EurAnalysis

“I think the market is testing their fortitude, that’s what I see right now. The bigger picture continues to be monetary debasement and that’s the big driver of higher gold and silver prices. But in the short run, I think we’re just seeing a classic short squeeze. It could get very ugly for the shorts.



What I like here is it looks like you put in a low here of some significance. I think the next time around the shorts are going to be a little more timid. Let’s see when the shorts cry, ‘Uncle.’ I think that’s what we are going to see over the next several weeks.”



When asked about Louise Yamada’s 30-year XAU vs gold chart, which showed gold shares being dramatically undervalued, Hathaway responded, “I’ve noticed that the universe of investors for gold stocks is slowly expanding. Those (value investors) are people who are coming into the gold space that are basically agnostic about the future course of paper money versus gold. They’re saying, ‘Boy these stocks are cheap, got to own them.’ So there’s a new bid for gold stocks, completely different that what we saw over the last five or six years.....



Continue reading the John Hathaway interview below...

http://kingworldnews.com/kingworldne...ed_Shorts.html





http://kingworldnews.com/kingworldne...es/tr-logo.png


When asked about his upcoming letter, Hathaway stated, “The macro picture is it’s a world in which governments are substituting sovereign debt for private credits that have gone bad. Just changing the wrapping paper doesn’t change the contents. They are just papering over bad assets with government paper, which, ultimately, is going to make government paper go bad.



In terms of what is going on in the gold sector, and I appended a number of charts I look at all of the time, but I thought it would be good to share them. One of the things that stood out to me was the fact that central banks have turned into net buyers of gold. I don’t think that’s a trend that’s going to go away any time soon, particularly in a world of zero interest rates.



The other thing in the gold section of those charts was how rock bottom sentiment was. I’ve been saying for some time that when things look this bleak, in terms of market action, it was a good sign of a bottom. I’m not in the business of calling market turns, but I’ve been through a bunch of bottoms and when I see sentiment like this, I’m pretty sure there isn’t a whole lot of downside.



Lastly, the (mining) stocks themselves are as cheap as they’ve been relative to bullion prices in the 12 years I’ve been doing this. There wasn’t a kind word anywhere for gold stocks. Most people would say, ‘Bullion is okay, but those companies are just terrible.’ People forget that in a better market for gold bullion, which I think we’re going to see, the stocks tend to outperform.






Hathaway - Short Squeeze in Gold to Crush Naked Shorts

http://www.actionforex.com/action-in...0120110157075/

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Mid-Day Report: Risk Appetite Continues as French Rating Assured... for 2012

Risk appetite continued in European sessions as major indices are broadly higher, led by mining stocks following yesterday's earnings announcement from Alcoa. Also, Fitch said today that there is no plan to downgrade France's AAA credit rating this year.

Fitch lowered the rating outlook from stable to negative back in mid-December due to "intensification of the eurozone crisis" but there would be any change before 2013 in the " absence of important shocks that could be linked to a strong worsening of the situation in the eurozone".

Also, markets were assured by French prime minister Fillon that France will be its deficit target for 2011 and would "most probably" be lower than the target of 5.7% of GDP. IMF managing director Lagarde and German Chancellor Merkel will meet in Berlin later today and French President Sarkozy in Paris tomorrow. According to ECB data, banks are parking EUR 481.93b in its overnight deposits, making another record high.

Kiwi is the biggest winner so far this week while Aussie closely follows. Strong metal prices are seen as big support to these two commodity currencies. Precious metals, like gold jumps nearly 2% for the moment while silver rose over 4%. Canadian dollar is also regaining some strength as crude oil rises nearly 2%. Euro and sterling recovered against dollar and yen but strength is very limited. EUR/AUD continues to make new record low.

China's trade data showed export grew 13.4% yoy in December, inline with expectation but was the slowest since November 2009. Import growth also dropped to 11.8% yoy, much lower than expectation of 17% yoy, lowest rate in more than two years. Overall trade surplus plunged to a three year low of $155b. A former PBoC advisor said that the biggest concern of Chian this year is any "dramatic" fall in the property markets, which accounts for nearly 10% of China's GDP. Though, Yu Yongding said that a housing market collapse is "not warranted" and China won't have a hard landing. Also, markets are expecting China to offer further stimulus to underpin growth.

After Hildebrand's resignation, the SNB Bank Council will hold an emergency meeting in Zurich today to name the successor for SNB governor as soon as possible. Thomas Jordan, the current Vice Chairman, is widely expected to take the role. Back in August last year, Jordan has told a newspaper that a temporary Franc peg would be consistent with SNB's mandate and short after, SNB announced the EUR/CHF floor of 1.2. It's believed that Jordan would continue to maintain the policy of curbing Franc strength with utmost determination and unlimited funds.

http://stockcharts.com/h-sc/ui?s=%24USD

looks like the index in bullish term......seem like euro is vulnerable to go lower

Please get into bed now. This is Gramps here.

http://news.goldseek.com/EuroCapital/1326221092.php

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Recent U.S. economic data, such as the modest drop in the unemployment rate and the massive expansion of consumer credit, have suggested that the American economy is finally recovering. Opposite conclusions are being thrown at Europe, where many are convinced that recession is returning. Not surprisingly then, the dollar is currently hitting a multi-year high against the euro. The strength of the dollar itself is often held up as one of the major proof points that the U.S. economy is "improving." But the data points that I believe really matter continue to suggest an economy on life support. I believe that the dollar is rising for reasons that have nothing to do with America's economic health.

The ongoing sovereign debt crisis in Europe is unquestionably the center ring in the current economic circus. Given the difficulty of setting policy across borders and national interests, the negotiations in Europe have been messy, acrimonious, inconclusive, and conducted under the glaring lights of global media scrutiny. The action has diverted attention away from America's problems, which in many ways are even greater than those in Europe. In contrast, America's ability to print the world's currency at will, and the nearly seamless agreement of policy between the Administration and the Federal Reserve, means that the United States has been able to virtually ignore the issues that Europe has been forced to confront. This relative calm has been mistaken for strength, and the dollar has beckoned as the ultimate safe haven currency.

The fact that the dollar is perceived as a safe haven acts as a self-fulfilling prophesy. Investors flee the euro and pile into dollars. The dollar then rises to reflect the demand. The increase validates the decision to buy in the first place, and the rising dollar then attracts even more buyers looking to profit from its appreciation. It's a nice ride while it lasts.

Most "safe haven" dollar purchases are directed toward U.S. Treasuries. As a result U.S. interest rates are far lower than they would otherwise be without this inflow of spooked liquidity. But objectively speaking, the U.S. and Italy, for instance, have very similar national debt profiles. Yet interest rates in Washington are currently 600 basis points lower than they are in Rome. This means that Americans can borrow and spend much more. The result of all this extra debt financed consumption is a boost in employment and GDP. The positive economic impact makes the dollar even more attractive, thereby perpetuating the cycle.

If rates in Italy (or Spain for that matter) were as low now as they were two years ago, those countries would not be experiencing the problems they are today. Their borrowing costs would never have risen and their budgets would still be manageable. Similarly, higher interest rates in the U.S. would completely take the shine out of our economy. Imagine what would happen here if rates were just 200 basis points higher, let alone 600? U.S. consumers, homeowners, corporations, and governments are particularly dependent on cheap financing. As bad as things are in Europe, they would be even worse here.

In other words, contrary to popular belief, the problems in Europe are helping, not hindering, the U.S economy - at least in the short-term. Over the long term, borrowing and spending more money to finance consumption and government red ink will not help the U.S. economy achieve a sustainable balance. If safe haven flows were to reverse (which could result from an improvement in Europe), the dollar would fall, interest rates and consumer prices would rise, and the U.S. economy would be right back in recession. The only "good news" is that such a positive development in Europe appears unlikely in the short-run.

all of from the one reason......lower rate....

usd is to be safe haven on that ;lower rate status...

yen still hard to move because both of usd n jpy is safe haven...

solution?

bernanke must hike the rate?but when?he is still not signal about that even economy is in recovery?

so.....???they still have 1 problem ......the 14 trillion debt e fed is issue previously....that why fed is uncertainty now!!

just my oppinion

Consider what will happen to US when europe will eventually see some resolutions in the future. Where the safe haven gonna be? In US 10 year bond?
Europe is " helping" US or just distract the attention for the moment. The real problem lies in US.
Once the demand falls, 10 year yield will spike and Federal Gov. will sweat, Bernanke will print more.
14 trillion in deficit and nobody is even talking to tackle the problem. Savings are non existent in US.
At least in europe Merkel and the rest are doing something, Savings are healthy, smaller deficits or ever surpluses (germany), younger demographics will give an edge to europe's recovery.Once cancer removed (grecce, ireland) europe has a chance to recover. US will stand no chance.
Imagine if chinesse stop peging to dollar and allow rnb to rise. They stop buying US treasuries, everybody pile back on healthier euro. 10 year bond will go through the roof. This is going to be a check mate for US

Welcome aboard. Nice to see your comments posted here. Take care.

http://www.financialsense.com/contri...cal-soap-opera

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This is a very serious time. The pieces are linked. Some bullets as you watch the news flow.

The US faces the pressure of follow-through on Iran sanctions. Iran is an exporter of oil to Asia. Japan is dependent on imported oil. China is not self-sufficient. One part of this trapezoidal geometry is about oil. Iran is feeling the heat from sanctions. The US wants to tighten them. It cannot do so without help from Asian “friends.”

 

1. China and Japan are each buyers of US Treasury securities. They each help finance the American fiscal deficit and the ongoing current-account deficits. They each want to diversify their reserves. They are not sellers, but they are reluctant additional buyers. This is truer for China than for Japan, but it is true in both cases.

1. China is glacially proceeding toward world reserve-currency status. It gradually allows its currency to strengthen against the dollar. It follows a policy that is fully rational for the Beijing oligarchs. It shrugs off political threats from Washington politicians (Schumer, Graham) who love to bash China while talking to their American constituents. China understands our political processes and our weaknesses. However, China also understands “realpolitik” and uses it. They learned US use of realpolitik from Nixon and Kissinger. Expect them to smile publicly but put some very intense private heat on Geithner.

1. Japan faces enormous economic pressure and sees the yen strength as now threatening. In order to weaken the yen, it must acquire other currency holdings in large quantity. (See the Cumberland website, www.cumber.com, for G4 central bank charts, and flip to those on [COLOR=blue !important][COLOR=blue !important]the [COLOR=blue !important]Bank[/color][/color][/color] of Japan. You will be able to observe how Japan expanded its balance sheet several years ago and subsequently contracted it. We expect them to expand it in 2012 as they seek to arrest yen strength.)

1. Japan is negotiating with China so that it may acquire reserve debt instruments denominated in Chinese currency. Beijing likes this because it is a step toward achieving world reserve-currency status. Geithner now worries, because the [COLOR=blue !important][COLOR=blue !important]trend[/color][/color] points toward a gradual and long-term weakening of the US position, as the world’s second (China) and third (Japan) largest economies maneuver their global positions.

1. Our Asian friends know that the US election cycle creates maximum vulnerability for the United States. That also makes circumstances more dangerous and raises risk profiles. Europe is of no help to us, given its internal crises.

We recall that a three-legged stool is a stable form. A four-legged stool is less stable. A four-legged stool with a trapezoidal top is least stable. Especially when one of the legs is Iran.

http://armstrongeconomics.files.word...ion-010311.pdf

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Ispettori Entrate a Capodanno a Cortina
Passati al setaccio vip, alberghi, ristoranti, gioiellerie
03 gennaio, 12:33
(ANSA) - CORTINA (BELLUNO), 3 GEN - L'Agenzia delle Entrate cerca di stanare i vip di Cortina e gli operatori commerciali sconosciuti al fisco, ma gli albergatori locali insorgono, preoccupati che l'attenzione sui loro ospiti possa far calare gli arrivi. Una task force di 80 ispettori tra il 30 dicembre e San Silvestro ha passato al setaccio i più noti alberghi della conca ampezzana, ma anche antiquari, ristoranti e gioiellerie frequentati dai vip. Controllate le auto di lusso che circolano intorno alle Tofane.
All government cares about is keeping control. They will employ every possible tool to accomplish that goal. It is time to wake up and smell the roses. This is a funeral, not a garden party! We have a herd of Baby-Boomers looking to cash in over the next decade. They paid their entire lives and are facing a future that is empty. Social Security just turned negative in October. In other words, this is the first time the payments going out are now systemically less than what is coming in. Then there are those working for government. They retire getting their full pension worth virtually what they earned during the last 3 years. Government will have to replace them so the cost of government is rising now faster than at any point in the past. This is unsustainable. So those in the military, look well to history. For those barking orders will come and it will be up to you to save the people. Make the right decision.

http://www.prudentbear.com/index.php...w?art_id=10620

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What Will Four More Years of Obama Look Like?

 

1. by Martin Hutchinson
2. January 09, 2012

The Iowa caucuses appear to have done their usual job – dooming the Republican ticket in next November’s election. So I thought it worth looking at what another four years of President Obama might bring, and how deep might be the hole the U.S. will have to dig out of in 2017. “Be assured, my young friend, that there is a great deal of ruin in a nation,” wrote Adam Smith in 1782, so on balance one can remain optimistic.

To diverge into political analysis for a moment, the Iowa Republican caucuses have a long history of promoting social conservatives with modest national appeal and questionable track records, while suppressing economic conservatives (the Democratic caucuses have an equivalently eccentric track record). It’s not really surprising – Iowa is nearly 1,000 miles from the nearest international border and its economy is highly dependent on agricultural and ethanol subsidies, with not much of the free market about it. This time it promoted the social conservative and foreign policy neocon Rick Santorum, the libertarian pacifist Ron Paul and the moderate-liberal Mitt Romney, while suppressing more mainstream candidates with better track records, such as Texas Governor Rick Perry and to an extent former Speaker Newt Gingrich.

Assuming Perry and Gingrich don’t enjoy a miraculous revival in New Hampshire, South Carolina or Florida, it’s thus likely that the nominee will be Mitt Romney, easy for the Obama administration to attack on class warfare grounds, or, if Romney fails, Paul or Santorum, either of whom would be objectionable to a substantial element of the Republican coalition. Given Iowa’s efforts, therefore, the chance of a united and enthusiastic Republican campaign in 2012 is minimal, and Obama’s probability of re-election in November soared last Tuesday from around 50% to maybe 80%.

Given the assumption that Obama wins re-election, we can then map the economic policy trajectory of the following four years with some certainty. Obama would not have won re-election on a wave of new enthusiasm, or on the basis of a suddenly robust economic recovery, which appears unlikely before November, but simply because of the ineptitude and political vulnerability of his opposition. Hence he is unlikely to have significant coat-tails to pull Democratic Senators and Congressmen into office with him. Thus, with a large number of vulnerable Democrat Senate seats, the Republicans will probably gain the four seats necessary for bare control of the Senate, without losing control of the House.

The 2014 election, producing the Congress of Obama’s last two years, is more difficult to forecast at this time, but in the Senate the Democrats will be defending their outsize gains of 2008, so it’s likely the Republicans will pick up a further Senate seat or two, while possibly ceding back control of the House. In other words “gridlock” between Congress and the President is likely for the whole of Obama’s second term.

The result would not however be four years of stasis. Since a re-elected Obama’s political strength would be much greater in 2013 than it was in 2011, his ability to peel off a few Republicans to pass “consensus” legislation would be correspondingly greater. Moreover, much of his 2009-10 legislation, notably the healthcare law and the Dodd-Frank financial regulation law, has staged or delayed implementation provisions that might be blocked by a Republican President, but would be implemented in full by a re-elected Obama. The Obama healthcare legislation, which greatly increased state control over the healthcare sector, would thus enter on schedule in 2014 (in the unlikely event that the Supreme Court eliminates the individual mandate, the rest of the legislation will still stand, and the runaway cost of the legislation without the individual mandate would compel Congress to introduce something equivalent that would pass Supreme Court scrutiny).

Since the cost of Obama’s healthcare bill was only balanced by accounting tricks (such as assuming large cuts in Medicaid) that will not pan out in practice, the Federal budget would thus after 2014 incur a major additional burden, potentially pushing deficits even beyond the frightening levels assumed by present legislation. Since the cost-cutting attempts of the newly elected Republican majority in 2011 ended with 2012 Federal spending higher than in 2011, we can assume that even the most determined attempt by Republicans in Congress to cut spending won’t work while Obama is President (and would probably be short-lived and only marginally effective even with a Republican President).

dood what have you been smokin?

Maybe he might be suggesting a younger population and less pressure on Social Security System.

Is It called Havana Weed ?

Just joking as I am Drug Free and that is not my expertise. Have a good evening.

Very true. I pray that when push comes to shove they choose the people over their "masters".

4 more years of Obama may well be the death knell for the US. Not that most of the Republicans would be much better. Whichever party the people choose, socialism in one form or another is there. The only person who, IMO, will try to stop this madness is Dr. Ron Paul.

Read this article Preparing As The USD Nears The Tipping Point and not that the article itself was all that great, some nuances one can draw from the scenario he briefly spells out. That is, instead of a global reserve currency, trading deals and partnerships would use a major regional currency or the currency of the dominant partner. If this were to come about, it would turn our current globalistic world society on it's head. Just my initial thoughts. Will have to think a bit deeper on this. Would love to hear some other opinions.

Time the F*&%$@# out. Dude get a grip. I can't stand the helicopter like the next guy.....but, he will become a fisherman of dollars before long. If he is so short-sighted as to think that the world will continue to buy US shiznit... then yes US goes down in flames. However, how long US been around? Why would anybody buy our T-notes or bonds? WAIT FOR IT.....US will be like the dreaded bear or bull trap and head fake the world into a commitment, then pull the rug out..... who wins...... you guessed it .......US dollar! Bank it!

[quote=spzd;5283965]4 more years of Obama may well be the death knell for the US. Not that most of the Republicans would be much better. Whichever party the people choose, socialism in one form or another is there. The only person who, IMO, will try to stop this madness is Dr. Ron Paul.[/quote]


All I want is the legalized weed!

[quote=Gofer Pips;5284105] Got to admit there are some possibly good benifits in this.