hype of a European collapse, not only has the euro held up well against another ‘flawed currency’, the dollar, but the silver market revealed to those in the bullion business the underlying extraordinary demand for the physical product buried underneath the dormant price action.

That disconnect between demand and the JP Morgan price suppression scheme will prove again that Gresham’s Law is alive and well—too well, in the case of silver, as investors will come to see.

 

“So the coming move is going to be spectacular,” Greyerz speculates.  “The ascent is going to be mind boggling.”

If the 486 percent move in the silver price within 30 months is used as a guide to the potential of the next phase in that market, a base of $27.50, formed, tested, and retested over and over during the most recent 16-month consolidation, a similar move takes the silver price to $161.

Is $150 for an ounce of silver unreasonable on top of a backdrop of countless trillions of dollars pumped into the banking system, on both sides of the Atlantic?  Of course, the answer is: it is not.  A better question is: how long will it take before silver reaches $150?  Greyerz suggests 12 months, maybe earlier.

Silver to Breakout Amid Odd Forecast—Ben Davies

By Dominique de Kevelioc de Bailleul

“We’re trend ready, Eric.  I think it’s a prescient time to come on the show,” Hinde Capital CEO Ben Davies begins his interview with King World News (KWN), referring to a resumption of the upward trend in the gold market.  But, where gold goes, silver follows at a ‘double-time’ pace—at least.

Davies proprietary model for pricing silver suggests to him a move higher of 25 percent, citing reasons of a slight upturn in the U.S. economy, the return of easy-credit European politicians from vacation, and, possibly, truth in the rumor that Spain will ask the ECB for a bailout during the weekend, ending Aug. 19.

On the news of a Spanish capitulation, alone, silver prices could move higher this week, according to Davies.

Though Davies doesn’t expound upon his ‘odd’ thesis of U.S. growth next year, or even suggest where that growth will come from, he does expect, however, more monetary accommodation by central banks to buoy silver prices—an expectation echoed by currency and monetary policy expect Jim Rickards, who, so far, has been on the money with his prediction of ECB easing ahead of the Fed.  Now, it’s the Fed’s turn, according to Rickards.

Incidentally, Rickards anticipates Fed Chairman Ben Bernanke to announce further QE at the annual central bankers meeting at Jackson Hole, Wyoming in early September.  He tweeted, Sunday, that recent weakness in the Chinese renminbi against the dollar weighs more heavily with the Fed than U.S. jobs and GDP, and that downdraft in the Chinese currency, beginning from the first days of May, will push Bernanke to make the long-awaited QE announcement at Jackson Hole.

Moreover, it turns out the rumor that Spain would ask for a bailout, that Davies alludes to, is fact-based, in part.  The Wall Street Journal reports, Sunday, Spain’s Finance Minister Luis de Guindos “would like to see the European Central Bank commit to massive, open-ended sovereign-debt purchases” before Spain asks for a new bailout from the central bank—a request that former Goldman Sachs operative Mario Draghi would only be too happy to accommodate.

However, Spain and the other nations which make up the PIIGS will await Germany’s high-court ruling on whether an exception to Germany’s constitution will be granted on behalf of the ECB and its sovereign debt purchases.  That critical ruling is scheduled for Sept. 12.

Back to Davies.

When asked by KWN host Eric King about the short-term prospects for the silver price, Davies didn’t hang his hat on the central-banker-easing mantra as the primary reason for his anticipation of higher silver prices.  Instead, Davies emphasizes a disconnect between elevated equities prices and depressed silver prices as his reasoning for silver to play catch up.

He also suggests that U.S. economic growth will add to the several known catalysts to a substantial move higher in the silver price, a shocking departure from the 2013 Armageddon scenario advanced by Jim Rogers, Marc Faber, Peter Schiff and a legion of well-informed, talented and ‘unencumbered’ market handicappers, including, too, economist John Williams of ShadowStats, who would take grand exception to Davies’ U.S. economic forecast.

Flying in the face of Davies’ forecast of economic growth comes an American Petroleum Institute (API) article which reports global fuel deliveries for all products dropping through the floor—not a good sign.

From API:

Demand for gasoline, the most widely used petroleum product, dropped 3.8% from a year earlier, to 8.624 million barrels a day, the lowest July level since 1997. Gasoline use in the heart of the peak summer driving season was 2.2% lower than in June. January-July gasoline demand averaged 1.1% below a year earlier, at 8.671 million barrels a day, the API said.

Kerosine-based jet fuel use fell 0.8% in July from a year ago, to 1.455 million barrels a day, while demand for heavy residual fuel, used in power plants and industrial burners, dropped 7.1% year-on-year, to 294,000 barrels a day.

Production of all four major products–gasoline, distillate, jet fuel and residual fuel–was greater than demand for those products. As a result, petroleum imports decreased and exports increased. Total imports of crude and refined products fell by 9.6% to average 10.4 million barrels a day in July. Exports of refined products increased 11.1% to a record high for July of 3.244 million barrels a day, and year-to-date exports were up 14% compared with the same period in 2011.

Refineries operated at 92.7% of capacity in July, the second month in a row above 90%.

Crude oil production rose 13.6% year on year in July to 6.225 million barrels a day, the highest July level since 1998. Year-to-date output averaged near the July level and was up 11.9% from the same period in 2011.

Nonetheless, Davies likes silver, in the short-term.

“Silver is the ugly duckling at the moment.  Isn’t it?  It’s definitely performing very badly, and I think it’s tantamount to the same as gold,” says Davies.  “But I think I would err slightly on the side of more silver bullish.

“I think that with recent equity and S&P 500 performance, I think that the strong correlation there and optimism for growth, and, actually, our analysis is actually [sic] for a pick-up in U.S. growth in nine months time.  So the overlay there, for us, is that silver could perform well here.”

Davies’ timing for a move high in the silver price pretty much sacks up with Goldmoney’s James Turk and other frequent guests of KWN.  It’s a breakout any day in both gold and silver, they say, with silver expected to catapult quickly and close the 57-to-one ratio of the two metals.

“I think we’re threatening to make a move here and it could come in the next few weeks if not sooner,” proffers Davies.

“Optically [chart], I’m looking for the low-to-mid-30′s, and that is as far as our trend system will take us in the interim—in the short term, I should say.”

His target for gold of $1750 and silver of $33-$35 equates to a gold:silver ratio of between 50 and 53.

Gold: Guaranteed Returns, Says PM Analyst

The charts and numbers reveal to technician Bert Dohmen of Dohmen Capital that gold is a great buying opportunity sometime within a 30-day time period.  That big move in the yellow metal could begin today, tomorrow or next week.  But the bg move is coming, according to Dohmen.

“I look at the charts, and I look for the major buying opportunities, and say: Okay,  if somebody doesn’t have any gold, when should they be buying?” Dohmen asked, rhetorically, during a FinancialSense Newhour broadcast of last weekend.

“Well, right now we’re in a timezone, and that doesn’t mean today or tomorrow or next week.  But we are now in my opinion within a month of a great buying opportunity.”

Dohmen prefaced his interview regarding the technicals of the gold market by commenting upon public spending—a reliable and macro statistic for making a long-term forecast of the financial health of a nation and the response of gold traders through time.

“There are about 106 million Americans, 106 million, just imagine that, Americans, right now, getting some kind of aid from the government,” Dohmen opined.  “Just imagine that.”

Just as empires of the past allow more citizens to take more from the public treasury than those paying into the public coffers, the economy eventually eats itself into a collapse—with no exception to the rule found in history.

He continued, “You have over half the people in the country do not have to pay taxes.  So we’re at the point now where the people receiving from the government outnumber the people giving to the government.

“And, of course, that is the end of democracy. . . that’s the end.”

With sentiment very low, Dohmen sees a rare opportunity for those who haven’t secured any gold.  He said he reviews the Commitment of Traders (COT) report issued by the Commodities Future Trading Commission (CFTC) issued each week  to spot buying opportunities in the precious metals.  When disinterest in the gold market among institutional and small investors reach low levels, a bottom has usually formed.

“So right now the open interest in the gold futures is at a very, very low point,” Dohmen explained.  “It’s been coming down for many months, and right now we’re at a point where normally you have a start of the next strong up-move.

“All these indicators [activity with small speculators and institutional money managers] show that there is absolutely minimal interest,” he added.  “And when the interest in buying gold has been this low, you usually have a bottom at the start of the next up-move.”

For those new to the gold market, don’t attempt to trade the metal.  Overbought and oversold sentiment can become quite exaggerated and for a long period of time, fooling traders into buying too late or selling too early, in the case of non-professionals.

Today, the gold market has entered a post-corrective phase low; it’s time to buy gold, according to Dohmen.

“Within the time frame of the last year, this is the greatest buying opportunity that I have come across based on the charts and the numbers,” he said.

“I guarantee one thing: you buy gold right now, and ten years from now, it will be a heck of a lot more worth [sic] than the cash you have under your mattress.”

BIG NUKE Imminent in Precious Metals

By Dominique de Kevelioc de Bailleul

Something very big is most likely about to be dropped in the global financial markets within a few weeks—like a nuke exploding—and those holding precious metals stand to be the big winners—especially silver investors, who could make a small fortune in a very short period of time.

Here’s the overwhelming evidence of something very big coming soon to the financial markets:

“. . . evidence points to an upside break for both gold and silver, which is not dissimilar to our Silver – The Coming Bullet – August 2010 ‘Trend Ready’ state,” Hinde Capital CEO Ben Davies told King World News on Aug. 9.

Davies’ report turned out to be a prescient piece of work, as the silver price went truly ‘bananas’—as GATA’s Bill Murphy likes to refer to big PM moves—making its bullet move from the $17.50 mark of August 2010, ending at nearly the $50 print at the end of April 2011, for a 185 percent move within nine months!

Davies’ observations echo trader Dan Norcini’s.  Norcini tells readers of JSMineset that a big Asian buyer has ratcheted up the floor in the gold mark in $20 increments.  Davies sees the very same buyer incrementally scooping up gold in a signature consistent with a very large buyer of the past, a buyer who appears to know beforehand of the Fed’s every move—a point suggested in a previous BE article, titled, Rigged Gold Market, a Secret Payoff to China.

“We want to state there has been a strong buyer in the gold market these past few months,” stated Davies.  “Also we want to reiterate the buyer in the room is Asian and has been stepping up their buy order, 1545, 1575 now 1600?”

More evidence.

The signature of that big Asian buyer has demonstrated in the past that, he is either a brilliant tea-leaf reader or he’s ‘connected’ to the Fed, with the latter more likely during an atmosphere of blatant, draconian, widespread and sanctioned fraud in all markets.

“It is reminiscent to me of the very same buyer(s) who soaked up U.S. 10 year bonds at 4.85% in June 2004 when the Fed didn’t cut rates from 1% to 0.75% as was widely expected,” Davies explained.  “By end of 2004 rates were at 4.25% but 10 year yields had rallied back to 4.00%.”

There’s more.

Either signals from media and the inner banking cartel of the past two weeks have been deliberately staged to dupe even the most savvy precious metals investors (outside the criminal cartel, such as a Jim Sinclair) into a crushing disappointment of no additional QE from the Fed will be forethcoming, or the recent series of smoke rings indeed signals an imminent and massive rally to new highs in gold and silver prices.

In a previous BE article titled, Imminent Silver Price Explosion, the piece noted two banking cartel media mouthpieces have been running interference for Ben Bernanke for a launching of a bazooka QE.

From the BE article:

Jon Hilsenrath of the Wall Street Journal, the man who the straight-shooting Stephen Roach of Morgan Stanley calls the real chairman of the Fed, wrote . . .

This [Hilsenrath's list of economic and inflation metrics] is ammunition for Fed officials who want to act right away to spur growth. Not only is growth subpar, and the job market stuck in the mud, inflation is also running below the Fed’s long-run goals.

Moreover, as mentioned in the same article, the second media mouthpiece of the gold cartel, Greg Ip of Economist—the very same publication that, James Turk had clearly demonstrated in his article of several years ago, was behind a disinformation campaign for the gold cartel throughout nearly two decades—wrote in his piece for Economist (written from the point of view of hindsight) that the ECB will need to debase the euro by following the Fed’s program of debasing the U.S. dollar.  In the opinion of the European banking masters, debasing is the right thing to do—and do it fast.

Side note: From the content of the two articles, it appears that Jim Sinclair’s thesis of “QE to Infinity” may include, not one, but two currencies, the dollar and euro, which, together, comprise 89 percent of global reserves.  That gives institutional money nowhere to hide, adding a big boost in octane to the gold market.

As the evidence mounts, regular guest of KWN, Egon von Greyerz of Switzerland-based Matterhorn Asset Management suggests that the cocktail for something big in the precious metals market awaits the Bernanke match lighter.   The 40-year veteran, von Greyerz, predicts a double or triple in the gold price by the close of 2013, leading the list of KWN’s brightest and most experienced prognosticators of the PM market.

“ . . . my target on gold of $3,500 to $5,000 over the next 12 to 18 months, and then over $10,000 in 3 years.” von Greyerz told KWN late last month.  Though James Turk of Goldmoney agrees with von Greyerz that a big rally is afoot, Turk hasn’t announced a target for this next move in the gold price—not yet, anyway.

And, just in.

Another mouthpiece for the gold cartel, Financial Times, published to subscribers its latest disinformation article.  Many FT readers, presumably, have never heard of James Turk, Ben Davies or Jim Sinclair—or 40-year veteran of the metals markets, Bill Haynes, who told KWN Thursday:

“One of the writers started trashing gold in the Financial Times [Wednesday].  He said it’s time to sell your gold and send the kids to college, buy an automobile or take a vacation because this bubble is over.”

Echoing sentiments of James Turk and Eric Sprott as well as zerohedge’s repeated reference to FT’s blatant and disgraceful disinformation campaign against its upper-middle class subscribers, added, “Eric, this is the type of nonsense we see in the mainstream media when a bottom is being put in, and the Financial Times has been one of the greatest contrarian indicators for the gold market.

“I also find it interesting that this is the week the big buyers are making a statement with their physical gold and silver purchases,” Haynes added.  “They are doing their buying right into the face of this ridiculous nonsense coming out of the Financial Times.”

Precisely.  Investors who read King World News most likely don’t subscribe to the Financial Times for its commentary of the precious metals market.  And those who do subscribe to FT are those the Fed are most frightened of.  Mr. and Mrs. Bourgeoisie Money Bags are the next in line to threaten the Fed’s “inflation expectations” powder keg—a fatal moment it wishes to forestall as long as possible.

During the past few weeks, there’s been too much anti-gold propaganda waged at one time, while a known big Asian and heavily suspected Fed insider has been quietly (to the general investor public) accumulating gold at marginally higher and higher price levels.  Something big is afoot.

And to top this litany of wink-winks and nod-nods, the ultimate political hack of Wall Street, U.S. Senator Charles “Chuck” Schumer (D-NY), chastised (or signaled?) Fed Chairman Bernanke during a hearing of mid-July, “The Fed is the only game in town… You have to take whatever actions are necessary to ensure a strong recovery . . . Get to work, Mr. Chairman,” Schumer said forcefully.

To remind investors of Schumer’s well-know connection to the banking industry, Zerohedge posted an article from OpenSecrets.org that showed Schumer receiving $4.8 million in total from 20 Wall Street firms.

In conclusion, we see the establishment media mouthpieces very active, a super-key politician mouthing publicly at the Fed, and a suspected Fed insider from Asia scooping all the metal it can get, all deployed to enrich those who are either privy to, or can read the tealeaves, for a front-running a monstrous move in gold and silver—at the expense, of course, of the American public.

As Trends Research Institute Founder Gerald Celente has repeatedly said, “The rot is at the top”; “We’re being financially raped”; and “It’s a gangster government” between the Gambinos and Genoveses.”

Events of the past week have become obvious—too obvious, maybe?  Or is Celente correct when he says the banking cartel acts if it doesn’t care what people may think about it and who it hurts?  It appears that the big money is betting the Fed drops the nuke.

Gerald Celente: “I Have That Feeling” It’s 9-11 All Over Again

By Dominique de Kevelioc de Bailleul

In back-to-back interviews on the Gary Null Show and the Tommy Schnurmacher Show, Gerald Celente sees another mega geopolitical quake to match the shock-and-awe of 9-11 in America’s not-to-distant future.

“I’m worried about the drumbeats of war getting louder and louder,” Celente told  CJAD talk show host Tommy Schumacher, Monday.  “It’s coinciding, as well, with the economic collapse that’s happening throughout Europe.”

Celente went on to say that, when sociopath and psychopath politicians get into trouble with their constituents due to a poor economy, those pols, who can divert the public’s attention away from the nation’s financial problems and redirect the collective anger toward the threat of an outside enemy, will use their power to take that nation to war at a politically advantageous time.

“It’s reaching a critical mass right now, and I haven’t felt this way since December 14, 2000,” said Celente, and noted that he senses desperation in the voice and actions of Israel’s, Benjamin Netanyahu, the present and very unpopular prime mister in that Mideast country.  “I have that feeling now” with Netanyahu, said Celente.

“This guy, Netanyahu, he has 60 percent disapproval rating right now, and I’ve seen it before,” Celente continued.  “I remember Bill Clinton, you know, wag the dog.  Every time he’d get into trouble with Monica Lewinsky, it was bomb over Baghdad.  They continually do this.”

After wavering earlier this summer whether to remain in the U.S. or flee from a “fascist” dictatorship shaping up in America, the 65-year-old Celente told InfoWars’ talk show super-star personality, Alex Jones, that he will not allow a “bunch of freaks” in Washington chase him out.  Celente said he will stay and fight.

But the personal struggle on this question continues to weigh heavily on his mind.

Whether another 9-11-like event takes place on U.S. soil or overseas, Celente now seriously contemplates fleeing America if the U.S. or Israel instigates another 9-11 incident—either through a false-flag attack or other pretension to ‘justify’ a politically unpopular position to attack Iran.  An attack on Iran, he said, might be the ‘straw that broke the camel’s back’ to get him to flee America for his physical safety, as he would, then, begin to mull over another trend he sees developing: jailing or “silencing” journalists.

“If the United States or Israel goes to war with Iran, it’s the beginning of World War III,” Celente told radio talk show host Gary Null, Tuesday.  “Our lives will be hell after that.  If you think we have a Gestapo state right now, you haven’t seen anything yet, because it’s not going to stop.

“These are the Persians; they’re 70 million strong,” he explain.  “They’ve been around a long time; theyre not going to be going anywhere.  And they’re going to fight down to the last man.  And people forget that the Iranians lost a million people between 1980 and 1988 when the United States started a war, funding Iraq to attack Iran.

“This country won’t be worth living in, if we go to war with Iran.  So I don’t know, I just don’t know what to do after that,” said Celente, who audibly struggled to match the words with his own personal thoughts on the matter.  “I don’t know if I want to be here as much as I want to stay, because we’re seeing all of our rights being abrogated from us now; it will only, only, only get much worse.”

Aside from offering a peak into his mind regarding the subject of his personal quandary with the possibility of expatriation, Celente strongly advocates that Americans protect their wealth during the upcoming turmoil he sees on the horizon by holding ‘physical’ gold and silver.

He said, “It’s all I buy, is gold and silver,” and added, though his personal decision to hold precious metals is not to be construed as financial advice.  Celente has repeatedly said in dozens of prior interviews that he is not a registered investment adviser, nor does he sell precious metals.  But gold and silver are the only money he has outside of working capital for his business, The Trends Research Institute.

Fire!!! Money Running for the Exits

By Dominique de Kevelioc de Bailleul

The Swiss 2-year sovereign just reached a -0.47 rate, and with JP Morgan doing such a good job suppressing paper bullion prices, gold has gone into a stealth ‘backwardation’, according to Goldmoney’s James Turk.

Quietly, the Swiss 2-year sovereign just broke through recent lows Friday, plunging to -0.435 percent.  Instead of getting a toaster with your deposit, investors have to give the Swiss government a toaster along with their money—each month, for two years?!

In other words, big money knows a catastrophic event is near and a response by central banks won’t be far behind.

Gold’s range-bound pricing while Swiss sovereign rates drop like a stone suggest an explosion in the gold price is also near.  In fact, because of the LIBOR manipulation scheme, gold may be already be in ‘backwardation’, but the market hasn’t picked up on the fire in the theater.

James Turk stated his rational for suggesting gold has reached backwardation to Eric King of King World News (KWN).

“Interest rates are a reflection of risk.  Normally, the lower the interest rate, the lower the risk of holding that particular type of money,” Turk explained.  “Historically, gold’s interest rate has always been the lowest. . .

“So interest rates for currencies are always higher than gold’s interest rate.  But because of this LIBOR scandal, and the fact that we are seeing interest rates being manipulated by central banks, for the past year we have had dollar interest rates lower than gold interest rates and that’s a huge anomaly.”

Here’s the anomaly shown graphically; and from the graph, below, Turk’s observation can lead the investor to conclude that he may have a valid point.

Pay particular attention to the white arrow in the chart, right around mid-May when the Swiss 2-year broke to a new low of -0.07 to -0.08 percent.

“On Monday, May 14, something happened that hasn’t happened since Dec of 2008,” stated Keith Weiner in a post on zerohedge.com.  “Two successive near-month precious metals futures contracts were in backwardation at the same time.”

Gold (and silver) touched ‘backwardation’ the week following the Greek legislative elections.

“On May 14, this is precisely what occurred,” Weiner continued.  “Both May and July silver are backwardated.  And June gold is backwardated.  Incredibly, the May silver contract is giving away a 3% annualized profit to anyone who would sell physical silver and buy a May future that delivers in a few weeks (thus recovering the same position).  Even more incredibly, no one can or will take the profit that is dangling out there!

“This should not be possible at all.”

Of course, central bank “manhandling” of interest rates, as Jim Grant puts it, are possible and create all sorts of distortions as well, not seen clearly, of course, during ‘normal’ times, but distortions become especially transparent during a financial crisis.

Jim Sinclair’s panic announcement of the possibility of an over-the-weekend global announcement of a new round of massive round of money printing from the G-6 was apparently warranted, as the Spanish 10-year rate began to distance itself to the upside from the 7 percent Maginot line of a Greece-like run while Swiss rates plunged.

“A lot of people are misinterpreting what that [LIBOR manipulation] means,” Turk continued.  “It’s really just a temporary phenomenon.”  It’s really just a reflection of all of the interventions we have in the market today.”

Turk asked rhetorically, “What we really have to consider is, is gold in backwardation?”

“I think it is, even though the gold forward rate doesn’t show it simply because dollar interest rates are manipulated,” he speculated.

As amateur money watches the Dow, the big money isn’t buying into the Friday’s jobs number (or any job number), Warren Buffett’s truly shameful malarkey about gold, and certainly not central bankers’ equally pathetic diatribe.

Most recent case in point: Another nonsensical jobs report out of the U.S. ministry of propaganda showed an ‘unexpected’ rise of 163,000 non-farm payroll jobs and an 8.3 percent jobless rate.  But, Swiss money manager Egon von Greyerz of Matterhorn Asset Management explains why there’s a panic run into Swiss paper.

“The real unemployment is 23%,” von Greyerz told KWN, on the same day as the Turk interview Friday.  “The Non-farm Payroll going up by 163,000, if you look at the seasonal adjustments and the birth/death model, those two adjustments were 429,000.  So they added 429,000 out of nowhere, on paper.

“If you take those 429,000 off of the 163,000, instead of an increase, you get a 266,00 decline in payroll.  So the figures are nonsense….”

Take it from the Swiss; they know money, and they know gold.  They were smart enough not to join the eurozone; they’re smart enough to hold the highest per capita official gold stock of the world—by far!

The Swiss aren’t about to be fooled by the Bernanke-Draghi tinkering of the financial ‘weights and measures’ as the rest of the world has been duped.  And which European country was never attacked by Hitler’s Third Reich?  Switzerland.

von Greyerz and other smart money managers know that the U.S. economy is tanking fast, which explains the sudden mass exodus into Swiss paper since May.  Therefore, gold must play catch up, or JP Morgan faces a force majeure in one of the precious metals—most likely in the silver market.

“. . . we probably missed the last chance to buy gold at $1,580, and silver under $27,” said Turk.

“I think it’s becoming increasingly clear that the central planners are bluffing,” Turk continued.  “They are holding a losing hand….People are starting to understand they are being played with by these guys.”

Turk believes the next big rally in the precious metals has begun.  He was correct last year, and from the looks of the Swiss 2-year bill, gold could breakout above $1,640 as early as this week.

Gold & Silver: Go “All-In”

By Dominique de Kevelioc de Bailleul

Calls for the Fed to make a QE announcement in September by Jim Rickards and John Taylor got another handicapper, Michael Pento, to go on the record for a likely announcement following the annual Jackson Hole meeting of the world’s central bankers in late August.

“My first impression was that the reports we had from the Wall Street Journal that the Fed was imminently going to interfere with the markets (with more QE), once again proved to be untrue,” Pento told King World NewsThursday.  “Bernanke is waiting for Jackson Hole.  He’ll make some kind of announcement, like he did back in 2010, and then he will start to put his plan to destroy the currency in effect, probably in September.”

That’s the situation in the U.S., as Pento sees it.  But within the EU, the situation is more dire and murky.  Laws there don’t allow for the ECB to intervene in the bond market like the Fed can.  But Pento has drawn the same conclusion as former Asst. Secretary of Treasury Paul Craig Roberts has: the laws will be broken in Europe—again, Germany’s outrage to the suggestion that the euro be monetized away will be ignored, and the EU will be taken over by a supranational cabal.

“In my estimation, the ECB is about three or four weeks away from giving a banking license to the EFSF and the ESM,” said Pento.  “This will lead to unlimited purchases of European debt, and an unlimited dilution to their currency.”

With Spanish 10-year yields soaring back over 7 percent today, ECB President Mario Draghi’s “do whatever it takes to preserve the eurozone” speech to save the euro from cracking 1.20 lasted only three days.  After touching approximately 6.5 percent Tuesday, the 10-year yield soared right back up past the 7 percent mark Thursday, likely putting more pressure on the euro in the coming days.

In the meantime, ‘main stream media (MSM)’ paints a picture of Draghi as an independent, yet dependent, central banker, pointing to the hurdles of corralling 17 sovereign nations before the ECB can intervene in a Fed-like manner to purchase Spanish sovereigns, implying that Draghi is in a box and panicked Monday when he awoke to a 7.6 percent Spanish yield.

“From a communication point of view, he [Draghi] misguided the markets,” Commerzbank’s chief economist Jörg Krämer told the New York Times. “He raised expectations which he could not fulfill.”

Analysis such as Kramer’s observation of what the ECB can or cannot do is either naive or intentionally misleading the markets, according to former U.S. Asst. Secretary of Treasury Paul Craig Roberts.

In an interview with Slovakia’s TV24li, Roberts stated that Greece and Italy have been taken over by former Goldman Sachs bureaucrats in Europe, with Italy’s president and entire cabinet appointed by those close to the nefarious U.S. investment banker.  The entire drama played out in Europe is a scam to save banks and to consolidate power to a supranational body, according to Roberts.

“Democracy [in Europe] is being destroyed.  And of course the EU bureaucrats are using the crisis [in the EU] to takeover the economic policies of the individual countries,” said Roberts.  “They say, we can’t trust the governments.  Look what’s happened, and so we are going to consolidate and we will make the tax decisions, budgets decisions for all the countries.”

To Pento’s credit, he’s picked up on Robert’s theme playing out in Europe, and has advised clients of Pento Portfolio Strategies to expect a dual last-minute ‘stick save’ from both the Fed and ECB.  Reports by the MSM of an imminent death of the euro are greatly exaggerated, he speculated.

“I am telling my clients, I am gearing them towards the inevitable inflation.  But I think it’s silly to go ‘all-in’ right now,” Pento concluded.  “We have significant holdings in precious metals and we have written covered calls against that strategy.” Then, we are ready to go all-in once we have a firm commitment on the part of these two central bankers to massively monetize the debt.”

Watch for Bernanke’s speech at Jackson Hole for hints of a ‘favorable’  announcement following the FOMC meeting in September.  All inflation-sensitive assets should soar, “but you will see the most salient moves in precious metals, base metals, energy and agricultural stocks and commodities,” he said.

This Oddball Indicator Has Gold Bugs Salivating

By Dominique de Kevelioc de Bailleul

Gold bugs salivate at the turbo-bullish implications of this recent discovery by two economists of an oddball indicator that investors can compare with the U.S. Commerce Department’s jury-rigged GDP number.

Recent guest interviews on King World News (KWN) that suggest a huge short squeeze in the gold market is about to begin a massive rally in the yellow metal got a boost Thursday from a couple of economists’ and their analysis of garbage.

According to economists Michael McDonough and Carl Riccadonna, of the 21 categories of items shipped by rail, which aid economists in their forecasts of GDP, the amount of waste hauled away demonstrates the highest correlation (82%) to domestic output.  Makes sense.  As the U.S. produces, it throws away, too.

Well, the verdict is in on the amount of crap carried off on Warren Buffett’s rail-cars. Waste cargo is down, way down.

And it’s tanking fast.  It appears that delaying getting back into the gold trade may cost traders, as the news media echo chamber prepares to suddenly and simultaneously begin parroting that a ‘Double-Dip’ Recession or Depression is back in the U.S.—and from the looks of the chart, below, it’s likely to be another 2008 economic cliff-dive, as well.

As CNBC and Bloomberg continue to promote hope. there’s little doubt now among professional traders that the coy Ben Bernanke has already crafted his QE speech and readied it to be deployed at a moment’s notice.  Gold’s close above $1,600 tips the hand of savvy traders front-running a Fed capitulation to use the printing presses more aggressively.

“I would say that from now on, any economic number being released which is showing an improvement [in the U.S.] is probably either a fluke or a phony figure,” Matterhorn Asset Management’s Egon von Greyerz told KWN on Friday.

“We are not going to see growth in the next few months or even the next few years,” he continued.  “If you look at the U.S., home sales are down 8%, durable orders are down, and debt is continuing to increase.”

Despite global-wide GDP statistics that show small growth, which von Greyerz said are “phony” numbers, better evidence suggests that the entire global economy has accelerated to the downside, therefore, prompting the need for Chairman Bernanke to accelerate asset purchases at the Fed—with this next announcement possibly including outright buying of stocks on the open market.  Yes, the Fed is legally able to by U.S. equities.

With the Germany’s Bundesbank still “resistant” to the idea of bond purchases to match Fed policy of monetizing U.S. Treasuries, according to UBS’s Art Cashin, the U.S. dollar may become the next focus of the dormant bond vigilantes, as rates on the 10-year Treasury note reached a record low 1.39 percent this week, a rate lower than even the Fed’s massaged GDP deflator of 2.1 percent.

Liquidity, then, appears to not be the motivation behind more Fed QE, if we can take Bernanke’s word for central bank intervention “if needed” to allegedly increase employment.  Cashin believes the Fed is attempting to hide its monetization of U.S. sovereign debt by constantly talking about jobs and economic growth as reasons for central bank intervention.

“By standards, the amount of liquidity that’s around the globe should be hyperinflationary,” Cashin told KWN on Friday, with the dollar most likely leading the way down against gold during the next QE program expected by the Fed.

“The real time bomb here is that large short position in the euro,” said Cashin, suggesting that the dollar’s next major move is decidedly down.  Gold is poised to soar in response.