By Michael Snyder | Economic Collapse

As the number of good jobs continues to decline, the number of Americans that cannot take care of themselves without government assistance continues to explode.  On Friday, we learned that the U.S. economy added “195,000 jobs” last month.  But when you look deeper at the numbers, another story emerges.  Last month, the U.S. economy actually lost 240,000 full-time jobs.  Overall, the U.S. economy has only added 130,000 full-time jobs in 2013, but it takes about 90,000 full-time jobs a month just to keep up with population growth.  So we are losing quite a bit of ground as far as full-time jobs are concerned.  Meanwhile, the U.S. economy has added more than 500,000 part-time jobs so far this year.  Unfortunately, there are very, very few part-time and temp jobs that can be considered “breadwinner jobs”.  Part-time jobs are great for teenagers, university students and elderly people that only want to work a limited number of hours, but what most Americans need are good paying full-time jobs with benefits that will allow them to take care of their families.  Unfortunately, those jobs are continually becoming a smaller part of our economy.

As David Stockman has noted, the U.S. economy has only regained 200,000 of the 5.6 million breadwinner jobs that were lost during the last recession…

By September 2012, the S&P 500 was up by 115 percent from its recession lows and had recovered all of its losses from the peak of the second Greenspan bubble. By contrast, only 200,000 of the 5.6 million lost breadwinner jobs had been recovered by that same point in time. To be sure, the Fed’s Wall Street shills breathlessly reported the improved jobs “print” every month, picking and choosing starting and ending points and using continuously revised and seasonally maladjusted data to support that illusion. Yet the fundamentals with respect to breadwinner jobs could not be obfuscated.

This is a big problem.  As I wrote about the other day, the quality of jobs in America is falling very fast.  Only 47 percent of all adults in the United States have a full-time job at this point, and 53 percent of all American workers make less than $30,000 a year.

Meanwhile, the number of part-time jobs has hit an all-time record high, and the number of temp jobs is absolutely exploding.

Incredibly, the number of temp jobs has increased by more than 50 percent since the end of the recession.  Approximately 10 percent of the jobs lost during the last recession were temp jobs, but close to 20 percent of the jobs gained since then have been temp jobs.

We are witnessing a fundamental shift in our economy.  Full-time jobs are on the decline.  Part-time and temp jobs are on the rise.

In fact, the second largest employer in the United States is now a temp agency.  Kelly Services has become the second largest employer in the country after Wal-Mart.

But it is really hard to pay the bills stocking shelves at Wal-Mart or working temp jobs for Kelly Services.

Unfortunately, these days millions of American workers find themselves having to take whatever they can find.  We live during a period of chronic unemployment.  In fact, according to John Williams of, unemployment in the United States is now higher than it was at any point during the last recession after you factor in discouraged workers and workers that have taken part-time jobs for economic reasons.

So why don’t more Americans go out and start businesses and create their own jobs?

Unfortunately, thanks to the federal government, state governments and local governments, the environment for small businesses in America today is incredibly toxic.  In fact, the percentage of self-employed workers in this country is at an all-time record low.

As a result of everything that I have discussed above, more Americans than ever find that they cannot take care of themselves without government assistance.

I have often written about the fact that the number of Americans on food stamps has skyrocketed in recent years.  In the year 2000, there were only 17 million Americans on food stamps.  Today, there are more than47 million Americans on food stamps.

But the number of Americans that are dependent on our “modern day bread lines” is actually far higher than that.

According to a recent CNS News article, a total of 101 million Americans are enrolled in food assistance programs.  The following are some of the staggering numbers for some of these programs…

The National School Lunch program provides 32 million students with low-cost or no-cost meals daily; 10.6 million participate in the School Breakfast Program; and 8.9 million receive benefits from the Woman, Infants and Children (WIC) program each month, the latter designed for low-income pregnant, breastfeeding, and postpartum women, as well as children younger than 5 years old.

In addition, 3.3 million children at day care centers receive snacks through the Child and Adult Care Food Program.

There’s also a Special Milk Program for schools and a Summer Food Service Program, through which 2.3 million children received aid in July 2011 during summer vacation.

At farmer’s markets, 864,000 seniors receive benefits to purchase food and 1.9 million women and children use coupons from the program.

Yes, there is some overlap in some of these programs.  So the actual number of Americans receiving food assistance is going to be less than 101 million.

But clearly something has gone horribly wrong.  Our economy is not producing enough good jobs, and more Americans than ever cannot take care of themselves as a result.

This is not normal.  What we are witnessing is the slow-motion collapse of the middle class.  The number of Americans that are dependent on the government for their daily bread is so large that it is difficult to comprehend.  The following are a few statistics from my recent article entitled “21 Facts About Rising Government Dependence In America That Will Blow Your Mind“…

-Back in the 1970s, about one out of every 50 Americans was on food stamps.  Today, about one out of every 6.5 Americans is on food stamps.

-Today, the number of Americans on food stamps exceeds the entire population of the nation of Spain.

-According to one calculation, the number of Americans on food stamps now exceeds the combined populations of “Alaska, Arkansas, Connecticut, Delaware, District of Columbia, Hawaii, Idaho, Iowa, Kansas, Maine, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Dakota, Oklahoma, Oregon, Rhode Island, South Dakota, Utah, Vermont, West Virginia, and Wyoming.”

You can read the rest of that article right here.

So what is the solution?

Well, we need a lot more full-time “breadwinner jobs” that will enable men and women to be able to take care of their families.

Unfortunately, we continue to ship millions of good jobs overseas, and our politicians continue to pursue policies which are making the business environment in this country very toxic.

There is not going to be any easy way to fix all of this.  We should have seen a nice bounce in the employment numbers during this so-called “recovery”, but that did not happen.  And now the next wave of the economic collapse is rapidly approaching, and the employment crisis in this country is going to become a lot more painful.



By Michael Snyder | The Economic Collapse

The family is one of the fundamental building blocks of society.  If you do not have strong families, you are not going to have a strong society.  Unfortunately, the state of the family in America continues to deteriorate.  The marriage rate has fallen to an all-time low, we lead the world in divorce, and about a third of all children live in a home without a father.  Our young people have been taught that getting married and having a family is not a priority, and many of those that would like to get married and have children are not able to get the kinds of jobs that they need to support a family.  The statistics that you are about to see should absolutely shock you.  American families have never been this weak, and this is an incredibly troubling sign for the future of our nation.  What will future generations of Americans be like if they do not have stable homes to grow up in?  Will they be even more messed up than we are right now?  That is a frightening thought.  The following are 27 facts that prove that the family in America is in the worst shape ever…

#1 The marriage rate in the United States has fallen to an all-time low.  Right now it is sitting at a yearly rate of 6.8 marriages per 1000 people.

#2 Today, an all-time low 44.2 percent of Americans in the 25 to 34 year old age bracket are married.

#3 According to the Pew Research Center, only 51 percent of all adults in the United States are currently married.  Back in 1960, 72 percent of all adults in the United States were married.

#4 Back in 1950, 78 percent of all households in the United States contained a married couple.  Today, that number has declined to 48 percent.

#5 100 years ago, 4.52 were living in the average U.S. household, but now the average U.S. household only consists of 2.59 people.

#6 The United States has the highest percentage of one person households on the entire planet.

#7 In the United States today, more than half of all couples “move in together” before they get married.

#8 The divorce rate for couples that live together first is significantly higher than for those that do not.

#9 For women under the age of 30 in the United States, more than half of all babies are being born out of wedlock.

#10 In 1970, the average woman had her first child when she was 21.4 years old.  Now the average woman has her first child when she is 25.6 years old.

#11 According to the Centers for Disease Control, there were 69.3 births per 1,000 women in the 15 to 44 year old age bracket in 2007. Now the rate has fallen to 63.2 births per 1,000 women.

#12 The birth rate for American women in the 20 to 24 year old age bracket has fallen to 85.3 births per 1,000 women.  That is a new all-time record low.

#13 The United States has the highest divorce rate in the entire world.

#14 At this point, approximately one out of every three children in the United States lives in a home without a father.

#15 Without a father around, many single mothers in this country are really struggling to survive.  Sadly, approximately 42 percent of all single mothers in the United States are on food stamps.

#16 It is being projected that approximately 50 percent of all U.S. children will be on food stamps at some point before they reach the age of 18.

#17 Today, more than a million public school students in the United States are homeless.  This is the first time that has ever happened in our history.

#18 The United States has the highest teen pregnancy rate in the entire world.  In fact, the United States has a teen pregnancy rate that is more than twice as high as Canada, more than three times as high as France and more than seven times as high as Japan.

#19 In the United States today, approximately 47 percent of all high school students have had sex.

#20 Approximately one out of every four teen girls in the United States has at least one sexually transmitted disease.

#21 According to one survey, 24 percent of all U.S. teens that have at least one sexually transmitted disease say that they still have unprotected sex.

#22 Instead of being raised by parents, an increasing number of children in America are being raised by movies, television and video games.  For example, the average young American will spend 10,000 hours playing video games before the age of 21.

#23 Americans are tied with the British for the highest average number of hours spent watching television each week.

#24 There are more than 3 million reports of child abuse in the United States every single year.

#25 The United States actually has the highest child abuse death rate in the developed world.

#26 Approximately 20 percent of all child sexual abuse victims in the United States are under the age of 8.

#27 It is estimated that one out of every four girls will be sexually abused before they become adults.

Unfortunately, this is a problem that is not going to be fixed overnight.  Getting the “right politicians” into office will not solve our problems and neither will spending a bunch of money.

The change that we need is a change of the heart.  We need to change how we treat one another and we need to get our priorities straight.

Our families are really messed up, and this is hurting our kids the most.  There is no way that this country is going to have any hope for a bright future unless our families start getting stronger.



by John Galt

Psst. Not every market in the world has Helicopter Ben to pump and dump bonds and equities on the American public, er, suckers.

What would one say if one of the largest economies in the world has experienced a 67% top to this week’s price decline in their primary stock market?

The Irish?

The French?

The Venezuelans?

Nah, keep guessing after reviewing this chart:


From the start of the US economic crisis until July 5, 2013, which is now almost 49 points worse, the market above is down over 67%. The reaction on Wall Street? Don’t worry, be happy!

That really is what they’re telling their retiree customers and advising them that the government has their back even though they did not in 2007-2009. Of course one of the world’s largest economies can handle a 67% stock market decline, right?

Not so much.


Sadly this decline has yet to test its 2009 lows as illustrated by this chart from Yahoo Finance:


If anyone thinks this is just one index, the CSI-300, the other widely tracked index from China is just as atrocious:

SHANGHAI_CSI300jgfla(chart from

What does this mean for us? Liquidity we are pumping into our system that is being used to keep our banks alive is no longer sufficient to keep Europe and Asia from declining into a corrective deflationary depression to remove speculative excesses. As long as the central banks in those regions continues to depend on the U.S. Dollar as the world reserve currency they will suffer from an economic contraction created by American financial irregularities that prevent their business cycles from operating independent of Federal Reserve policy decisions. When the Chinese Communists realize that Bernanke’s policies are his failing and no longer willing or able to protect their long term bond investments in the United States it will be game over for America also. Our equity charts will quickly duplicate theirs unless the Fed and Congress elect to coordinate a hyperinflationary policy destined to wipe out the viability of the US Dollar as the world reserve currency.

Welcome to Chinese Checkmate gang. Coming to our shores in a brutal manner soon.



By Brandon Smith

In the years 2006 and 2007, the underlying stability of the global economy and the U.S. credit base in particular was experiencing intense scrutiny by alternative economic analysts. The mortgage-driven Xanadu that was the late 1990s and early 2000s seemed just too good to be true. Many of us pointed out that such a system, based on dubious debt instruments animated by the central banking voodoo of arbitrary fractional reserve lending and fiat cash creation, could not possibly survive for very long. A crash was coming, it was coming soon, and most of our society was either too stupid to recognize the problem or too frightened to accept the reality they knew was just over the horizon.

The Federal Reserve had cheated America out of an economic reset that was desperately needed. The 1980s had brought us utter destruction disguised as “globalization.” Our industrial center, the very heart of the American middle class that generated enormous wealth and decades of opportunity, had been dismantled and shipped overseas to the lowest bidder. It was then that the U.S. economy actually died; we just couldn’t see it. From that point forward, Americans were fully dependent on the charity of central bank money creation and international bank lending standards. The collapse that should have occurred in the 80s was delayed and thus made more volatile as the Fed artificially lowered interest rates and allowed trillions upon trillions of dollars in dubious loans to be generated. Free money abounded, and average citizens were suckered royally. Their greed was used against them, as they collateralized homes they could not afford to buy more crap they didn’t need. Of course, you know the rest of the story…

Today, credit markets remain frozen. Lending is nowhere near the levels reached in 2006. The housing market is showing signs of life; but that’s only because most home purchases are being made by banks, not regular people, for pennies on the dollar, as bankrupt properties are then reissued on the market for rent rather than for sale. If you are lucky, maybe one day you’ll get to borrow the keys to the house you used to own. And, millions of higher-paying full-time jobs have been lost and then replaced with lower-paying part-time-wage slavery positions. The image of American prosperity carries on, but it is nothing but  a cruel farce; and anyone with any sense should question how long this false image can be given life before the truth dawns.

The novice will question why it is necessary to re-examine all of this information. Is it not widely known? Am I not simply preaching to the choir a message heard over and over again since the crash of 2008? Maybe – or maybe it is time for us to finally apply some foresight given our knowledge of the recent past.

Why did 2008 creep up on so many people? Weren’t there plenty of economists out there “preaching to the choir” at that time? Weren’t there plenty of signals? Weren’t there plenty of practical conclusions being made about the future? And yet, the world was left stunned.

The truth is, human beings have a nasty habit of ignoring the cold hard facts of the present in the hopes of using apathy as a magical elixir for future prosperity. They want to believe that disaster is a mindset, that it is a boogeyman under their bed that can be defeated through blind optimism. They refuse to accept that disaster is a tangible inevitability of life that pays no heed to our naïve, happy-go-lucky attitudes. The American people allowed themselves to be caught off guard in 2008, just as they are setting themselves up to be caught off guard again today.

Again, the reality is clear; the Federal Reserve has propped up equities and bonds using money created out of thin air — so much so that both markets have become totally reliant and disturbingly addicted to fiat injections. The distribution of this fiat threatens the continued dominance of the dollar as the world reserve currency and will invariably lead to currency collapse and hyperstagflation. This process is much more likely to climax in the near term given the accelerated rate of quantitiative easing within our system to date and the accelerated rate at which our primary lenders (namely China) are dumping the dollar in bilateral trade with each other. The endgame is obvious, but I still fear millions of people within this country and around the world will be shell-shocked once again by a renewed crash.

The argument is always the same: “Yeah, things might get dicey, but it won’t be as bad as all the doom-mongers claim, and probably not for many years.”

Similar statements were made by naysayers before the Great Depression and before the 2008 crash. So why are the skeptics wrong again this time around?

The Stimulus Fantasy

Let’s put this in the simplest terms possible: Stimulus is now the lifeblood of our economy. There is nothing else sustaining our nation. Period. Stimulus in the form of bailouts and QE are keeping the stock market and bonds afloat.  This means that the continued existence of equities, and the continued existence of healthy treasuries, and thus the foundation of our currency, our general economy, and a functioning (or barely functioning) government, is completely dependent on the Fed continuing to print.

In recent weeks, the Fed hinted at possible intentions reduce or remove stimulus measures, which would effectively shut down the life-support machine and let the patient drown in his own fluids.

Day traders and common investors are not very bright, but they do understand well that no stimulus means no stock market and no bond market. In response, indexes have become erratic, shifting on the slightest rumor that the central bank might continue QE for a little longer. Pathetically, the Dow Jones now rallies upward whenever bad financial news hits the wire, as insane investment groups pour in money in the hopes that dismal economic developments might cause the Fed to extend the bailout bonanza.

In our modern nightmare era of hyper-centralized economy, one word or rumor from Ben Bernanke now determines whether stocks dramatically rise or fall.  This is NOT the behavior of a healthy and vibrant fiscal system.

The anatomy of American finance and trade has been horribly mutilated; and clearly, such a monstrous creation cannot last. Stocks are supposed to perform based on the true profitability of individual businesses as well as the political and social health of the overall culture. The wild printing of paper money by private banking magnates is not a catalyst for a successful economy. Whether the Fed actually ends QE is ultimately irrelevant. No fiscal structure can survive when it abandons fundamentals for fantasy. Either QE continues, becoming less and less effective in staving off negative results in equities, inspiring a flight from the dollar leading to a crash, or QE ends, exposing the inevitability of negative results in equities, leading to a crash.  If the Fed ends stimulus, the process of collapse will merely take place slightly faster than if stimulus remains.

But every historic economic crisis has a defining moment, a moment in which the tide turned overwhelmingly sour for a majority of the public. The question now becomes what, exactly, will trigger the avalanche?

Precious Metals Signal Secret Shift To Asia

As I have discussed in numerous articles over the years, China’s shift away from the U.S. consumer and the U.S. dollar is well under way.  Over half of the world’s major economies now have bilateral trade agreements in place which remove the dollar as the world reserve currency in trade with China and the ASEAN economic bloc.  China is issuing trillions in Yuan and Yuan denominated bonds around the globe, setting the stage for a higher Yuan valuation and allowing Chinese consumer markets to replace American consumer markets as the number one driver of manufacturing in export countries.  At the same time, China has increased its purchases of precious metals exponentially to the point that the nation is now set to become the largest holder of gold and silver in the world in the next two years.  This is clearly in preparation for a currency crisis event…

The buying spree in Asia seems to directly contradict the “paper market” value of metals in recent weeks.  Demand for gold and silver has only increased throughout most of the world, even in light of Federal Reserve suggestions that QE might end.  Manipulations within metals markets by the CME and JP Morgan explain half the story, but there may be another issue at work.

It is very possible that the COMEX is now essentially broken, and that gold and silver ETF’s (paper gold and silver) are decoupling from the street value of physical metals during the last gasp of a failing system.  In the near term, I believe that premiums on physical coins and bars will skyrocket, even as the official market prices of those metals is held down.  At the same time, China, Russia, and other countries heavily invested in gold may break from Western COMEX valuations completely using their own metals markets to establish their own prices.

As the dollar loses its world reserve status, the countries holding the most physical gold in their coffers stand to weather the storm most effectively, and because U.S. gold stores have never been officially audited, we have no idea if America has any reserve whatsoever.

Crushing Energy Prices Coming Soon?

While China continues a careful strategy of decoupling from the dollar and the U.S. consumer through bilateral agreements and trading blocks, another issue is arising: the issue of energy. I would like to note that despite globally diminishing oil demand caused by the 2008 credit collapse, gas prices have experienced little to no deflation.  I would also like to note that after the Federal Reserve hinted at shutting down QE, oil was one of the few commodities that continued to rise.

This has not been caused by a lack of supply, as many American-based companies ramp up production. (I am aware of all the arguments behind peak oil. As soon as a peak oil proponent can show me an example of oil demand not being met because of a legitimate lack of supply, then I’ll be happy to consider that peak oil is the main cause of price increases.)

The fact is current regressive global demand and ample supply should have led to lower gas prices, not higher. If speculation was the cause, then price shifts within the oil market should have been far more volatile, with increases lasting weeks or perhaps months, but certainly not years.  The only plausible explanation for this kind of commodity activity is a weakening of the currency it is directly tied to.  The petrodollar is slowly but surely coming to an end.
I believe the next market exodus may be triggered by the weakening effects of stimulus (or the removal of stimulus altogether) along with extreme energy prices cause by steady inflation and a global political crisis in the near future.

China, being strangely and consistently prophetic when it comes to economic calamity, has recently established an astonishing oil trade deal with Russia, which plans to supply China with an alternative petroleum source for the next 25 years. (This news went almost completely unnoticed by the mainstream media.)

Now, keep in mind that in 2010, China and Russia signed an agreement completely removing the U.S. dollar in bilateral trade. The dollar has been the world reserve and the only currency used to purchase petroleum for decades. The Russia/China oil deal changes everything. It sets a trend toward the removal of the petrodollar function of the Greenback which ultimately destroys any credibility the currency has left. This news flies in the face of dollar proponents who consistently claim that the dollar’s ties to oil make it invincible. Apparently, there are some weaknesses in the armor.
Ongoing social unrest in Egypt has also made oil markets jumpy, being that the Suez Canal oversees the transfer of a significant portion of the world’s oil shipping.  Clearly, there are two opposing factions within the country vying for power, and regardless of who is best suited to U.S. interests, the Egyptian people overall have no love for the West.  There is a distinct chance of a shooting war, similar to Syria, in the coming months in Egypt.

Meanwhile, the engineered conflict in Syria continues to go exactly as I predicted in my article ‘The Terrible Future Of The Syrian War’.

Syria remains an explosive trigger point for regional war which will, in the end, draw in Iran and result in the closure of the Strait of Hormuz, which annually handles the shipping of about 20 percent of the world’s oil. All trends point toward higher gas prices over the horizon, and the U.S. economy is barely able to survive on the cost of energy we have today.

So Close They Can’t See It

Reduced stimulus combined with adversely high oils prices may very well be the tumbling boulders that bring down the mountain. We are close now. Beyond the undeniable economic factors, the very fabric of American government is crumbling. Corruption is openly rampant. Scandals are exposed daily. The establishment leadership is unapologetic and grows even more despotic with each truth that escapes into the open air. They are becoming MORE bold, not less bold, and those of us who seek transparency in all things, from politics, to economics, to surveillance, are being attacked as the source of the problem rather than the solution.

Collapse, from a historical perspective, seems to occur when the searchlights of the individual mind are dimmest, when the threat is the greatest, and when we are most comfortable in our ignorance. In 2008, the U.S. public was mostly oblivious to the danger, and they were painfully stung. Today, I hope that the liberty movement, the alternative media, and alternative economic analysts have created a window of opportunity by which millions of people can this time see the writing on the wall and prepare accordingly. At this point, there is no question that Americans have been warned. Whether or not they pay heed, is out of our hands.



Published on Jul 11, 2013



By Greg Hunter’s  (revised)

Money manager Axel Merk says, “There really is no such thing as a safe asset anymore. . . . If you hold cash, the purchasing power of your cash is at risk. . . . What we do is try to get out of the dollar. We buy gold, we buy other currencies.” Mr. Merk contends, “The reason why we like gold is because there is too much debt in the world. The Europeans have experimented with austerity, but the rest of the world prefers the printing press.” According to Mr. Merk, the fear trade is turning into inflation fears. Merk says, “Inflation expectations have been coming down. In fact, whenever inflation expectations come down, the Fed has printed more money, not less money. So, we don’t believe in the ‘taper’ story.” Mr. Merk goes on to say, “Ultimately, if we allowed market forces to play out, I’d sell my gold. But, because I do not think Paul Volcker is going to succeed Bernanke . . . I do like my gold. We have been buying in our funds.” Join Greg Hunter as he goes One-on-One with Axel Merk, Portfolio Manager and Founder of Merk Investments.




-CHART OF THE WEEK: The Scariest Jobs Chart Ever. Read more here-

-Recovery woes: America’s second-largest employer is a temp agency. Friday’s disappointing jobs report showed that part-time jobs are at an all-time high, with 28 million Americans now working part-time. The report also showed another disturbing fact: There are now a record number of Americans with temporary jobs. Approximately 2.7 million, in fact. And the trend has been growing. In the first quarter of 2013, U.S. staffing companies employed an average of 2.86 million temporary and contract workers, or 2 percent of all non-farm employment in the United States, according to the American Staffing Association. This represents a 2.9 percent growth from the same period in 2012. For just the month of June, there was a 6.7 percent growth in the number of staffing jobs than last year. Read more here-

-54 Months: Record Stretch of 7.5%+ Unemployment Continues. Since January 2009, when Barack Obama was inaugurated as president, the United States has seen 54 straight months with the unemployment rate at 7.5 percent or higher, which is the longest stretch of unemployment at or above that rate since 1948, when the Bureau of Labor Statistics started calculating the national unemployment rate. BLS reported Friday that the seasonally adjusted national unemployment rate for June was 7.6 percent, the same it was in May. Read more here-

-CHART OF THE WEEK: John Williams of Shadowstats, Monetary Base Skyrocketing As Unemployment Hits 23.4%. John William’s extraordinary graph below shows unemployment in the United States hitting what is in reality a 75-year high. Also note the government figures in the chart which serve to deceive the public by showing lower unemployment. The reality is that the United States has not seen this kind of soaring unemployment since the 1930 to 1938 (Great Depression) time frame, and the U.S. is now at a post-Depression high in terms of unemployment. Incorporating the seasonally-adjusted U.6 and the ShadowStats estimate of long-term (more than one year) discouraged workers, the ShadowStats-Alternate Unemployment Measure rose to a series high 23.4% in June, up from 23.0% in May. Read more here-

-CHART OF THE WEEK: The Rise Of Food Stamp Use In America. Read more here-

-101M Get Food Aid from Federal Govt; Outnumber Full-Time Private Sector Workers. The number of Americans receiving subsidized food assistance from the federal government has risen to 101 million, representing roughly a third of the U.S. population. The U.S. Department of Agriculture estimates that a total of 101,000,000 people currently participate in at least one of the 15 food programs offered by the agency, at a cost of $114 billion in fiscal year 2012. That means the number of Americans receiving food assistance has surpassed the number of full-time private sector workers in the U.S. According to the Bureau of Labor Statistics (BLS), there were 97,180,000 full-time private sector workers in 2012. The population of the U.S. is 316.2 million people, meaning nearly a third of Americans receive food aid from the government. Read more here-

-”I think we have many dangers. The biggest danger is governments themselves with their interventions into free markets, and their fiscal policies.” Marc Faber

-”The government reports its 2012 deficit as $1.1 trillion. If you calculate the deficit using generally accepted accounting principles, as publicly traded companies in the US are required to, the deficit would be $6.6 trillion. So far in 2013, the Federal Reserve purchased 90.5% of the US government’s net issuance of debt.” Casey Research

-”There are no examples in history of any paper currency not culminating in a violent collapse. None. It has been tried by all of our ancestors throughout human history. All examples resulted in failure. The lesson never learned is that humans cannot be trusted with the ability to create money out thin air. The list of those who have come before us include the Mongols, Chinese, French, Germans, Romans, Hungarians, etc. It is not about a particular culture or a period in time. It just does not work.” Robert Fitzwilson

-”Well, to anyone who understands economics, when you print massive amounts of money it always results in higher interest rates over time. It’s only because of government interference that bonds held up as long as they did. The bond market had also been resilient for a longer period of time because of the fact that the economy is not really in stagflation or deflation, it’s really in a depression.” Keith Barron

-”This sentiment is as bad as I remember going all the way back to when we started the gold fund in 1998. Gold has become a joke. I love these aggressively negative strategy type letters that I keep seeing. Everybody is trying to top the next guy on how low gold will go. It’s the opposite of what we saw when gold was pushing above $1,900. So sentiment is ripe for a complete reversal on gold, and a very sharp one. We know the market is structured in a way that is very vulnerable to a short squeeze, which I think has already started to take place, but we are still in the very early stages of it. We have had a lot of false starts in the gold market, but this one sure looks like a massive upside reversal will soon be upon us.” John Hathaway

-”The entire Wall Street community is absolutely convinced that not only is the U.S. economy healed, but they also believe the U.S. dollar is going to have a massive surge from current levels. They also believe the end of QE is right around the corner, and that higher interest rates will not put a damper on the housing market or GDP growth. That trade is so overcrowded, especially when it comes to how those factors affect gold. Investors would be very misguided not to take the other side of that trade. If you look at the U.S. dollar and how it relates to gold, that is one of the most overcrowded trades in my 20 years of experience on Wall Street. So it’s long the dollar, short gold, the United States healing, and the end of QE. But I believe that trade is completely wrong.” Michael Pento

-”Looking at gold and silver, physical demand is still very high. Silver coin sales in the United States are up 56%. If we look at Swiss refiners, some still have delays of four weeks. So we are seeing four week delays and yet gold is still under paper selling pressure. But we are seeing gold and silver forging a bottom here, and we will see a very strong market in the autumn. The paper market is still the dominant market right now, and it’s ignoring what is happening in the real (physical) market. We know that can’t continue for long. We know the physical market will prevail, and the shorts will be forced to cover. So investors should simply ignore the paper smash and continue to accumulate physical gold and silver because in the end the physical market will prevail.” Egon von Greyerz

-Greg Hunter: Paul Craig Roberts Interview, Washington is Arranging Support of the Dollar. Former Assistant Treasury Secretary Dr. Paul Craig Roberts says new Trade deals with the EU and Asia are meant to backstop the dollar. Dr. Roberts contends, “Washington is arranging that many countries have a stake in supporting the dollar. That frees them from the consequences of the printing press for now and a number of years.” It may already be working as Roberts points to the recent plight of NSA leaker Edward Snowden. He says, “Snowden tells the whole world the Americans are listening in on your every communication.

You have no privacy whatsoever from the Americans and, yet, nobody will step forward and give him asylum. They’d rather have American money than defend the guy who brings them the truth.” Not every country thinks the U.S. will be successful in saving the dollar. Dr. Roberts points out, “China is importing a tremendous amount of gold. They seem to not have much confidence in the longevity of American plans.” Even so, a dollar crash might be pushed back. Dr. Roberts contends, “They can put that off for a long time if these various schemes work.” And if they don’t work? Roberts says, “Well, there’s going to be a big blowup. I think there will be a big blowup anyhow.” Watch more here-

-Many on Fed Awaiting More Job Gains Before Tapering QE. Many Federal Reserve officials want to see more signs employment is picking up before they’ll begin scaling back $85 billion in monthly bond purchases, according to minutes of policy makers’ meeting last month. “Many members indicated that further improvement in the outlook for the labor market would be required before it would be appropriate to slow the pace of asset purchases,” according to the record of the Federal Open Market Committee’s June 18-19 gathering released in Washington. Read more here- and

-Bernanke Supports Continuing Stimulus Amid Debate Over QE. Federal Reserve Chairman Ben S. Bernanke called for maintaining accommodation even as the minutes of policy makers’ June meeting showed them debating whether to stop bond buying by the Fed in 2013. “Highly accommodative monetary policy for the foreseeable future is what’s needed in the U.S. economy,” Bernanke said yesterday in response to a question after a speech in Cambridge, Massachusetts. Read more here-

-ECB’s Asmussen urges Europe to accelerate “bail-in” plans. Europe should accelerate plans to force investors and wealthy savers to share the costs of future bank failures and define clear rules for these ‘bail-in’ arrangements, ECB policymaker Joerg Asmussen said on Tuesday. The EU agreed last month on a bail-in plan to target shareholders, bondholders and rich depositors, eager to avoid a repeat of the financial crisis, when its member states spent the equivalent of a third of the bloc’s economic output on saving its lenders.

Asmussen said that under existing arrangements, the bail-in tool could enter into force as late as January 1, 2019. “This is too late,” he said in a speech to the Atlantic Council at Reuters’ London office. “It means that we have a time gap where the harmonized resolution framework has entered into force but one of the key resolution tools is not available to the resolution authorities.” This could impact the timely and orderly winding up of a bank, he said, adding: “The European Parliament proposes bail-in to enter into force in 2016. That’s an improvement, but I think January 2015 would be better. Markets will in any case anticipate bail-in earlier.” Read more here-

-IMF Reduces Global Growth Outlook as U.S. Expansion Weakens. World economic growth will struggle to accelerate this year as a U.S. expansion weakens, China’s economy levels off and Europe’s recession deepens, the International Monetary Fund said. Global growth will be 3.1 percent this year, unchanged from the 2012 rate, and less than the 3.3 percent forecast in April, the Washington-based fund said today, trimming its prediction for this year a fifth consecutive time. The IMF reduced its 2013 projection for the U.S. to 1.7 percent growth from 1.9 percent in April, while next year’s outlook was trimmed to 2.7 percent from 3 percent initially reported in April. Read more here-

-Ambrose Evans-Pritchard: The wheels are coming off the whole of southern Europe. Europe’s debt-crisis strategy is near collapse. The long-awaited recovery has failed to take wing. Debt ratios across southern Europe are rising at an accelerating pace. Political consent for extreme austerity is breaking down in almost every EMU crisis state. And now the US Federal Reserve has inflicted a full-blown credit shock for good measure. Read more here-

-Meanwhile, Greece’s Unemployment Nightmare Is Only Getting Worse. In Greece, the unemployment rate ticked up to a horrific 26.9% in April from 26.8% in March. This is up from 23.1% in April of last year. Read more here-

-Father Cancels Tiramisu to Cable Under Pentagon Furloughs. Ted Gold, a technician at the Letterkenny Army Depot in south-central Pennsylvania, has dropped cable television service and plans fewer summer outings with his 6-year-old son for amusement rides at Hersheypark. The divorced father is adjusting his own budget in anticipation of the unpaid Fridays he’s being forced to take starting this week as the Pentagon imposes budget-cutting furloughs on 651,542 civilian employees in the U.S. and abroad. Read more here-

-Illinois Governor Cuts Off Pay For Lawmakers Until They Can Solve State’s Pension Crisis. Gov. Pat Quinn suspended Illinois lawmakers’ pay on Wednesday, following through on his warning of consequences if they failed to come up with a solution to the state’s nearly $100 billion pension crisis, the worst of any state nationwide. Read more here-

-The computers that run the stock market. Citadel Securities has quietly become one of the largest forces in U.S. stock trading. From the 35th floor of a downtown Chicago office tower, Citadel executes one out of every eight stock trades in the United States. At roughly 900 million shares a day, more stocks move through Citadel’s systems than the New York Stock Exchange, which trades roughly 700 million shares a day. Read more here-

-NYSE Euronext to Take Over Administration of Libor From BBA. Britain will hand over administration of the London interbank offered rate to the operator of the New York Stock Exchange as regulators try to revive confidence in the scandal-hit benchmark. Read more here-

-China Has World’s Most Active Missile Programs, U.S. Says. China’s military has the world’s “most active and diverse ballistic missile program,” with an expanding inventory of nuclear warheads that can reach the U.S., according to a Pentagon intelligence report. Read more here-

-For Only The Second Time In History, The World Health Organization Calls An Emergency Meeting About A Virus. While the Middle Eastern Respiratory Syndrome Coronavirus (MERS CoV) hasn’t yet reached pandemic potential, the World Health Organization (WHO) is worried enough about the virus to call its second-ever emergency meeting. Read more here-

-IPhones Stuck to Windshields Threaten Dashboard Maps. Tim Nixon, chief technology officer of General Motors Co. OnStar service, knew something was amiss when he saw his two sons taking the “suction-cup approach” to in-car navigation. They would turn their iPhones sideways, stick them to the windshield and use a free map app to find their way. Read more here-



Published on Jul 8, 2013

- Featured Diamond of the Week. This week’s Diamond is a 8.04 Carat Radiant Cut Fancy Intense Yellow Internally Flawless. Harold Seigel-Watch video here-

-12 Carat Brilliant-Cut Diamond Ring Leads Bonhams Jewelry Auction. A 12.13 ct. cut-cornered rectangular modified brilliant-cut diamond ring sold for $482,500 at Bonhams Fine Jewelry auction on June 19. Sales from the entire auction totaled $5.3 million. “The auctions saw both colored and colorless diamonds exceeding their high estimates, with excellent prices realized for signature jewelry as well as fine quality colored stones,” said Virginia Salem, director of the Bonhams jewelry department in New York City. The sale price for an 8.5 ct. pear-shaped fancy intense yellow diamond ring more than doubled its pre-auction estimate; the ring went for $266,500. Read more here-

-India jewellers turn to diamonds, non-residents to beat gold policy woes. Jewellers in India are banking on a growing appetite for diamonds in the country and resilient demand for gold among its non-residents to offset a slowdown caused by a government clampdown on imports of the precious metal. Leading jewellers such as Titan Industries and Gitanjali Gems are aggressively promoting diamond jewellery, which uses less gold, and opening more stores in cities such as Singapore and Dubai in an effort to spur sales. Read more here-

-55-Carat Diamond Dazzles at NYC Museum. The dazzling 55-carat Kimberley Diamond makes its debut at the American Museum of Natural History in New York July 11. The champagne-colored “cape diamond” was originally cut from a 490-carat stone found sometime before 1868 in the Kimberley Mine in South Africa. (A carat is a unit of weight equivalent to about a fifth of a gram, or about 0.007 ounces.) The diamond was later cut to 70 carats in 1921, and cut to its stunning present form in 1958. The diamond, which is on loan from the Bruce F. Stuart Trust, is about 1.25 inches (3.2 cm), and virtually flawless, said exhibit curator George Harlow. The original diamond was fairly large, but there aren’t many descriptions of it, so its history isn’t well-known, Harlow told LiveScience. Read more here-







  • Unrest in Egypt and declining U.S. inventories are driving wholesale prices up. Pump prices will soon follow.

  • Lower inventories, fears of Mideast oil disruptions pushing crude oil higher

  • Gas averaging $3.55 a gallon, vs. $3.38 a year ago
  • Midwestern states already experiencing swift, large price hikes

By Gary Strauss, USA TODAY

Gas prices are heading up again.

Rising crude oil prices and a fall in U.S. supplies are driving wholesale gas prices up sharply. That has yet to be fully reflected at the retail level.

Prices at the pump — up 7 cents the past week to a national average of $3.55 a gallon Friday — could climb 15 to 20 cents over the next two weeks. A year ago, the national average was $3.38.

“It’s getting ugly,” says Patrick DeHaan, senior analyst for “First and foremost, the political problems in Egypt are driving crude oil prices, but there has also been a sharp drop in oil supplies the past two weeks. This is coming at a time when demand is at its annual July peak.”

Egypt is not a major oil supplier, but ongoing political woes threaten Middle Eastern shipments and were the catalyst behind crude oil prices rising to 15-month highs earlier this week. Benchmark West Texas crude oil was up 50 cents to $105.42 a barrel in early Friday trading. Wholesale gas prices — up 30 cents to 60 cents a gallon in some markets since late June — surged 9 cents to $3.11 a gallon for mid-August delivery. Typically, pump prices are about 75 cents higher.

Gas prices have gyrated for much of the year, rising from an average of $3.29 a gallon at the start of 2013 to $3.79 a gallon in February, then falling to $3.47 a gallon last week. In some regions of the Midwest, where supplies were disrupted by oil refinery outages and extended maintenance, prices surged to $4.25 a gallon.

The national average for gasoline is now up five consecutive days after falling 24 of the previous 25 days. Midwestern states, including Michigan, Indiana and Ohio, are already experiencing swift, large price hikes, up 20 cents the past week, and could rise another 20 cents by this weekend.

“We may be on a roller coaster for the rest of the summer,” says DeHaan.

Francisco Blanch, head of commodities and derivatives research at Bank America/Merrill Lynch, says the rise is temporary.

“I don’t think the run-up is sustainable,” Blanch says. “I give it a month.”




July 12, 2013 3.583 132.466
July 11, 2013 3.567 131.245
One Week ago 3.495 130.640
One Month ago 3.636 130.882
One Year ago 3.422 123.129
Current Trend




-CHART OF THE WEEK: Eric Pomboy founder of Meridian Macro Research, Gold Charts. The COT data for week ending 7/2 show a 35% reduction in Net Commercial Position to 22,776 contracts the least Net Short reading since Jan 8, 2002 when gold was $279/oz. With a Net Long reading not far off, a significant upside reversal for gold is clearly in the works. Read more here-

-CHART OF THE WEEK: Jeff Clark, Telegraphing the Turnaround in Gold. Read more here-

-CHART OF THE WEEK: Gold-Oil Ratio Declines to Lowest Since 2008. Read more here-

-Zero Hedge: Gold GOFO (Gold Forward Offered Rate) rates turn negative for first time since Lehman. Today, something happened that has not happened since the Lehman collapse: the 1 Month Gold Forward Offered (GOFO) rate turned negative, from 0.015% to -0.065%, for the first time in nearly 5 years, or technically since just after the Lehman bankruptcy precipitated AIG bailout in November 2011. And if one looks at the 3 Month GOFO, which also turned shockingly negative overnight from 0.05% to -0.03%, one has to go back all the way to the 1999 Washington Agreement on gold, to find the last time that particular GOFO rate was negative.

And while both Antal Fekete and Sandeep Jaitly, traditionally two of the most vocal pundits in the arena of gold backwardation and temporal and collateral gold market arbritrage, are likely come up with their own interpretations of what may be causing this historic inversion, the reality is that one can’t know for sure until after the fact. It may be one of many things:

  • An ETF-induced repricing of paper and physical gold
  • Ongoing deliverable concerns and/or shortages involving one (JPM) or more Comex gold members.
  • Liquidations in the paper gold market
  • A shortage of physical gold for a non-bullion bank market participant
  • A major fund unwinding a futures pair trade involving at least one gold leasing leg
  • An ongoing bullion bank failure with or without an associated allocated gold bank “run”
  • All of the above

Read more here-

-GOFO Explained And Why It’s Now Very Bullish For Gold. The GOFO is the interest rate that is used in a gold-for-dollars swap transaction. Someone who is long gold and needs dollars for short term use can use his gold as collateral and get a much lower interest rate in borrowing the dollars. But when the GOFO is negative, it means that someone with dollars needs the short term use of gold and is willing to pay the owner of the gold a rate of interest plus use dollars for collateral. A negative GOFO rate means that gold in hand today is worth more than U.S. dollars in hand. Think about that the next time someone tries to explain to you why gold has no value. Just like the previous three times, I am confident that the current GOFO means the bottom of the 2-yr correction in gold and silver is over and that there is a very high probability that the next cyclical move higher will see new records for both the price of gold and silver. Read more here-

-James Turk: Something Shocking Has Occurred In The Gold Market. Backwardations in oil can occur because its supply is limited. Its aboveground stock is counted in days of use, in contrast to gold where the aboveground stock is essentially all of the gold mined throughout history. So when backwardation occurs in gold, it is an earthshaking event. People who own physical metal do not want to profit from the backwardation, even though they are only taking a credit risk for as short as one month. They want to own physical metal, regardless of the potential profit, because earning this potential profit depends on the ability of the entity selling the future contract to deliver physical metal to you when the contract comes due.

Gold backwardation is occurring because the big bullion dealers, hedge funds and arbitragers, do not want to take this risk. This phenomenon highlights the difference between physical metal and all of its paper substitutes. When backwardation in the metals occurs, it means two things: First, people want physical metal and not paper promises to deliver metal in the future. Second, it means that the physical market is starting to drive the price of the metal, rather than what we have seen the past several months where paper selling drove gold and silver prices to abnormally low levels. The bottom line is that in a year or two when we look back at today, we will marvel at how cheap the prices of physical gold and physical silver plummeted to. Read more here- and

-CITI: Gold Crashed Just Like This In 1976, Right Before Its Value Multiplied By A Factor Of 8. In 1976 the Gold correction ended in August and the Equity market began a deep correction in September (27% over 18 months). During that period Gold rallied by about 78% and over the 1976-1980 period it multiplied in value by a factor of 8 from just over $100 to over $800. The final part of that rally saw Gold rise from about $470 to $850 over about 4 weeks on the back of the USSR invasion of Afghanistan. Even without that move it still multiplied by about 4.5 times in just over 3 years. Read more here-

-Stephen Leeb: Gold & A Global Financial System In Complete Turmoil. This was inevitable that you would have a big decline in gold. Ultimately the West, and in particular the United States, is desperate to keep the dollar at the forefront, to keep the dollar as the reserve currency. The United States allegedly has 8,000 tons of gold. So why do they (the BIS) exclude gold (as a top-tier holding)? Why? Because they are scared to death if they had said that gold could be a liquidity buffer, something banks and governments could hold in case of emergency, they would be blessing the concept that gold is a currency. And once that happens gold goes to the moon.

If you call the ‘moon’ five-digits, that’s where it (gold) is going. That’s what the United States is scared to death of. Once you let that little secret out of the bag (that gold is a top-tier currency), there is no stopping gold. There is no stopping silver. When you look at what’s happened (to gold) in 2013, it will go down as the last desperate attempt to hold gold back. The West still had one gun left and they fired it in 2013. This was something that had to happen. The West was going to do whatever it could to keep gold down. But eventually it won’t be enough. And China has the right idea. They know they need gold. So there’s no top (on gold). This will go down as a chapter in a book titled, ‘Western desperation, the last gasp of the dying West.’ And the last chapter of the book will be titled, ‘Five-Digit Gold. Read more here- and

-John Williams: Market Shocks Ahead Should be Positive for Gold, Negative for the US Dollar. When the US dollar again comes under heavy selling pressure, oil prices will spike anew, separate from the effects of political crises in the Middle East. The inflation, so driven, should reflect dollar weakness from Federal Reserve policies that Mr. Bernanke will find he cannot escape, and from dollar weakness reflecting the inability of the US government to address its long-term sovereign-solvency issues. Ongoing economic weakness will exacerbate the dollar-negative circumstances, intensifying the problems with Fed easing and US fiscal deterioration.

The inflation will be driven by US dollar weakness, not by strong domestic demand for goods and services. As fundamental dollar selling kicks in, full-fledged dollar dumping along with heavy sales of dollar-denominated paper assets are likely to unfold. Preceding, or coincident with that, the global reserve status of the US dollar should be challenged. As the rest of the world moves out of the dollar, domestic confidence in the US currency will falter as well, eventually fueling severe domestic inflation, and setting the early base of a likely hyperinflation. Such an environment is one for which physical gold and silver would serve as primary hedges against the ultimate debasement of, and loss of purchasing power in the US dollar. Read more here-

-William Kaye: Game Over “It’s All A Farce, The Fed & German Gold Is Gone.” So the Fed gold, that Americans think is theirs, is gone. The gold that the Germans have been told they will get back in 7 years, they’ll never get back because it doesn’t exist anymore (at the Fed). I own it. The People’s Bank of China owns it. The Reserve Bank of India owns it. The central bank of Russia owns it. But the people of Germany (and America) don’t own it.” Read more here- and

-John Embry: This Will Destroy The Financial System As We Know It. There are all sorts of black swans that are circling, but it will probably be the black swan I didn’t think of that will send the price of gold and silver soaring. I agree with Marc Faber, who you just interviewed, and he said that all those who own financial assets are doomed. If that is the case, and I don’t disagree with him, this is going to lead to an amazing move into the gold and silver space because they don’t have counterparty risks.

Also, if you combined all of the physical gold and silver and gold and silver stocks in the world today, I don’ think they would account for 1% of financial assets in the world. In previous bull markets they reached 5% to 10%. So consequently, once we start heading to the upside these assets, the surge in both the bullion and the shares is going to be massive. The fact that current sentiment in the gold and silver space does not reflect this is almost amusing. This setup is really quite astounding. Read more here-

-Adam Hamilton: Long Rates Threaten Gold? The bottom line is rising long rates don’t threaten gold. Throughout its secular bull, gold has thrived while 10-year Treasury yields were higher or rising dramatically. Bond investors and gold investors are distinct groups with different goals. Gold investors aren’t looking for yield, they seek capital gains. And global gold investment demand grows for many reasons whether long rates happen to be rising or falling.

You can actually make the case that the severe capital losses in bonds driven by fast-rising yields are bullish for gold. There is no sense parking capital in bonds when they are being sold off aggressively, leaving gold much more attractive. And as long as real interest rates remain negative, which will persist for as long as the Fed holds rates artificially low near zero, gold investment demand will continue growing. Read more here-

-What Is Charles Nenner, Godfather Of Cycles, Now Predicting For Gold & Other Markets? Dr. Charles Nenner is a physician who got involved in cycle theory in his spare time and became a very accurate predictor of future market prices. Regarding gold, Charles Nenner Research found a top every 8 weeks, every 17 weeks, every 39 weeks and every 65 weeks. When all of these cycles top at the same time, you get a major top in gold. Bottoms occur at the midpoint of the tops and when all the cycles are bottoming concurrently, a major low tends to form.

Adding to the cycle theory, Charles Nenner Research also has a target algorithm which helped them predict the top in gold at $1900 in 2011. Sometime thereafter they predicted a low of $1285 which was recently met and exceeded to the downside. They are now looking for a bottom between now and September 2013 after we get through a minor top in mid July 2013. Gold will start up slowly but should return to the old high within the next 2-3 years. Actual time and projection targets can be determined once a bottom forms in the short-term. They see the gold metal as rallying much more than gold stocks, so they prefer one play the metal. Be aware that the initial rally phase will start out very slowly. Read more here-

-Frank Holmes: The Asian Giant Stampeding into Gold. I recently discussed how traders were stampeding out of gold as a result of rising interest rates and the threat of evaporating monetary fluid that was lubricating markets. Hovering around $1,200 at the beginning of July, the gold price has completely disconnected from the precious metal’s fundamentals, in my opinion. Prices have fallen too far out of fear, but the drivers for gold are still in place. Read more here-

-China’s gold imports still at unprecedented highs. With net gold imports through Hong Kong again exceeding 100 tonnes in May, China looks like heading to absorb over 50% of global gold output this year and rising. Read more here-

-Indian Jewellers join gold bar and coin ban. In a bid to support the Indian government’s efforts to reduce its current account deficit, Indian jewellers have decided to voluntarily ban gold coin, bar sales for the next six months. Read more here-

-Richard Dyson: The smart money is quietly buying more gold. The herd is selling gold so should you be buying? Read more here-

-Jaco Schipper: Zijlstra’s legacy and the 21st-century renaissance of gold. Read more here-




-”The standout feature for the first week of deliveries against the July silver contract indicates that JPMorgan has taken roughly 90% of the metal offered for delivery, or a total of 1,637 contracts out of a cumulative total of 1,828 delivered so far. In turn, of the silver contracts stopped or accepted by JPMorgan, 90% (1,479 contracts) were for JPMorgan’s own house or proprietary trading account. In other words, JPMorgan took delivery of roughly 7.4 million ounces of silver in the COMEX warehouses for their own benefit and risk.” Silver analyst Ted Butler July 6 2013 via Ed Steer Casey Research-Read more here-

-”These HFT crooks (mainly JPMorgan in my opinion) have set us all up so perfectly that the market (if we can call it that) now waits for the crooks to set prices first and then transact business for the rest of the day at the prices the HFT crooks have dictated. I think we’ve all lost our minds to allow this. I don’t think the regulators at the CFTC or the CME have lost their minds, just any sense of what’s right and what they are responsible for. I also don’t think that JPMorgan has lost its mind, as the intent behind the sudden takedowns is the enable the bank to buy as much gold and silver as possible and the record clearly indicates that is exactly what these crooks have done.” Silver analyst Ted Butler July 6 2013 via Ed Steer Casey Research-Read more here-

-David Franklin and David Baker: Silver, Light at the End of the Tunnel? Read more here-

-Shanghai Silver Stocks Fall Nearly 50% Since April. Read more here-

-Miguel Perez-Santalla: Silver market shifts: demand and consequence, Part 3. With photography gone, and photovoltaic silver consumption not plugging the gap, who is buying silver? Read more here-

-Ted Butler: The new law of supply and demand. In commentary excerpted from his latest newsletter, silver market analyst and market-rigging opponent Ted Butler complains again that the prices of gold and silver are being determined by “excessive speculative selling” of futures contracts rather than by genuine transactions between buyers and sellers of real metal and that regulatory authorities do nothing about this perversion of commodity markets. Butler further complains that this “excessive speculative selling” has just driven the prices of gold and silver below their cost of production. Read more here-






The average monthly apartment rent in the city has soared past $3,000 for the first time, and the scarcity of housing is driving home hunters out to suddenly pricey Brooklyn and Queens, new reports on the super-tight market show.

In contrast, the average national apartment rent is $1,062, a little more than one-third the average city rent of $3,017 excluding Staten Island, according to Reis Inc., a real-estate research firm.

Second-place San Francisco isn’t even close, at a mere $1,998.82 a month.

Residents who feel priced out of Manhattan may soon be priced out of the five boroughs altogether.

Median sales prices for Brooklyn homes rose 15.3 percent in the past year — to $550,000, a 10-year high, according to a new Douglas Elliman market report.

In Queens, the inventory of homes for sale is at an eight-year low, and the median price jumped 9.9 percent to $390,000.

“As Manhattan gets stronger, the outlying areas are benefiting significantly,” said Gary Malin, president of Citi Habitats. “All areas in close proximity to Manhattan are building new buildings with fantastic amenities and a significant price differential.”

The market is getting so tight that 300 people showed up at a recent open house for a single apartment in Brooklyn Heights.

“That’s 10 times the amount of people who would have shown up last year,” said Frank Percesepe, regional senior vice president, Brooklyn, for Corcoran.

Also, 450 people attended three open houses in 4 1/2 hours in Bedford-Stuyvesant, and the broker received 50 offers by the end of the week, Percesepe said. “That would have been unheard of a year ago.”

The inventory of Brooklyn homes for sale has plunged nearly 31 percent in the second quarter of this year compared to the same period last year, from 2,592 to 1,794.

“Brooklyn has evolved into a destination market, standing on its own rather than simply being a more affordable alternative to Manhattan,” said analyst Jonathan Miller, who prepared the Elliman report.

And a tight Brooklyn market is driving buyers to Queens.

“Queens is benefiting significantly from Brooklyn’s market rebound as renters and buyers are coming there in search of affordability,” Miller said.

The outer-borough luxury market is also booming.

The median sales price for high-end Brooklyn homes jumped 20 percent compared with the same quarter last year — to a robust $1.6 million. In Queens the median sales price for a luxury home rose 9.1 percent, to $900,000, according to the Elliman report.


-Foreclosures fall to pre-housing bust levels. The long national foreclosure nightmare is nearing its end, with foreclosure filings hitting their lowest level since before the housing bust. Total foreclosure filings, including notices of default, scheduled auctions and bank repossessions, dropped to 127,790 in June, down 35% over the past 12 months, according to RealtyTrac. Overall, filings have hit their lowest monthly level since December 2006. The number of foreclosure filings have plunged so fast down 14% since May that the housing market could be back to pre-mortgage meltdown levels before the end of the year, according to Daren Blomquist, a vice president at RealtyTrac. Read more here-

-Canadian May New Home Price Index Rises 0.1% on Calgary Gains. Canada’s new home price index rose in May led by Calgary and cities in Ontario, the government statistics agency said. The 0.1 percent national gain was led by a 0.9 percent increase in Calgary, Statistics Canada said today in Ottawa. Prices also rose 0.6 percent in the Ontario cities of St. Catharines-Niagara, Sudbury and Thunder Bay. From a year earlier, new home prices increased 1.8 percent in May. Read more here-

-U.K. House-Price Index Rises as Demand at Four-Year High. A U.K. house-price gauge rose in June as government measures to help the property market pushed demand to the highest in almost four years, the Royal Institution of Chartered Surveyors said. Read more here-

-Chinese buyers flood U.S. housing market. Flush with cash, Chinese homebuyers are flooding into the U.S. housing market, and paying top dollar. “The Chinese came out really huge in the past year,” said Jonathan Miller of Miller Samuel, a New York-based appraiser. Chinese buyers accounted for 18% of the $68.2 billion that foreigners spent on homes during the 12 months ended March 31, according to the National Association of Realtors. At a median price of $425,000, the Chinese are also buying more expensive homes than other foreign buyers, who spent a median of nearly $276,000 on U.S. homes. And nearly 70% of those pricey Chinese deals were made in all cash. Nowhere is the influx of Chinese homebuyers felt more strongly than in California, where more than half of the homes sold to foreign buyers went to Chinese nationals. Read more here-

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