Iran has embarked on "activities related to possible weaponization," said American sources Thursday, Dec. 22, thereby accounting for the dramatic reversal of the Obama administration's wait-and-see attitude on attacking Iran. The change was articulated this week by US Defense Secretary Leon Panetta and Chairman of the Joint US Chiefs of Staff Gen. Martin Dempsey.
debkafile's Washington sources report that the Islamic Republic crossed the red line President Barack Obama had set for the United States, i.e., when Tehran begins using the technologies and fissile materials (enriched uranium) it has amassed for assembling a bomb or missile warheads. This marks the moment that Iran goes nuclear and only a short time remains before it has an operational nuclear weapon.
Washington has always claimed that when the order to build a weapon was given in Tehran, the United States would know about it within a short time.
The US stealth drone RQ-170 was sent into Iranian airspace for the first time to find evidence to support this suspicion. On Dec. 4 the Iranians downed the unmanned reconnaissance craft by intelligence or cyber means not yet fully clarified. The US - and most probably Israel too - then turned to other intelligence resources to find out what Iran was up to. According to debkafile's military and intelligence sources, they found evidence that Iran has in fact begun putting together components of a nuclear bomb or warhead.
22 December 2011
The Bearish Gold Predictions Forget One Important Market Reality
by Jim Sinclair:
Dear Extended Family,
There is a certain extremely important market reality that must be kept in mind as you listen to all the bearish gold predictions.
What is good for the dollar is bad for gold.
This is wrong because it depend what dollar related factors are giving a positive dollar price action.
If the good for the dollar was strong US economic activity, sound balance sheets in the US financial industry and a US consumer ready and credit able to expand, the answer would be yes if these activities were for the long term
That strong dollar would not be good for gold.
However there is only one dollar positive out there. That is the largest currency market on the planet is the dollar vs. euro market in which the so called vigilantes (International Investment Banks) are shorting the euro to infinity. That downward pressure on the euro creates a mirror image of dollar strength but give that strength no greater legs than the euro problem posses.
Dear Extended Family,
There is a certain extremely important market reality that must be kept in mind as you listen to all the bearish gold predictions.
What is good for the dollar is bad for gold.
This is wrong because it depend what dollar related factors are giving a positive dollar price action.
If the good for the dollar was strong US economic activity, sound balance sheets in the US financial industry and a US consumer ready and credit able to expand, the answer would be yes if these activities were for the long term
That strong dollar would not be good for gold.
However there is only one dollar positive out there. That is the largest currency market on the planet is the dollar vs. euro market in which the so called vigilantes (International Investment Banks) are shorting the euro to infinity. That downward pressure on the euro creates a mirror image of dollar strength but give that strength no greater legs than the euro problem posses.
Banks on 2012 Gold Price?
By: Ian Campbell
So, do you want to know what some big banks think the price of physical gold will be in 2012? Here are three views that all were expressed in yesterday's early hours: (1) Barclays Capital - U.S.$2,000 average, (2) Goldman Sachs - U.S.$1,810 average, and (3) UBS - U.S.$2,050 average.
As you know if you read these e-mails, I believe that any forecast of the physical gold price is a forecast on the world macro-economic and political condition at a given point in time. Accordingly, as I reflect on the current gold price and these three 2012 price estimates - which for all intents and purposes are broadly in the same 'ballpark' - I have reached the following views with respect to them:
So, do you want to know what some big banks think the price of physical gold will be in 2012? Here are three views that all were expressed in yesterday's early hours: (1) Barclays Capital - U.S.$2,000 average, (2) Goldman Sachs - U.S.$1,810 average, and (3) UBS - U.S.$2,050 average.
As you know if you read these e-mails, I believe that any forecast of the physical gold price is a forecast on the world macro-economic and political condition at a given point in time. Accordingly, as I reflect on the current gold price and these three 2012 price estimates - which for all intents and purposes are broadly in the same 'ballpark' - I have reached the following views with respect to them:
Sprott's Call for Silver Producers to Hold Back Metal Strikes Chord
The Gold Report and Eric Sprott
On November 30, Eric Sprott, chairman of Sprott Inc. and one of the largest holders of physical silver and silver equities globally, issued a call to action to 17 of the world's largest silver producers to limit the sale of the metal until prices increase. In this Gold Report exclusive, we asked the activist investor and insiders what impact such a declaration could make in one of the most volatile subsets of the resource sector.
In an open letter to silver producers at the end of November, Sprott Inc. Chairman Eric Sprott cited an overleveraged banking system, weakening dollar and increasing demand as reasons to hold profits in silver rather than selling all production and putting the proceeds in the bank. "Given the current environment, we see much greater risk holding cash in a bank than we do in holding precious metals," Sprott said.
Interviewed mid-December Sprott, who is a major investor in physical and silver equities, explained why he wrote his letter. "I have always liked silver because I look at the physical supply and demand metrics and they scream that silver should be higher. But the price is being kept down by paper silver traders who are abusing the market."
As proof, Sprott pointed to the day last April when silver hit $50 an ounce (oz) and then immediately dropped $6/oz in 13 minutes when almost none of the markets were open. "A billion ounces of paper silver traded that day. The mining industry only produces about 700 million ounces (Moz) a year. The major financial institutions, which had been shorting silver for a long time, refused to let silver break $50/oz so they manipulated the market to keep a lid on it," Sprott charged.
"That is why I think the physical silver producers, the miners, need to be more active participants in the market," Sprott explained. "When silver is produced for less than $15/oz and sold for $30/oz, theoretically the producer is making $15/oz. I believe it is irresponsible for companies to leave that money in the bank where it is vulnerable. It is too risky. Producers have to find something to invest in and the obvious choices are gold and silver. It seems very logical to me that silver producers should invest in silver as a monetary metal."
"I'm not trying to create a Hunt Brothers type situation," he said, referring to when Nelson and William Hunt tried to corner the silver market in the late 1970s by buying as much as a third of the world's supply, driving the price up to almost $50/oz before the market crashed on Silver Thursday. "I'm just trying to create a fair playing field. Producers should take their future into their own hands," he said.
To those who compare his call for silver producers to act in concert to the methods of an oil cartel, Sprott said he agreed with the business model. "OPEC [Organization of the Petroleum Exporting Countries] was right that the price of oil was ridiculously cheap. Coming together to control supply was probably one of the more responsible things oil producers did. They were being disadvantaged and they took appropriate action. I think that's what the silver industry should do," he said.
On November 30, Eric Sprott, chairman of Sprott Inc. and one of the largest holders of physical silver and silver equities globally, issued a call to action to 17 of the world's largest silver producers to limit the sale of the metal until prices increase. In this Gold Report exclusive, we asked the activist investor and insiders what impact such a declaration could make in one of the most volatile subsets of the resource sector.
In an open letter to silver producers at the end of November, Sprott Inc. Chairman Eric Sprott cited an overleveraged banking system, weakening dollar and increasing demand as reasons to hold profits in silver rather than selling all production and putting the proceeds in the bank. "Given the current environment, we see much greater risk holding cash in a bank than we do in holding precious metals," Sprott said.
Interviewed mid-December Sprott, who is a major investor in physical and silver equities, explained why he wrote his letter. "I have always liked silver because I look at the physical supply and demand metrics and they scream that silver should be higher. But the price is being kept down by paper silver traders who are abusing the market."
As proof, Sprott pointed to the day last April when silver hit $50 an ounce (oz) and then immediately dropped $6/oz in 13 minutes when almost none of the markets were open. "A billion ounces of paper silver traded that day. The mining industry only produces about 700 million ounces (Moz) a year. The major financial institutions, which had been shorting silver for a long time, refused to let silver break $50/oz so they manipulated the market to keep a lid on it," Sprott charged.
"That is why I think the physical silver producers, the miners, need to be more active participants in the market," Sprott explained. "When silver is produced for less than $15/oz and sold for $30/oz, theoretically the producer is making $15/oz. I believe it is irresponsible for companies to leave that money in the bank where it is vulnerable. It is too risky. Producers have to find something to invest in and the obvious choices are gold and silver. It seems very logical to me that silver producers should invest in silver as a monetary metal."
"I'm not trying to create a Hunt Brothers type situation," he said, referring to when Nelson and William Hunt tried to corner the silver market in the late 1970s by buying as much as a third of the world's supply, driving the price up to almost $50/oz before the market crashed on Silver Thursday. "I'm just trying to create a fair playing field. Producers should take their future into their own hands," he said.
To those who compare his call for silver producers to act in concert to the methods of an oil cartel, Sprott said he agreed with the business model. "OPEC [Organization of the Petroleum Exporting Countries] was right that the price of oil was ridiculously cheap. Coming together to control supply was probably one of the more responsible things oil producers did. They were being disadvantaged and they took appropriate action. I think that's what the silver industry should do," he said.
Paper and Physical Gold Price Divergence, COMEX On The March To Irrelevance
By: Jim_Willie_CB
Divergence between paper gold and physical gold price is happening, the process begun. Actual physical shortages have kept the price up. The naked shorting of futures has kept the paper price down. The fraud cases and lawsuits, with no hint of prosecution, provide the levered force to create much wider divergence, as traders and entire firms depart the tainted crime scene that is the COMEX. Trust has vanished along with private accounts. At the center of the backdrop for the divergence, apart from the criminal events, is the economic deterioration and asset market downdraft. It leads to margin calls, loan payment obligations, fading investor confidence, negative sentiment, and a desire to avoid loss. Hence the huge liquidity concerns, selling of good assets that command a strong price, and central bank encouragement of gold sales even with lease. These forces conspire to push down the gold futures price from the discovery process, called the paper gold price. These forces, although real, are exaggerated by the Syndicate to explain all. On the other side is the desperation among central bankers to cover debt securities up for sale or rollover funding. They resort to utter hyper inflation by monetizing the many types of government bonds. They are obligated to aid their banker cohorts, and thus purchase truckloads of badly impaired sovereign bonds and other collateralized bonds. Over time these sovereign bonds have proved toxic.
The compelling need to stimulate economies, to redeem toxic bonds, and to recapitalize and nationalize the big banks adds to the monetary inflation outcome. Therefore, two sides are in opposition in a battle to the death of one or the other. No middle ground can be achieved, not any longer. It is the quintessential battle between monetary hyper inflation and restoring bank system integrity to avert collapse. The insolvency has recently met illiquidity. The battle features strong forces on each side. The divergence between physical and paper gold price is widening.
Divergence between paper gold and physical gold price is happening, the process begun. Actual physical shortages have kept the price up. The naked shorting of futures has kept the paper price down. The fraud cases and lawsuits, with no hint of prosecution, provide the levered force to create much wider divergence, as traders and entire firms depart the tainted crime scene that is the COMEX. Trust has vanished along with private accounts. At the center of the backdrop for the divergence, apart from the criminal events, is the economic deterioration and asset market downdraft. It leads to margin calls, loan payment obligations, fading investor confidence, negative sentiment, and a desire to avoid loss. Hence the huge liquidity concerns, selling of good assets that command a strong price, and central bank encouragement of gold sales even with lease. These forces conspire to push down the gold futures price from the discovery process, called the paper gold price. These forces, although real, are exaggerated by the Syndicate to explain all. On the other side is the desperation among central bankers to cover debt securities up for sale or rollover funding. They resort to utter hyper inflation by monetizing the many types of government bonds. They are obligated to aid their banker cohorts, and thus purchase truckloads of badly impaired sovereign bonds and other collateralized bonds. Over time these sovereign bonds have proved toxic.
The compelling need to stimulate economies, to redeem toxic bonds, and to recapitalize and nationalize the big banks adds to the monetary inflation outcome. Therefore, two sides are in opposition in a battle to the death of one or the other. No middle ground can be achieved, not any longer. It is the quintessential battle between monetary hyper inflation and restoring bank system integrity to avert collapse. The insolvency has recently met illiquidity. The battle features strong forces on each side. The divergence between physical and paper gold price is widening.The incurable speculator junkies committed to the addictive leveraged game rigged by the Forces of Evil seem stuck at the casino tables, where fingers are lost, finally entire hands and arms. If their practice was to purchase physical, they could benefit from the paper price swoon, and join the Forces of Good team, rather than fighting the evil side on their dominated turf. To be sure, many aware analysts in the news maintain a small gold position in COMEX that is rolled over constantly. Many have physical positions but keep with the paper trades as a hobby, better described as an addition to the juice. Leverage cuts both ways. Their continued activity has left them exposed to theft, while knowing the criminality was widespread within the arena. So many players and firms are departing the arena altogether like Ann Barnhardt of BCM Capital. The divergence between physical and paper gold price is widening.
ECB Stealth QE Euro 489 Billion Money Printing to Prevent Eurozone Banking System Collapse
By: Nadeem_Walayat
The ECB's first ever long term Refinancing Operation (LTRO) that had been estimated to provide upto Euro 350 billion to Europe's bankrupt banks in the form of cheap 1% 3 year loans, instead a huge Euro 489 billion was borrowed by 523 banks in a rush to grab cheap money that amounts to QE in all but name regardless of ECB propaganda.
The ECB's stealth QE objective was first to prevent the insolvent euro-zone banks from collapsing over the next few weeks as they were unable to refinance their short-term maturing debts as well as a run on the banks in progress in the euro-zone, and secondly (directly related) to encourage the banks to buy sovereign debt of bankrupting euro-zone countries because the ECB is not allowed to buy sovereign debts. Today's actions of giving cheap money to the banks (1% per year interest rate) achieves both objectives as the banks took the money to use it to cover short-term maturing debt as well as buy a load of PIIGS debt, and thus are buying time (a couple of months at best) and so greatly diminishes the risks for what was looking like a near imminent collapse of the euro-zone (regardless of whether the trigger was a bankrupt Sovereign or large bank as both ).
Let me again explain more precisely what happened today: The ECB is not allowed to buy PIIGS government bonds, so ECB lends banks Euro 489 billion at 1% that put up PIIGS debt as collateral (which means they cannot sell it), so that they hopefully go and buy more PIIGS debt that pay 5%+, this is exactly the same objective of UK and US Q.E. to monetize their own debt. Though it has the same flaws in that they cannot tell the banks what to do with the money (but governments do bully their banks) so probably less than 1/3rd will be used to buy non german sovereign debt.
The ECB's first ever long term Refinancing Operation (LTRO) that had been estimated to provide upto Euro 350 billion to Europe's bankrupt banks in the form of cheap 1% 3 year loans, instead a huge Euro 489 billion was borrowed by 523 banks in a rush to grab cheap money that amounts to QE in all but name regardless of ECB propaganda.
The ECB's stealth QE objective was first to prevent the insolvent euro-zone banks from collapsing over the next few weeks as they were unable to refinance their short-term maturing debts as well as a run on the banks in progress in the euro-zone, and secondly (directly related) to encourage the banks to buy sovereign debt of bankrupting euro-zone countries because the ECB is not allowed to buy sovereign debts. Today's actions of giving cheap money to the banks (1% per year interest rate) achieves both objectives as the banks took the money to use it to cover short-term maturing debt as well as buy a load of PIIGS debt, and thus are buying time (a couple of months at best) and so greatly diminishes the risks for what was looking like a near imminent collapse of the euro-zone (regardless of whether the trigger was a bankrupt Sovereign or large bank as both ).
Let me again explain more precisely what happened today: The ECB is not allowed to buy PIIGS government bonds, so ECB lends banks Euro 489 billion at 1% that put up PIIGS debt as collateral (which means they cannot sell it), so that they hopefully go and buy more PIIGS debt that pay 5%+, this is exactly the same objective of UK and US Q.E. to monetize their own debt. Though it has the same flaws in that they cannot tell the banks what to do with the money (but governments do bully their banks) so probably less than 1/3rd will be used to buy non german sovereign debt.
SilverDoctors: QE Under Disguise
SilverDoctors: QE Under Disguise: How long does a long-term refinancing operation (LTRO) have to be to become quantitative easing (QE)?
SilverDoctors: US Debt to GDP Passes 100%
SilverDoctors: US Debt to GDP Passes 100%: Is it a mere coincidence that the official public US debt to GDP has passed 100% on one of the Illuminati's favorite 'holy' days of the year...
COMEX: The March to Irrelevance
COMEX: The March to Irrelevance
The incurable speculator junkies committed to the addictive leveraged game rigged by the Forces of Evil seem stuck at the casino tables, where fingers are lost, finally entire hands and arms. If their practice was to purchase physical, they could benefit from the paper price swoon, and join the Forces of Good team, rather than fighting the evil side on their dominated turf. To be sure, many aware analysts in the news maintain a small gold position in COMEX that is rolled over constantly. Many have physical positions but keep with the paper trades as a hobby, better described as an addition to the juice. Leverage cuts both ways. Their continued activity has left them exposed to theft, while knowing the criminality was widespread within the arena. So many players and firms are departing the arena altogether like Ann Barnhardt of BCM Capital. The divergence between physical and paper gold price is widening.
Divergence between paper gold and physical gold price is happening, the process begun. Actual physical shortages have kept the price up. The naked shorting of futures has kept the paper price down. The fraud cases and lawsuits, with no hint of prosecution, provide the levered force to create much wider divergence, as traders and entire firms depart the tainted crime scene that is the COMEX. Trust has vanished along with private accounts. At the center of the backdrop for the divergence, apart from the criminal events, is the economic deterioration and asset market downdraft. It leads to margin calls, loan payment obligations, fading investor confidence, negative sentiment, and a desire to avoid loss. Hence the huge liquidity concerns, selling of good assets that command a strong price, and central bank encouragement of gold sales even with lease. These forces conspire to push down the gold futures price from the discovery process, called the paper gold price. These forces, although real, are exaggerated by the Syndicate to explain all. On the other side is the desperation among central bankers to cover debt securities up for sale or rollover funding. They resort to utter hyper inflation by monetizing the many types of government bonds. They are obligated to aid their banker cohorts, and thus purchase truckloads of badly impaired sovereign bonds and other collateralized bonds. Over time these sovereign bonds have proved toxic. The compelling need to stimulate economies, to redeem toxic bonds, and to recapitalize and nationalize the big banks adds to the monetary inflation outcome. Therefore, two sides are in opposition in a battle to the death of one or the other. No middle ground can be achieved, not any longer. It is the quintessential battle between monetary hyper inflation and restoring bank system integrity to avert collapse. The insolvency has recently met illiquidity. The battle features strong forces on each side. The divergence between physical and paper gold price is widening.
Over 20 million oz of silver does not exist in SLV vaults, trader reveals manipulation tactics
NEW YORK (Commodity Online): That Silver is the most manipulated commodity in the world is an argument few precious metals traders could honestly contradict. And SLV, the Ishares Silver Trust ETF, is in deep trouble for not backing up its shares with physical silver...one trader reveals.
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