Yamana Gold, $ 1.92 USD to $2.55 USD for a 32 per cent move
Eldorado Gold (EGO), $ 4.11 USD to $6.22 USD for a 51 per cent move
New Gold (NGD) went from $0.72 CAD to $0.94 CAD for a 30 per
Detour Gold (DGG) went from $13.25 CAD to $16.58 CAD – 25 per
McEwen Mining (MUX) went from 1.39 CAD to $1.82 CAD for a 30
per cent change
Argonaut Gold (AR) went from 1.71 CAD to 1.84 CAD for 7 per cent
Royal Nickel (RNX) – yes a gold company went from $0.50 CAD to $0.64 moving 28 per
….and how much did the price of gold change from Jun 11,
2019 to July 3, 2019? Well, 9.6 per cent.
As you can see, a premium has been offered to companies with moderate market caps compared to the majors. Risk capital would have been well served with positions here.
It’s a newsletter written by John
Williams. John received his degree in economics from Dartmouth in 1971. He
considers it his duty to help the interested understand street level economic
indicators in real terms as opposed to the terms expressed through nuance by
government agencies. For example, John will take the unemployment statistic and
incorporate variables filtered out unjustifiably by the U.S. government. If
somebody is a “discouraged worker” without a job should we then consider them
not to be unemployed? No. John believes as you and I do that this government
approach is nonsensical. Hence; he infuses the common sense into his analysis when
recalculating economic statistics.
He also has enough experience
with the numbers to see trends, trend reversals, and anomalies. When a couple
of figures travel in line over time but then diverge, you acquire knowledge of
your investing landscape. While CNBC is regurgitating tainted data, you can
access Mr. Williams through (www.shadowstats.com)
and you need not even subscribe. He gives you some links for free on his page.
I’ve just wrapped up listening to
his interview with Greg Hunter and his reference to the sustainability of debt along
with the consequences of default. What I like best about Mr. Williams is his
hopefulness in spite of dismal statistics as well as his humble disposition. Here’s
the youtube video. https://www.youtube.com/watch?v=GOos-Ae0qGI
One reduces the risk of being blind-sided with awareness.
The problem with awareness is that we are lacking it due to the imposition and
acquiescence to life’s complexities. Even when one deploys discipline in
erecting barriers to special interests, variables outside our control compel us
to accommodate for the sake of functional conformity.
So, here we are in the information age where values are
being blunted at the edges. Liberties are taken in the name of new culturally
perceived norms when in actual fact subconscious minds are at work processing
the impact of changing goal posts and impingements upon freedom.
Could there be a “reckoning day” when there’s a return to
values in their pure form due to the consequences of such a negative change in behaviour?
If so, what would that “reckoning day” look like? Would it be tripping the circuit breaker of
the New York Stock Exchange? Perhaps, it would be the removal of ATMs from banking
kiosks? Then there’s the unthinkable but that which is showing up in the news. How
about a tax revolt? As we speak, things are so dire in Venzuela that mothers
are turning to prostitution in order to feed their kids. A report out today
sponsored by Canadian firm MNP espouses that “48% of Canadians are on the brink
of insolvency”. That’ right. Supposedly, first world country Canada has
financially impaired citizens almost as its majority.
Perhaps it’s time to take the blinders off and examine what
is actually happening behind the scenes in the offices of your elected
officials, board rooms of banking executives, and line ups in corridors of corporate,
environmental, and indigenous lobby groups. Perhaps, it’s time to reflect on
the line item detail of government Balance Sheets and the injustice of untried
tax evasion of elite cheats with offshore accounts. How about regulatory
measures of our fractional reserve banking system in the context of spiralling public
debt out of control with no apparent plan to pay back? Did you know that our
tax system is over 3,000 pages of fine print?
John Titus has exclaimed that when the money supply
retracted thirty per cent from 1929 to 1933, there were hundreds of U.S. financial
institutions in play regurgitating financial paper. Right now in the U.S.
Citigroup, JP Morgan, Wells Fargo, and Bank of America basically represent
those hundreds from the early thirties. These four banks are interconnected
with derivative positions and they really are too big to fail in the context of
what the effect would mean. When there’s deceit inherent within levers of
power, there are strong winds ahead.
Over at bnn.ca they kept the video link front and centre for
three days. The fellow gained notoriety for correctly calling and profiting
from the U.S. financial meltdown in 2008 having suspected issues with
collateralized debt obligations. Now, he is shorting Canadian banks.
It’s no secret. Housing prices are under pressure. Mortgage
qualifying criteria has contributed along with weakness in the oil and gas
sector arising from distribution bottlenecks. Oh yes, there’s also the carbon
tax, socialist policy, and higher taxes all tempering business investment.
Governments of today don’t quite understand the fuel feeding their public
sector pension plans. So, why is it then that a banking official in response to
Steve Eisman’s rationale for shorting three Canadian banks makes the claim that
he has “no basis in fact”? Mr. Eisman simply purports that loan loss provisions
in the face of economic headwinds have been underrepresented in bank’s quarterly
earnings. On an accrual basis, it seems fair that record profits under our
current circumstances seem circumspect. After all, if you can under report your
loan loss provision, you can keep that dividend in tact thereby satisfying
Somebody has just specifically called out the Canadian
banking sector and he’s done it with his trades. Who am I to question his analysis especially
in the context of political intransigence in facilitating industrial development
We have weak leadership in Canada right now. We are also
confronted by massive public debt which must be serviced. Then there’s the material
increase in social programs which must be financed, namely the new generous “child
care benefit”. Baby boomers are now tapping into CPP and OAS. The U.S. in
recent years has become much more capable of supplying its own energy needs and
may not be needing Alberta’s oil in the volumes of yesteryear. The Canadian
lumber industry is weakened by trade sanctions. Out east, there are the new tariffs
on rolled aluminum. Southern Ontario car plants are faced with unaccustomed competitive,
political, and innovative pressure. The City of Calgary is raising property
taxes due to mismanaged downtown core land use.
I’m thinking Mr. Eisman has got it right. Canadian banks are
going to pay the price for loan losses associated with home equity devaluations
and the consequential inability of consumers to manage unsecured debt. I’m
thinking that the culture of entitlement is going to have a reckoning.
Not that I’m a fan of Justin Trudeau’s politics but he certainly outperformed the journalists posing questions today. I give Trudeau credit for his thoughtfulness, tact and consistency in articulating positions. He is certainly well spoken. Naturally, the security concerns of Canadians travelling abroad are important, but half the question period was unfortunately taken up by short sighted reporters fixated on the news of the day. Certainly, these reporters should have known they wouldn’t have received any more than what Trudeau was able to give on the topic of the Chinese detention of Canadians. Instead issues of provincial jurisdiction, taxation, military deployments, veteran’s affairs, government debt, social program spending, and the justice system were not covered.
However; the matter of national unity was actually raised because it’s the knee jerk way of responding to real behaviour of politicians more focused on regional interests than the national interest. The prospect of transporting oil from Alberta to the west coast through pipelines is simple businessand simple economics. Certainly, as a first world country with professionals qualified to construct and maintain a pipeline safely inside an industrial regulatory framework established through decades of first world development experience, this should get done now in the spirit of Canada’s national interest with the enthusiastic cooperation of indigenous people. Just as a reminder…the hard working high tax-paying citizens of Canada grant indigenous people with special exemptions through land and tax not available to non-indigenous Canadians. Your country also has the right to expropriate your land, garnish your wage, and freeze your bank account. Yet, today your federal government is frozen in time with respect to deploying an asset that you now own, namely the Trans Canada Pipeline.
Apparently, there are some sea mammals that must be accommodated out there on the prospective port. I’m thinking that these sea mammal’s interests could be represented while the pipe is being laid. Lawyers…. well they apparently require a lot more hand holding to save them from their naval gazing and obfuscation through technical legal bafflegab. There comes a timewhen common sense, progress, and economic expansion must supersede bureaucratic bungling.
It’s been a contentious issue over fifteen years in the
investment community. Are precious metals markets rigged? If you’ve never heard
of GATA (Gold Anti-Trust Action Committee) I suppose it’s about time they get
some credit for quiet behind the scenes research into irregular trading
patterns of precious metals on the COMEX and LME. GATA has in fact appeared
before U.S. law makers on the topic of market rigging during the period in
which this alleged illicit trading was conducted. Did the U.S. government significantly
digest claims made by GATA through GATA’s research? How could the U.S. Senate
draft a 396 page report entitled “Wall Street Bank Involvement with Physical
Commodities” having not discovered any of these trades though which allegedly
number in the “thousands”.
The news….JP Morgan appears (a plea at minimum so far) to
be guilty of conducting illicit futures trades in precious metals as reported
by CNBC on December 13, 2018 and in fact there is a reference in the article to
the trades by an employee of the firm as being conducted with the consent and
direct knowledge of his immediate supervisors. A class action law suit is
underway representing those who traded the futures precious metals markets
between 2009 and 2015.
Chris Powell of GATA speculates in his December 18, 2018
article whether gold mining companies who have reason to trade futures in order
to hedge production will participate. Mr. Powell goes on to elaborate why the
gold mining industry has been reluctant to postulate about market rigging.
Austrian economists could expound greatly on motives for the suppression of the
Not surprisingly, we’ve seen the gold price rise to a six
month high today. The big question will become…how far up the chain of
command will we discover complicity in the conduct of this bank employee?
Upon reading the Calgary Herald’s online comments to Rachel Notley’s letter to the editor today, I can’t help but feel dismayed by people’s vitriol. To preface this piece, I’m fiscally conservative and did not vote for Rachel Notley in our last provincial election and nor would I vote for her today. She has failed to act prudently with the public purse and public sector unions just as I had suspected. However; I do give her credit for adjusting somewhat when she took office to the market reality facing the oil and gas industry.
British Columbia has failed to honour its role in support of Canada’s industrial development. This mere fact underlies the basis which prevents the construction of increased pipeline capacity to the west coast. Ms. Notley has been an advocate of new pipeline construction. In fact, the taxpayer has now been exposed to the capital costs associated with preliminary pipeline construction because of British Columbia’s obfuscation and environmental idealism.
Unfortunately, when the electorate is exposed to politicians who have abused the public purse for their own benefit or witness politicians grand stand for social causes beyond the scope of their mandate, cynicism infiltrates objective debate thereby interfering with good decision making. People become so dug into their positions based on emotion as opposed to logic that coherent public policy is jeopardized. The elicitation of a civil society is predicated by sound minds exchanging ideas, sourcing problems, contending with various interests, and ultimately planning and executing solutions. Canada in its size, its regional disparities, and its desire for satisfying everyone may in the end lose in global competitiveness. As a nation, we “stand on guard for thee” on Remembrance Day and on Canada Day, but do we do the same when critical industrial projects are on the precipice of deployment? Will we continue to operate from the premise that natural resources form the lifeblood of Canadian economic development or will we be naive enough to believe that service industries, computer gadgets, and the public sector will carry us all forward?
Could it be that your national government is simply reticent to thrust itself into a potential constitutional crisis over the jurisdictional rights of petroleum transport? Now that Canada’s federal government has taken an ownership stake in the Trans Mountain Pipeline, I ponder how it plans to illicit the benefits of such in the face of a provincial government which has been uncooperative. Wasn’t it Mr. Trudeau’s father who was last seen addressing elements particular to our constitution? May he have missed something?
Okay. It’s not my term (cognitive dissonance) but I like it. Dr. Jim Willie has used it in reference to what he believes to be malaise and the failure of 90 per cent of us who are failing to connect the dots in respect of the current shift underway pertaining to the economic “reset”. In his August 4th interview with X22 Report Spotlight, Jim metaphorically and substantially and endearingly refers to dialogue with his father as being someone as part of the 90 per cent group. As a music hobbyist, I’m familiar with dissonance as being a sound which clashes within a key and I relate to its contextual use. Jim displays noticeable frustration by those who have difficulty seeing the implications of events simply as they are with perhaps the luxury of not having lived through the great depression. One particular example of dissonance is official government statistics of inflation compared to your neighbours street feel assessment of inflation.
At every turn in the news right now we are inundated with the political bizarre and I can’t help but wonder if folks have become so distracted with the Washington drama that they’ve been numbed by potential underlying distress of the financial system. Consider this. Is it possible that there is actual good work going on in Washington unbeknownst to you and withheld from you because of the larger implication of crisis which could unfold should you be notified? Have you been prepared by your system of education to understand risks inherent to the financial system? If the system is in fact at risk and the risk has grown, what do you know about how to protect yourself? What about 2015 Greece, 1923 Germany, 2002 Argentina, 2018 Venezuela? What did their citizens believe regarding their economies prior to dramatic negative economic events.
I’m writing about this because it’s not that difficult to create a hedge against something bad happening. Remember what your investment advisor said when your portfolio collapsed 30 per cent back in 2008? Don’t worry, it’ll come back. Well it may have taken 10 years so I guess they were right. Have you ever heard an investment advisor talk about the opportunity cost of 10 years of lost compounding?
Follows is a discussion of gold swaps. Over the past week or so, the S&P 500 has been forming a topping chart pattern and today has seen simultaneous down moves in both the S&P and the gold price. Gold price suppression theorists will cite this day in their argument that there are artificial forces working on the gold price. Apparently a down move in the indexes back in 2008 during the financial crisis correlated similarly with today’s gold action.
Inquiries made by the Gold Anti-Trust Action Committee toward the Federal Reserve and the Bank of International Settlements regarding the derivative trading of Gold Swaps conducted from underlying U.S. gold inventories have not been absolutely transparent. On the one hand, the Federal Reserve has responded with “in connection with your appeal, I have confirmed that the information withheld under exemption 4 consists of confidential commercial or financial information relating to the operations of the Federal Reserve Banks that was obtained within the meaning of exemption 4. This includes information relating to swap arrangements with foreign banks on behalf of the Federal Reserve System and is not the type of information that is customarily disclosed to the public. This information was properly withheld from you. (letter dated Sept 17, 2009 from the Federal Reserve is associating with Freedom of Information). On the other hand, they have recently made a simple assertion that gold swaps are not executed with U.S. inventoried gold reserves.
Bill Murphy of Lemetropole has been beating the drum of gold price suppression since 1999. Although not a subscriber to this site over at Lemetropole, I have had the privilege of witnessing his fervour in person at conventions here in Calgary over the years. In fact, he was instrumental in a presentation showcased by the Gold Anti Trust Action Committee to congress some ten years ago regarding evidence of surreptitious trading patterns associated with the gold price.
Through my own education of derivative markets, I came to learn of short selling and naked options. Gold swaps fit right in to this category of financial instruments. Chartered accountants certainly didn’t Know much about them during the 2008 financial crisis having failed to ensure disclosure during audits. What if the U.S. government has over extended itself in its interest in gold swaps when inventories don’t support the trades? Then what?
Jim Rickards has recently been leading the charge to help the public understand surreptitious gold trading through his most recent book “The New Case for Gold”.
We often think we’re in the know when we really aren’t. We come to know because of what we’ve been told but who has been doing the telling and why? In spite of the profligacy of information on the internet, we are deservedly suspect. The question becomes “what do we do and where do we turn?” if information has relevance in designing our lives.
Conspiracy theorists appeal toward our insecurity of knowledge. Through their inflammatory portrayal and oftentimes sharpness in intellect, they can even dislodge us from sound judgment. We can only harbour outlook through experience, education, reason, and observation. However; what we lack is information deliberately kept from the public domain.
From the period 2004 to 2007 I took the time to digest insights from speakers adept in the field of Austrian Economics. Having studied basic economics through my financial education, I have been rather fascinated about the contrast in the Keynesian model versus this Austrian model and whether there would be any implication to me directly in the context of these models duelling alongside future economic events.
This brings me to Jim Willie of his Golden Jackass website. Jim is a no nonsense fellow with a P.H.D. in statistics. Jim showcases himself as an economist without the credentials of an economist. He has an interest in world affairs as they relate to our monetary system and speaks with an inflammatory style typical of someone imbued of conspiracy yet logical and charismatically intelligent. His stories mostly correlate to postulations. One wonders about the worthiness of his sources but his ability to incite in my estimation supersedes any laxity inherent to his research.
He was one gentleman that struck me the deepest during this period of my economic inquisition. This weekend with the Dow Jones Industrial Average approaching a double topping chart formation, I wonder if elements key to Jim’s world view will trigger the next market correction.
During the past two weeks, I have immersed myself in learning specific market trading mechanics pertinent toward portfolio protection. I’m happy to share. Simply subscribe.