Tag Archives: Bank of England

Want to Smack Down the Criminal Global Banking Cartel?

Yeah, I believe there’s quite a few investors who would like to smack a couple of bankers after being deceived about their financial situation and the state of the economy in general. I do not encourage violence in any way, but would really like to see someone pull the pants of those big shots who think they’re just doing God’s work while the common tax payers are financing their private jets, limousines, 7 apartments and 14 beach houses. And the more sophisticated, the better. JS Kim at SmartKnowledgeU appears to have a plan.

“Sell the likely fraudulent SLV and GLD ETFs, cease participating in the fraudulent gold/silver futures markets, buy physical gold and silver, and buy gold/silver mining stocks.”  

JS Kim

In 1966, Alan Greenspan wrote an essay more than two decades before his sold his soul to bankers, that indicted the US Federal Reserve in as clear language as possible for the Great Depression that afflicted the world economies at the end of the 1920’s and through the 1930’s. Greenspan wrote that by bailing out the Bank of England‘s drastic devaluation of the pound, the US Federal Reserve “nearly destroyed the economies of the world,” JS Kim writes.

And he continues:

Though Greenspan’s words served as a strong indictment as possible of Central Bank failures to serve humanity and to only serve the greedy private interests that backed them, the whole world seemed to forget Greenspan’s words for the next 46-years.

Only today are people finally realizing the truth about Central Banks and the behemoth commercial banks that serve under them – that they have no interest in promoting price stability or full employment but only in transferring wealth from every single citizen of the world to themselves and the crony politicians that serve their interests.

Gold Related Assets (Source: World Gold Council)

Want to participate in smacking down the criminal global banking cartel? Here’s how to do it:

Sell the likely fraudulent SLV and GLD ETFs, cease participating in the fraudulent gold/silver futures markets, buy physical gold and silver, and buy gold/silver mining stocks.

The good news is(1) This is a simple strategy; and (2) Buy wisely, and you will likely build significant wealth while participating in this strategy.

The fraudulent immoral monetary system that bankers have imposed upon the world that steals money from savers and creditors and transfers wealth to governments, debtors and bankers can only be perpetuated by the price control mechanisms bankers have instituted for gold and silver.

Destroy these price control mechanisms and the fiat currency system will fail.And what happens if the fiat currency system fails?

We all have a chance to institute an honest and equitable monetary system that promotes price stability and sustainable growth instead of struggling under a dishonest one that destroys these desirable socio-economic qualities.

The ability of bankers to suppress the price of gold and silver (yes, even the price of $1,800 gold and $40 silver is severely suppressed) is based upon their ability to sell the perception that a much greater supply of silver and gold exists than actually does.

In fact, in this very newsletter, on April 27, despite all the PM media “experts” that tried to scare investors out of silver by claiming a silver bubble back then, we sent out an issue of this free newsletter titled “Silver is NOT a bubble” and then nearly called the exact bottom range of this silver correction for our paying members a couple of months ago.

Over the past six years, I have publicly blogged dozens of times regarding the mechanisms bankers use to accomplish the suppression of gold and silver prices, including most recently in my article, “Why Gold and Silver Prices Will More than Double Again Even from Current Prices.”

Smack That!

Current data provided by the CME regarding gold and silver futures contracts that trade on the COMEX reveal that about 100 times more paper gold ounces trade on this exchange every year than all the physical gold that exists in the world and some where around 160 times paper silver ounces trade every year than all the physical silver that exists in this world.

By expanding the supply of paper ounces of gold and paper ounces of silver at the same time that real physical supply of gold and silver are shrinking, the bankers have been able to suppress the price of gold and silver from reaching its true free market prices for decades.

The GLD and SLV very likely participate in this fraudulent scheme in helping to creating massive illusory supply of gold and silver that simply does not exist.

Thus if gold and silver are freed from the criminal global banking cartel’s scheme to suppress their prices, this will help all people in the world, even the Doubting Thomases, to recognize the fraud of our current fiat currency system.

Under our current monetary system, a businessman will never be able to receive the same value for the money he receives for any goods and services rendered unless he immediately spends all of said money.

The fact is,it is impossible for a businessman that holds fiat currency for services rendered for a duration of time any longer than a few months to then receive the equivalent value of that fiat currency when it was first received.

This fact about our current monetary system is a massive disincentive for any businessman anywhere in the world to work harder as the reward of additional nominal amounts of money can never be equivalent to the effort put forth.

Thus, our “modern” fiat currency system literally destroys any chance to achieve sustainable economic efficiency.

If a businessman works harder to earn 17.65%more money than last year, but that 17.65% boost in the nominal amount of money only enables him to purchase the exact same goods and services as last year due to an annual 15% inflation rate ($117,647 * 85% = $100,000), at some point and time, the destruction of efficiency that our fiat currency system imposes upon all businesses will inevitably lead to business contraction instead of sustainable business growth.

So how do we fight back against this unjust and immoral fiat monetary system created by Central Bankers?

Below are three simple steps we all can take. (1) Stop enabling banker fraud and realign your interests with the interests of humanity. Yes that means if you are long the GLD and SLV,or rollover long gold and silver futures contracts without ever takingphysical delivery, you are silently facilitating the banker war against humanity as you aid and a bet them in creating an illusory supply of gold and silver that simply does not exist. (2) Sell GLD and SLV shares and re-invest the proceeds of these sales into physical gold and physical silver and/or gold and silver miningshares. (3) Settle all long gold/silver futures contracts with physical delivery only and not in cash.

Gold stocks are a great value right now as you can see in the below chart. So are silver stocks as well. (Even though my Crisis Investment Opportunities newsletter has returned roughly a cumulative +220% over the past four years, since I believe gold/silver mining stocks to be the most highly undervalued asset class in the entire stock market now, I honestly believe that we will shatter those returns in the next four years.)

However, ever since introducing the GLD and SLV, bankers have successfully been able to steer money away from fundamentally solid gold and silver stocks into these likely fraudulent ETFs.

To see the above referenced chart and to read the rest of this article, click here.

Best investing,

JS Kim

Chief  Investment Strategist

SmartKnowledgeU

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The Week Ahead: Hold On To Your Hats!

When it comes to the global economy, it seems like the fun is just getting started: Regulators are now  calling for extra capital to be imposed on the largest banks, Bank for International Settlements urge economic growth to slow down in order to curb inflation, central bankers are screaming for rate hike and Greek deputy prime minister warns that rebels may block new economic reforms.

“You can’t ask for more taxes in an already overtaxed country, in a market that has been sucked dry, with economic activity at zero and a huge recession.”

Antonis Samaras

Yup! Just when you thought the Chinese was going to save the day, it turns out that it’s not that easy after all. No matter what the bureaucrats of Brussels asks for; the people of Greece may very well give them the middle finger. But that’s not all. The central bankers – who have declared the worst is over  every other week for two years – has suddenly discovered that it’s probably not.

Right now rather disturbing news reports are pouring in.

Here’s some of the headlines of the financial press at the moment:

FINANCIAL TIMES

REUTERS

AP

THE WALL STREET JOURNAL

  • French Banks Seek Greek Debt Rollover. French banks have proposed a plan to reinvest half the proceeds from maturing Greek governments bonds ahead of a meeting of key players, in efforts to encourage private investors to contribute to a new bailout for Greece.
  • Nokia, Siemens fail to secure investors. Nokia Corp and Siemens AG failed to secure a deal for investors for a controlling stake in their unprofitable joint venture.

DER SPIEGEL

THIS WEEKS NUMBERS

Well, I have a feeling we might get a surprise or two, also, during the week.

When it comes to the economic data, European investors will look closely at the PMI surveys, that will indicate whether global soft-patch continued into June.

Th week also sees a raft of data on inflation, the US housing market and consumer trends, plus business conditions in Japan.

Monday
A week in which market attention will remain firmly set on Greece starts with the publication of Italian wages data before attention shifts across the Atlantic to the US, where personal income and outlays numbers will be used to gauge the strength of the consumer sector.

 

 

 

 

Tuesday
Greece’s Parliament is scheduled to vote on its new package of austerity measures on Tuesday. The reforms are a requirement for the next tranche of the IMF/EU loans to be released in time for the funding of bonds in mid-July.
The day also features a number of key data releases, starting with Japanese retail sales numbers for May, Gfk consumer confidence in Germany, plus business confidence and producer price numbers for Italy.
In the UK, final gross domestic product (GDP) numbers for Q1 are released, as well as current account data. According to official estimates, the UK economy expanded at only a modest rate of 0.5% in the first quarter of 2011.
After cooling in May, German consumer price inflation is expected to quicken from an annual rate of 2.4% to 2.6%.
Weekly US Redbook store chain sales are published before the release of the S&P Case-Shiller home price index takes centre stage. The index of home prices in the nation’s largest cities fell below its April 2009 low towards the end of Q1, raising worries about a double-dip in house prices.

The US Conference Board publishes its June barometer of consumer sentiment. Confidence waned in May amid rising fuel and oil prices and concerns about the employment situation. This apprehension among consumers likely continued in June.

Wednesday
Preliminary industrial production numbers for Japan will be eagerly anticipated after trade data showed exports falling at a faster-than-expected rate.
French GDP data (final) for Q1 are released in advance of UK consumer credit, mortgage lending/applications and money supply numbers.
European Commission economic sentiment figures for June follow.
Weekly US mortgage applications data are released, as well as pending homes sales numbers, which plunged in April. However, there is evidence to suggest that temporary factors, such as bad weather, were behind the severity of the decline.

Thursday
The Gfk consumer confidence survey for the UK is published ahead of the Markit/JMMA Manufacturing PMI™ for June. The PMI™ pointed to renewed output growth in May, as easing supply chain pressures enabled firms to restart production lines.
Euro zone inflation comes under the spotlight with producer price data for France and the preliminary estimate of consumer price inflation for the single currency area as a whole. After dipping unexpectedly in May, a further easing in the rate of inflation will make a rate hike later in the year less likely. German unemployment numbers are also published for June.
The usual US weekly jobless claims date are accompanied by the Chicago PMI, which will be watched closely due to its good track record with the ISM manufacturing index, published Friday.

Markit’s release of Manufacturing PMIs for Asia follow, notably final data for China, where the flash HSBC PMI™ survey pointed to a stagnation of output and easing price pressures across the sector. HSBC PMI™ releases for South Korea and Taiwan will be monitored for trends in global trade flows.
The Markit Euro Zone Manufacturing PMI™ data follow last week’s flash estimate, which showed the region’s economic growth surge losing momentum at a worrying rate.
The publication of the Markit/CIPS UK Manufacturing PMI™ follows shortly after. May data signalled that manufacturing moved from rapid expansion to near-stagnation.
Italy publishes final GDP numbers for Q1 and jobs numbers before the unemployment rate for the euro zone is released.
The week ends in the US, where the University of Michigan consumer confidence index will shed light on consumer spending patterns. Construction spending numbers follow.

However, the ISM Manufacturing PMI will be the key release in the US; the headline index posted its lowest reading for 12-months in May, reflecting a marked slowdown in output and new order growth.

Friday
Friday starts with the release of unemployment, consumer price inflation and household spending numbers for Japan, plus the Bank of Japan’s quarterly survey of business conditions.

Now, hold on to your hats, and trade with attitude!

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EU’s New Watchdogs Warns of Crisis Being Far From Over

The European Union’s new economic super-watchdogs warns that “many risks” remain to the stability of the EU’s financial system and that the global crisis will last for many more years to come. Will someone please inform EU president Manuel Barroso?

“Reform of our financial system – both its structure and regulation – is essential if we are to avoid another crisis.”

Mervyn King

 

The two deputy chairs of the new European Systemic Risk Board (the bloc’s new Frankfurt-based supervisor of supervisors tasked with oversight of the financial system within the Union) gave a quite frank assessment of the state of capitalism in Europe in their first hearing before the European Parliament’s economics committee.

“There are still many risks to the recovery of the European economy,” says Mervyn King, the ESRB’s first vice-chair and head of the Bank of England.

“The economic challenges will last for many years … The financial crisis is very far from over and the impact will be felt for many years to come.”

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He and his fellow vice-chair, Andrea Enria, also the head of the European Banking Authority, says  that the eurozone’s sovereign debt crisis is not the only danger present, according to the EUobserver.com.

Enria also warns that systemic risk still lies outside regulated areas and that financial innovation is happening so rapidly these days that even in the case of appropriate regulation, capital is already able to pick up stakes and move on to another, unregulated area.

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Here’s the formal statement by Mr. Mervyn KIng:

Mrs. Bowles, and members of the Committee, let me thank you for the opportunity to appear before you and to make a brief opening statement.

The recent banking and financial crisis has had a devastating impact on the European economy. Total output is around 5-10% below where it would have been had output followed its pre-crisis trend. And the European banking system is still in need of further repair. Reform of our financial system – both its structure and regulation – is essential if we are to avoid another crisis.

An efficient and competitive financial sector is a crucial ingredient of a successful economy. But one of the main lessons of the crisis is that the balance sheet of the banking system expanded to the point where it became a source of fragility and led to greater volatility of the real economy. So one of the aims of the new European Systemic Risk Board (ESRB) is to look beyond individual institutions to the system as a whole.

The ESRB has taken some significant first steps. As you know, the General Board has already met twice this year and will meet again next month. A Steering Committee, on which I sit, has been established and is guiding the work to be presented to the General Board. To assist with that, the Advisory Technical Committee is up and running and the members of the Advisory Scientific Committee have been appointed.

Going forwards, the ESRB faces three main challenges.

First, to consider and make warnings and recommendations. There are still many risks to the recovery of the European economy. The sovereign debt crisis and the associated imbalances within the European economy, and the unsustainable patterns of demand resulting from very low long-term real interest rates, are among the most important. I am optimistic that the ESRB will not shy away from these problems, and I have been struck by the positive and determined commitment of so many senior policy-makers evident in the meetings to date.

Second, the range of policy instruments of the ESRB needs to be defined. Since the ESRB does not have binding powers, the analysis and arguments that it deploys must be of the highest standard if the principle of ‘comply or explain’ is to be effective. But it is important that the ESRB is not unduly constrained in its recommendations to national authorities. Take one example. Under the current proposed Capital Requirements Regulation maximum harmonisation would not only limit the countercyclical buffers that could be imposed, but would also limit the number of instruments at the ESRB’s disposal. In certain situations such a toolkit could be too weak or too restricted to prevent a build-up of excessive risk and leverage. It would be peculiar if one European body inadvertently prevented another from carrying out its remit.

Third, the ESRB will have to co-operate closely with the three European Supervisory Authorities, and my colleague Andrea Enria will say more on this.

Let me conclude by saying that, in my role as vice Chair of the ESRB, I am fully committed to assess the risks to EU financial stability and, more importantly, to act upon them. And I stand ready today to answer any questions you have about the work of the ESRB.

Link.

Introductory Statement by Andrea Enria.

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