“This Will Trigger A Tidal Wave Of Short Covering In Gold”

With Ben Bernanke ready to deliver his semi-annual monetary policy report to Congress starting today, a legend in the business warned King World News about what is going to “trigger a tidal wave of short covering in gold.” Keith Barron, who consults with major companies around the world and is responsible for one of the largest gold discoveries in the last quarter century, also spoke with KWN about the massive global demand for both gold and silver and what he is directly experiencing in the marketplace.

Barron: “Right now I am focused on the gold price. We are up over $100 off the lows on gold and silver has broken through $20. All of this is thanks to Bernanke, who shot himself in the foot yet again with talk about tapering QE again. This trashed the stock market briefly and had spectacularly chaotic consequences in the bond market as well….

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“Anyway, the net effect was this caused a tremendous amount of disruption in key markets and I think he was chastised for that. So he came out with a speech and it was a complete turnaround from the FOMC minutes. The 180 degree turn was, ‘all systems go, and keep the printing presses going.’

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/17_This_Will_Trigger_A_Tidal_Wave_Of_Short_Covering_In_Gold.html

This Market Collapse Will Shake The World Financial System

On the heels of another wild week of trading in global markets, today one of the top economists in the world sent King World News an exclusive piece warning that a key market collapse will shake the world financial system. Michael Pento, founder of Pento Portfolio Strategies, wrote this piece for KWN.

Pento: “The U.S. Ten-Year Note yield has been surging of late. Absent another recession, or renewed European debt crisis that threatens the existence of the Euro currency, or the Fed launching QEV; the yield should approach 4% by the end of this year. How much should we be concerned about yields rising to that level?….

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“Well, the surge in yields from 1.6%, to 2.6% since the beginning of May has already caused purchase applications for new homes to plunge 28% month over month. Mr. Bernanke predicated the economy’s healing on saving the real estate market. Since the Fed is now threatening to begin removing its stimulus programs, that primary support column for the economy is being eliminated.

One has to question what rising rates will do for this so-called recovery. The U.S. economy (and indeed the rest of the globe as well) is already suffering from anemic growth. Now we are told by the puppet masters of the economy that the manipulation is going to end. But can we really believe them?

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/13_This_Market_Collapse_Will_Shake_The_World_Financial_System.html

A Financial Hurricane & Cracks In The Global Financial System

On the heels of continued turbulence in key global markets, today 40-year veteran, Robert Fitzwilson, put together another tremendous piece.  Fitzwilson, who is founder of The Portola Group, discussed a financial hurricane, cracks in the global monetary system, and what this all means for investors.  Below is Fitzwilson’s outstanding and exclusive piece for KWN.

Fitzwilson:  “This is from ‘Rhyme Of the Ancient Mariner’ by Samuel Taylor Coleridge:

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All in a hot and copper sky,

The bloody Sun, at noon,

‘Right up above the mast did stand,

No bigger than the Moon.

Day after day, day after day,

We stuck, no breath no motion;

As idle as a painted ship

Upon a painted ocean.

This literary piece is describing the ordeal of a ship and it’s crew trapped in a part of the ocean called the Doldrums.  The area is a low-pressure zone in the vicinity of the Equator where sailors experienced squalls, thunderstorms and even hurricanes….

“As Coleridge’s words describe, however, it is more commonly known for trapping sail-powered boats in windless seas for days and weeks at a time.  As defined by Merriam-Webster, the term doldrums can indicate despondency, listlessness, as well as stagnation, inactivity or slump.

We must say that the word doldrums has come to mind in recent months.  While there have been dramatic and historic movements in just about every asset class, there have been no resolutions to the innumerable economic, financial and political problems we face.  Europe, China, Japan and the United States have all made attempts to break out of their doldrums, only to encounter a lack of effect (no velocity of money, no inflation) or hurricanes (worst bond market in 50 years, historic decline in the Dollar, and tumbling equity markets).  It is easy in this type of environment for investors to become confused and even despondent.

We wrote some time ago about a type of volcanic eruption described as “Plinian”.  A Plinian eruption shoots gas and particulates high into the atmosphere in the form of a column.  At some altitude, the weight of the column is too much, and it collapses.  As the material reaches ground level, it spreads at tremendous speed.  This was the eruption of Mt. Vesuvius in 79 A.D.  While the column was rising, the initial terror wore off for the observers as they watched it climb higher and higher.  Most did not flee and paid for their complacency with their lives.

As we watch the spasms in the various markets, we know it represents that something is terribly amiss.  The geopolitical, economic and financial complexities comprise a chaotic system.  By definition, it is impossible to predict the events that will lead to resolution.  History is our best guide, but even that cannot help us with the timing of those events.  The Romans could not time the collapse of the volcanic column, and nobody can predict the timing of the collapse of our current financial eruptions.

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/14_A_Financial_Hurricane_%26_Cracks_In_The_Global_Financial_System.html