Gold & The Computer
Yes the Computer is still short 11 positions using the reversals taken up until last Thursday. A closing today below 1365 leaves gold still vulnerable. A Special report will go out tonight for those who signed up for the 2013 Metals Report.
The 2013 Metals Report – $300
Why The Six Megabanks MUST be Broken Up
Senators Sherrod Brown, D-Ohio, and David Vitter, R-Louisiana, have a new bill that would make banks keep much higher levels of capital. With this new agreed upon position among governments that it is the DEPOSITOR who should do his own due-diligence, then the megabanks that trade other people’s money MUST be outlawed PERIOD! There can be NO Exceptions. Government is incapable to regulating banks, the courts are bought and paid for, and the prosecutors turn a blind eye to the TOO BIG TO FAIL banks that are now commonly know around the world as the UNTOUCHABLES.
Of course, it is not surprisingly, that representatives for the financial industry are already claiming that such a requirement would ruin the economy. Even Goldman Sachs’ report intent upon killing Brown-Vitter, actually supports now why it is necessary.
A draft of the Brown-Vitter bill, provides a simple straight forward solution to the “too big to fail” problem by requiring all banks to have capital equal to 10 percent of their assets. Keep in mind that Brown is from Ohio, and Vitter is from Louisiana so neither are owned by the NY banks as those representatives from New York State. The bill would also force regulators to impose additional capital requirements on banks with assets of more than $400 billion; that additional capital would increase with the size of the bank, but the total would always be less than 15 percent. This is an idea, but quite frankly, we need to restore Glass-Steagal and break-up the megabanks – period!!!!
Forcing the banks to hold more capital makes sounds logical because it makes them less dependent on government bailouts during a crisis. But lets face reality – in the future they will steal depositor’s money and will still never go to jail. They can only hop that the megabanks are less likely to make brazen gambles, but when they know they will never be prosecuted and CANNOT be sued, let’s get real – fat chance!
Today most banks have capital that is far below the levels proposed by Mr. Brown and Mr. Vitter that is often termed as fractional reserves. The problem is they take your money and trade with it and that NEITHER expands the economy or creates jobs. They are public hedge funds with your money – win they keep it – tails you lose.
Global banking regulators on the Basel committee, which is working on new capital rules, have also proposed setting the minimum capital ratios at just 8 percent. Moreover, Basel’s ratios are calculated using something known as risk-weighted assets. What that means is banks effectively hold less capital against assets considered less risky and more against capital deemed to be very risky. But they also pay off the rating agencies as 2007 demonstrated. So that will not succeed either.
The Bankers are out in full forced to prevent the higher ratios because it reduces how much money they make on each dollar of capital with leverage. They want to risk it all, assume they are never wrong, and when they are, the blame staff as rough traders. To even propose such nonsense means they are INCAPABLE of managing risk. This is like saying you crash your care not because you were driving, but because the bartender made the drinks too strong. They NEVERaccept any responsibility and this has to stop.
The bankers never admit that this is just a less-profitable argument. Rather, they tend to argue that higher capital ratios would hurt the economy by making loans more expensive or difficult to get. But they are trading with your money – not lending to the people and when rates are at zero even secured car loans at at 4% and credit card fees are more than double the old usury laws. It does not matter regarding loans for they will not lend without full collateral anyway. The big banksMUST be broken up. They are no longer banks but traders and the DEPOSITORSare now on the hook for undisclosed trading.
Academics merely go off trying to disprove that raising capital would lead to a safer and healthier banking sector and costs would not rise. So when was the last time you beat the kids? That statement forces you to prove a negative and then changes the debate. This is what the bankers are doing. It is bullshit plain and simply and you can see with a drop in wholesale interest rates they did not lower their lending rates in proportion. It is all bullshit in a nice tine foil wrapper.
It is not yet clear that even if the Brown-Vitter bill makes it to the floor through the bankers buying off votes even for that, that there will be a vote that EVER goes against the bankers. The banking lobby is the one that leaked the draft in an effort to ruin its chances. This is how they play the game. The chief’s of staff in the committees on Financial Services protect the SEC & CFTC and will NEVER allow any bill that seriously questions them to rise to a vote. So much for democratic processes.
Politicians had better wake up. This idea of always supporting the bankers is destroying civilization. Now the politicians are exonerating themselves saying it is the DEPOSITOR’s fault if the bank fails so why expect a bailout. They have lost all common sense for the entire argument that we need all these regulators to protect the public makes no sense as soon as you say the depositor’s must do their own due-diligence. Why are we paying taxes? So lawyers can make a name for themselves like the prosecutor signing autographs? Perhaps it is so these people get pensions? Obviously nobody actually has to work or protect anybody.
Gold 5 Minute Resistance
The 5 minute resistance level is 1384.5. The 5 Minute Bullish Reversal is 1399.
Gold & the Hourly Closing
We now need an hourly closing back above 1405 to relieve the selling pressure. We ultimately need an hourly closing back above 1429 to firm up such a low.
Gold Technical Support
The Weekly Breakline for this week is 1398.6 and this will provide some resistance at this point. The Monthly Breakline, however, lies at 1365.6. After that, support drops to 1310 area which should hold short-term. The major support remains at the 1150 level followed by 1035 and 970.
We will be sending out a special report today regarding timing
Gold Update – Gold Panic
We have been holding around the Monthly Bearish 1386, but the next one is 1310. The Monthly Breakline is 1409.
This is the result of bullish goldbugs that create the BELIEF that gold can ONLYgo up. NO market functions that way and the pure fiat domestic analysis creates huge losses for the average person. There is ALWAYS a time for Buy & Sell
Urgent Update
Two points.
(1) support for gold intraday is at the 1389 level on a 5 minute bar closing basis.
a special report will go out to the Metals Report Clients only to prevent a GENERAL broadcast that would be disseminated to just anyone.
(2) The Euro decision to confiscate assets in the banks WAS discussed at G20 levels. There appears to be no risk of that immediately outside of Europe. There, the reserves of the banks are spread across Eurozone bonds. Portugal will need another bailout and Slovenia cannot cope with the crisis and will be on the short list. European politicians are risking all out war because they are committed to the whole idea of a single currency that is fatally flawed. Unless this is restructured, Europe will risk major civil unrest and that will send the dollar up sharply. They are hunting all assets, including gold.
Gold Broke $1434 – The Tree is Shaken
We will put out a special report today for those who have purchased the 2013 Metals Report. The break of $1434 is absolutely critical. The tree has been shaken – but not yet stirred.
The 2013 Metals Report – $300
Lady Thatcher Explains Her Opposition to the Euro
Given the critical developments in Europe, and the likelihood that the new policy to let depositors fund bailouts, it is important that you should listen to the words of Margaret Thatcher at our 1996 Conference.
Wealth tax to pay for EU bailouts?
The British Telegraph reported the comments of Professor Peter Bofinger, an adviser to Angela Merkel, that he made in Der Spiegel, demonstrating just how disconnected the academics are from the real world. They still live in the world of Marx and seem to have missed that Marx’s whole class warfare did not work.
Bofinger suggested that the “rich” in struggling Eurozone countries, such as Spain and Italy, should face new property taxes instead of any future raids on depositors savings, as in Cyprus.He told a German magazine:
The resourceful rich just move their money to banks in northern Europe and avoid paying.
Instead of taxing cash, European Union governments should in future target property and other, less mobile assets, he said.
For example, over the next 10 years, the rich should give up a portion of their assets.
The argument goes that the taxes should be used to fund future bailouts rather than relying on cash injections from the Troika. However, Merkel has yet to endorse the ideas put forward by Bofinger. The point is that all of this destroys the economy and when you need private enterprises to create jobs, these assholes are doing absolutely whatever they can to prevent the situation from ever getting better. Just where does Germany even have the right to tax the rich in other countries?
This idea deals with the capital flight. He proposes to tax the assets that cannot be moved – infrastructure. That is plants, real estate, whatever they cannot flee with to some place else.
Cyprus Agrees to Turnover All Banking Records
Money-laundering experts from the Council of Europe and financial will now get their hands of all historical banking records of Cyprus. Eurozone finance ministers backed 10 billion euros in aid to Cyprus because the deal includes that Cyprus will open all its banking records for Europe to hunt down Europeans who have ever banked there. This will destroy Cyprus forever! Europe was after those records and by refusing to bailout Cyprus without this concession, they accomplished their REAL goal – the destruction of the Cyprus banking system. Make no mistake. This was a DELIBERATE assassination of the Cypriot banking institutions. Europe is now in the driver seat to assess whether any customer in Cyprus EVER hide money and did not pay taxes they now want and will redefine retroactively.
Politicians bribe the public with false promises of socialism, but they have avoided democratic means at all times. They threatened Greece if you recall when they wanted to put the austerity plan to a vote. The idea of allowing people to vote was outrageous.
Socialism has now migrated to Fascism.