By Robert M Cutler
MONTREAL - The financial sanctions against Iran signed into law by United States President Barack Obama 10 days ago are having deeper financial effects than previous measures and highlight the regime's domestic political weakness.
Senior US officials will seek to implement the sanctions without damaging the global economy. A speculative rise in the price of oil could not only damage the tepid global economic recovery but also benefit Teheran's revenues in the short term.
The sanctions package in effect gives non-US firms the choice between doing business with the Iranian or with the American financial sector. If its provisions were to be implemented fully, any foreign financial institution (including even foreign central banks)
that transacted or facilitated purchases of Iranian oil would also be at risk of penalty.
10 January 2012
SilverDoctors: SF Fed Head Williams: Fed May Need to Buy More Bon...
SilverDoctors: SF Fed Head Williams: Fed May Need to Buy More Bon...: Because China, Japan, and Europe sure ain't buyin em! QE will continue To INFINITY....AND BEYOND!!! The Federal Reserve Bank of San Franc...
CME to raise stake in Dubai Mercantile Exchange
Source: BI-ME with Bloomberg , Author: Posted by BI-ME staff
Posted: Tue January 10, 2012 12:09 pm
UAE. CME Group Inc. (CME), the world’s largest futures exchange owner, is set to increase its holding in the Dubai Mercantile Exchange, according to Ahmad Sharaf, Chairman of the Dubai-based oil bourse.
The DME plans to raise money by offering more shares to existing investors this year, Sharaf said while attending a conference in Abu Dhabi today. The current roster of shareholders, which includes CME, a Dubai investment fund and the state of Oman, will remain the same, with only the size of their stakes changing, he said.
“The CME wants to expand its presence in the DME,” Sharaf said. He declined to give details on the timing or the size of the capital increase.
CME offers clearing services for trades done on the DME and supports swaps and options contracts that are based on the Dubai exchange’s main Oman oil futures contract.
Threat to Hormuz shipping seen receding
Source: BI-ME with Bloomberg , Author: Posted by BI-ME staff
Posted: Tue January 10, 2012 12:22 pm
INTERNATIONAL. Iran is unlikely to shut down shipping through the Strait of Hormuz in response to Western sanctions targeting its oil exports, President Barack Obama’s former adviser on Iran said.
Oil prices fell yesterday as concern eased that Iran would attempt to impede shipping through the Strait, which accounts for about a fifth of the oil traded globally. The decline occurred even as tensions increased, with Iran announcing it has taken another step in its nuclear program and that it had sentenced to death a former U.S. soldier of Iranian descent accused of spying.
“Do I really think that they’re going to go ahead and try to shut down the Straits of Hormuz?” Dennis Ross, who served two years on the National Security Council as Obama’s special assistant on Iran, said yesterday in an interview at Bloomberg’s office in Washington. “I do not. They will be the ones who suffer the most from that.”
An Iranian newspaper January 8 cited a senior commander of the Revolutionary Guard Corps, Ali Ashraf Nouri, as saying Iran’s leadership has decided to prevent shipping through the Strait if Iran’s “enemies block the export of our oil,” according to the Associated Press.
Iran plans one-kiloton underground nuclear test in 2012
DEBKAfile Special Report January 10, 2012, 11:19 AM (GMT+02:00)
According to debkafile's Iranian sources, Tehran is preparing an underground test of a one-kiloton nuclear device during 2012, much like the test carried out by North Korea in 2006. Underground facilities are under construction in great secrecy behind the noise and fury raised by the start of advanced uranium enrichment at Iran's fortified, subterranean Fordo site near Qom.
All the sanctions imposed so far for halting Iran's progress toward a nuclear weapon have had the reverse effect, stimulating rather than cooling its eagerness to acquire a bomb.
Yet, according to a scenario prepared by the Institute for National Security Studies (INSS) at Tel Aviv University for the day after an Iranian nuclear weapons test, Israel was resigned to a nuclear Iran and the US would offer Israel a defense pact while urging Israel not to retaliate.
As quoted by the London Times Monday, Jan. 1, INSS experts, headed by Gen. (ret.) Giora Eiland, a former head of Israel's National Security Council, deduced from a simulation study they staged last week that. Their conclusion is that neither the US nor Israel will use force to stop Iran's first nuclear test which they predicted would take place in January 2013.
According to debkafile's Iranian sources, Tehran is preparing an underground test of a one-kiloton nuclear device during 2012, much like the test carried out by North Korea in 2006. Underground facilities are under construction in great secrecy behind the noise and fury raised by the start of advanced uranium enrichment at Iran's fortified, subterranean Fordo site near Qom.
All the sanctions imposed so far for halting Iran's progress toward a nuclear weapon have had the reverse effect, stimulating rather than cooling its eagerness to acquire a bomb.
Yet, according to a scenario prepared by the Institute for National Security Studies (INSS) at Tel Aviv University for the day after an Iranian nuclear weapons test, Israel was resigned to a nuclear Iran and the US would offer Israel a defense pact while urging Israel not to retaliate.
As quoted by the London Times Monday, Jan. 1, INSS experts, headed by Gen. (ret.) Giora Eiland, a former head of Israel's National Security Council, deduced from a simulation study they staged last week that. Their conclusion is that neither the US nor Israel will use force to stop Iran's first nuclear test which they predicted would take place in January 2013.
Euro-Gold makes impulsive move higher, Silver breaks US$30 per ounce
Source: BullionVault.com , Author: Adrian Ash
Posted: Tue January 10, 2012 3:48 pm
INTERNATIONAL. The wholesale London spot gold price touched a 3-week high against the US Dollar in London on Tuesday morning, trading just shy of US$1,640 an ounce as world stock markets and industrial commodities also rose.
Silver bullion prices jumped above US$30 per ounce, rising more than 4.5% from last week's close, as German government Bunds eased back but other Eurozone bond prices ticked higher, edging interest rates lower.
Ahead of Thursday's meeting of the European Central Bank – widely expected to cut interest rates across the 330 million-citizen currency zone below 1.00% – the Euro currency edged up to its highest level since Friday lunchtime at US$1.28, some 1¢ above Sunday night's 16-month low vs. the Dollar.
"Precious metals are benefiting from a broad-based buying across asset classes," says Marc Ground at Standard Bank.
Gold Confiscation, a Reality? Part 2
By: Julian D. W. Phillips | Tue, Jan 10, 2012
Currency Debasement and Price Stability Risks
Despite the small moves in exchange rates between the U.S. dollar and the euro, confidence and trust has been debased. Looking forward to 2012, we see that deflation is becoming a rising danger. After the decay in 2011 that has hammered confidence in the euro, the need to issue more and more 'new' money is growing. The Eurozone is moving into recession (if it is not already in one). The Eurozone is more than likely to lose one or more of its weaker members -this will be good for the euro itself though--so liquidity shortages may force more money supply growth already exceptionally high in many countries.
Despite the 40-year long campaign to prevent gold from returning to any active role in the developed world's monetary system, gold remains the only universally-accepted currency whose supply cannot be increased by policy-makers. The equivalent of money issuance for gold is new mine production, which has been on a relatively flat trend for the past ten years.
Currency Debasement and Price Stability Risks
Despite the small moves in exchange rates between the U.S. dollar and the euro, confidence and trust has been debased. Looking forward to 2012, we see that deflation is becoming a rising danger. After the decay in 2011 that has hammered confidence in the euro, the need to issue more and more 'new' money is growing. The Eurozone is moving into recession (if it is not already in one). The Eurozone is more than likely to lose one or more of its weaker members -this will be good for the euro itself though--so liquidity shortages may force more money supply growth already exceptionally high in many countries.
Despite the 40-year long campaign to prevent gold from returning to any active role in the developed world's monetary system, gold remains the only universally-accepted currency whose supply cannot be increased by policy-makers. The equivalent of money issuance for gold is new mine production, which has been on a relatively flat trend for the past ten years.
Why Silver For A Monetary Collapse? Part 2
By: Hubert Moolman | Tue, Jan 10, 2012
In part 1, I stated:
"We are at the edge of a major economic crisis. Our monetary system is the underlying cause of this major crisis. The massive debt bubble created by our monetary system is about to burst. The demonetization of gold and silver, has over the years diverted value from these metals, to all paper assets (such as bonds) linked to the debt-based monetary system.
The process of the devaluation of gold and silver, started by the demonetization of gold and silver, is about to reverse at a greater speed than ever before. This is similar to what happened during the late 70s, when the gold and silver price increased significantly. However, what happened in the 70's was just a prelude to this coming rally. The 70's was the end of a cycle, this is likely the end of a major cycle; an end of an era of the debt-based monetary system (dishonest money)."
What this debt-based monetary system has done, is to create what I call a "mirror-effect", whereby, silver (and gold) is pushed down in value, to a similar extent as to which paper assets such as general stocks are pushed up in value. This mirror-effect clearly shows up on the long-term charts of gold, silver and the Dow.
Here (in part 2), I would like to show how this "mirror effect" of silver versus the assets linked to the debt-based monetary system (general stocks in this case), shows up on the long-term charts.
In part 1, I stated:
"We are at the edge of a major economic crisis. Our monetary system is the underlying cause of this major crisis. The massive debt bubble created by our monetary system is about to burst. The demonetization of gold and silver, has over the years diverted value from these metals, to all paper assets (such as bonds) linked to the debt-based monetary system.
The process of the devaluation of gold and silver, started by the demonetization of gold and silver, is about to reverse at a greater speed than ever before. This is similar to what happened during the late 70s, when the gold and silver price increased significantly. However, what happened in the 70's was just a prelude to this coming rally. The 70's was the end of a cycle, this is likely the end of a major cycle; an end of an era of the debt-based monetary system (dishonest money)."
What this debt-based monetary system has done, is to create what I call a "mirror-effect", whereby, silver (and gold) is pushed down in value, to a similar extent as to which paper assets such as general stocks are pushed up in value. This mirror-effect clearly shows up on the long-term charts of gold, silver and the Dow.
Here (in part 2), I would like to show how this "mirror effect" of silver versus the assets linked to the debt-based monetary system (general stocks in this case), shows up on the long-term charts.
Gold Will Continue as Most Favored Investment
By Esther Tanquintic-Misa: Subscribe to Esther's RSS feed
January 9, 2012 10:24 PM EST
Although it has yet to regain its footing since its end-quarter 2011 jaw-dropping fall, gold will continue as the world's most favored investment pick to cushion oneself against the threat of global financial meltdown.
What's more, with its lowered trading price, investment appetite and intrigue is all the more pricked, pushing investors to buy the commodity.
Greece Bank Run Shows No Sign Of Stopping: Deposit Outflows Continue In November
The year is not over yet, and already Greece's banks have lost €36.7 billion of their deposit base in 2011, and a whopping €64.6 billion since the beginning of 2010, which is down from €233 billion to €173 billion in under two years.
Hungary Folds, Ready To Change Its Laws To Get European Bailout Money
If there is any one more vivid confirmation of Mayer Rothschild words "Let me issue and control a nation's money and I care not who writes the laws" then we have yet to find it. Today Hungary, which had "valiantly" defied Europe and the IMF in ignoring pressure to make its central bank more "malleable" finally folded, following a recent explosion in its bond yields, a surge in CDS to records, and a collapse in its currency.
Reversal of Fortune: Soros Said to Buy Gold Again Late Last Year
Friday, 06 Jan 2012 11:15 AM
By Forrest Jones
Legendary financier George Soros returned to buying gold in late 2011 after selling it earlier, and is due to reap the benefits later this year when Fed policies will likely weaken the dollar and send the precious metal climbing, Emerging Money reports.
In the first quarter of 2011, Soros Fund Management sold almost all its shares in the SPDR Gold Trust and the iShares Gold Trust exchange-traded funds, Bloomberg reports, citing SEC data.
Gold later fell in 2011 as the dollar resumed its safe-haven status on sentiment that the U.S. economy was set to improve and somewhat decouple itself from Europe's woes.
Read more: Reversal of Fortune: Soros Said to Buy Gold Again Late Last Year
Important: Can you afford to Retire? Shocking Poll Results
By Forrest Jones
Legendary financier George Soros returned to buying gold in late 2011 after selling it earlier, and is due to reap the benefits later this year when Fed policies will likely weaken the dollar and send the precious metal climbing, Emerging Money reports.
In the first quarter of 2011, Soros Fund Management sold almost all its shares in the SPDR Gold Trust and the iShares Gold Trust exchange-traded funds, Bloomberg reports, citing SEC data.
Gold later fell in 2011 as the dollar resumed its safe-haven status on sentiment that the U.S. economy was set to improve and somewhat decouple itself from Europe's woes.
Read more: Reversal of Fortune: Soros Said to Buy Gold Again Late Last Year
Important: Can you afford to Retire? Shocking Poll Results
'Gold may break records and hit $2000/oz in 2012'
NEW YORK (Commodity Online): The year 2012 will be a grand year for gold, positioning the precious metal for its 11th straight year of gains, said Hunter Wise Commodities, a precious metal wholesale dealer firm. Although Gold prices have fallen 16 percent since reaching a record $1,900 an ounce in September, financial analysts across the globe predict that prices will sky rocket in the year ahead.
Why silver has hit rock bottom
P. Radomski
The new year started off with a bang with precious metals out-shining the competition. Is this a harbinger of things to come? We think so and we are not alone. Forecasts for Gold for 2012 include a price per ounce of $2,200 by Morgan Stanley, $2,050 by UBS, and $2,000 by Barclays.
There are some issues hanging over the economy in 2012 that will determine if the upcoming year will also be a disappointment.
To see what is likely to happen in the precious metals market in the nearest future, let's begin the technical part with the analysis of Silver (charts courtesy by http://stockcharts.com.)
Summing up, the situation in silver appears to be very bullish at this time based on the long-term indicators. Overall, the situation appears to be quite bullish since long-term indicators carry more weight than short-term signals.
Source: sunshineprofits
The new year started off with a bang with precious metals out-shining the competition. Is this a harbinger of things to come? We think so and we are not alone. Forecasts for Gold for 2012 include a price per ounce of $2,200 by Morgan Stanley, $2,050 by UBS, and $2,000 by Barclays.
There are some issues hanging over the economy in 2012 that will determine if the upcoming year will also be a disappointment.
To see what is likely to happen in the precious metals market in the nearest future, let's begin the technical part with the analysis of Silver (charts courtesy by http://stockcharts.com.)
Summing up, the situation in silver appears to be very bullish at this time based on the long-term indicators. Overall, the situation appears to be quite bullish since long-term indicators carry more weight than short-term signals.
Source: sunshineprofits
People Want More Coins, That's A Good Sign For The Economy
by David Kestenbaum
All the instability in the global economy this year has been good for the United States Mint. People in search of a safe place to put their money have been buying gold and silver coins in record numbers.
"Precious metal coins were up $800 million dollars last year and that's approximately thirty some percent," says Richard Peterson, deputy director of the Mint.
All the instability in the global economy this year has been good for the United States Mint. People in search of a safe place to put their money have been buying gold and silver coins in record numbers.
"Precious metal coins were up $800 million dollars last year and that's approximately thirty some percent," says Richard Peterson, deputy director of the Mint.
SilverDoctors: 2012 Silver Eagle Sales Nearly 4 Million for 1st W...
SilverDoctors: 2012 Silver Eagle Sales Nearly 4 Million for 1st W...: SD reported last Tuesday that the US Mint sold 3.2 million Silver Eagles for the first business day of 2012 . While many of these sales wer...
SilverDoctors: Jim Sinclair: A Big Surprise Coming in Next 48 Hou...
SilverDoctors: Jim Sinclair: A Big Surprise Coming in Next 48 Hou...: Jim Sinclair tells Ellis Martin that a big surprise is coming in the next 48 hours. With gold and silver screaming through major resistance...
SilverDoctors: Gold in 2012 to Average $2,050/oz and Will Reach $...
SilverDoctors: Gold in 2012 to Average $2,050/oz and Will Reach $...: Gold has risen for the first time in three days. Asian stocks and the euro also gained today before German Chancellor Angela Merkel meets ...
SilverDoctors: Gold Climbs Above 200 DMA, Silver Rallies $1
SilverDoctors: Gold Climbs Above 200 DMA, Silver Rallies $1: Gold has rallied nearly $30 to $1641.70 this morning, strongly through and above its 200 day moving average, which currently sits near $1630...
SilverDoctors: LME To Introduce LMEswaps For Hedging Metals Again...
SilverDoctors: LME To Introduce LMEswaps For Hedging Metals Again...: The investment world must be catching on to the issues regarding the bullion inventory or alleged lack thereof in the GLD and SLV. The LME ...
SilverDoctors: PSLV Premium to Net Asset Value Passes 34%!
SilverDoctors: PSLV Premium to Net Asset Value Passes 34%!: PSLV's premium to net asset value (NAV) reached 34.22% Monday! This means that should a PSLV shareholder decide to redeem their shares fo...
SilverDoctors: Ranting Andy Interview With Financial Survival Net...
SilverDoctors: Ranting Andy Interview With Financial Survival Net...: The Financial Survival Network today interviewed "Ranting Andy" Hoffman. Ranting Andy understands the precious metals manipulation as well...
SilverDoctors: US Tensions Increasing with China
SilverDoctors: US Tensions Increasing with China: (Reuters) - China's Ministry of Defence warned the United States on Monday to be "careful in its words and actions" after announcing a d...
SilverDoctors: 1 Million Ounces of Silver Withdrawn From JPM & Sc...
SilverDoctors: 1 Million Ounces of Silver Withdrawn From JPM & Sc...: Massive inventory continued in COMEX Silver warehouses Friday, with a large adjustment into Delaware's registered vaults, and over one milli...
SilverDoctors: Gasparino: Break-Up of CME on the Table
SilverDoctors: Gasparino: Break-Up of CME on the Table: Charlie Gasparino of FOX Business states that sources have told him that " a break-up of the CME is on the table " over the lack of CME regu...
90% of Dutch Gold Reserve Is Held Abroad
By Jaco Schipper
Saturday, January 7, 2012
Thursday night Knot gave a live interview to the television program "Nieuwsuur" in which he announced that about 40 percent of Dutch pensioners will soon face reduced pensions. Knot also argued for mortgage tax reduction to address the excessive indebtedness of Dutch households, which is about 120 percent of gross national product. Perhaps most interesting, Knot allowed "Nieuwsuur" to film in the central bank's vault, where the Dutch audience saw what is not there.
Based on the footage shown on Thursday and additional images found at the central bank's Internet site, we had already calculated that there are some 4,500 gold bars located in the bank's vault. Our calculation showed that there are at least 56 tons of gold stored in Amsterdam, possibly more, we speculated, in the form of gold coins. We proved to be not far off, as Friday night the definitive answer was given by Knot himself.
In a follow-up by "Nieuwsuur" Friday night (see below), Knot disclosed that some 67 tons of Netherlands government gold, worth 3 billion euros, is kept in Amsterdam. Knot acknowledged on camera that this is only a small portion of the Dutch gold reserve. For practical reasons, he said, most of the 612.5 tons of official gold reserve is held abroad, so that "if the Dutch central bank wants to sell some of its gold, we don't have to ship it."
Saturday, January 7, 2012
Thursday night Knot gave a live interview to the television program "Nieuwsuur" in which he announced that about 40 percent of Dutch pensioners will soon face reduced pensions. Knot also argued for mortgage tax reduction to address the excessive indebtedness of Dutch households, which is about 120 percent of gross national product. Perhaps most interesting, Knot allowed "Nieuwsuur" to film in the central bank's vault, where the Dutch audience saw what is not there.
Based on the footage shown on Thursday and additional images found at the central bank's Internet site, we had already calculated that there are some 4,500 gold bars located in the bank's vault. Our calculation showed that there are at least 56 tons of gold stored in Amsterdam, possibly more, we speculated, in the form of gold coins. We proved to be not far off, as Friday night the definitive answer was given by Knot himself.
In a follow-up by "Nieuwsuur" Friday night (see below), Knot disclosed that some 67 tons of Netherlands government gold, worth 3 billion euros, is kept in Amsterdam. Knot acknowledged on camera that this is only a small portion of the Dutch gold reserve. For practical reasons, he said, most of the 612.5 tons of official gold reserve is held abroad, so that "if the Dutch central bank wants to sell some of its gold, we don't have to ship it."
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