Hugo Salinas-Price on the Nature of Money and Why Silver Should Be Legal Mexican Currency

Hugo Salinas Price, 75, is a successful, retired businessman who lives in Mexico. He has been a follower of the Austrian School of Economics since his youth. He has written three books in Spanish on how and why silver should be instituted as money in Mexico, in parallel with paper money, and numerous related articles in English and Spanish, posted at his website. His organization, the Mexican Civic Association Pro Silver, is actively lobbying the Mexican Congress to approve legislation, which will institute the pure silver "Libertad" ounce as money.

US money supply plunges at 1930s pace as Obama eyes fresh stimulus

The M3 money supply in the United States is contracting at an accelerating rate that now matches the average decline seen from 1929 to 1933, despite near zero interest rates and the biggest fiscal blitz in history.

FHA Home-Financing Volume Sign of ‘Very Sick System’ (Update2)

Loans guaranteed by the Federal Housing Administration, the U.S.-owned mortgage insurer, may be involved in more home-purchase transactions than borrowing financed by Fannie Mae and Freddie Mac.

British gold fund manager cites GATA on CNBC Europe

CNBC Europe's "Squawk Box" program interviewed Ben Davies, CEO of Hinde Capital in London and co-manager of its gold fund, and he remarked seditiously that "central banks and governments are very good at obscuring facts," that there is some doubt that the United States has the 8,000 tonnes of gold it claims to have, and that GATA has brought legal action to try to find out.

Kevin Rudd to backflip on mining tax rate

THE Rudd government is moving towards a major backdown on its $12 billion tax on resources, redefining its proposed super-profits levy, but the big mining companies have declared the changes do not stop the risk to investment in Australia.

Crisis Hits Greek Tourism as Cancellations Soar

The Greek tourism industry, which was hoped to contribute to the country's recovery, is in crisis. Hundreds of hotels are for sale, and visitor numbers are in sharp decline. The cash-strapped government is hardly in a position to help.

Volatility Index 20 Year Chart

Given today’s volatility — we gapped down 2.5%, now are climbing to minus 1.5% – today’s lunchtime chart is this fascinating look at the long term history of the VIX, below

Is Gold the Next Bubble?

It's been the amazing, runaway boom of the past decade. If you'd put your money into gold at the lows about 10 years ago, you'd have made a nearly 400% return. That's left pretty much everything else—stocks, China, let alone housing—in the dust.

The housing rot is still eating the US economy from the inside

Amid the current market mayhem, where in the financial world is still safe? The answer, it seems right now, is the United States.

In real money, British house prices are down by 70%

As far as advocates of sound money are concerned, the UK housing market peaked in 2005. Since then it has fallen by more than 70%.

Origins and Development of Economic Crisis, Part I

This include a particular point of view but very well summarize the several conditions for the current crisis take place and as a conclusion what is the proposed solution which is in line with people that think really different (See part I and Part II).

Why Europe's banks could be the next flash point for markets

Over the weekend, the Spanish central bank stepped in to take over one of the country's regional savings banks, or 'cajas'. For now, the bank, CajaSur, will have more than €500m injected into it. In itself, the story is not huge. But the problems it points to with the rest of the Spanish banking system – not to mention the eurozone's – are far more worrying…

MPC's Adam Posen warns Britain at risk of Japan-style deflation

Britain is at risk of sliding into a Japan-style episode of deflation, and may be even worse-equipped than the Asian country to escape, a Bank of England policymaker has warned.

10 Gold Charts Commercial Investment Firms Never Want Clients to See

Here are 10 gold charts that every global commercial investment firm is terrified to show their clients. When priced in ounces of gold, major western stock market indexes have performed horribly over the last 8 ½ years. Since, 2002, the US S&P 500 has lost a whopping 78% of its value. The Australia ASX All Ordinaries Composite (similar to the US S&P 500 index) and the UK FTSE indexes have not fared much better, respectively declining 70% and 77% in value.

32 States Have Borrowed from the Federal Government to Make Unemployment Payments; California Has Borrowed $7 Billion

EconomicPolicyJournal.com has learned that 32 states have run out funds to make unemployment benefit payments and that the federal government has been supplying these states with funds so that they can make their payments to the unemployed. In some cases, states have borrowed billions. As of May 20, the total balance outstanding by 32 states (and the Virgin Islands) is $37.8 billion.

CFTC Set to Limit Oil Speculation With Senate Backing

The top U.S. commodity regulator is poised to impose new rules on oil speculators as Congress and the European Commission attempt to rein in trading in the $615 trillion over-the-counter derivatives market.

EU agrees on coordinated action, financial sanctions

European Union finance ministers, meeting in Brussels on Friday, agreed to improve economic policy coordination and to toughen sanctions against eurozone countries that break deficit rules.

German Lawmakers Approve Share of $1 Trillion Bailout (Update2)

German lawmakers approved their country’s share of a $1 trillion euro-region bailout in a vote today, allaying market concern that they would balk at approving a second emergency aid package in as many weeks.

'Perfect storm' as market tremors hit China, Europe and the US

Capitulation fever has swept global markets on triple fears of faltering recovery in the US, Chinese credit curbs and Europe's intractable escalating debt crisis.

Fed Assets Reach Record $2.35 Trillion on Mortgage Purchases

The Federal Reserve’s assets rose 0.6 percent to a record $2.35 trillion as the central bank recorded purchases of mortgage-backed securities on its balance sheet.

Senate passes financial regulation bill

The Senate approved far-reaching new financial rules on Thursday aimed at preventing the risky behavior and regulatory failures that brought the economy to the brink of collapse two years ago and cost millions of Americans their jobs and savings.

London's Lobbyists Prepare to Return Fire

Hedge fund regulations, a tax on financial markets, a ban on naked short selling. The EU's bid to rein in the speculators has the financial industry up in arms. Lobbyists are already preparing to systematically attack the new proposals.

Dow Theorist Richard Russell: Sell Everything, You Won't Recognize America By The End Of The Year

Richard Russell, the famous writer of the Dow Theory Letters, has a chilling line in today's note: Do your friends a favor. Tell them to "batten down the hatches" because there's a HARD RAIN coming. Tell them to get out of debt and sell anything they can sell (and don't need) in order to get liquid. Tell them that Richard Russell says that by the end of this year they won't recognize the country. They'll retort, "How the dickens does Russell know -- who told him?" Tell them the stock market told him

Germany's 'desperate' short ban triggers capital flight to Switzerland

A year ago, Germany's financial regulator BaFin warned that the toxic debts of the country's banks would blow up "like a grenade" once hidden losses from the credit crisis caught up with them.

Mortgage delinquencies drag on economic recovery

The mortgage crisis is dragging on the economic recovery as more homeowners fall behind on their payments.

SEC proposes rules to prevent another 'flash crash'

Twelve days after the stock market took a historic plunge that raised fears of another financial crisis, federal officials are still struggling to understand what went wrong even as they offer proposals for how to avoid another "flash crash."

Chinese dumping worthless currency for gold

The Chinese population and government are dumping the worthless paper currencies of the world, which their governments just magic from nowhere, and dumping guilts, and are instead investing in gold. No matter what the price of gold is, one thing is certain, you can't print more of it like Western governments have done to their paper currencies.

King Says U.K. Inflation Jump ‘Temporary’ as Rate Reaches 3.7%

Bank of England Governor Mervyn King downplayed the threat of inflation after consumer prices jumped at the fastest annual pace since 2008, saying the surge is “temporary” and masks slack in the British economy.

Bailout Plan Is All About 'Rescuing Banks and Rich Greeks'

The 750 billion euro package the European Union passed last week to prop up the common currency has been heavily criticized in Germany. Former Bundesbank head Karl Otto Pöhl told SPIEGEL that Greece may ultimately have to opt out, and that the foundation of the euro has been fundamentally weakened.

Swaps Soar on Germany’s ‘Act of Desperation’: Credit Markets

Credit-default swaps soared as German Chancellor Angela Merkel’s curb on using the contracts to speculate on European sovereign debt sparked concern among investors about increasing government regulation.

German shorting ban triggers global share sell-off, pushes euro to fresh four-year low

World stock markets tumbled and the euro fell heavily as investors digested Germany's unilateral ban on short-selling.

Gold sales for Indian festival rise 11 per cent

Of gold, worth $30 million, changed hands at gold retailers across the Gulf on Akshaya Tritiya. (REUTERS)

Why governments should default on their debt

Doug Casey is one of the most original thinkers I know, and he recently shared his thoughts on the euro crisis. Here are his predictions, and a couple ideas on how to prepare for the 'greatest changes to society since the industrial revoultion'.

Banks dump Greek debt on the ECB as eurozone flashes credit warnings

Foreign holders of Greek and Portuguese debt have seized on emergency intervention by the European Central Bank to exit their positions, leaving eurozone taxpayers exposed to the credit risk.

Gold will soar in the long-term – but right now, traders should be careful

People keep asking me – what is gold going to do in all this market turmoil?

Where to place your bets in Europe's no-go zone

Not long ago, Europe was regarded as well placed to lead the global recovery. Now, it's a no-go zone. That spells opportunity, and not just for the bravest contrarians, says John Stepek.

How To Retain Your Sanity In A Volatile Market

In the long term, stocks outperform bonds and bonds outperform cash. Can you name a 20-year period over the past 100 years when they didn't? Unfortunately this is something that many people forget as soon as the markets get ugly. People forgot in 1974, 1987, 2002 and 2008 as they panicked and sold, only to miss a recovery in prices. Why does this happen?

Perfect setup for a gold rally: Wall St. 'flash crash' meets rising mistrust of paper currencies

Anyone in the business of pushing gold as an investment shouldn't have had to work very hard this week. Wall Street's "flash crash" and the European Union's largess did the heavy lifting.

A Nightmare for the European Dream

Political unity, a common currency, border-free travel and lasting peace. The European Union was to have become a kind of eternal utopia. Instead, no one has dared to further develop Europe since the days of Helmut Kohl. Now, the EU is looking decidedly mortal.

Euro Breakup Talk Increases as Germany Loses Proxy

Romano Prodi recalls how he persuaded Germany to allow debt-swamped Italy into the euro: support our membership and we’ll buy your milk, he said.

Morgan Stanley fears German exit from EMU

Morgan Stanley has warned that the Greek debt crisis is setting off a chain of events that may prompt German withdrawal from the eurozone, with grim implications for investors caught off-guard.

N.J. gov. sets tone for US

In a movie version of this important story of our time, the bold, undaunted officeholder would look much like the boyish, handsome David Cameron — Great Britain’s new Conservative prime minister — who called on his countrymen Tuesday to embrace an “age of austerity.” But this is America. So the fearless leader willing to be honest with voters, to part with what cannot be paid for, is actually not dashing, nor is he eloquent. He is an overweight Bruce Springsteen devotee, a former prosecutor with a remaining trace of a Turnpike accent who is intent on rescuing New Jersey. If he succeeds, Gov. Chris Christie (R-N.J.) could become a major political force in the years to come, whether he likes it or not.

The easiest way to bet on a falling euro

The big story in Britain last week was the fact that Gordon Brown finally relinquished power to a new management team. And for the British people, it was very good news indeed.

Beware of complications of financial crisis, Premier warns

Chinese Premier Wen Jiabao said Thursday that the complication of the glocal financial crisis with deepening sovereign debt crisis in some nations should not be underestimated.

U.S. Home Seizures Reach Record as Recovery Delayed

U.S. home foreclosures climbed to a record in April, a sign that government mortgage relief efforts have yet to turn the tide of property seizures, according to a report by RealtyTrac Inc.

Volcker Sees Euro ‘Disintegration’ Risk From Greece (Update1)

Former Federal Reserve Chairman Paul Volcker said he’s concerned that the euro area may break up after the Greek fiscal crisis that sparked an unprecedented bailout by the region’s members.

Abu Dhabi hotel installs gold vending machine

There's no mistaking what's in this vending machine. The well-heeled in the Gulf can now grab "gold to go" from a hotel lobby in the United Arab Emirates, when the need for a quick ingot strikes.

JP Morgan: Gold Could Now Face 'Unlimited' Demand

JP Morgan's John Bridges believes the latest breakout for gold was a huge positive sign for the metal. Euro weakness fears, coupled with dollar weakness fears, could lead to an enormous amount of demand

Commercial property: the worst could be yet to come

The first quarter of 2010 saw cash pouring into German commercial property funds at its fastest since mid-2003. And that follows last week's solid British cash inflow figures. It seems UK investors are piling into commercial property as well. So is the sector really bouncing back?

Barrick Gold moves to block mining book

The threat of legal action from mining giant Barrick Gold has forced Vancouver-based Talonbooks to postpone publication of a book about the Canadian mining industry.

Italian drivers

Italy's roads are choked with government-owned cars

Budget Deficit in U.S. Widened to $82.7 Billion (Update1)

The U.S. posted its largest April budget deficit on record as receipts declined in a month that typically sees an increase in individual income tax payments.

Schwarzenegger Preps ‘Terrible Cuts’ to Close Deficit (Update1)

California Governor Arnold Schwarzenegger will seek “terrible cuts” to eliminate an $18.6 billion budget deficit facing the most-populous U.S. state through June 2011, his spokesman said.

Is It Already Too Late to Save Greece?

The International Monetary Fund and the European Union are coming to Greece's aid with a financial commitment worth billions. But is it already too late to rescue the cash-strapped country? By SPIEGEL staff.

FDIC Approves Proposal for Large Banks to Write ‘Funeral Plans’

The Federal Deposit Insurance Corp. board approved a proposed rule that would require about 40 U.S. financial institutions to submit annual contingent resolution plans -- “funeral plans” -- that would demonstrate how to wind down the company in the event of its failure.

Food-stamp tally nears 40 million, sets record

Nearly 40 million Americans received food stamps -- the latest in an ever-higher string of record enrollment that dates from December 2008 and the U.S. recession, according to a government update.

Mortgage Holders Owing More Than Homes Are Worth Rise to 23%

More than a fifth of U.S. mortgage holders owed more than their homes were worth in the first quarter as repossessions climbed to a record, according to Zillow.com.

Butchers beware: Venezuela cracks down on prices

It's getting harder to put meat on the table in Venezuela and the government has been blaming the butchers, arresting dozens on charges of flouting price controls.

EU Bailout

Rogers Says EU Bailout Another `Nail in Coffin' for Euro

Investors Willing To Pay 31% Premium To NAV For Sprott's Physical Gold ETF In Strike Over Global Fiat Devaluation Insanity

Over the past month, gold has quietly become the only true flight to safety.

Jim Rickards: "Goldman Can Create Shorts Faster Than Europe Can Print Money"

"Look at what Soros did to the Bank of England in 1992 - he went after them, they had a finite amount of dollars, he was selling sterling and taking the dollars, and they were buying the sterling and selling the dollars to defend the peg. All he had to do was sell more than they had and he wins. But he needed real money to do that. Today you can break a country, you don't need money you just need synthetic euroshorts or CDS. A trillion dollar bailout: Goldman can create 10 trillion of euroshorts. So it just dominates whatever governments can do. So basically Goldman can create shorts faster than Europe can create money."

ECB risks its reputation and a German backlash over mass bond purchases

Jean-Claude Trichet, the ECB's president, denied there had been any political interference. "We are fiercely and totally independent," he said. It is clear, however, that the two German members of the ECB's council voted against the move, a revelation that may cause a catastrophic political backlash in Germany.

Υποκρισία - Hypocrisy

Some people believes that Greece should move to plan B. And what is Plan B?

More Financial Crises Coming

More Financial Crises Coming Thanks to Global “Wall of Liquidity,” Roubini Says

A warning from Romania for Britain's squabbling politicians

Before you break into a hearty rendition of "Ding dong, the witch is dead", remember that he hasn't actually stepped down yet. Brown says that if the LibDems and Labour team up, he'll hang around for a bit of continuity, before quitting by the time the next Labour party conference rolls around in September. Frankly, we won't believe he's gone until he's actually left Number 10 for the last time.

This short-term fix won’t save the euro

Fill your boots! It's the age of the bail-out.

Fed Faces Deflation With Few Weapons, Rosenberg Says: Tom Keene

The Federal Reserve should be worried about deflation and has few weapons left in its arsenal to combat it, according to David Rosenberg, chief economist of Gluskin Sheff & Associates Inc. in Toronto.

Gross rips the rating agencies

Bill Gross, the manager of the world’s biggest bond fund and co-chief investment officer at Pimco, gives the credit rating agencies Moody’s and Standard & Poor’s another good hiding in his monthly commentary out Wednesday.

Explosive Gold Catalyst:

Eric King: Explosive fundamental developments for gold are in the works as a reconfiguration of the monetary system is close at hand. One week from now the Swiss National Bank (SNB) and the IMF will host a High-Level Conference. “The key objective of the conference is to examine weaknesses in the current international monetary system, and identify reforms...” The joint SNB/IMF press conference that will follow afterwards should provide important clues as to the future.

Is the IMF’s Gold Really There?

http://www.fgmr.com/is-the-imf-gold-really-there.html

Forget the election – China is the real threat to the FTSE 100

However the election, or Greece's woes, or Wall Street's gremlins play out, another worry for investors is lurking. It's much further away, but could prove a bigger threat to UK shares than any of these.

Another mysterious IMF gold sale -- plugging the London leaks?

Another unexplained sale of gold by the International Monetary Fund turned up today in another Reuters story based on another statement from the World Gold Council.

Europe's Web of Debt

Banks and governments in these five shaky economies owe each other many billions of euros — converted here to dollars — and have even larger debts to Britain, France and Germany. Arrow widths are proportional to debt amounts.

Bill Clinton Praises the Gold Standard

File this under unexpected. Former President Bill Clinton blames the current financial crisis on the U.S. leaving the gold standard. During an interview conducted at the Peterson Institute by Bob Schaeffer, Clinton sounded like a hardcore gold bug as he said that the problems in the economy started when the U.S. went off the gold standard.

Commercial banks buy gold to meet demands

Dealers claim regional banks are stockpiling gold for clients who want their deposits saved in the yellow metal.

Australian Bond Risk Surges Most in 10 Months on Debt Fears

The cost of protecting Australian corporate bonds from non-payment surged the most in more than 10 months after the euro, U.S. and European stocks plunged on fears Greece’s debt crisis may spread.

China, the gorilla in the Third Gold War

MineWeb's Lawrence Williams tonight describes a fascinating new issue of Paul Mylchreest's occasional financial letter, the Thunder Road Report, which explains what Mylchreest calls the "Third Gold War."

China May ‘Crash’ in Next 9 to 12 Months, Faber Says

Investor Marc Faber said China’s economy will slow and possibly “crash” within a year as declines in stock and commodity prices signal the nation’s property bubble is set to burst.

China urges US to ensure inviolability of diplomatic staff

China on Friday called on the United States to ensure the inviolability of China's diplomatic and consular staff and premises. Chinese Foreign Ministry spokeswoman Jiang Yu made the remarks here Friday after China's deputy consul-general to Houston and his family were assaulted by US police while on their way back to China's consulate-general in Houston by car.

Greek Wealth Is Everywhere but Tax Forms

In the wealthy, northern suburbs of this city, where summer temperatures often hit the high 90s, just 324 residents checked the box on their tax returns admitting that they owned pools. So tax investigators studied satellite photos of the area — a sprawling collection of expensive villas tucked behind tall gates — and came back with a decidedly different number: 16,974 pools.

Newcrest Agrees to Buy Lihir After Sweetening Bid

Newcrest Mining Ltd. agreed to buy Lihir Gold Ltd. after sweetening its cash and stock bid to A$9.2 billion ($8.5 billion) to create the world’s fifth-biggest producer of the metal.

Australia looks at 40 percent tax on mining profit

Australia would heavily tax the booming profits of its mining companies under a tax system overhaul proposed Sunday that also would invest in infrastructure to support mining operations and reduce corporate taxes.

Gold: Needed Now More Than Ever

Greece’s debt troubles are well known. Less recognized is the worrying truth that Greece is just the tip of the iceberg.

Finance ministers to announce amounts of emergency loans to Greece

Eurozone finance ministers on Sunday will announce how much Greece will receive in emergency loans to help stave off defaulting on its debt. Estimates so far put the critical bailout package as high as €100 billion to 2012.

Junking Greece May Be Beginning of End for Euro: Mark Gilbert

Greece cheated its way into the single-currency club, lied about its deficit for years, and now brings the shame of becoming the first junk-rated member after losing investment-grade status at Standard & Poor’s this week.

Spanish unemployment tops 20% in first quarter

n Friday, data that showed Spain's jobless figure topped 20% in the first quarter of 2010 -- 20.5% to be exact -- served to highlight the tough job the government here is facing in trying to get its finances under control and light a fire under the economy. It marks the worst unemployment rate since 1997.

India May gold festival demand seen robust this yr

Indian gold refineries are busy again after a long lull as a popular festival next month is likely to see more sales than last year's 45 tonnes with stable prices and higher economic growth boosting consumer confidence.

Trading Day : April 30, 2010 : Gold Shines [04-30-10 1:35 PM]

Gold has hit a 2010 high and its highest level since December. For more, BNN speaks to Jay Taylor, president and CEO of Taylor Hard Money Advisors, and editor, Miningstocks.com.

Moore Capital, Morgan Stanley, UBS Settle CFTC Cases

Moore Capital Management LP, Morgan Stanley and UBS AG’s securities division agreed to pay more than $39 million to settle separate allegations regarding trading on the New York Mercantile Exchange.

Digging Deep and Seeing Greece’s Flaws

For Paul Koptides, who works in a car rental agency here, the news that Greece’s bonds had been reduced to junk status was just the latest in a series of blows, including wage cuts, new taxes and pressure from European neighbors for ever deeper austerity measures.

Hambro Says Miners May Face Rising Resource Nationalism: Video

Evy Hambro, manager of BlackRock Investment Management Ltd.'s flagship $14.3 billion World Mining Fund, talks with Bloomberg's Haslinda Amin about the risks of "rising resource nationalism" facing mining companies.

Euro Sales Extend as Morgan Stanley Mulls EU Breakup

Investors are abandoning the euro at a rate not seen since the collapse of Lehman Brothers Holdings Inc. as Europe’s worsening fiscal crisis threatens to splinter the 16-nation currency union.