Implode-Explode Heavy Industries news feed

Washington Signals Dollar Deep Concerns

Sun, 19 May 2013 14:06:42 GMT

Quantitative Easing is the term given to the Federal Reserve's policy of printing 1,000 billion new dollars annually in order to finance the US budget deficit by purchasing US Treasury bonds and to keep the prices high of debt-related derivatives on the "banks too big to fail" (BTBF) balance sheets by purchasing mortgage-backed derivatives. Without QE, interest rates would be much higher, and values on the banks' balance sheets would be much lower.
Quantitative Easing has been underway since December 2008. During these 54 months, the Federal Reserve has created several trillion new dollars with which the Fed has monetized the same amount of debt.

"Porky" (The Dollar Index) Charges Back

Sun, 19 May 2013 03:57:57 GMT

``Regardless of the long-term trend, a move toward 88 on the POSX is going to keep paper metal under some serious pressure. Brainless computers and money managers will only see the "rallying dollar" and use it as rationale to sell metal. What does this mean? In all likelihood, there's a pretty good chance I'm going to have to eat that hat after all. Ugh. Gold looks almost certain to retest the lows of April 15-16 near $1320.... depending upon where you measure it, gold would then be very close to a perfect, 38.2% retracement of its bull market.''

Germany Imposing a Glass-Steagall-Like Act with Teeth

Sun, 19 May 2013 03:54:56 GMT

``Germany is drawing a bright line between proprietary trading in banks and customer deposits. They are not merely separating the two, but they imposed criminal sentences for directors of banks and insurance companies if they fail to fulfill their supervisory duties in risk management or contravene an array of banking supervision.''

HKMEX to Cease Trading Monday -- Is it A "Soft Default"?

Sun, 19 May 2013 03:54:24 GMT

``We suspect that come Monday morning, more than one Chinese investor who believed he owned a gold position (and learns that in fact he held paper) will immediately attempt to source and take delivery of physical metal. As the Shanghai Gold Exchange appears to have stopped delivering gold as well, we suspect that the LBMA may be in for a bit of a physical run. ''

Gold Set Up For Major Bottom

Sat, 18 May 2013 13:57:17 GMT

``The weekly chart is ugly, but it too suggests that this could be a major bottom. The price has reached downtrending support. The 13 week rate of change is near the level where gold's price bottomed in 2008. In addition to the commercials and large and small specs, this chart shows that gold producers have reduced their short positions to the level reached at the 2008 bottom, and managed money has reduced its long position to the level of the 2008 bottom. All of these things point to a potential bottom here.''

Five Incredibly Important Gold & US Dollar Charts

Sat, 18 May 2013 04:16:40 GMT

``the trend low at $1,321 should be tested and we still believe a move down to the $1,260 can be seen before the market stabilizes. However, we continue to believe lower lows can be seen over the coming weeks. The large double-top pattern that formed throughout 2011-2012 suggests a more aggressive move down towards $1,260. '' -- While it may suck, so far these guys have been spot on.

Paper Gold, Metal Gold - When Worlds Diverge

Sat, 18 May 2013 04:12:10 GMT

`` I agree with David, that there will be a 'closing of the gap' between paper and reality once again, most likely triggered by some 'black swan event' that simply no one could see coming. Except those that the financiers have worked so hard to silence and discredit. ''

Doug Noland - Thoughts on the Electronic Printing Press

Sat, 18 May 2013 03:48:37 GMT

``The Fed and global bankers should never have become such active players in the financial markets. Asset inflation is indeed more dangerous than consumer price inflation. Central banks will actively support asset prices, while refusing to remove the punchbowl. At all costs, Chairman Bernanke will avoid being a Bubble Popper. And when you read his comments from Friday morning (below), keep in mind that as Bubbles become more systemic they actually become less conspicuous. Today, Bubbles proliferate throughout the securities and asset markets. It's all become one big historic global Bubble. Yet the Bernanke Fed won't even begin tapering its $85bn monthly "money printing" operation in the midst of increasingly conspicuous market excesses. ''

"This Catastrophic Monetary Situation Is Entering The Terminal Phase" - Embry

Sat, 18 May 2013 03:29:03 GMT

``... as I said earlier it will all resolve itself because there are enough people in this world that realize that the paper money system is in its terminal state. When that comes to an end, and I think it's going to be sooner rather than later, gold and silver will truly assert themselves. We're not talking about gains of 50%. We are talking multiples of the current gold and silver prices, and that includes the shares as well." ''

Winter Actionables | Positioning of the Paper Gold Comex Comittment of Traders

Sat, 18 May 2013 03:17:08 GMT

``Incredibly Soros in the 1Q got even more aggressive (too early) on gold shares, and was simply reallocating out of GLD into GDX and GDXJ. But that's not how the news stories read.''

"The World Paper Council"

Sat, 18 May 2013 03:09:55 GMT

... in response to the current, massive, gold supply-deficit to the gigantic Indian market... a series of articles came out in the mainstream media, where bankers proposed "solving" this gold supply-deficit by selling Indians lots more paper-gold. In other words, they were going to increase the supply of gold by selling paper-gold.
Obviously the only, possible way in which selling "paper-gold" can increase the total supply of gold is if the bankers are simply selling paper and calling it "gold." Given that bankers have a track-record of selling paper and calling it "gold" which literally traces back to the "money-changers" of a thousand years ago, this is hardly a revelation.

Evidence of Bubble In Stock Prices When Compared With Industrial Production

Sat, 18 May 2013 03:03:15 GMT

``Stock prices have broken out as industrial production has lagged. That suggests that stocks are in a bubble. As the Fed continues QE, I would expect both to move more or less together. If the lag in industrial production grows the bubble would increasing in size and growing more dangerous.''

European Finance Ministers Split on Way Forward for Banking Union

Fri, 17 May 2013 22:02:47 GMT

``European leaders had hoped to quickly finalize plans for an EU banking union to regulate bank bailouts and provide a roadmap for unwinding insolvent financial institutions. But with the German election looming, Berlin is wary of moving forward. The result could be a lengthy delay.''

Dax Future Triggers Stops, Goes Parablic, Launching Late Day Megaramp

Fri, 17 May 2013 20:11:20 GMT

``That is the Dax; This is the Dax on low-volume, mega levitation drugs, at 9pm on a Friday in Germany, when out of nowhere someone goes on a mega buying spree in the Dax futures, and sends global risk assets, and FX pairs, surging. Is Bernanke LBOing Germany? ''

CFTC's Gensler, Chilton's Positions May Not Be Renewed -- FIA's Lukken

Fri, 17 May 2013 18:17:34 GMT

``Positions held by Commodity Futures Trading Commission Chairman Gary Gensler and CFTC Commissioner Bart Chilton are up for renewal, but so far neither official has had their position renewed, which suggests new blood may come into the agency, said an futures industry official on Wednesday.'' -- Aww, darn (then again, maybe some worse sociopaths will end up getting in)...

Why Fund Managers May Be Right About the Fed

Thu, 16 May 2013 12:44:27 GMT

... what these investors are expressing should trouble all of us: they have almost no confidence in the Federal Reserve or the economics profession. And for good reason.
It's impressive that the Fed and many economists have successfully predicted the path of interest rates and inflation in the wake of the worst financial crisis in a generation. But neither the central bank nor academicians managed to predict or prevent the crisis in the first place. The failure dwarfs the accomplishment.

Japan - Green Light to Crush Yen

Wed, 15 May 2013 23:34:58 GMT

``As noted in the Wall Street Journal, "The G-20 communiqué offered a message that "countries can continue to devalue their currencies so long as they don't explicitly say they want to devalue their currencies. This contradiction between economic word and deed shows the degree to which policymakers have defaulted to easy money as the engine of growth.''

William Kaye - How A Criminal Syndicate Of Banks Is Raping The Gold Market

Wed, 15 May 2013 13:16:00 GMT

``What they (then) do is the bullion banks sell the physical gold, which they acquired at a very attractive price, at a profit in Asian (trading) time. So there are two sources of profit: One is the arbitrage profit, which occurs in New York time, and the second is the profit off of the discounted, manipulated physical price that they receive for selling at a higher level in Asia.''

von Greyerz - The Move To Global Hyperinflation Is Now Accelerating

Wed, 15 May 2013 13:12:01 GMT

I'm looking at the disconnect in the world and it's becoming more exacerbated. Let's look at some examples: Stock markets worldwide are booming, but these booming markets have nothing to do with economic prospects. Prospects in the world are worse than ever, and this includes the US, Europe, Japan and China. None of these countries have a booming economy. What they have is massive debt and accelerating deficits.
... what we are seeing here with the booming stock markets and weak currencies is a clear sign of the hyperinflation that is guaranteed to come. The booming stock market is the first sign of hyperinflation. That is always the case.

As a the currency continues to fall, inflation in the economy will only increase. So starts the vicious circle of falling bond prices and currencies, leading to a hyperinflationary depression. It looks like Japan will be the first to encounter this, but many will follow.

Indisputable Proof Paper Gold Markets are Massively Manipulated

Wed, 15 May 2013 02:54:48 GMT

``... on two occasions last week, I predicted nearly the exact declines in gold price and predicted the exact days when the price declines would happen, and on a third day, came within $10 of the zone in which gold declined, all based on actions that I saw the Central Banks and their puppet bullion banks taking on previous days. Obviously in a free market, making such predictions with such accuracy would literally be impossible.''