LIR – E-F-G Prelude To …?

Baltic Dry Index. 924 +12 

LIR Gold Target by 2019: $30,000.  Revised due to QE programs.

"The gold standard makes the money's purchasing power independent of the changing, ambitions and doctrines of political parties and pressure groups. This is not a defect of the gold standard; it is its main excellence."

Ludwig von Mises

It is 4 pm UK time and voters in Egypt, France and Greece are still voting, though for what is an open question. Voters in Egypt and Greece have the ability to make for a very exciting Monday, with rioting or worse in both countries, though the final result in Egypt isn’t likely to be known before Thursday. The outcome in France, though potentially equally disastrous, is much more likely to be more of a slow motion car crash. 

With mainstream media well poised to cover all three in depth on Monday, and with continued limited access to broadband internet service at my new residence until later in the week, this market commentator will leave it to msm to cover developments on Monday. The next LIR update will be on Tuesday, when some of the dust and egos will hopefully have settled.  My own guess is that nothing will be settled in Egypt or Greece, only in France and there probably for the worse, old fashion bash the rich, socialist wealth envy.

Meanwhile a couple of appetisers. Stay long physical precious metals. Life is about to get a lot more complicated and exciting from here, it would seem.

"The paper standard is self-destructive."

Hans F. Sennholz

Greek election: Live

Athens Chamber of Commerce tells Germany to start putting Europe first, as Greek voters head to the polls.

Link

Exclusive: Secret EU summit document shows first step to banking union

A classified draft of next week’s EU summit conclusions is the first step on an emerging “roadmap” to a banking union, pooling debt via eurobonds and political union via EU treaty change over the next 10 years.

By Bruno Waterfield 12:03PM BST 17 Jun 2012

The “limite” text - published exclusively by The Daily Telegraph, is secret, restricted for the "eyes only" of diplomats and officials preparing for the 28 and 29 June European Council in Brussels.

Most of the text, the annexed “Compact for Growth and Jobs”, are deals on project bonds and other small scale EU initiatives that FranCois Hollande is trumpeting as a €120bn “growth pact”.

The first draft is relatively uncontroversial because the eurobond and "banking union" issues are currently all too sensitive to be committed to paper for officials.

Other so-called "non-papers" are circulating at a top secret level between national capitals and Brussels.

The difficult issues not included in the draft are the “p.m” items in the draft: “other financial stability measures” and “PEC report on EMU”.

Translated from the Brussels jargon, the PEC – president of the European Council – report will be Herman Van Rompuy’s preliminary text of the future of “Economic and Monetary Union”. This will be circulated in sealed envelopes next week.

The separate text will set out a “roadmap” to a banking union, polling debt via some kind of eurobonds and political union via EU treaty change over the next 10 years.

Also important and controversial is will the “other financial stability measures” paper, including financial transition tax proposal and moves towards a banking union that can be taken by the EU before the end of the year.

More

"All of the government's monetary, economic and political power, as well as its extensive propaganda machinery, will be enlisted in a constant battle to drive down the price of gold - but in the absence of any fundamental change in the nation's monetary, fiscal, and economic direction, simply regard any major retreat in the price of gold as an unexpected buying opportunity."

Irwin A. Schiff

At the Comex silver depositories Friday final figures were: Registered 35.76 Moz, Eligible 109.10 Moz, Total 144.86 Moz.   

Crooks and Scoundrels Corner.

The bent, the seriously bent, and the totally doubled over.

Normal crooked service resumes tomorrow.

"We are in a world of irredeemable paper money - a state of affairs unprecedented in history."

John Exter

The monthly Coppock Indicators finished May:

DJIA: +71 Down. NASDAQ: +79 Down. SP500: +46 Down. All three indicators remain down but downward momentum is accelerating again after stalling earlier in the year. 

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