The Ukrainian army has lost the battle for the airport of Luhansk. Ceasefire talks in Ukraine collapsed ending hours after Kiev was compelled to order its army to withdraw from a key eastern airport in Luhansk after coming under a serious assault from separatists fighters reportedly backed by a Russian Panzerbatallion that included an army tank column. Luhansk is the furthest province of Ukraine and it appears that the invasion has begun. It will be spearheaded by the separatists maintain that it is not a direct Russian invasion. The fall of Ukraine is not out of the question. However, this will be the flash-point for all hostilities ahead.
A number of people have written noting the report by Reuters that Russian tanks flattened a town in Eastern Ukraine and how that has lined up with our warnings that conflict will start to rise in September and then we should see more of an issue in November. Even the Ferguson issue is distinguished from the 1960s by the militaristic response that has captured the attention of worldwide media and international civil rights groups. The 1960s riots were confined to race and normal police responses. Today, the police respond as military divisions – starkly different from the 1960s.
We expect to see an escalation in conflicts in Ukraine and this will be the international flash point. People do not appreciate Ukrainian history. Stalin executed more Ukrainians than Hitler killed Jews. This is the deep-seated fear of Russia that is the great untold story. Nevertheless, Russia views Ukraine as its property and always has. Nevertheless, the importance of Ukraine is that their population is about 45 million. Take down Ukraine, and the other former Soviet possessions and tiny. Ukraine gave back all its nuclear weapons at the request of the USA. They were the THIRD LARGEST nuclear power in the world. The people now feel like pawns between the US and Russia. Beware November.
Global Warming seems to be in the same category with gold in the hands of the promoters – bedtime stories for children. Seven years ago former US Vice-President Al Gore’s warned everyone that the Arctic ice would be gone by now. Obama even wanted a commission to see if we could build a machine to reverse what does not exist. Talk about a typical government job. Indeed, these people build bridges when there is not even a river or gully to cross.
The British press seem to be more honest than American, especially after Snowden. In fact, The British Daily Mail is reporting that not only was this forecast of Al Gore dead WRONG, the ice cap has actually expanded for a second year in row covering 1.7million square kilometres MORE than 2 years ago and it is also thicker!
The satellite images were taken from University of Illinois’s Cryosphere project that shows the ice has become even more concentrated. Yet they want to regulate cow farting. Honestly, if politicians actually believe this nonsense is debatable. Whatever the issue seems to be will only be a concern if there is more tax revenue to be justified. They will not outlaw smoking because they get tax revenues yet under the same theory they should ban it if this was about public concern.
Global Warming has been a fantastic excuse to raise taxes and now regulate cow farting in Europe. How about eliminating all the hot air created by worthless government programs? If we eliminated career politicians and voted from our laptops on every initiative, think of all the limousines that would not be driving them around and special plane flights for their vacations.
QUESTION: Marty, do you think it is even possible for gold to close at $2,000 by year-end? This just seems to be the same story over and over again.
(1864 high with 1992 low)
ANSWER: Sorry, no. Here is a chart of gold back to 1264. There is not even a pattern like that, which has EVER taken place. I am really at a loss why gold analysts keep proclaiming the same thing costing people their life savings. This is not how professionals trade. We have a huge professional client base because they have learned the hard way that OPINION is nonsense and not reliable. Is this not just a process of churning out novices and causing them countless losses to line the pockets of the pros? This is seriously impacting the lives of people and that needs to be respected.
Technically, this is the primary support channel in gold. It has not changed. These forecasts for gold are entirely out of context and ignore the entire world economic trends. You cannot even argue gold rises with war for that is not even true. Gold did not rally during World War II because it was fixed. Commodities did not rise because the government put in wage and price controls. This is not a simple if then do this formula. It takes a bit more - if then do this else do that.
The major resistance in gold stands at $2300. That is the old 1980 high in today’s terms adjusted for inflation. Gold has NOT been the hedge against inflation as touted. If you bought gold in 1980 at $875 and the Dow Jones Industrials at 1,000, you have about $1300 for gold and 17,000 for stocks. That cannot be excused away. Gold is NOT a hedge against inflation, it is NOT money for you cannot pay your mortgage with it unless you sell it for dollars for the definition of “money” is the acceptance by society as a medium of exchange. It is not even legal tender for you cannot pay your taxes with it without converting to dollars. It is an investment – plain and simple.
Gold remains the historical hedge against government. You should never reject all other investments waiting for gold to finally rally. I retired from the gold business after 1980 BECAUSE the model projected a 19 year bear market. Sorry if that is impatient. But waiting 19 years is a bit too much for me personally. NOTHING always rises. There is a cycle to everything. You need to create databases to see what is even possible – not make up shit.
When gold has been money it DECLINES with inflation and rises with DEFLATION. It has never been a store of value for that would imply a communistic state where everything is fixed from assets and wages to ensure that money buys the same every day. These are simply stories for children for they cannot be real. The idea that money is a store of value is a pipe-dream for those who do not understand how to even invest so they want to prohibit everyone else from making money since they do not.
Gold will rally when it rises in ALL CURRENCIES – not just dollars. To even claim gold will rise to $2,000 implies the dollar will crash. What about BIG MONEY that really drives the global economy? Where does it go? Rubles, Yuan, Euros? Come on. The worst is yet to come but that is a Sovereign Debt Crisis and I hate to tell these people it is at an advanced stage in Europe and Japan. We have not even gotten a taste of it yet in the USA – only a whiff with events like Detroit. Sorry, the dollar’s rise will still center stage and the will set in motion the economic decline from the outside moving in.
Gold’s role will be completely different. We are addressing this in the upcoming special report. This is covering gold in all major currencies so you can see the change in trend and when it is really due. This report is over 300 pages.
Mario Draghi of the ECB (European Central Bank) has cut a deal to fight inflation with BlackRock to advise on a possible bond-buying scheme to flood the market with euro cash. BlackRock will help the ECB to design a program to buy asset-backed securities as part of the regulator’s plans to ease credit conditions in the Euroland. Draghi, ex-Goldman Sachs, believes that a scheme would create demand for securitizations within the Euroland and provide incentives for lending to credit-starved businesses to get the economy going again when the banks have failed.
BlackRock had been appointed by the Greek central bank this year to probe its four big banks’ balance sheets. It was BlackRock which also worked with the Central Bank of Ireland during the Eurozone debt crisis. It will now provide the ECB with advice on the design and implementation of a potential ABS purchase program.
Mario Draghi has suggested that the central bank could buy packages of bank loans to households and companies as one way of fighting deflation. Effectively, this is the same idea that was behind the real estate boom going into 2007. Consequently, it is always the same scheme over and over again. Draghi has also warned that too few simple asset-backed securities were being sold in Europe, which needs the leverage from his point of view.
QUESTION: Marty, why does politics attract such corrupt people? It seems to be a global problem?
ANSWER: I have actually thought a lot about this issue and I believe it boils down to the old problem of when the cat’s away the mice will play. Career politicians fall into the natural human trap where they effectively have no restraint. They quickly realize that the people do not pay attention to anything. They are more concerned about sports and TV shows than they are about how government is administered. We get what we pay for.
It is the same thing with an employee. Treat them fairly and they take advantage. Excuse being late and they gradually drift in later and later. Children do the same. A child will routinely play one parent against the other to get their way. So if there is nobody there really making them do the right thing, they end up taking advantage. There is little respect for the public no matter what these people profess. That is just the way it is. Sorry.
Those who followed California’s gun debate may remember State Senator Leland Yee’s (D-Calif.) tireless efforts to increase gun control and safety in his state. It seemed genuine on the surface. However, Senator Yee was caught conspiring to illegally deal firearms alongside known gangster Kwok Cheung Chow, a.k.a. Shrimp Boy, a.k.a. the “dragon head” of the Ghee Kung Tong Freemason lode in San Francisco. The FBI investigation was damming as was the subsequent indictment. You can read the transcripts from the FBI investigation, and they’re rather shocking. But think about it. Make guns illegal and the price rises for illegal guns. Interesting economics that far too often result’s in Shakespeare’s line - ”The lady doth protest too much, methinks” (1602 play Hamlet )
Far too many do exactly opposite of what they pretend to champion. Is Legarde really trying to help society, or bail out the bankers without jail time? I think all her proposals are geared to bailing out contributors – not society.
This is why I have reached the OPINION that Republics do not work – just look at Rome and the real story behind Julius Caesar crossing the Rubicon. The only viable form of government would be a real democracy where people vote on every issue. Margaret Thatcher tried to introduce the Poll Tax and she was hated for it. But what she believed was that if everyone had to pay some tax they would then pay attention to government and be that check and balance. We had long discussions on this topic. Today, I believe with the internet we are closer to that concept of reforming society that was Thatcher’s real idea to make the people more responsible. The internet can replace career politicians if we each had to vote on a proposal. Just think about it. No stuffing unrelated special deals for people who pay. No more lobbying and free trips or pay-offs to start wars. No more militarization of police to protect government from the people.
Local libraries can have a voting booth for those without a computer. One vote per tax id number – i.e. SCC# in the USA. Technology can eliminate all currency and we move to electronic, but we can also take it to the next step and replace career politicians. Just think how different the future will be. Margaret – your dream may one day be reached with a responsible engaged public. If you can poll the people and show Obama’s rating is at best 39%, you can expect those people to also vote from their laptop.
Christine Lagarde has long been suspected of corruption. Yet of course the International Monetary Fund’s (IMF) board proclaimed they firmly stand behind her because she has raised the stature of the IMF to a world player once again. This accomplishment is thanks to Obama and their joint agenda to raise our taxes to 80% and confiscate 10% of everyone’s bank account to pay for the bankers. Christine Lagarde is facing a criminal investigation in France that is tied to a political corruption probe dating from 2008.
The allegations by French magistrates earlier in the week placed Lagarde squarely under formal investigation for “negligence” after questioning her in Paris for a fourth time. Under French law, you do not move to a formal investigation without probable cause so it is the effective step under common law (UK/USA) of a grand jury investigation.
This arises from allegations that tycoon Bernard Tapie won a large arbitration payout due to political connections when Lagarde was French Finance Minister. Anyone would normally step down to prevent any taint from impacting the IMF. The fact that she does not illustrates the power play at stake. Her lawyers intend to appeal that decision to run the course so her term expires at the IMF by July 2016.