Internal Bundesbank Report Predicts New Greek Bailout In Early 2014, More Headaches For Merkel [Zerohedge]

An internal Bundesbank document discovered by Der Spiegel states, in opposition to the comments by Germany’s electioneering Chancellor Merkel, that Europe “will certainly agree to a new aid program for Greece” by early 2014 at the latest. As Reuters reports, Frau Merkel has repeatedly played down suggestions Greece will require more aid (or debt relief) in light of German voters major skepticism over moar of their money being flushed into the Mediterranean. The document notes that the risks of the current aid package for Greece are “extremely high” and that recent approval of the tranche payments were politically motivated – directly contradicting Merkel’s ‘praise’ for Greek efforts as the report concludes Athens’ performance as “hardly satisfactory.” Opposition parties suggest Merkel is throwing “sand in the eyes” of the electorate as the Bundesbank warns “there is no private buffer left that could protect the European taxpayer.”


Via Reuters,

German opposition parties accused Chancellor Angela Merkel on Sunday of lying before elections next month about the risks of a new bailout for Greece, after a magazine reported the Bundesbank expects it will need more European aid in early 2014.


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U.S. Government Prepares Mass Pension-Rape [bullionbullscanada]

How has the bankrupt United States of America kept its entire (paper) house-of-cards from crumbling all around it? Two words: fraudulent accounting.

As many readers know, following the Crash of ’08 U.S. Big Banks were hopelessly bankrupt. They were leveraged well in excess of (the legal) 30:1, with the vast majority of that leverage tied directly to the (fraud-saturated) U.S. housing market – and house prices.

The effect of this leverage was that (as a matter of arithmetic) only a 3% decline in U.S. house prices would render all these banks insolvent (3% X 30). In fact the U.S. housing market plummeted lower by roughly ten times that amount (in just its first down-leg). The mere $15+ trillion in hand-outs/loans/guarantees from the Bush regime was only a band-aid which would keep these fraud-factories afloat for a few months, barring other equally extreme action. And soMark-to-Fantasy accounting was born.

Beginning in February 2009, U.S. Big Banks weren’t required to account for their assets (or liabilities) at “market value” (i.e. what people were willing to pay for them in the real world). Instead, the Banksters were allowed to do their accounting on the basis of what they thoughttheir own assets should be worth.

Suddenly, the same corporations which had just all been bankrupted ten times over were able to pass a “stress test.” Of course that Cinderella Stress Test proved nothing about the solvency of U.S. banks. However simply being instantly able to cobble-together a façade of solvency did illustrate the magnitude of the fraud in this Mark-to-Fantasy accounting.

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Aluminum Manipulation Leads to Lawsuits Against Goldman etc – The Days of Proprietary Trading Are []

Proprietary Trading 31.4 Years

There are many lawsuits being filed against the New York Bankers for manipulating the commodities. Suits have been filed in Florida, Chicago, and New York. It is no secret that I have stood up to these people an opposed their manipulations. But this has been the name of the name in the commodity field for probably a century.

The manipulation in interest rates and the financial sector began when PhiBro took over Salomon Brothers back in 1981. They got caught manipulating the US Treasury Auctions within 10 years. That’s when Warren Buffett got involved and I believe it was PhiBro traders that drew him into the commodities playing with silver in 1993 then again in 1997-1998. The Goldbugs hated me then because if the metals go up it is always REAL and manipulations are only down. Buffett bough the silver in London so that drew down the supply in NY shifting it to London and that fact was used to get the Goldbugs to buy the high as always. But they were desperate to get me to join them fearing that Princeton was the largest adviser ever having more than $3 trillion under contract (see testimony before Congress). PhiBro floor traders walked over to my traders and showed them the Buffett orders to buy $1 billion in silver. If I say something is happening, everyone knows I have the real contacts and am not speculating unless I say I “think”.


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Syria’s Assad bans foreign currency transactions [France24]

AFP – Syrian President Bashar al-Assad issued a decree Sunday banning the use of foreign currency in commercial transactions, state news agency SANA said.

“It is prohibited to make payments, reimbursements, commercial transactions and any other commercial operation in foreign currency or in precious stones,” SANA quoted the decree as saying.

“The Syrian lira is the only currency” allowed in business and commerce, it added.

Those breaking the law risk jail sentences from between six months to 10 years of hard labour, depending on the sum involved, and will be fined.

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Phishing Chips: Sim card bug exposes users to surveillance & fraud

Fed Expected to Taper Bond Purchases by 24% [Financial Sense]

On Track For September Taper

As noted on July 15, our guess is the tapering dialogue at the Fed is more about escalating fears of another round of asset bubbles rather than confidence in the economy or fears about escalating inflation.


To help stem the bubble tide, the Fed may still announce some tapering at their September meeting. However, any tapering statement will most likely be accompanied by a pledge to support the economy with low rates for an extended period. A Bloomberg survey suggests a slight bias toward a change coming in September:

Federal Reserve Chairman Ben S. Bernanke in September will trim the Fed’s monthly bond buying to $65 billion from the current pace of $85 billion, according to a growing number of economists surveyed by Bloomberg News. Half of economists held that view in the July 18-22 survey, up from 44 percent in last month’s poll. Even as expectations of a September taper rose, 10-year Treasury yields continued to fall last week from an almost two-year high after Bernanke said reducing bond-buying wouldn’t constitute policy-tightening.


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GLD loses another 1.5 tonnes of gold/gold and silver rebound in the access market []

Gold fell  $1.30 to $1335.10 (comex closing time ).  Silver was also down by 25 cents to $20. 25 (comex closing time)
In the access market at 5:00 pm, gold and silver skyrocketed northbound for no apparent reason:
gold: $1347.70
silver:  $20.46

It seems that our specs are in deep trouble with the commercials net long. We will have in the next few weeks a plethora of buyers and a scarcity of suppliers of paper gold. The next two weeks will be a very exciting to watch.

At the Comex, the open interest in silver rose by 909 contracts to 133,641.
The open interest on the entire gold comex contracts fell by 5291 contracts to 439,441 despite  gold’s spectacular rise in price on Friday of $46.00.
Tonight, the Comex registered or dealer inventory of gold  remains below the 1 million oz mark at 950,441.152 oz or 29.56 tonnes.  This is dangerously low especially when we are coming up to the August delivery month.
Remember in June we had almost 31 tonnes of gold stand for delivery.  The total of all gold at the comex (dealer and customer) rises slightly again tonight still well below the 7 million oz barrier resting at 6.895 million oz or 214.47 tonnes.
JPMorgan’s customer inventory remains constant tonight at only 46,069.447  oz or 1.43 tonnes.  It’s dealer inventory rests at 390,092.326 oz (12.13 tonnes) but it still must settle upon contracts issued in the May and June delivery month which far exceeds its inventory.  (see last Wednesday’s  Bill Kaye interview with Lars Schall on the lack of deliveries at the comex per outstanding issues).


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