Haystack November 2011

English language haystack
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Indiana Jones
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Re: Haystack November 2011

Post by Indiana Jones »

My Dear Extended Family:

Gold is headed into the $2000s. The mess in Europe is incurable and can only be damage controlled by QE.

MF Global got busted because credit default swaps did not work. MF Global had their Greek and Euro bond position covered by credit default swaps that they thought would protect them. SURPRISE!

They did not work because the Greek situation of a 50% haircut was given another name than "default" by a select group of Banksters and related parties.

97% of all credit default swaps written are carried by the major US banks. That means 97% of all the credit default swaps are the US usual Bankster suspects that swore to be more conservative in their ways.

If the Greek referendum is determined to represent a Greek default, major US banks will return to public insolvency and be bailed out yet another time because of the fraudulent nature OTC derivatives.

You think that game was rigged? China is coming to the rescue of no one. China specializes in picking up the pieces from troubled areas, not being troubled by troubled areas.

After Europe comes the US as media has been successful in keeping the focus of the problems off the US dollar. The only problem with gold shares is the hedge fund wild men and women that will in the end fail to stop the super bull market that is sure to come.

What is good for gold (QE) is also good for general equities so be careful on those that see doom everywhere.

Playing any one currency today is hard. Better hold a spread and seek to maintain buying power only. Competitive forced devaluation is the tool of strong currencies making it hard for exports in that currency. This is another example of making the Western world economic problems worse by curing the strong currency using liquidity to weaken it.

What today's economic managers don't know is Titanic in nature. There is no practical solution to the economic problems of today making gold in all forms desirable long term.

Regards,
Jim Sinclair
Everything that needs to be said has already been said.
But since no one was listening, everything must be said again.
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Rasta
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Re: Haystack November 2011

Post by Rasta »

Wallstreet Journal: Some 15% of U.S. Uses Food Stamps

Mississippi reported the largest share of its population relying on food stamps, more than 21%. One in five residents in New Mexico, Tennessee, Oregon and Louisiana also were food stamp recipients.

I wonder, is it that bad in Greece?
Eventually there will be an awakening, a balancing of the scales and a bill to be paid, and for that I hold gold - Jim Sinclair
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Rasta
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Martin Armstrong

Post by Rasta »

The European Model has Failed
Now What's Goin On
A Crisis in Democracy
Image
Europe now faces potential breakup, and this will lead to trade disputed and kicking now “foreigners” from other member out of their states as unemployment rises. It is exceedingly unlikely that Europe will survive in its current form. From the outset I warned it would be the debt that would tear Europe apart. To tie together 17 countries with such a widely different landscape of economies all for this idea of wrapping them around a single currency to achieve the larger than US economy and a single national identity, has proven to be not the dream but the nightmare. It is a shame, for Europe could have worked had the politicians gotten out of the way.
The political union will break - that is for sure.
Eventually there will be an awakening, a balancing of the scales and a bill to be paid, and for that I hold gold - Jim Sinclair
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Rasta
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Re: Haystack November 2011

Post by Rasta »

Some things are just not what they appear. Some people just don't see things as they are.

Overzealous cleaner ruins £690,000 artwork that she thought was dirty
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Eventually there will be an awakening, a balancing of the scales and a bill to be paid, and for that I hold gold - Jim Sinclair
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Indiana Jones
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Re: Martin Armstrong

Post by Indiana Jones »

Rasta wrote:The European Model has Failed
Now What's Goin On
A Crisis in Democracy
Europe now faces potential breakup, and this will lead to trade disputed and kicking now “foreigners” from other member out of their states as unemployment rises. It is exceedingly unlikely that Europe will survive in its current form. From the outset I warned it would be the debt that would tear Europe apart. To tie together 17 countries with such a widely different landscape of economies all for this idea of wrapping them around a single currency to achieve the larger than US economy and a single national identity, has proven to be not the dream but the nightmare. It is a shame, for Europe could have worked had the politicians gotten out of the way.
The political union will break - that is for sure.
Any idea what happens the day after , because everything is possible ..... even worst case scenario/s

Image
Everything that needs to be said has already been said.
But since no one was listening, everything must be said again.
bailouts4ever
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Re: Haystack November 2011

Post by bailouts4ever »

It is interesting to see that at the G20 summit there seem to have been talks about how the German Bundesbank gold can be used as a collateral within the EFSF in order to push the striking power by another 15 billion Euro.

http://www.faz.net/aktuell/wirtschaft/e ... 18707.html
http://www.handelsblatt.com/politik/int ... 03324.html

This raises quite a few questions:

1) Are these reports a joke or reality?

2) How grim must the situation look like if the 440 billion construction has to be boosted by 3.4 percent (15 billion) with the help of German gold reserves?

3) For what reason is there talk about German but not French, Italian, Spanish or Greek gold?

4) Will that really help to stabilize European solidarity?
0.00 € is what your account statement will show on a long enough timeline.
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Boefke
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@Bailouts 4 ever.

Post by Boefke »

Thank you for your nice articles!

What you say about the 3.4% part of the ESFS was the first thing on my mind also. So in this context it simply wouldn't make sense. As 440 billion isn't enough, would 455 billion be it?

Unless......UNLESS!! Unless this gold is valued at the interbank value! As the Chinese and other BRIC-country's demand not only digits but real collateral...... gold!.

This is IMO, if it's true (and I really doubt it) a game changer. Why is this barbaric relic involved again? Tradition again? Now way.........

They know the value in many, many thousands....

But a snip tells the following:
Handelsblatt-Informationen zufolge wurden die Berichte jedoch von Seiten der deutschen Cannes-Delegation bereits aufs Schärfste dementiert. Ein solches Vorhaben sei zu keinem Zeitpunkt Thema gewesen und werde auch keins werden, hieß aus Kreisen der Delegation.

That's clear isn't it? Don't know this papers, but if it was stated in der Spiegel it would be different to me.

Don't hesitate to post more German articles, as they are very often very interesting.....as your country knows the value of things other than other country's in th EU.
bailouts4ever
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Re: Haystack November 2011

Post by bailouts4ever »

Good evening everyone,

See, that's the point. I've expected that everybody says: "Has never been a topic". Yet, it is all across a variety of channels. If we all have learned one thing in the past: Where there is smoke, there is fire!
0.00 € is what your account statement will show on a long enough timeline.
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Boefke
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Re: Haystack November 2011

Post by Boefke »

http://www.zerohedge.com/news/cme-issue ... -aftermath

All brakes are gone now......drying liquidity, margins lowered for an open period of time, MF could be that game-changer.

Is this really the end game for our current monetary system?
bailouts4ever
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Re: Haystack November 2011

Post by bailouts4ever »

Yes, all brakes are gone. But yesterday I heard a bunch of "experts" say that with the CME "raising" the margins prices would drop next week. What was misunderstood though is that CME unexpectedly lowered the margins...

So what are the implications for this move? If we try to develop a scenario my best guess is that lowered margins work like a fire starter. Lowered margins will attract more liquidity, allow investors to turn a bigger wheel and thus lead to a higher risk of failure. But where else should all the funny money go?

Why though should that end our current monetary system? This move was intended to prolong it. More of the same is the game!
0.00 € is what your account statement will show on a long enough timeline.
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