Baltic Dry Index. 847 +22
LIR Gold Target by 2019: $30,000. Revised due to QE programs.
I believe we are on an irreversible trend toward more freedom
and democracy - but that could change.
Dan Quayle
As the global economy embarks on its biggest
wobble since Bear Stearns blew up taking out half Wall Street’s frauds with it,
eventually leading to the collapse of the hose of cards Lehman Brothers, the
insane asylum better known as the European Union has decides to step up its
trade war with China. Not content with a war front with China on solar panels
and European wine, the armchair warriors of Brussels have opened up a new front
on stainless steel pipes. China will probably retaliate against German auto
exports next, I suspect. No one wins in a trade war, and this one threatens a
return to the 1930s. Stay long physical gold and silver. The euro as we know it
is a gonner.
If you want total security, go to prison. There you're fed,
clothed, given medical care and so on. The only thing lacking... is freedom.
Dwight D. Eisenhower
EU takes China to WTO in fresh tariff row
The European Union is taking China, one of its biggest trade partners, to the World Trade Organization over Chinese tariffs on imported EU stainless steel pipes.
3:46PM BST 13 Jun 2013
The EU
"today requested consultations with China" at the WTO, it said,
noting that Japan had filed a similar complaint earlier this year.
In a
statement headlined "EU Joins Japan in WTO Challenge", the European
Commission said it believed the Chinese anti-dumping duties were
"incompatible with WTO law, both on procedural and on substantive grounds.
"WTO
consultations will give the EU and China the opportunity to find a negotiated
solution.
"If
the consultations are not successful, after 60 days the EU can ask the WTO to
establish a panel to rule on the case," it said.
More
http://www.telegraph.co.uk/finance/economics/10118754/EU-takes-China-to-WTO-in-fresh-tariff-row.html
Next, don’t panic, the Bank of England’s financial stability expert is
suggesting that any “tapering” of QE by the Fed risks a “disorderly” bursting
of the central banksters bond bubble. With typical British understatement, this
is as close as a British central bankster can get to shouting “PANIC!” For “disorderly”
insert “chaotic, indiscriminate, irrational and out of control,” and you get the picture of what is to come if
the Fed is foolish enough to start to taper its QE programs. The Fed is over a
barrel and everyone and his dog knows it. The Fed must continue growing its
final bubble or the whole house of cards crashes down, making 2007-2009 look
like a children’s picnic. But the bigger they blow the bubble, the worse the
eventual ending when they lose control as they eventually will. Bernanke and
Obama’s only plan now is to keep the bubble growing long enough for both to get
out of Dodge before it burst on the next Muppets watch. But do they have enough
luck, with the European Union and China starting a serious trade war?
A 'disorderly' bursting of biggest bond bubble in history is biggest risk to financial stability, say BoE's Andy Haldane
Andy Haldane, the Bank of England's executive director for financial stability, believes the biggest risk to the global financial system is a "disorderly" bursting of the bond bubble created by quantitative easing.
By Martin
Strydom and agencies 3:53PM BST 12 Jun 2013
He
told the Treasury Select Committee on Wednesday that bond market had seen
“shades of that" in the spike in bond yields around the globe after the US
Federal Reserve said it was looking to taper its massive stimulus.
“We have intentionally blown the biggest government bond bubble in history,” he said at hearing on the reappointment of officials to the Financial Policy Committee, created to monitor broad risks to the financial system.
Following the collapse of Lehman Brothers in 2008, central banks in the US and Britain flooded markets with cash to revive their economies and avert a collapse of the world financial system.
“We have intentionally blown the biggest government bond bubble in history,” he said at hearing on the reappointment of officials to the Financial Policy Committee, created to monitor broad risks to the financial system.
Following the collapse of Lehman Brothers in 2008, central banks in the US and Britain flooded markets with cash to revive their economies and avert a collapse of the world financial system.
Bond
yields, which move inversely to prices, have jumped in the past month as
investor anticipate that the four-year bull run in bonds is coming to an end as
central banks pedal back on monetary stimulus. The yield on 10-year UK
government bonds have climbed from 1.61pc to 2.16pc since May.
Mr
Haldane warned that the FPC had to "very vigilant" to avert a fresh
financial crisis if the bond bubble is deflated too quickly.
Low global interest rates have made it easier than ever to sell new bonds denominated in dollars, euros or yen, resulting in a boom in issuance. As the market for trading bonds dries up, it become susceptible to a sharper sell-off if investors decide it is time to head for the exit.
Low global interest rates have made it easier than ever to sell new bonds denominated in dollars, euros or yen, resulting in a boom in issuance. As the market for trading bonds dries up, it become susceptible to a sharper sell-off if investors decide it is time to head for the exit.
More
Elsewhere, with China’s boom slowing it’s become bust time in the global
commodities suppliers to China. Open season on the likes of Brazil for the big
commodities speculators like the Goldmanites and Morganites. The unintended
consequences of the Great Nixonian Error of fiat money just keep rolling along.
In the final act the tsunami hits, as the Fed and the central banksters know
only too well. Stay long physical gold and silver for the “reset”. Next week’s Fed meeting outcome has already
been dictated by the stock markets. They have the Fed over a continuing QE
barrel and don’t they know it. June’s stock market wobble was just a polite
warning to the Fed not to step out of line.
Brazil losing reserves fast as speculators attack real
Emerging nations from Brazil to Indonesia have acted to stem capital flight as the market sell-off of recent days began to rattle governments across the world.
Brazil,
fast transforming from powerhouse to crisis economy, is relying on derivatives
contracts to stem the slide of the real and camouflage capital flight. The
central bank spent $5.7bn (£3.6bn) defending the currency this month, though
just half has shown up in reserve data. Jornal Valor Economico reported the
rest had come through “swap cambial” futures to be redeemed in August and
September.
“Brazil
seems to be under speculative attack. We are losing reserves very fast,” said
Marcelo Ribeiro from Pentagono Asset Management. “The market can see the
government is in a corner.”
Mr
Ribeiro said the country’s reserves of $375bn (£240bn) may not be an adequate
shield if the exodus turns serious.
“We
should not forget that Russia lost $210bn in reserves in a few weeks during the
Lehman crisis in 2008.”
Just
months ago Brazil was struggling to stop the real rising too far, waging a
“currency war” to curb inflows of hot money. It has since switched gear,
scrapping its 6pc tax on foreign bond investors. This week it lifted its 1pc
tax on currency derivatives.
Former
central bank chief Arminio Fraga said the crisis was being mismanaged.
“Intervention is not much use if the exchange rate itself is out of line,” he
said.
Mr Fraga
said the retreat from emerging markets was driven by fears that the US Federal
Reserve will withdraw stimulus.
On
Thursday Indonesia raised interest rates for the first time in two years.
“There is fear the optimism went too far and it is coming back down to earth,”
Neil Shearing from Capital Economics said.
Asian shares recover after bruising selloff, sentiment still fragile
TOKYO |(Reuters) - Asian shares rebounded from multi-month lows on Friday, as upbeat U.S. economic data calmed frayed nerves after a bruising selloff in global markets, but investors remained anxious ahead of next week's Federal Reserve policy meeting.
European stocks look set to track Asia higher, with financial spreadbetters predicting London's FTSE 100 .FTSE, Paris's CAC-40 .FCHI and Frankfurt's DAX .GDAXI will open up as much as 0.8 percent. A 0.1 percent drop in U.S. stock futures hinted at a more shaky Wall Street start. .L.EU.N
Volatility was still high in currency markets, with the dollar at one point losing more than 1 percent from early gains against the yen, and approached Thursday's four-month lows against a basket of six major currencies.
Wall Street rallied more than 1 percent on Thursday and the dollar pared losses on better-than-expected U.S. retail sales in May and a drop in the weekly jobless benefits claims, which signaled resilience despite fiscal tightening in America.
The better data appeared to bring some temporary relief to markets that have been rocked by uncertainty on whether the Fed would dial back its massive stimulus later this year. The U.S. central bank's huge bond-buying scheme has been the main source of rallies in broad risk assets.
Analysts expect markets to remain on edge ahead of the Fed meeting on June 18-19.
More
We end for the week with what I think will eventually rescue the global
economy from the bankster’s casino capitalism. Unfortunately, not before the
end of this decade and more likely next. Below what I think is the biggest
advance in graphene since graphene was rediscovered last decade.
Controlling Magnetic Clouds in Graphene
June 12,
2013 — Wonder material graphene can be made magnetic and its magnetism switched
on and off at the press of a button, opening a new avenue towards electronics
with very low energy consumption.
In a
report published in Nature Communications, a University of Manchester team led
by Dr Irina Grigorieva shows how to create elementary magnetic moments in
graphene and then switch them on and off.
This is
the first time magnetism itself has been toggled, rather than the magnetization
direction being reversed.
Modern
society is unimaginable without the use of magnetic materials. They have become
an integral part of electronic gadgets where devices including hard disks,
memory chips and sensors employ miniature magnetic components. Each
micro-magnet allows a bit of information ('0' or '1') to be stored as two
magnetization directions ('north' and 'south'). This area of electronics is
called spintronics.
Despite
huge advances, a big disappointment of spintronics has so far been its
inability to deliver active devices, in which switching between the north and
south directions is done in a manner similar to that used in modern transistors.
This situation may dramatically change due to the latest discovery.
More
The only sure bulwark of continuing liberty is a government
strong enough to protect the interests of the people, and a people strong
enough and well enough informed to maintain its sovereign control over the
government.
Franklin
D. Roosevelt
At the Comex silver depositories Thursday final figures were: Registered 41.76
Moz, Eligible 122.68 Moz, Total 164.44 Moz.
Crooks and
Scoundrels Corner
The bent, the seriously bent, and the totally
doubled over.
We end for the week back on the subject of NSA
spying, and US Politicians denying and lying. Below how “Yes we can” turned
into “yes we can and we do spy on you and don’t you ever forget it. We know
where you live and what you’ve done. And don’t forget we own and operate the
IRS too. We have ways of making you comply or disappear into the new Gulag.”
Below some must read articles for all the world’s
serfs.
Liberty cannot be preserved without general knowledge among the
people.
John
Adams
What was the Israeli involvement in collecting U.S. communications intel for NSA?
Israeli high-tech firms Verint and Narus have had connections with U.S. companies and Israeli intelligence in the past, and ties between the countries' intelligence agencies remain strong.
Were Israeli companies Verint and Narus the ones that
collected information from the U.S. communications network for the National
Security Agency?
----According to an article in the American technology magazine "Wired" from April 2012, two Israeli companies – which the magazine describes as having close connections to the Israeli security community – conduct bugging and wiretapping for the NSA.
Verint, which took over its parent company Comverse Technology earlier this year, is responsible for tapping the communication lines of the American telephone giant Verizon, according to a past Verizon employee sited by James Bamford in Wired. Neither Verint nor Verizon commented on the matter.
Natus, which was acquired in 2010 by the American company Boeing, supplied the software and hardware used at AT&T wiretapping rooms, according to whistleblower Mark Klein, who revealed the information in 2004. Klein, a past technician at AT&T who filed a suit against the company for spying on its customers, revealed a "secret room" in the company's San Fransisco office, where the NSA collected data on American citizens' telephone calls and Internet surfing.
Klein's claims were reinforced by former NSA employee Thomas Drake who testified that the agency uses a program produced by Narus to save the personal electrical communications of AT&T customers.
Both Verint and Narus have ties to the Israeli intelligence agency and the Israel Defense Forces intelligence-gathering unit 8200. Hanan Gefen, a former commander of the 8200 unit, told Forbes magazine in 2007 that Comverse's technology, which was formerly the parent company of Verint and merged with it this year, was directly influenced by the technology of 8200. Ori Cohen, one of the founders of Narus, told Fortune magazine in 2001 that his partners had done technology work for the Israeli intelligence.
More
From Rense on The Israeli Connection.By Stephen Lendman 6-9-13 |
It
doesn't surprise. On June 8, Haaretz headlined "What was the Israeli
involvement in collecting US communications intel for NSA?" More on that
below.
On April 3, 2012, James Bamford headlined "Shady Companies with Ties to Israel Wiretap for US for the NSA." He said NSA chief General Keith Alexander's "having a busy year." He's "cutting ribbons at secret bases and bringing to life the agency's greatly expanded eavesdropping network." "In January he dedicated the new $358 million CAPT Joseph J. Rochefort Building at NSA Hawaii, and in March he unveiled the 604,000-square-foot John Whitelaw Building at NSA Georgia." It's for around "4,000 earphone-clad intercept operators, analysts and other specialists, many of them employed by private contractors." Spies "R" Us defines US policy. NSA's "mammoth 1-million-square-foot, $2 billion Utah Data Center is far more sweeping." It's located at Camp Williams. It's a Utah National Guard training facility. Once fully operational, says Bamford, it'll "become, in effect, the NSA Cloud." It'll receive data from NSA satellites, overseas listening posts, and nationwide multipleNo telecom facility monitoring rooms. What's planned is an unprecedented global spy network. NSA operatives and hackers will harvest around 2.1 million gigabytes of data per hour. It'll do so on the world's most powerful computer. It's call Titan Supercomputer. It can handle over 20,000 trillion calculations per second or 20 petaflops. One petaflop = one quadrillion instructions per second. Supercomputer power will be used to collect and analyze foreign and domestic communications from all possible sources. |
More
China media: Cyber-spying claims
13 June 2013
Mainland media rebuke the US over whistleblower Edward
Snowden's cyber-spying allegations, while Taiwan newspapers are split on the
ruling Kuomintang party's closer ties with Beijing.
Edward Snowden's allegations in his interview with Hong Kong newspaper South China Morning Post on the US government hacking into computers in Hong Kong and mainland China for years have been widely reported on China Central Television and other mainland state-run media.
Global Times says Mr Snowden's whistle-blowing has confirmed speculation that the US is playing up alleged China cyber-spying as a "fig leaf for its own cyber-warfare".
"Before the US government rushes to shut Snowden's mouth, China also needs to seek an explanation from Washington... We are not bystanders. The issue of whether the US as an internet superpower has abused its powers touches on our vital interests directly," it says.
Commentator Tao Duanfang in The Beijing News calls Mr Snowden's act "illegal", but warns that the US gathering of personal data is "close to going out of control".
"This is also probably just the tip of the iceberg... Since the US government and intelligence agencies reject transparency, how can one guarantee that they have not transgressed boundaries?" he asks.
In a commentary titled "Unjustified US intelligence", Beijing's China Daily says cyber-spying on individuals is useless against terrorist attacks such as the Boston marathon bombing in April.
"The Obama administration may want to adjust the boundaries of its counter-terrorism policies so that infringements on individual rights are not as expansive," it concludes.
More
Surveillance programs reveal U.S. hypocrisy |
|
English.news.cn 2013-06-14
11:30:19
|
Edward Snowden, a 29-year-old defense contractor, revealed last week that the NSA is monitoring a wide swath of telephone and Internet activity as part of its counterterrorism efforts.
Snowden told the South China Morning Post in Hong Kong Wednesday that the United States is involved in extensive hacking operations directed against China.
In an interview with the newspaper, Snowden said he wanted to demonstrate “the hypocrisy of the U.S. government when it claims that it does not target civilian infrastructure, unlike its adversaries.”
“We hack network backbones -- like huge Internet routers, basically -- that give us access to the communications of hundreds of thousands of computers without having to hack every single one,” he said.
"Not only does it do so, but it is so afraid of this being known that it is willing to use any means, such as diplomatic intimidation, to prevent this information becoming public."
The revelations have renewed the debate over surveillance in the United States and overseas under the pretext of fighting terrorism. Civil liberties advocates describe the measures as “dangerous and unacceptable intrusions.”
“Americans’ faith in the law is touching. In this instance, it is misplaced,” read an article posted on the New Yorker on Wednesday.
More
Another weekend, with yet more misdeeds expected in
the weekend media about how America’s No Such Agency is listening in to every
word you say and write. While knocking off the occasional moslem fanatic
terrorist now and again provides basic cover, although it didn’t stop the
Boston bombers even after Moscow called them in, the real NSA mission seems to
have turned into making US voters compliant in the two parties, one system
government. Getting the dirt on any foreign leaders that might possibly bring a
challenge to fiat dollar supremacy. Plus keeping tabs on America’s gun owners
and those opposed to abortion and homosexual “marriage.” The land between the
shining seas seems to have undergone a
silent elitist coup de tat. Have a great weekend everyone.
Freedom prospers when religion is vibrant and the rule of law
under God is acknowledged.
Ronald Reagan.
The monthly Coppock Indicators finished May:
DJIA: +142 Up. NASDAQ: +144 Up. SP500: +177 Up. The Fed’s
Final Bubble continues. But hurricanes and tornadoes appear. Getting out first
beats getting out last.
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