JPM: “Things Have Gotten Out Of Control: People Have More Confidence In Gold Than In Paper Money”

Please see the source for the video.

 

Following the biggest one-day surge in the price of gold since 2009, it is understandable that suddenly everyone who until recently was predicting the price of gold in the triple digits, or laughably explaining why “gold is doomed” wants to talk about the “pet rock.” As we showed earlier, already Goldman and Bank of America have opined with new and upwardly mobile “price targets”, while the scramble to obtain gold in a world drowning not only in negative rates but soon, cash bans, has already been unleashed.

Plan B For Iran

 

If the nuclear negotiations go bad, the U.S. has a backup: Obama can drop the MOP, the world’s largest non-nuclear bomb.

President Barack Obama’s nuclear diplomacy with Iran may yet fail. On Tuesday, exactly one week before a June 30 deadline for an agreement, Iran’s Supreme Leader delivered his latest in a series of defiant statements, setting conditions for a deal—including immediate relief from sanctions, before Iran has taken steps to limit its nuclear program—that Obama will never accept. Secretary of State John Kerry warned last week that the U.S. is prepared to walk away from the talks. And even if a deal is reached, the story is not over. The Iranians may break or cheat on an agreement, and try build a nuclear weapon anyway.

That’s why, at least three times in the past year, a B-2 stealth bomber has taken off from an Air Force base in Missouri and headed west to the White Sands Missile Range in New Mexico. For these missions, the $2 billion plane was outfitted with one of the world’s largest bombs. It is a cylinder of special high-performance steel, 20 feet long and weighing 15 tons. When dropped from an altitude likely above 20,000 feet, the bomb would have approached supersonic speed before striking a mock target in the desert, smashing through rock and burrowing deep into the ground before its 6,000 pounds of high explosives detonated with devastating force.

Are the dollar’s carry trade days numbered?

The video unfortunately cannot be posted here due to compatibility issues, but can be found in the link to the source, if interested.

Traders borrowing U.S. dollars to fund investments in other currencies should beware, with analysts expecting the greenback to strengthen and advising a shift to borrowing the euro instead.

“U.S. rates and the U.S. dollar may get a pop from an expected jump in April inflation,” Barclays said Monday in a note titled “Carry on, but don’t fund with USDs.”

Over the medium term, Barclays expects the U.S. inflation risks are to the upside, making it likely the greenback will continue to strengthen. Barclays expects the U.S. dollar index (DXY) to rise 5 percent by year end, with a 7.3 percent rise over 12 months.

JIM ROGERS: The World’s Savers Are Being Wiped Out, And History Says That Leads To Very Bad Things

For the first time in recorded history, we have nearly every central bank printing money and trying to debase their currency. This has never happened before. How it’s going to work out, I don’t know. It just depends on which one goes down the most and first, and they take turns. When one says a currency is going down, the question is against what? because they are all trying to debase themselves. It’s a peculiar time in world history.

The Death of the Dollar

Most people don’t even realize we have an actual war being fought — one that has been ongoing for over a decade. Most people also believe that our economic downturn is part of the usual economic cycle and will return to normal. This couldn’t be farther from the truth. Fact of the matter is, the US Dollar’s days are numbered and America is doing very little to defend it.

In late 2008, when the U.S. Treasury bond seemed the safest investment in the world and the dollar once again reigned supreme as a safe haven, we predicted a Phase Three attack. At the time, we said that the way things would play out, so-called experts would say that it was just a natural and inevitable result of global events. Never mind that these would be the same people who dismissed the concern only a short while earlier. We have documented all of this repeatedly in our final report for DoD (Economic Warfare: Risks and Responses published in June 2009), our book Secret Weapon (www.secretweapon.org) and in this Blog. We explained well in advance that the BRIC nations would call for the end of the dollar as reserve currency, piling on to similar expressions from the IMF and UN. We stated without hesitation that the US Treasury would lose Triple-A status even as Timothy Geithner said it could never happen.

Now, the alarm bells are ringing louder than ever before. But, the policymakers are ignoring the handwriting on the wall, lulled into complacency by lower interest rates paid by our Treasury. Let’s be clear. This is not an “all clear.” Just today, we received some powerful research by Citigroup titled The “Frozen Hell” of a High Deficit, Low Rate Environment. Here are some of the insights that support our concerns:

“As was the case for a decade in Greece, low government bond yields delayed recognition of a problem. The effects on investment spending, employment and income never produced are more difficult to measure than any obvious interest rate spike related to large deficit

Greece’s budget and external imbalances went undisciplined by markets for a full decade. For how long could the U.S.?”

Full article: The Death of the Dollar (Kevin Freeman / Global Economic Warfare)