The Fed Is Creating Enormous Financial Instability

Today John Mauldin warned King World News that the U. S. Federal Reserve is creating enormous instability in the global financial system. Mauldin, who is President of Millennium Wave Securities, also cautioned that if things spin out of control, “the central bank doesn’t have any weapons.”

Mauldin: “I’ve been doing a lot of thinking about the future. I’m in the process of finishing up a book with the co-author of ‘End Game.’ We have a book coming out this fall called, ‘Code Red.’

  • Dow Jones 30,000 Trigger Leaked by 27-Year-Old Stock Research Firm CLICK HERE
  • The Inevitable: Dow Jones 30,000 CLICK HERE

We are writing about quantitative easing, currency wars, and the next 5 years. The upshot of it is that our current policies in both governments, and in central banking, are coming to a point that it’s (actually) increasing the instability of the system….

“As an example, Bernanke gave a hint that they might begin to reduce the amount of money they are injecting into the system and the stock market just threw up. So within a week there were like 6 or 7 Federal Reserve types that were out saying, ‘No, no, no. That’s not what we meant.’

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/17_Mauldin_-_The_Fed_Is_Creating_Enormous_Financial_Instability.html

Gold, Silver, The Fed & What To Expect Next

With gold and silver getting consolidating, today John Hathaway spoke with King World News about what is happening in the war on precious metals.  Hathaway also spoke about the gold and silver shares and what is taking place in the industry.  Hathaway, of Tocqueville Asset Management L.P., is one of the most respected institutional minds in the world today regarding gold, and his fund was awarded a coveted 5-star rating.

Hathaway:  “As far as gold goes, it looks to me like we have made an important low.  A couple of people I respect have called it, McClellan would be one of them.  I don’t know if that means we rocket higher, but it seems to me we have seen the worst….

“McClellan is basically a neutral market observer, and they are seeing very constructive signs from a purely technical point of view.  As far as the shares go, they have to take their cue from gold.

  • Dow Jones 30,000 Trigger Leaked by 27-Year-Old Stock Research Firm CLICK HERE
  • The Inevitable: Dow Jones 30,000 CLICK HERE

I think that gold has to lead higher, and then I think the shares will respond.  Most of the commentary I see from the ‘sell-side’ is kind of like closing the barn door after the horses have run out.  They are basically doing these very Draconian scenarios with gold not moving above $1,200 — what companies survive, which companies don’t, that kind of thing.  So there is very little discussion about which companies would be really well-positioned in a higher gold price environment.

When I look at the economy right now, it’s very weak.  I see poor housing starts and retail sales.  Corporate guidance has also been very lackluster.  I thought the UPS number was very interesting in the sense that they are seeing lower volumes, particularly from the manufacturing sector.  So the whole pattern to me reflects a very soft economy.

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/18_Hathaway_-_Gold,_Silver,_The_Fed_%26_What_To_Expect_Next.html

Eldorado Gold slashes capital spending by 35%, shelves projects as gold price falls

Eldorado Gold Corp says it will bump back the start dates for three of its European development projects — Skouries and Perama in Greece and Certej in Romania — by at least a year, into 2016 or 2017.<br />

TORONTOEldorado Gold Corp said on Tuesday that it will cut capital spending in 2013 by more than 35%, deferring a full expansion at its Kisladag project in Turkey, in light of the recent drop in the gold price.

The Vancouver-based company also said it will bump back the start dates for three of its European development projects — Skouries and Perama in Greece and Certej in Romania — by at least a year, into 2016 or 2017.

Eldorado now plans to spend US$430 million on capital projects in 2013, down from a previous estimate of US$670 million. The company also revised down its exploration spending to US$51 million from US$98.5 million.

  • Dow Jones 30,000 Trigger Leaked by 27-Year-Old Stock Research Firm CLICK HERE
  • The Inevitable: Dow Jones 30,000 CLICK HERE

Source: http://business.financialpost.com/2013/07/16/eldorado-gold-slashes-capital-spending-by-35-shelves-projects-as-gold-price-falls/