Tuesday, September 8, 2009

Open Forum

[Most Recent Quotes from www.kitco.com]

27 comments:

Martijn said...

Well well, gold has broken the 1000 Thaler again. According to Sinclair it's "three strikes and you're out", isn't it?

The Euro price has risen also, but so far it did not brake 700.

S said...

wow. China commenting on printing and cross border m/a heating up. The idea of inflating stock prices and trying to consolidate positions is so obviously wall street. Perhaps people shouldn't worry about trade barriers rather nascent industry arguments and m/a obsticles. Sellers be warned

Tekin said...

China Begins Its Move Away from U.S. Dollar Reserves

http://moneynews.newsmax.com/financenews/china/2009/09/03/255910.html

Anonymous said...

Gradually, then suddenly.

MichaelB said...

http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100000821/china-bernanke-and-the-price-of-gold/
China, Bernake and the Price of Gold - Ambrose Evans-Pritchard's latest contains various interesting observations supporting an impending new monetary system, when everyone leasts expects it, by innovative institution of gold reserves...

Pickdog said...

The battle for 1k will take a few days to consolidate.

Pickdog
III

Anonymous said...

FOFOA,
Thanks for the work you put into illuminating what is going on. We are headed for a dark reality, but knowledge is hope.
-Ben

FOFOA said...

Thank you, Ben. It is my pleasure.

So what's up with Barrick?...

Barrick Moves To Eliminate Gold Hedges
Jim Sinclair

Game over: Barrick dilutes by $3 billion to buy back gold hedges
GATA

Barrick Announces Silver Sale Agreement

GATA Media Special

Anonymous said...

somebody want to translate 7:06 am??

FOFOA said...

Here's how Google translates it:

If the physician knows the name of your illness, it does not mean that he knows what it is. Never ascribe to human malignancy that can be explained by ordinary stupidity. A man may live long on the money that he waits. Reality is an illusion caused by lack of alcohol. Women eat for talking, men shall go eat.

SatyaPranava said...

dead on re: the men/women dichotomy :)

that's funny.

alek_a said...

I think the last sentence was lousily translated by google. IMO, it should read something like: "Women sit to eat to talk, men sit to eat together"

SatyaPranava said...

here's an interesting quote from

Bob Chapman: http://news.goldseek.com/InternationalForecaster/1252521690.php



"In 2009, China opened up various exchanges for investment in both gold and silver to the Chinese public, who previously were not allowed to invest in gold and silver. The opening of silver exchanges to the Chinese public is the most recent development and was accompanied by a ban on silver exports. The Chinese government is actively touting both gold and silver as an investment to the Chinese public, and with good reason. The yuan, like the dollar and virtually all other paper currencies, with the exception of the euro, are one hundred percent fiat currencies backed by absolutely nothing but government promises which aren't worth the powder to blow them to hell. Even the euro's gold backing is pathetic at best. Initially it was a respectable 15%, but the backing is probably now about half of that due to Washington Agreement gold sales and surreptitious gold leasing."


so is the euro backed by 15% gold or not? also, i'm curious to know what some on this board think of chapman. being more specific, what percentage of what he writes do you find very credible?

Anonymous said...

# Satya : The euro is not " backed " by gold (cfr. redeemable).

The euro's ESCBs (european system of central banks) has 12,000 tonnes of gold under the absolute control of the ECB with 700 tonnes.

Go to the ECB's website and check out for yourself about the 15% gold.
Than have a look how the proportion of forex and gold changed (in favor of gold) since the euro's birth.

You will be surprised...;)))

B.

Martijn said...

The euro's ESCBs (european system of central banks) has 12,000 tonnes of gold under the absolute control of the ECB with 700 tonnes.

Why gold? Because you can't print it. That also means you should own it physically. The german gold for instance is in the US. I would not call that absolute control.

Martijn said...

According to Sinclair the main factor driving up prices is Chinese buying. Another and FOA talked about this as well, didn't they? Chinese have endless pockets, and always buy at dips. They never chase the price. Now every time gold clear 1000, people get all exited and the large bullion banks start leaning on the price. However, I would argue that it is not all that exited, and that those large banks and China both know what is going on. Wouldn't they have some sort of understanding? WOuldn't it be in both their interest to keep prices low? I guess that is what we have been witnessing so far.

S said...

China’s Premier Wen Jiabao said the nation “cannot and will not” pull back from economic stimulus measures, seeking to sustain a recovery from the slowest expansion in almost a decade. “China’s economic rebound is unstable, unbalanced and not
yet solid,”

Goldman yesterday saying: The Federal Reserve may keep interest rates low for “many years” to help U.S. consumers and companies as they pare back debt, according to economists at Goldman Sachs Group Inc - Bloomberg

The chinese and the us in are in a MAD scenario of printing dollars --they can not stop becasue doing so would be effectivily permitting expropriation at the hands of infated assets in the US - this game ends very badly

S said...

Netanyahu to Russia to plead with Putin. US intel saying that Iran has crossed a threshold - red line. Israel intel echoeing comments month or so ago. (as an aside so much for the US NIE last year). Israel losing favor in the USA - outside of their central bank head of course. Israel pissed off Russia equiping Georgia - even if as a proxy for USA support. US wants no part of the iran raid/bombing as seen in blatently political NIE and rediculous forecasts about timelines. Therefore it begs the question why is the US intel community ocming out now. is it a green light to Israel who has said they simply can not live with an Iranian nuke. Former US IAEA inspector says Syria may have other Nuke sights - uncorroberated.

Net net something is brewing in the Mid east. Obmama giving a speech on the financial crisis on Monday. why? Is it to declare victory? Is it defensive move as the US is awakened to the pilferage of the banking complex and populism is growig? Is a bank holiday coming as many have speculated - could dollar weakness be the banks getting out of dollars and trying to hedge the book? just speculating...

Given how far we have come no turning back now. The US will have to negotiate its way out - too much institutional arrogance for that - or there will be a man made event to provide cover for extraordinary action of some fashion.

S said...

FOFOA,

Who was it that said there was a rumor the State dept instructeed embasies to horde fx currency - was it sinclair

FOFOA said...

Hi S,

It was Bob Chapman and Harry Schultz. You can find the quotes here toward the bottom.

FOFOA

SatyaPranava said...

Hi S,

I'm curious for more clarification re: your take on the Netanyahu meeting. Why are you sure that he went to plead with Putin...and over Iran? Which red line did Iran cross?

You're dead on that israel pissed of russian vis-a-vis georgia and that was a big blunder (that I'm sure was done at the behest of the US/Nato alliance).

I need to state that 90%+ of Israel's geopolitics are "prescribed" by the US/UK, and somewhat by the Franco-Germanic-Vatican axis.

I have some excellent sources in Israel and they're not even sure why Netanyahu went to Russia.

US wants EVERY part of iran, it just hasn't been ready to issue the attack order to Israel, or to tell Israel it will back her, militarily, economicially, and politically. Israel, IMHO, will wait for that ok.

your big question, of why US intel right now is a great one. My opinions are very similar to RD Bradshaw who writes the goldsmiths article. His most recent is pretty accurate.

Syria doesn't have anything significant...they just don't play ball with the major western axes of power.

I believe that they are preparing the public for some big distraction (bigger than healthcare, swine flu, mexico, etc) to distract from the collapse of the dollar and to let gold/silver, etc soar. this way they can alter public perception when everyone realizes the wheels have already fallen off this imperial bus.

anyway, excellent thoughts, but i'm curious to know how certain (% wise) you are about some of your speculation(? assuming it is).

thanks!

Satya

S said...

Satya,

Just idle speculation. The Syria story came from former IAEA rep (US). Obama is losing the Dems on Afghan - which begs the question why is he upping the anti with greater troop deployments? That aside, the Israel/Net story is interesting only in regards to the mysterious ship - for which I read somewhere that the Mossad was responsible for intercepting - if the missile story is to be believed (S-300). The US by now must realize that Iran will get something off somewhere - with so much preparation and time. The "blowback via proxy" was always the concern with a lean forward Tehran strategy. But the Intel community has been persistently backing away from open declarations as if to keep pushing the timeline. Then there was a report a while back toward the end of the Bush admin that a falcon jet was diverted (with US generals onboard) to Tehran -- or were negotiations ongoing? The story was buried.

In short idle speculation - but the open suggestion that iran has crossed the line is an interesting change of direction for the US whatever it means.

Drudge reporting tonight US has thrown the towel in with North Korea for direct talks - tieing up a looose end perhaps?

SatyaPranava said...

Hey S. thanks for the clarification. My sources in israel are very confused on the matter and won't go on record with anything.

Since I've been predicting US intervention (possibly turning into US invasion) in Iran since about 12/2001, I still expecting it today. The timing and details of that move are always of an indeterminate nature.

with that said, Brzezinski is running the show now and is definitely more keen on taunting, intelligence, and other moves before outright attack.

but there was supposedly a false flag operation planned last year that led to the resignation of a top general (if my details are correct). the goal of that operation were to allow the bush administration to declare war and invade iran. isn't that how most of these things start?

anyway, the israel angle will be interesting. just as long as everyone keeps in mind that netanyahu is run by kissinger and the CFR here (according to kissinger's office nearly a decade age netanyahu has met with kissinger on every trip to the US). netanyahu is a US puppet (created and groomed by HW Bush and those guys) and will fall in line w/their positions (public or private). Israel's leaders however, have been that way for most, if not all, of her existence.

So, I disagree with Sinclair, though I have the utmost respect for him, that Israel will make a major miscalculation (I could very well be wrong and him correct, however). if the calculation is to be made, it might be israel taking on the calculation for the broader anglo-american interests. and their interests, are about to get very interesting. they may need all the "external enemies" they can get their hands on to divert public attention from the saucier stories (which will likely be buried).

anyway, thanks for the update, and speculation. i was just trying to understand where you were coming from if you had a good source that was outside the mainstream/main altern. media.

Satya

FOFOA said...

S,

Stick this in your Dutch translator. Just posted an hour and a half ago by our good friend here who goes by B.


Vandaag vertelt een Belgische diplomaat mij tijdens nen diner dat de Amerikaanse ambassades de raad kregen om een voorraad liquiditeiten aan te leggen in de munt van het land waar ze afgevaardigd zijn voldoende om het een jaarken te kunnen uitzingen. Men houdt dus sterk rekening met een crashende dollar. Ik had al zoiets gehoord maar het wordt nu bevestigd door een bron die zeer betrouwbaar is.

FOFOA

S said...

Very interesting...not surprising. The move by Obama for a speech and the comments this am by Stiglitz are very telling in and of themselves. Throw in the capitultion by ABX and one wonders if that dispruptive ebvent is creeping closer...

S said...

FOFOA,

What do youmake of Germany isusing $ denominated sovereign bonds...kind of a bullish call on Euro...dollar not so much.

FOFOA said...

Hi S,

Sorry I didn't see this one sooner.

Germany knows better than any other country the pitfalls of owing debt in a foreign currency. So they don't do this lightly. This is a play on the declining dollar for sure!

FOFOA

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