Tuesday, 5 March 2013

Does Gravity Exist?



Baltic Dry Index. 789  +13

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

"The history of paper money is an account of abuse, mismanagement, and financial disaster."

Richard M. Ebeling

Some very clever people in America, Gerhard and Kevin Neumaier, have come up with a theory that disposes with gravity. Both Sir Isaac and Albert were wrong, apparently. For more on the real reason we don’t float off the planet, they say, scroll down to today’s Crook’s Corner. Now if someone would just appoint them to the US Mint and the Fed.

We open today with the EU appearing to be about to do an austerity U-turn. The Italian election fiasco has deeply split Euroland and rattled its institutionalised, bureaucratic big wigs. We should know more on Thursday after the ECB members meet, and Moses dei Paschi descends from the mountain to share with the rest of us his thoughts. But even with a U-turn it might already be too late.

EU Opens Way for Easier Budgets After Austerity Backlash

By James G. Neuger & Svenja O’Donnell - Mar 4, 2013 11:01 PM GMT
European finance ministers opened the way for looser budget policies after a backlash against austerity thrust Italy into political limbo and shattered months of relative stability in European markets.

Italy’s deadlocked election, France’s refusal to make deeper budget cuts and protests against the shrinking of the welfare state across southern Europe escalated the rebellion against the German-led prescription for fighting the debt crisis.

Economic strains “may also justify in a certain number of cases reviewing deadlines for the correction of excessive deficits,” European Union Economic and Monetary Commissioner Olli Rehn told reporters late yesterday after a meeting of euro- area finance ministers in Brussels.

The euro-zone economy will shrink 0.3 percent in 2013, making for the first annual back-to-back contraction since the currency’s birth in 1999, the European Commission forecast last month. The currency-bloc prediction masked a widening north- south divide, with growth in countries like Germany, Finland, Belgium and Luxembourg set against dwindling output in Italy, Greece, Spain and Portugal.

France is straddling the middle, set to eke out a 0.1 percent expansion after the economy stagnated in 2012, according to the commission. Deeper budget cuts are out of the question, French Finance Minister Pierre Moscovici said.
More
http://www.bloomberg.com/news/2013-03-04/eu-opens-way-for-easier-budgets-after-italian-austerity-backlash.html

German car sales plunge as Europe's auto crisis deepens

GENEVA | Mon Mar 4, 2013 10:55am EST
(Reuters) - New car sales in Germany fell by more than 10 percent year-on-year in February, signaling the crisis for Europe's auto makers is deepening as recession-hit consumers curb spending.

The data, which comes as executives gather for Wednesday's opening of the Geneva Car Show, follows an 8.5 percent decline in new car registrations in Europe's largest economy in January.
Demand for cars in Europe has been hit hard as disposable incomes have been squeezed by rising prices, subdued wages and government austerity measures.

New car sales in the region dropped to a 17-year low in 2012.

----Germany continues to outperform markets such as France and Italy, where car registrations tumbled 12 percent and 17 percent respectively in February.

But the country's auto market has deteriorated recently, with its economy shrinking in the fourth quarter of last year by more than at any time since the height of the 2009 financial crisis.

VW, Europe's biggest car maker, last month scaled back its 2013 profit forecast.
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Brave Ireland is the poster-child of EMU cruelty and folly

Ireland has done everything demanded by the EU’s creditor powers, and seemingly survived.

It has endured a fiscal squeeze of 16pc of GDP. It has stabilized the colossal debts left from taking on the gambling losses of Anglo Irish Bank at EU behest, that is to say from shielding German, British, Dutch and Belgian lenders from systemic contagion at a critical moment.

It has clawed its way back to market credibility, issuing bonds at respectable rates. “Our last issue of routine 3-month treasury bills was at 0.26pc, not quite what Germany gets but very low,” said finance minister Michael Noonan.

It was spared serious contagion from last week’s anti-austerity revolt in Italy, evidence of sorts that the Celtic Tiger is off the sick list. Deo volente, it will be the first of the EMU victim states to regain its sovereignty by early next year and escape control of the EU-IMF Troika, though it will answer to inspectors for another 20 years and the yet unborn will be paying off the €67bn of Troika indenture until 2042.

----Other measures are less cheerful. The EU’s latest survey on “poverty and social exclusion” shows that the number of children at risk in Ireland has reached 37.6pc, worse than Italy (32pc), Greece (31pc), Spain (30pc) or Portugal (29pc).
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While continental Europe reels, the UK economy got an unexpected boost from reviving retail sales. The UK economy has been giving mixed signals for some months. Despite the recent “euro-beef” horsemeat scandal, the UK consumer seems to be following US consumers lead, and willing to step up their level of spending. It will be interesting to see if this alters the Bank of England’s stance at Thursday’s regular meeting. Will the BOE take QE forever off the agenda, before Canada’s new man takes over in July? Will the UK’s accident prone Chancellor stop the retail bounce with an austerity budget later in the month?

Hopes for retail revival as sales hit three-year high

Signs of a recovery in consumer confidence and spending are gathering pace with retail sales growing at their fastest rate for three years.

The pickup is reaching deeper into the high street, fuelled by demand for electronic goods, while fears of a downturn in the grocery business because of the horse meat scandal have so far proved wide of the mark. 
Figures released today from the British Retail Consortium (BRC) show that sales last month rose 2.7pc on a like-for-like basis after stripping out the effects of new shops and expansion and 4.4pc when they are included.

Underlying food sales rose 1pc despite the horse meat scare, although there was a marked change in buying habits, with frozen burgers left on shelves.

A CBI survey was more pessimistic, showing that food shop sales reached a five-year low last month. The BRC survey is more broad-based than sales data released yesterday by the business advisers, BDO, covering 10,000 shops, but both have reflected changes in a high street still charged by a sales atmosphere.
Freezing weather produced a rush for knitwear as well as treatments for cold and flu, but Valentine's Day resulted in a seasonal diversion, with demand for health and beauty products reaching their highest level since December 2011.

Big ticket items also benefited, with end of sale promotions helping sofas and beds. Online business rose by a healthy 10pc but electronic goods, led by tablet computers, continued to be the "growth engine" of last month's trade.

Helen Dickinson, the director-general of the BRC, said: "There are certainly highly welcome signs here of gradual improvement and customers are feeling a bit more positive, but it's too soon to assume this represents the permanent turnaround we need. Consumers need a Budget that leaves them with more money in their pockets and confidence to spend it and retailers with the means to invest. I hope the Chancellor seizes the moment."

David McCorquodale, the head of retail at the business advisers, KPMG, said that if the proposed increase in business rates went ahead, retailers would be placed under "inexorable pressure".
More

With so much uncertainty on both sides of the Atlantic this week, plus the transfer of power in Beijing, it’s a good time to be out of most markets, safely parked in cash and physical gold. The continuing rise in the deliverable Comex silver inventories has me concerned. At this point I would want to be out of “paper” silver or fully hedged.

"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 Monday final figures were: Registered 41.91 Moz, Eligible 121.51 Moz, Total 163.42 Moz.  


Crooks and Scoundrels Corner
The bent, the seriously bent, and the totally doubled over. 

No crooks today, not even a slightly bent bankster. Thanks to a link sent in by Ian in Toronto, we get a look at a new theory that explains the solar system without gravity. Grab hold of something very heavy and read on, as the Neumaiers dispose with gravity. Now if they would only turn their attention like Sir Isaac Newton to money, and work out a fix for our collapsing system of fiat money.

“The problem with fiat money is that it rewards the minority that can handle money, but fools the generation that has worked and saved money.”

“Adam Smith” aka George Goodman. The Money Game.

New Theory Challenges Existing Beliefs About Gravity, Positioning Solar Winds as the Force That Moves Planets, Governs Atomic Movement and Creates Gravitational Force

Pioneering scientists redefine what influences movement in solar system and invite scientists, theorists and solar system experts to comment on the "More than Gravity" thesis

LANCASTER, N.Y., Feb. 26, 2013 /PRNewswire/ -- A new theory on the forces that control planetary orbit refutes the 400-year old assumptions currently held by the scientific community. Scientific and engineering experts Gerhard and Kevin Neumaier have established a relationship between solar winds and a quantized order in both the position and velocity of the solar system's planets, and movement at an atomic level, with both governed by the same set of physics.

The observations made bring into question the Big Bang Theory, the concept of black holes, gravitational waves and gravitons. The Neumaiers' paper, More Than Gravity, is available for review at MoreThanGravity.com

The theory is based on the following underlying principles:
  • The physical mechanism that moves the planets is the solar wind, imparting position and direction to their orbits, and governing all of the moons in the solar system in locked orbits that rotate with the planets.
  • The solar wind is responsible for the natural arrangement of the planets and the quantization at the atomic level, reestablishing the link between the solar system and atom. Based on observations, the same order and set of forces that work in our solar system also apply to the atom. Because the solar wind affects all matter on earth, it naturally describes quantum mechanics – the inner workings of the atom.
  • The planets are positioned in a quantized order based on a simple equation that accurately predicts the velocity and position of planetary orbits and distances from the Sun.
Using data not available when gravitational theories were formed, such as satellite exploration of space, the More than Gravity researchers hypothesize that the Sun and solar wind control planetary motion and our solar system. Based on research and data collection spanning 50 years, the Neumaiers' intellectually bold theory is a rational effort to provide clarity where widely held notions regarding gravity theory fall short. Based on observations of the pervasive solar wind, the Neumaiers hold that observable physical forces govern planetary direction and alignment without need for invisible, theoretical forces.
More Than Gravity research is based on the following scientific observations:
  • Planets in the solar system have a discrete, or quantized, order similar to the atom. The distance, velocity and position of the planets are quantized and driven by the solar wind. Each planetary position can be predicted from a simple equation. Similarly, the velocity of planetary bodies can be described by an almost identical equation.
  • The Sun discharges billions of tons of highly charged particles every hour. These particles make up the solar wind and are much more highly charged than we typically see on Earth, travelling at speeds more than a million miles per hour in a spiraling path to the end of our solar system.
  • The Sun's differential rotation is responsible for solar wind pattern, which moves out in a spiral along magnetic flux lines. This approximates a pattern of Archimedean spiral in which the force of the solar wind is in the direction that all of the planets orbit.
  • The equation for gravity does not require that the planets orbit in any particular direction; any direction of orbit is just as likely as another. Yet all the planets orbit the Sun in a narrow elliptic region of the slow solar wind and none of the orbits exist in the fast solar wind toward the poles. All of the planets in our solar system rotate in the elliptic region that is 20 degrees on either side of the Sun's equator. (This elliptic region is also where the solar wind is substantially lower in speed than at any other latitude of the Sun). The chance that it is random that the planets all rotate the same way and in this same plane is one in 30 billion.
  • The underlying measurements for the mass and density of the planets are based on a single assumption that the equation for gravity is correct and the gravitational constant is universal. While all of the planetary gravities that have been measured should be correct, the masses and densities may be incorrect.
  • Typically, scientific theory is used to help explain observations. With so-called "missing mass" and other theories such as gravitational waves and the graviton, gravity theory is being defended in the absence of observation; these conditions have never been observed despite advances in science. More Than Gravity presumes that because "missing mass" theories are not supported by observations, the phenomena likely do not exist.
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"Gold bears the confidence of the world's millions, who value it far above the promises of politicians, far above the unbacked paper issued by governments as money substitutes. It has been that way through all recorded history. There is no reason to believe it will lose the confidence of people in the future."

Oakley R. Bramble

The monthly Coppock Indicators finished February:
DJIA: +111 Up. NASDAQ: +129 Up. SP500: +148 Up.  All three indexes are giving the same signal since January, up, but surprisingly February’s  move in all three was weak, suggesting that the indicators are topping out. Will sequestration turn March into a down month?

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