Sunday, September 04, 2016

Goldman Sach & HSBC Recently Bought 7.1 Tons Of Physical Gold Bullion!

This is a straw in the wind.  The banks clearly expect a collapse in the value of the Greenback and want a better store of value.  They are probably right.  With all the new money Obama has printed, there has got to be a big drop in the purchasing power of the dollar soon. I do have a small amount of gold but I am mainly into blue chip shares and real estate.  They should be pretty protective in an economic crisis too

Mind you, being in Australia has extra advantages.  Our government has spent beyond its means too but has financed that through borrowing (denominated in U.S. dollars), not running the printing presses hard at the mint.  And if the U.S. dollar collapses, Australia will be able to get a heap of U.S. dollars very cheaply and thus retire a big lot of its debts very easily.

A wise American would put a lot of his funds into the banks of any major country with a well managed economy.  Canada would be a bad bet there now it is the hands of Pretty Boy.  There is no doubt he will manage the Canadian economy badly

On August 6, 2015, Goldman Sachs (NYSE:GS) and HSBC (NYSE:HSBC) took delivery of a sum total of 7.1 tons of physical gold. No, I have not made any typographical errors. And no, I am not talking about electronic paper claims. I am talking about shiny yellow metal stuff that you can touch and feel.

The gold bars were not purchased for bank clients. They were purchased for the banks themselves. How do I know this? They are designated by the exchange as being for delivery to the bank's "house" accounts at COMEX, not to client accounts.

Goldman Sachs, alone, took 3.2 tons worth of physical gold bars. Yet, even as the firm builds its stockpile, Goldman tells clients not to do it. According to Goldman's Jeffrey Currie, the long-term outlook for gold is bleak.

They bought 3.9 metric tons at COMEX, no doubt at rock bottom prices, and it was just delivered into the bank's house account. Note that we are NOT talking about paper-gold. Both bought physical gold bars! Apparently, top Goldman and HSBC executives are "gold bugs." They do not, apparently, believe in the promises made by the gold trust (NYSEARCA:GLD), or at least they are not willing to use the trust's shares as a substitute for hard metal bars.

Physical gold is a long-term investment, everywhere and always. They are not particularly hard to sell, especially now, but short-term trading would be much easier with paper-gold products like GLD or gold futures. Remember, vaults cost money, as do big men with big guns and the knowledge of how to use them. The banks are choosing to accumulate and hoard physical gold bars for a reason.


Note.  Most new money is created via the banks.  Printing it is mainly a metaphor.


Trump Delivers A Speech For The Ages

The media all called the speech a disaster but that was to be expected

One speech does not a campaign victory make – that is until last night when Donald Trump delivered his much-anticipated speech on immigration. The speech was, in its passion, in its emotional connection with Trump’s audience, and most importantly in its substance, a speech for the ages.

And, we might add, in Trump’s adoption of the very language we here at CHQ have used since his first major speech on economic growth, a renewal of his promise to “forgotten Americans” of all races, creeds and colors Trump Angel Momsthat hope and help are on the way.

While much of the establishment media commentary focused immediately on Trump’s 10-point plan for reestablishing America’s borders and immigration system in a way that serves and protects Americans first, we think one of the most important parts of the speech was Trump’s vision for his Administration beyond immigration enforcement.

It is “We will accomplish all of the steps outlined above, and when we do, peace and law and justice and prosperity will prevail.”

What has Hillary Clinton got to offer to counter that?

The chaos and terror of open borders, the free-falling quality of life of economic stagnation and the cultural disaster of Muslim immigration that has destroyed Sweden and that is despoiling Germany and France even as you read this column.

As important as that theme was to the speech, the most important rhetorical element of the speech was how Donald Trump established the need for his 10-point plan:

"When politicians talk about immigration reform, they usually mean the following: amnesty, open borders, and lower wages.

Immigration reform should mean something else entirely: it should mean improvements to our laws and policies to make life better for American citizens.

But if we are going to make our immigration system work, then we have to be prepared to talk honestly and without fear about these important and sensitive issues.

For instance, we have to listen to the concerns that working people have over the record pace of immigration and its impact on their jobs, wages, housing, schools, tax bills, and living conditions. These are valid concerns, expressed by decent and patriotic citizens from all backgrounds.

We also have to be honest about the fact that not everyone who seeks to join our country will be able to successfully assimilate. It is our right as a sovereign nation to choose immigrants that we think are the likeliest to thrive and flourish here."

In those five short paragraphs Donald Trump threw down the folly and conceit of Paul Ryan, Marco Rubio, John McCain, the Gang of Eight, Facebook Billionaire Mark Zuckerberg, the US Chamber of Commerce and the rest of the open borders econometric school of immigration policy.

And finally, Donald Trump framed the core debate going into the post-Labor Day campaign as immigration and claimed the mantle of change agent by challenging the Washington establishment and media:

"Instead, the media and my opponent discuss one thing, and only this one thing: the needs of people living here illegally.

The truth is, the central issue is not the needs of the 11 million illegal immigrants – or however many there may be.

That has never been the central issue. It will never be the central issue.

Anyone who tells you that the core issue is the needs of those living here illegally has simply spent too much time in Washington.

Only out of touch media elites think the biggest problem facing American society today is that there are 11 million illegal immigrants who don’t have legal status.

To all the politicians, donors and special interests, hear these words from me today: there is only one core issue in the immigration debate and it is this: the well-being of the American people. Nothing even comes a close second."

If Hillary Clinton has been looking weak and haggard on the campaign trail she must be positively terrified now, because last night Donald Trump rallied an army fiercely determined to take its country back and reclaim the promise that she and Barack Obama have stolen from them.



Ann Coulter: Trump's Immigration Policy Address Was "The Greatest"

In an interview with Breitbart News Daily host Raheem Kassam, Ann Coulter described Donald Trump's immigration policy speech yesterday as "the greatest speech ever given."

"I think we can start working on the Trump transition team," she added.

"I’m just going to watch it whenever I’m not on radio or sleeping," she said. "That was the most perfect speech, and Trump – I describe this in In Trump We Trust, he is so brilliant. Every time you think Trump has made a mistake – and I describe these incidents in my book, as with John McCain, and we’ve seen it recently with the claims about Khizr Khan, this snarling Muslim at the Democratic convention, lecturing Trump on how he’s not allowed to venture opinions because his son didn’t die in Iraq. Look, maybe I don’t know America, and maybe Khizr Khan knows it better, but I don’t think that’s going over well."

"In any event, all throughout this campaign, he’d do things that at first I thought, ‘Ah, I wish he hadn’t said that,’ and then I learned to start telling my friends – who’d call me as if they could yell at me for everything Trump does – and I’d say, ‘Just wait a few days. Let’s see how it plays out.’ And look at what he did, with the stuff he said on Hannity last week, on the alleged softening," she continued. "He got every network to cover that speech live, the most magnificent speech in human history."



Economic Conspiracies

By Walter E. Williams

A general economic principle is that any law or regulation that restricts market entry tends to impose the greatest burden on those who can be described as poor, latecomers, discriminated-against and politically weak.

The president of the NAACP's St. Louis chapter, Adolphus Pruitt, has petitioned a circuit court judge to reject the St. Louis Metropolitan Taxicab Commission's conspiratorial call to issue a temporary restraining order that would force Uber to shut down. He says the order would negatively impact nearly 2,000 African-Americans who work as Uber partners in black neighborhoods that have long been ignored by taxis and other transportation providers. In a statement, Pruitt said, "The immediate harm of a (temporary restraining order) would strand thousands of African American riders who depend on Uber to travel around a city that has measurable gaps in its transportation system and has failed to serve our neighborhoods for decades."

St. Louis taxicab restrictions are not nearly so onerous as those in some other cities. In New York, the license, called a medallion, to own one taxi costs $704,000. In Chicago, the medallion price in 2015 was $270,000, down from $357,000 in 2013. Boston medallions currently sell for about $200,000, and that's down from $700,000 several years ago. The effect of these licensing restrictions is to close the market to those who do not have hundreds of thousands of dollars or are unable to acquire a loan to purchase a medallion. I'd ask my liberal friends: Who are the people least likely to have those resources?

Entry restrictions are not necessarily a racial issue. Those who are in a monopoly arrangement find it in their interest to keep outsiders out. If they can do so, it means they can charge higher prices and earn higher income. That means blacks who are part of a taxicab monopoly share the same interests as whites in that industry.

There are hundreds of conspiratorial entry restrictions that work against blacks. George Leef has a story in Forbes about a case before the courts, Pritchard v. Board of Cosmetology. The plaintiff is Tammy Pritchard, a policewoman who would like to supplement her income by working in a hair salon owned by a friend. The salon specializes in African hair braiding, and Pritchard wants to shampoo customers' hair. After she had been working a few months, Tennessee Board of Cosmetology officials barred her from washing hair because she lacks a governmental license to do so. Under the board's regulations, an individual must complete "not less than 300 hours" of instruction "in the practice and theory of shampooing" at an approved school. Pritchard cannot afford the time and money costs, so she has lost a source of income.

My colleagues at the Institute for Justice have waged war against economic restrictions since 1991 and have had a number of important successes. Among hair braiders the Institute for Justice has liberated from onerous regulations are those in Arkansas, California, Iowa, Washington and Missouri. The institute has successfully waged war against taxi licensing and other transportation restrictions in Bowling Green, Milwaukee, Chicago, Florida, Cincinnati, Denver, Indianapolis, Las Vegas, Minneapolis and elsewhere. Its successes in other areas of liberty can be found on its website.

The most devastating and difficult-to-change economic conspiracy is the minimum wage law. The conspiratorial aspect of the law is that it prices all people out of the job market whose skills do not provide the value of the minimum wage. Put yourself in the place of an employer and ask yourself whether you would hire a person whom the minimum wage law mandates you pay $7.25 an hour if that person were so unfortunate that he could add only $5 worth of value an hour. Most employers would view hiring such a low-skilled person as a losing economic proposition, but they might hire him if he could be paid $5 an hour. Unfortunately, the minimum wage law is seen as sacrosanct, and that conspiracy will continue in perpetuity — robbing youngsters, particularly black youngsters, of a chance to get their feet on the bottom rungs of the economic ladder.



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1 comment:

Robert said...

If the banks, especially central banks, are buying gold, that's a SELL signal, not a buy signal. Bankers who think they are traders are some of the worst traders in the market. Elliott Wave even studied the gold market and when bankers buy and sell. They tend to buy in during the final advance to the top, and keep buying all the way down to near the bottom of the market. That's when they start selling - at the bottom and all the way up through the ensuing rally. The fact that banks are buying gold now confirms the downtrend in gold, right around the top of a bear market rally, ahead of the "look out below" wave. The end of THAT wave is when you want to buy, when everyone is dumping it at any price just to get out, and they think you're an absolute fool to buy it.