news.goldseek.com >> 1 July 2009

Walls to Block Deflation
By: Jim Willie CB
Many are the obstructions to the so-called (mislabeled) deflation threat within the USEconomy. To begin with, falling asset prices does not constitute deflation. One of the primary objectives of the banking elite in firm control of the USGovt and USCongress is to confuse the public and investment community on the entire topic of inflation, what it is, how it is measured, and its risks. The same goes for deflation.

news.goldseek.com >> 18 June 2009

China Commodities Undercut USDollar
By: Jim Willie CB
China is directing their mountain of reserves away from acquired mining firms and toward managed hedge funds. This is a new direction for Beijing, clearly in response to the refusal by Rio Tinto to permit a $19 billion stake from the Chinese aluminum giant Chinalco. They were frustrated and angered by the other refusal with the failed Unocal dea in 2005. Clearly, whether stated openly or not, the Chinese are thwarted by USGovt and UKGovt hidden leaders from investing in strategic firms.

news.goldseek.com >> 11 June 2009

Bond Volatility & Interest Rate Swaps
By: Jim Willie CB
The rising long-term USTreasury Bond yield continues to capture attention. The breakout chart for the 10-year Treasury shot up to 3.75% last week, but zoomed to touch 4.0% this week. Less attention has been directed at the short-term USTreasury Bill yields. What was a reasonably steady 2-year TBill yield in the 0.80% to 1.0% range has made a big move to 1.35% suddenly. Few have noticed, since mortgage rates are tied to the 10-year USTreasury.

news.goldseek.com >> 2 June 2009

Quarterly $1 Trillion Monetization
By: Jim Willie CB
The rising long-term USTreasury Bond yield has captured attention. The breakout chart for the 10-year Treasury was pointed out here when it rose over 3.1%, hardly a high level. In the first week of May, a target of 3.5% was cited, one easily surpassed. It zoomed to 3.75%, enough to create some waves in the stock market distracted and preoccupied by nonsensical Green Shoots talk on the psychological side and by falsified bank balance sheets on the accounting side. Bigtime stress has come to the USTreasury complex, a story difficult to mask and conceal, since it is at the epicenter of the credit markets. Only on Wall Street can we hear lunacy of less bad economic statistics (framed in sophisticated second derivative arguments) amidst an absolute cavalcade of miserable news on the jobs front, home foreclosure front, and home price front.

news.goldseek.com >> 28 May 2009

Hitmen Contracts to Bust COMEX
By: Jim Willie CB
Major dislocations are coming. Tremendous disruptions are coming. Price discontinuities are coming. Price chart patterns might be rendered useless soon. Last week, the case for a grand Paradigm Shift was made, covering many elements in order to paint a mosaic. Taken in isolation, any one point is important in its own right, but not enough to convince of a structural change. Taken in entirety, the many points create a full picture that is more easily recognized.

news.goldseek.com >> 22 May 2009

Loud Paradigm Shift Rumblings
By: Jim Willie CB
Numerous events have taken place of global importance. Alone, each story seems of some significance. Together, they paint a mosaic of extreme change in a very dangerous sequence of events that fit together. The greater aggregate story is that a tremendous paradigm shift is underway, with early steps and major moves by global players in clear view. The Western analysts and pundits and mavens are missing it. A PARADIGM SHIFT HAS BEGUN, WITH BANKING POWER SHIFTING TO THE CREDITOR NATIONS AS THE USDOLLAR IS SUPPLANTED, MADE POSSIBLE BY SEVERAL NEW INSTITUTIONAL PILLARS AS WELL AS NEWLY FORGED ALLIANCES.

news.goldseek.com >> 15 May 2009

Trampled Green Shoots
By: Jim Willie CB
The so-called ‘Green Shoots’ have been trampled by people walking to their Unemployment Insurance Offices to collect jobless claims in order to pay their bills. The so-called ‘Green Shoots’ have been trampled been people walking (or running) away from their homes as they are being foreclosed. The so-called ‘Green Shoots’ will continue to suffer from most water and nutrients heading to the Elite Gardens, diverted from those on Main Street.

news.goldseek.com >> 7 May 2009

Silver Leads Gold as Dollar Teeters
By: Jim Willie CB
In a bizarre exercise intended to defend legitimacy, the bankers are engaged in a complex game of propaganda. They pressured the USCongress to relieve Wall Street from the chains of FASB Rule #157, and the senators & representatives obeyed their paying masters. The result has been a baseless stock rally led by insolvent banks that have lied desperately about their capital and earnings. The announced audited Citigroup profit of $1.6 billion in the first quarter was actually a deep $2.5 billion loss, provided the $4.1 billion in gimmickry was removed.

news.goldseek.com >> 30 April 2009

Gold Consolidation Nears End
By: Jim Willie CB
The battle for survival continues, as banks resorted to basic revisionist accounting (aka fraud) in order to claim improved health. Their reward was a financial sector stock rally of the most queer kind. The rally depended on all manner of contrived demand from the most sordid of chambers opposed to free markets, using tactics that are typically abhorrent.

news.goldseek.com >> 23 April 2009

Chinese Diversification Strategy
By: Jim Willie CB
In a series of maneuvers, Chinese officials have revealed their strategy implementation in a very broad set of steps. Beijing leaders plan to establish the yuan currency as a global reserve currency. The process will be made more complete after issuance of a large volume of Chinese Govt debt securities, soon in coming. The number of policy actions is impressive.

news.goldseek.com >> 17 April 2009

Banks Must Brace For New Losses
By: Jim Willie CB
One must give a tip of the hat to the Wall Street conmen for engineering a reasonably robust stock rally. The Dow and S&P were led by financials. The Financial Times out of London claims ‘no real money’ was behind the stock rally of over 20%. They must mean huge short covering, enhanced by pressure tactics from Wall Street brokerages themselves. They must mean Working Group For Financial Markets putting to work some of their ‘Black Bag’ money. They must mean influenced arbitrage games from preferred versus common shares, which harmed the public but enriched the insiders. Amazing how a better financial journal on US topics comes from outside the Untied States.

news.goldseek.com >> 2 April 2009

G20: US$ Funeral, US Failed Debtor
By: Jim Willie CB
Perhaps it was a grand error of judgment to host the G20 Meeting in London. The epicenter of the financial hegemony, corruption, hidden agency influence, and financial market destruction has clearly been the United States and the United Kingdom working in tandem. So great risk comes with the hosting of this meeting in London.

news.goldseek.com >> 27 March 2009

China: Partner, Adversary, Rebel
By: Jim Willie CB, Golden Jackass
A crisis of global confidence in the USDollar is upon us. Foreigners have begun to lose respect for USGovt approach to problem solving, for US bank administration, and for USDollar custodial management. Foreigner creditors have suffered deep losses from fraudulent bond export, continue to sit atop mountains of US$-based debt securities, and watch current events in horror.

news.goldseek.com >> 19 March 2009

Gold & Treasury Feeder System
By: Jim Willie CB
Dogs and cats are mortal enemies in the animal world. In the insect world, ants and termites are mortal enemies. In the financial world, gold and USTreasury Bonds are mortal enemies. They compete for the revered role of safe haven for funds. In today’s day and age, with numerous storms, some unprecedented, safe haven is especially valuable.

news.goldseek.com >> 5 March 2009

Gold & The Panic Phase
By: Jim Willie CB
A couple of bright friends reported to me some overriding themes at the PDAC gathering in Toronto last weekend. Apparently, some surprise came to them. They mentioned that more than a few analysts, writers, and speakers still do not get it. They actually believe the situation with the USEconomy and US banking system has begun to stabilize. That is like saying a college basketball player has Michael Jordan under control, or a farmer has his Clydesdale horse under control, or a misguided King can call back the ocean tide, or a man has a hurricane under control as he clings to a roof rafter. The USEconomy has entered an accelerated phase of disintegration, while the populace has entered a new panic phase.

news.goldseek.com >> 27 February 2009

Gold: Musings & Peptalk
By: Jim Willie CB
What a difference one week makes! With a gold price daring the $1000 mark in defiance, boldness prevailed, investors took heart, analysts cheered, and the establishment cringed. This week, with a very ordinary selloff in consolidation, optimism has vanished in what can only be characterized as silly. Gold & silver will take over the globe as anchors in a sea of shifting sands, all in time.

news.goldseek.com >> 19 February 2009

Putin: Post-US World Blueprint
By: Jim Willie CB
The World Economic Forum took place in Davos Switzerland last week. The global picture enabled a nice snapshot of sentiment, fault for the crisis, blame doled out, the vacuum of leadership, the perks for blunderers in a country club setting (instead of prison), and warnings on a potential situation that could spiral out of control.

news.goldseek.com >> 13 February 2009

Diluted to Oblivion, Dead Banks
By: Jim Willie CB
A hard time came when deciding upon a title today. “Dead Banks Walking” or “Insolvent & Motionless Yet Standing” or “Much Ado About No Credit” or “The Bank Vampires” or “The Primary Dark Syndicates” made sense. But what came to mind when a comment made by the Jackass in June 2008 on the Vancouver stage at a Cambridge House Metals & Mining Conference. My words to close a panel discussion on the banks were “Just wait, in several months you will see the entire US banking system go insolvent, its stock prices dwindle to nothing, as it will be diluted into oblivion!” It happened.

news.goldseek.com >> 5 February 2009

Gold Disconnnects from the USDollar
By: Jim Willie CB
The gold price has finally disconnected from its nemesis, the USDollar. This news should be read as the coming of spring after months of wintry torment, or as the sighting of land after 30 days adrift at sea in a derelict vessel. From 2002 to very early 2008, the gold price had risen from the massive speculative fervor that swept the United States and Europe, whose economies had been supplied largely by Asian factories.

news.goldseek.com >> 29 January 2009

Deception In Quest of Remedy
By: Jim Willie CB
What an interesting time we live in! By now, anyone who feels burned by the establishment, whether the Wall Street banksters (fraud kings) or USCongressional representatives (paid lobbyist clients), or USCongress banking committees (bribed Wall Street tools), or a private hedge fund conman (protected by regulators), or financial markets (victims of naked shorting), or an employer (from foreign plant & equipment investments), beware. More deception and betrayal and smokescreens and outright lies lie directly ahead.

news.goldseek.com >> 20 January 2009

Lightning, Earthquakes & Hurricanes
By: Jim Willie CB
WHAT COMES NEXT IN THE UNTIED STATES AND THE GLOBAL ECONOMY WILL INVOLVE CONSIDERABLE DESTRUCTION AND NOTABLE DISLOCATION TO FINANCIAL STRUCTURES, AS IN FINANCIAL MARKETS, PRICING SYSTEMS, AND NATIONAL ECONOMIES. The pressures are so great, still building each week, certain to result in explosive events. Here are many listed pressures, sketched briefly, but analyzed more completely in recent Hat Trick Letter reports. We live in exciting, changing, dangerous, deadly times.

news.goldseek.com >> 7 January 2009

Ended Dollar Dead Bounce
By: Jim Willie CB
The marquee line best describing the past two to three months has been that the Dollar Death Dance has been fueled by failure of US banks & corporations, along with sponsored assaults against speculative hedge funds. The climate has changed from liquidation and bankruptcies, obviously steered and exploited by the Powerz, toward more legitimate attempts to have a recovery initiative take root across the landscape, It is fast approaching a wasteland.

news.goldseek.com >> 2 January 2009

False Diagnosis of Deflation
By: Jim Willie CB
One of the most bothersome questions from 2005 to 2007 used to be whether the Untied States would ultimately submit to inflation or deflation. This is actually the wrong question. Many analysts in my view are incorrect in their conclusion that the US suffers from a powerful deflation episode, since they endorse the wrong definition, confuse effect with cause (as usual), do not properly monitor the money flow, and then draw improper conclusions from prices. They suffer from a type of Keynesian Tunnel Vision.

news.goldseek.com >> 26 December 2008

Year Stained By Insolvency
By: Jim Willie CB
Many people are very confused these days. They should be. Slowly the nation is coming to grips with a harsh reality that a garden variety recession has not dug its roots inside the body economic of the United States. This is much worse. This is an economic and financial system horribly plagued by insolvency, with vicious cycles causing severe momentum in the damage, where the entire system is facing potential ruin in a disintegration sequence during a virtually unstoppable liquidation process. The broken credit clutch cannot disengage.

news.goldseek.com >> 16 December 2008

Lawsuits, The Cadaver & Gold
By: Jim Willie CB
The principal missing piece in the grand American mosaic of banking destruction, corrupt collusion, fraudulent bonds, Wall Street control, suppressed regulators, compromised ratings agencies is JUSTICE. Foreign entities are aghast as the lack of prosecution, remedy, and removal from positions of power, as policy continues to be set by the participants responsible for the structural failure and prevalent fraud.

news.goldseek.com >> 5 December 2008

Zombie Banks & Gold Trigger
By: Jim Willie CB
The USGovt and financial system is growing deep commitments to support dead entities. Their business models have failed. They are bankrupt. Although with faulty business model, often laced with fraud, they have been fully adopted by the USGovt and US Federal Reserve. They are considered too big to fail. Or one should say, they are too connected to the power structure, or they are too intertwined with explosive financial devices, or one from their own tribe is running the Dept of Treasury.

news.goldseek.com >> 26 November 2008

Failed CB Franchise & Gold Explosion
By: Jim Willie CB
The OMEN for a powerful shift in the gold market in my playful mind was the very real earthquake on November 18 here in Costa Rica, a clear signal from the financial gods, no minor tremor, measured at 6.0 on the Richter scale. The tremor confirmed the tectonic shifts to come to the gold market without question. This was the biggest earthquake in my life, no damage at all though, roof and toys intact. Numerous stories testify in aggregate to a severe tightening of the physical market, certain to put pressure on the corrupt paper market managed by the COMEX and its parent NYMEX.

news.goldseek.com >> 20 November 2008

Reflation Challenge & Gold
By: Jim Willie CB
A major challenge looms large on the immediate horizon. The USEconomy must be reflated in order to avoid collapse. Debts have become a crippling factor. Liquidation of speculative trades coincides with economic retreat, and hedge funds are under attack by their creditors (largely Wall Street firms) while major companies shed workers by the tens of thousands. When asked about economic prospects, a standard answer lately of mine has been to observe important signals not of recession but of potential disintegration.

news.goldseek.com >> 12 November 2008

USTBond Obelisk & Printing Press
By: Jim Willie CB
The two main factors pushing up the USDollar have been liquidation of speculative trades funded by it, and redemption of credit derivatives paid in it. These are not signs of any inherent investment in the USEconomy itself, but rather its liquidation. Evidence abounds of severe deterioration within the United States, a collapse of confidence, a fall in business investment, ruin in retail demand, an avalanche of job loss, and a spread of corporate breakdown beyond the financial sector.

news.goldseek.com >> 30 October 2008

Upcoming Gold Default
By: Jim Willie CB
The COMEX gold & silver markets are each hurtling down a dangerous path toward default. The artificial paper price has created enormous physical demand, and hampered supply production, if not delivery. The gap between the JPMorgan-led corrupted phony paper price and the legitimate physical price in actual trading markets has grown sharply, enough to force a breakdown like in any distorted market.

news.goldseek.com >> 23 October 2008

USDollar Death Dance
By: Jim Willie CB
The USDollar rally in the last several weeks has been remarkable. At closer examination, it highly resembles a spurt prior to death. Imagine an old man who just had a heart attack, lost feeling in certain body parts, his mind not working right, plenty of nonsense gibberish coming from his mouth, and now he is dancing hard on some last gasps. The vast liquidation movement is akin to the old man going through an embalming process while dancing atop the tables at the funeral parlor, as bidding proceeds for his cadaver.

news.goldseek.com >> 17 October 2008

Wall Street Monsters & Meat (You)
By: Jim Willie CB
The tag team of JPMorgan as the monster and Goldman Sachs as its harlot represent a powerful pair that is more responsible for destroying the entire US financial system than 95% of the American public has any awareness. The colossus of JPMorgan is a monster, a predator, nurtured by pond scum.

news.goldseek.com >> 9 October 2008

Bataan Death March Tickertape
By: Jim Willie CB
USDOLLAR RALLY AS SIGNAL OF DEATH: Few seem to comprehend that the USDollar is rallying recently as a result of the imminent death of itself and the USTreasury Bond. A vast liquidation is underway of speculative trades, and of US bank assets. For years many analysts properly understood that the USEconomy is debt dependent. Now credit is drying up, and being denied even to good credit risk customers. The USEconomy is falling off the cliff, and evidence mounts. See car sales in September, down almost 30% by Toyota, down 34% by Ford. Layoffs by the tens of thousands are next, right down the vertically integrated car industry layers. As the USEconomy and US bank system continues in death spiral, the USDollar rallies, during unspeakable ruin to US fundamentals. Recall that the tide went out along the shores in Indonesia and Thailand right before the great tsunami hit almost three years ago. Ditto here! The banking crisis and extreme distress that remains stubbornly unfixable in the Untied States urgently motivates foreigners to quickly assemble, implement, and announce a replacement world currency basket. Watch for a euro currency split soon, where Nordic version will compete viciously against the dead USDollar.

news.goldseek.com >> 2 October 2008

Breakdown Approaches Climax
By: Jim Willie CB
The banking system breakdown is very far along, but still early. Remember USFed Chairman Bernanke stated over a year ago that the mortgage problem was contained. Try not to laugh. The bond crisis is absolute, broad, deep, and all-inclusive, enough to kill the USTreasurys after it kills the US banking system.

news.goldseek.com >> 24 September 2008

Corruption, Whispers & Receivership
By: Jim Willie CB
The United States has transformed itself, the most radical degraded aspects having occurred in the last eight years. Many might object or cringe at repeated mention of the Fascist Business Model implemented by the Clinton Administration, and carried to extreme by the Bush II Administration. It is a harsh departure from Beacon of Freedom. Too bad, fact of life!

news.goldseek.com >> 18 September 2008

Panic, Consolidate, Game Over
By: Jim Willie CB
We are in historically unprecedented times. The foundation is being laid for a default of USTreasurys in the wake of the greatest regulatory failure in modern history, and the collapse of the US financial system. Anyone who cannot see that suffers from poor vision, chronic nostalgia, low mental wattage, a paycheck from Wall Street, a post in financial press media, or owning an Economics advanced degree.

news.goldseek.com >> 11 September 2008

Calling US Bonds Home!!!
By: Jim Willie CB
More crucial than ever, observers must take the broader perspective that avoids overhearing the party on Wall Street. They know not what they celebrate. It is their demise. They rejoice over the collapse of mortgage bonds and now the mortgage centrifuge with a big fat fanny. They rejoice over collapse of Lehman Brothers. They rejoice over the disaster du jour offered at the financial lunch table. In the past two months, a remarkable sequence of events has taken place regarding US$-based bonds. They have been called home, a demand to be brought back to US shores.

news.goldseek.com >> 5 September 2008

Achilles Heel, Shock Wave, Transformation
By: Jim Willie CB
Something big this way comes. Events will center upon the arch-nemesis of gold, the USTreasury Bond. Market interference is too huge, for bonds, for bank stocks, for the entire financial sector. Banking system structures are too broken. The pillars of the USEconomy are all in deep trouble, with profound deficits and insolvency the rule of the day.

news.goldseek.com >> 29 August 2008

Broken Systems & Dysfunctional Mechanisms
By: Jim Willie CB
The highest functions of the financial system have finally broken to the point where smart and connected people are openly making comments. Shortages are acute, to the point where low prices for gold & silver, for instance, render supply as inadequate to meet huge growing demand that wants to exploit the artificially low prices. Even the USTreasury Bonds are enjoying artificially high prices, undoubtedly an extension of the colossal usage of US Federal Reserve lending swap facilities.

news.goldseek.com >> 14 August 2008

Q2 GDP: Gross Leveraged Lie
By: Jim Willie CB
It is hard to find much positive regarding the gold trade lately. The attacks have been multi-faceted during the weak late summer season. So resort to something of value: THE TRUTH. As Ralph Waldo Emerson once said, “The greatest homage one can pay to the truth is to tell it.”

news.goldseek.com >> 7 August 2008

Path to the Printing Press
By: Jim Willie CB
The path to the printing press is a long one. It is used at first to spread credit indiscriminantly in sustaining commerce and funding financial systems. For the United States, that means horribly inefficient usage of credit in commerce, where 5 units of credit produce one unit of business activity. In the twisted bizarre arena that is Wall Street, the financial maze they created has imploded as yet another chapter is written in the standard textbook of boom & bust.

news.goldseek.com >> 31 July 2008

Bank Open Window For Deceit
By: Jim Willie CB
As vacation season approaches in the Untied States and Canada, the task of reading should give way to looking at pictures to tell a story, or gazing at scenery from a lodge or campground, or lazy afternoons at the beach. Among the many stories out there in the financial ethos, the one that strikes as most important is the bank sector. The selective enforcement of restrictions on shorting bank stocks sticks out like a child suffering acromegaly (Frankenstein disease) in deformity. Its blatant criminality has given the US financial sector its latest (and not last) black eye. This one is a loud banner of corruption waved for the entire world to see, put in the open. In fact, one can easily make the argument that price controls have finally come into the open.

news.goldseek.com >> 24 July 2008

Gold Ambush Tactics & Potpourri
By: Jim Willie CB
THE UGLIEST PART OF THE ENTIRE FINANCIAL PATHOGENESIS IS THAT MOMENTUM IN THE BREAKDOWN IS FIERCE, AND FEEDBACK LOOPS ARE UNSTOPPABLE, AS THEY FORCE DE-LEVERAGING AND POWERFUL CONTINUATION OF THE PRICE DECLINE FOR ALL ASSOCIATED ASSETS. In its wake lie gold & silver, which benefit from the retreat from a burning collapsing building built of paper girders and paper walls, held by faulty risk price model glue.

news.goldseek.com >> 17 July 2008

Nationalization, Fiasco, USDollar, Gold
By: Jim Willie CB
A grotesque grandiose nationalization initiative is gradually being forced upon the USEconomy, US financial system, US political system, and the hapless US citizenry. Its crucible for construction comes from the desperate situation unfolding for the banks, the mortgage holders, and homeowners. Rising costs, falling incomes, failing banks, declining home values, eroding mortgage bonds, interfered financial markets, corruption in Congress, endless war, destructive economic counsel, an unconstitutional USDollar without gold backing, these factors all contribute toward a crisis without remedy. The only possible response will be an implosion with greater state assumption of losses, responsibility for operations, and extended power.

news.goldseek.com >> 11 July 2008

Long-Term Bond Bull Paradox
By: Jim Willie CB
My personal observation of the entire inflation debate is one of awe, for the ignorance is beyond description. Neither the public nor the financial community has a clue what inflation is, how it affects the USEconomy, how it should price bonds, how it produces imbalances. A smirk comes when an email hits my inbox asking about inflation versus deflation. My answer usually covers a few key economic items and how each is subject to rising prices or falling prices.

news.goldseek.com >> 2 July 2008

USDollar on Edge, Gold on Verge
By: Jim Willie CB
The USDollar is on the edge of the chasm again. The nonsense has been cast aside about a bank recovery, a housing stabilization, and an economy that can withstand a spillover. How incredible it is to see grown adults accept such marketing and promotional drivel. Wake up and smell the blood! The US financial and economic system has never been so vulnerable in almost a century.

news.goldseek.com >> 26 June 2008

USFed Blinks: Propaganda & Bluffs
By: Jim Willie CB
For the last couple weeks, my attention has been given to the amusement and desperation behind propaganda, bluffs, and the utter desperation of the USFederal Reserve in the orchestrated rumors of a new position wherein they would soon or eventually raise the official interest rate in order to combat the horrendous price inflation brought about by the falling crippled USDollar. What utter nonsense!

news.goldseek.com >> 20 June 2008

Failed States: Mexico & California
By: Jim Willie CB
At the same time the US Federal Reserve relaxed its rules, expanded it Lending Facilities, and rescued big US bank balance sheets with massive swaps of USTreasury Bonds for impaired private mortgage bonds, the Mexican Peso rose. See the March timeframe. It rose above the 93.5 critical resistance. The target on the rectangular range swing is roughly 4 points, a rise to reach 97.5, which has occurred. With deep trouble south of the border in economic fundamentals, one would expect the MexPeso to falter. Three theories will be offered, each very likely, somewhat laced together.

news.goldseek.com >> 12 June 2008

The Treasury Yield Curve & Gold
By: Jim Willie CB
Some very confusing factors are at work relating to the USTreasury Bond market and the gold market. To assume that gold will rise in kneejerk fashion in response to the gargantuan grotesque growth in monetary inflation (aka US$ money supply) is simply naïve for the public and amateurish for professionals. Never in the US history has more confusion reigned within the body financial. This is to be expected, since the US banking system is insolvent, in parallel to the US housing landscape being increasingly insolvent.

news.goldseek.com >> 6 June 2008

Pressure Points in the Bank Bust
By: Jim Willie CB
Standard & Poor announced in late May it has cut or might cut debt ratings on $34 billion of securities tied to Alt-A mortgages, whose type issued in 2007 have a default rate to 6.64% for 90 days late as of end April. Massive S&P downgrades might soon force Wall Street firms to move up to $5000 billion of assets from off-balance sheet locations back onto their books. The bank sector has so far seen very little in bank failures, compared to past cycles.

news.goldseek.com >> 29 May 2008

Gold Benefits versus Mining Costs
By: Jim Willie CB
An important swing in the pendulum is due to manifest itself in the near future. Leverage with gold mining stocks and silver mining stocks depends upon containment of costs. Whether of energy costs (primarily diesel), or materials (like steel & lumber), or labor itself (also in shortage), even equipment (rigs in dire shortage with long waiting periods), the mining firms need to contain costs in order to make their stocks effective investments from which to exploit the rising gold & silver prices.

news.goldseek.com >> 23 May 2008

Inflation & Gold-Silver Breakout
By: Jim Willie CB
The gold and silver prices have broken out on the upside, not to register new highs but rather to emerge from a clear bullish wedge pattern in their daily charts. The stage is set for assaults on the 1000 gold high and the 21 silver high. Furthermore, and more boldly stated, the stage was set last January for tremendous moves in gold toward 2000 and silver toward 50 in the next 18 to 24 months, give or take.

news.goldseek.com >> 15 May 2008

Correction in Gold Near End
By: Jim Willie CB
The springtime corrections are really about done. They have gone on for a couple of months. The extent of the pullbacks have been tested and retested. The long-term trends are just about ready to asset themselves again. Grand deceptions have resumed to attempt to fool the public and the investment community that the worst is over for banks, housing, and mortgage bonds. That is not even remotely true.

news.goldseek.com >> 7 May 2008

Opportunity on a Silver Platter
By: Jim Willie CB
Once every several months, an opportunity is presented on a silver platter to purchase a spectacular investment in a strong uptrend, with loud indications of continued upward trend in price. Gold is heading well past $1200 and silver is heading well past $25 in the next several months, despite the orchestrated annihilation of honest valid reporting.

news.goldseek.com >> 24 April 2008

Gold Drivers: Cheap Money, Rapid Inflation
By: Jim Willie CB
The two primary engines pushing the USDollar down are extraordinarily low borrowing costs and extraordinarily high monetary growth. Money is very cheap to borrow, which encourages speculation for basic reason that many investments are rising in price. That covers the demand side for money. The money supply is growing out of control. It is hard to describe any modern day monetary event as like Weimar German times, but this is becoming close.

news.goldseek.com >> 16 April 2008

Liars, Wall Street & Your Gold
By: Jim Willie CB
Few seem to remember that Wall Street is not a non-profit community driven by altruism or any sense of service. They would gladly cheat you out of your entire life savings if their actions were legal, or at least not prosecuted. In the last two to three years, the lies, deception, misdirection, false reporting, corruption, and grand fraud will be the topic of historical accounts for decades.

news.goldseek.com >> 9 April 2008

Lessons from Japan: Prepare for 0%
By: Jim Willie CB
The prospect of a USFed 0% rate becoming a reality has been on my mind since August when the subprime news hit. In my view, the entire mortgage bond structure would suffer massive losses in a successive of waves, beginning with subprimes, extending to primes, and concluding with commercials.

news.goldseek.com >> 27 March 2008

Bottomless Financial Sector Bottom
By: Jim Willie CB
The prevailing force-fed sentiment is that the US financial sector has bottomed out, the worst is over, the mechanisms for remedy are here, and time to get back in the water for profound bargains again. Let me rebutt! The financial sector is merely taking a breather in a long death march after the great bond bust and horrific unwind of reckless mortgage creation.

news.goldseek.com >> 20 March 2008

Cliff Notes on Financial Maelstrom
By: Jim Willie CB
The smackdown of gold under $950 and of silver under $19 only managed to remove and cleanse these two important metals markets of their overbought situation. The Boyz have cleared the path for gold to reach $1100 and for silver to reach $26. Nothing has been solved yet on most critical battle fronts. The bigger moves up are yet to come!

news.goldseek.com >> 13 March 2008

Separation & Liftoff: 3 Charts
By: Jim Willie CB
The USDollar DX index has hit my 72 target on this latest leg of its breakdown. The news is all wretched. Iran, Nigeria, and even tiny Vietnam are rebelling against the crippled buck. The Persian Gulf Arab nations are trying to find a graceful way to detach from their devastating US$ peg that has wrought horrendous price inflation to the region. The end of the defacto Petro-Dollar standard will be the biggest external event concerning the USDollar this year, while the failure of prime Exploding ARMs will be the biggest internal event.

news.goldseek.com >> 7 March 2008

Dollar-Gold: A Perfect Storm
By: Jim Willie CB
The title should really be “Psychology of 1000-20-100” to give respect to the major signpost price targets. The $1000 gold target is within reach. The $20 silver target has been breached. The $100 crude oil price has been breached. Before long, all three price levels will serve as support.

news.goldseek.com >> 29 February 2008

Recharged Gold & Silver Trend
By: Jim Willie CB
One week ago, my forecast did not come to pass for a euro currency selloff, and for a pound sterling selloff. Even the Aussie Dollar forecast of a selloff failed. In fact, in a convincing fashion, all three forecasts were shattered. What happened? Wrong read of the price pattern with indicators? Not really. Wrong assessment of high priority signals? Surely, yes. By that is meant, during a strong GOLD TREND, and WEAK USDOLLAR TREND, cyclical indicators tend to carry less importance in predictive power.

news.goldseek.com >> 21 February 2008

Gold & Whirlwind of Crises
By: Jim Willie CB
Like a whirlwind, the crisis triggered by the housing crisis and mortgage debacle has extended to almost every phase of the landscape in US economic and financial life. And the rookies running the US Federal Reserve initially said the problem would be contained. My claim made in late June 2007 (see article, click here) was that it involved absolute contagion to the system, which is what we see vividly now.

news.goldseek.com >> 13 February 2008

Gold Rising in All Currencies
By: Jim Willie CB
A profound broad gold rally is underway. It is occurring in almost every single major currency. Unsure about Zimbabwe though. In the last article, two major forecasts were made, both hit squarely. The euro fell, heading toward the 143 stated target forecasted. Talk circulates about the Euro Central Bank eventually cutting interest rates. Pressure will grow enormously.

news.goldseek.com >> 31 January 2008

Backsliding Currencies & Gold
By: Jim Willie CB
Amidst the growing hurricane, centered upon the housing crisis and mortgage debacle, gold will rise far past $1000. By summertime, the new base will be at one thousand bucks. The silver price will surpass the $20 mark before the leaves fall from trees in autumn. The price of gold at the last 1980 peak corresponds to around $3000 after adjusting for price inflation in a realistic manner, apart from corrupt USGovt statistics. Get ready for a very long ride, but not without some surprises for the USDollar in a possible upward bounce.

news.goldseek.com >> 24 January 2008

Gold & Math on a Napkin
By: Jim Willie CB
The ‘AAA’ mortgage bond index has lost a whopping 30%, a fact that continuously eludes the big bankers and their legion of obsequious monitoring mavens. Simple math, within the grasp of a 9-year old kid, results in prime mortgage losses amount to at least $2.1 trillion. The kid might have trouble with all the zeroes though, and even be confused by what a trillion is. A trillion is a million millions.

news.goldseek.com >> 16 January 2008

Threat of Sovereign Wealth Funds
By: Jim Willie CB
The Sovereign Wealth Fund (SWF) movement has begun to expand in a powerful manner, and will not go away. In fact, it will expand on a grand basis since foreign nations have had their fill of USTreasury Bonds, and see grand risks ahead for any US$-based investments. The SWF fund movement is intended to pursue the two prime commodities, GOLD & CRUDE OIL, the premier financial anchor and commercial fuel in the increasingly upside down world.

news.goldseek.com >> 10 January 2008

Unproductive Assets, Wasted Productivity
By: Jim Willie CB
The US system has been the dog led by the financial sector tail, as the tail wags the dog, for over two decades. Systematically, the United States has abandoned manufacturing in favor of financial sector dominance with futile attempts to manage inflation, and money changers pushing to foreign lands the capacity that actually makes things and adds value. Such is the painful costly consequence of chronic monetary inflation.

news.goldseek.com >> 4 January 2008

Enter 2008: The System Breaks
By: Jim Willie CB, Golden Jackass
The year 2008 will be the year that THINGS JUST PLAIN BREAK. It will be a truly deadly year, unavoidably lethal to the US Economy and especially to the US banking sector. Nothing has been repaired.