Hurricane Sandy, Satan's Birthday Present to the Banksters?

With Hurricane Sandy approaching the east coast of the USA and the US election only 8 days away, it looks like an act of god is certain to alter the political landscape around the next election.

How each major candidate responds to the upcoming catastrophe on the east coast is going to very heavily determine peoples perception of whether to vote for them. You can be sure there will be no Katrine like FEMA bullshit this time, the eyes of the world will on the USG and if they fail to deliver in New York of all places, where the United Nations is then they will be publicly flogged. Of course, many people have been warning of a catastrophic flood in NY for year, unlike the Thames barrier in London, New York has no such protection, and just unfortunately, because of the way the island is shaped, it channels the incoming seawater, amplifying the size of any storm surge that is going to hit the area. 
You can bet that both politicians at the moment are praying that they don't fuck up up the response, FEMA will be there actually doing it's job this time.. and why?
Well, you see.. these are rich white people, whereas New Orleans was mainly populated by poor black people.
If Obama handles this right, this could hand him the election on a plate, after all, there is no better way of making someone vote for you than rescuing them from certain death.
The fact that the NYSE is closed today, as well as the UN makes it sure that a whole bunch of clandestine bullshit will be pulled all over the world while everyone is focused on the USA. It would not surprise me at all if either the computers in the stock market get destroyed, or there is wholesale data loss of some kind. It also wouldn't surprise me at all if it turned out that a whole bunch of contracts and such will disappear into thin air the same way they did on 9/11. In fact, you could say that to the Bankers, this is Satans birthday present, an opportunity to bury all the incriminating evidence in a massive natural disaster that no one will be able to question. All the major banks will have only "essential" staff at them. You have to wonder what constitutes essential staff in this kind of situation. My guess is they will be ripping out the server racks and drowning them as fast as they can, but maybe i'm just the cynical type.

Report from FSB says ex IMF head was jailed because US Gold Reserve is 'missing"

Thank you to David Kielhiemer for posting this here.

The Currency War

(The US has long been considered a great place to stockpile gold for countries, however, what interested me is what Jim Rickards said about gold several months ago - that the US could simply take Germany's, and the rest of the European stockpiles, if the US had to continue to finance the ECB, IMF, and EU, as a result of the Euro crisis. 

Why the problem now? Remember the sex scandal of IMF Chief Dominique Strauss-Kahn, and how he reportedly attacked a African cleaning lady? Research a little more, and you will find that Strauss-Kahn, who was trying to finance a bailout for Greece, was being told the US government already had liquidated the gold of the IMF.

Now, the Germans are reportedly coming to see if the US does have any of this gold, although the article attatched explains it simply, the US does not have the gold separated by vaults, but the bars are simply numbered.

If any of this is true, that the gold reserves in the US are not safe, then it will be an interesting 2013.)

"A new report prepared for Prime Minister Putin by the Federal Security Service (FSB) says that former International Monetary Fund (IMF) Chief Dominique Strauss-Kahn was charged and jailed in the US for sex crimes on May 14th after his discovery that all of the gold held in the United States Bullion Depository located at Fort Knox was ‘missing and/or unaccounted’ for.

According to this FSB secret report, Strauss-Kahn had become “increasingly concerned” earlier this month after the United States began “stalling” its pledged delivery to the IMF of 191.3 tons of gold agreed to under the Second Amendment of the Articles of Agreement signed by the Executive Board in April 1978 that were to be sold to fund what are called Special Drawing Rights (SDRs) as an alternative to what are called reserve currencies.

This FSB report further states that upon Strauss-Kahn raising his concerns with American government officials close to President Obama he was ‘contacted’ by ‘rogue elements’ within the Central Intelligence Agency (CIA) who provided him ‘firm evidence’ that all of the gold reported to be held by the US ‘was gone’"

(EU Times)

I would just like to make a few comments on this article:
Back in the days when Tony Blair was UK PM, one day in July, the whole London ATM network went down as they installed a new high speed trunk line between London and NY. When the computers came back up, all of the UK's gold was missing from their computerised account (the gold was being physically stored in NY) When the UK asked for the Gold back, the US replied that they would not give the gold back, but they would pay cash value for it, which was about $250 an ounce at the time. This is the reason that Tony Blair was fired (notice that Gordon Brown was not elected, but appointed). 
This is also the reason why many people believe that Gordon Brown consensually sold most of the UK's gold reserves at a time when Gold was the cheapest it had been in years.
2 weeks after the incident with the ATM network being taken down, a small article in the Financial Times said that the Bank of England had to take out all their gold bars to re-test them because they were unsure of their purity because they had been there for 50 years. 
Anyone who knows how good delivery works would know that this explanation is totally facile, since the gold bars never leave trusted banks. The only reason that this would happen is that the UK either needed the Gold to cover financial commitments, or the Gold had at some point been in the possession of the US and the BoE was worried that it may have been salted with tungsten or tampered in some other way while in US custody. Since then, financial tensions between the US and UK have been, lets say a bit lacking in trust, however, Tony Blair is doing great. Since turning Catholic, he has an account at the Vatican Bank and judging by the jobs he keeps getting given he certainly got paid.

Christopher Carrion.

Spanish Bond Yields

Since so much of the future of the world at the moment seems to be based on whether Spain is going to take a bailout from the ECB, I thought I would scout around and find what rind of rates their bonds are currently paying and hence how close to the edge they are. The results might surprise you. From some viewpoints, it seems quite possible that Spain could hang in there much longer than Greece.

Ok, lets start with the One Year Yield. Usually, when countries are in crisis, debt starts to pile up at the short end of the spectrum. because people do not trust that the country will pay the money back, but either bond buying by the ECB or a perception by bankers that Spanish collapse cannot come that soon, means that their 1 Year Bonds are trading quite low.

As you can see, the short term yield spiked twice in July, signifying genuine trouble, however, at the moment, the yield is only 3.2%, well within their range to pay.

Here is the yield on the 5 year bond. As you can see, it follows a similar pattern to the one year, with yields spiking at the end of June. However, they started declining even before the ECB made the promise to buy their bonds (unless of course there has been an 'understanding' that the ECB has been buying Spanish bonds on the quiet, which would nou surprise me at all.

Now this is the 10 Year Bond. If the country is in serious trouble, here is where you would expect to see it, since no one in their right mind is going to lend to a country for 10 years if they are on the brink of collapse, unless they are backed by the ECB that is. Note the massive drop on 8 September when the ECB announced it's bailout plan, effectively guaranteeing Spain's bonds as long as they ask for a bailout. Even though yields have risen a bit ince then, it's obvious that most people still think that Spain will take the bailout. 

Here's the 20 year Bond Yield, which looks identical to the 10 year, except that the rate is higher, because what hold true for lending a country money for 10 years holds double for 20. Even after the OMT was announced, the yield only dropped to just under 6.4% and could spike back up pasy 7% very easily.

Finally, the 30 Year Note, which is a much wider graph, but you can still see the drop at the start of September and the moving around since. What's interesting is at the moment, it seems to be at the exact same point it was just after the bailout was announced. I presume people are optimistic that the meetings between Spain and the ECB will come in out in a result positive for them (the bond holders)

So what's the conclusion? Well i'm not really sure, you're guess is as good as mine, but I can make a couple of observations. Since the bailout was announced, the world seems to have bought the idea that Spain is financially stable, even after the massive rate cut today. As I said before, it may be that they are waiting for the results of the ECB meetings to make their decisions. Of course, the other problem is that unless their bond yields go over 7%, Spain might not want to ask for a bailout and give up so miuch of it's fiscal sovereignty, something I could understand. I guess only time will tell.

Christopher Carrion.

Rumours of Massive Silver find in Peru 'ephemeral'

A mass email was sent out on around 28th of September purporting knowledge of a company that had found a massive Silver deposit in Peru that was valued at 5 Trillion USD. The sender of the email was one Greg McCoach (that cant be his real name, seriously?) who gave a series of 'startling' hints about this massive deposit, but refused to name the company involved.

Fortunately, due to the vast number of people sent this email, it was not hard to find someone on the internet who had done a comment on it, thanks to Bob Tsui for finding it.

The company being advertised is Tinka Resources, which trades on the Canadian exchange (TK on the main exchange and TKNFF on the pink sheets) not only is their share very thinly traded, but according to their own announcements, they have only found 20 million ounces, which hardly translates into 5 Trillion. According to their own announcements, available here: They have only sampled an area 150m by 150m and found in 5 samples between 11 to 115 grams per ton of rock.

Needless to say, it is true that this company is cheap. It is also true that silver is due for serious upside. It may even ber true that there is a large silver deposit there in Peru, but the companies own documents do not show this. In my opinion, Mr McCoach's email was simply an attempt to sell a subscription to some shitty tip service.

In case there is any doubt, here is the last year of Tinka Resources.

Now the reason I originally got into this story was that 5 Trillion of new silver floating around would seriously dent my fundamental assumptions, but is seems they are safe. A bullion seller I was talking to today said that it took 6 months for a $15million USD transaction to be delivered and that there is only 3 days of extra capacity on the silver industrial system. I had assumed things were bad, but I had no idea they were that bad. At the moment, the large banks are using ETF's and other tricks to keep the prices of precious metals artificially low, however, once physical silver becomes even more short, there will be a divergence between paper and physical prices, because after all, you cannot electroplate with paper. =)