Embry - Western Central Banks Don’t Have 30,000 Tons of Gold

With the Fed saying they will continue with stimulus and gold hovering at the $1,550 level, today King World News interviewed John Embry, Chief Investment Strategist of the now $9 billion strong Sprott Asset Management. When asked about Peter Schiff’s comments earlier on KWN about the US defaulting Embry stated, “When you look at the financial condition of the United States at the federal level, at the state level and at the municipal level, to me I don’t see any way out of this. There’s too much debt, interest rates are far too low. If interest rates really reflected what’s going on, this risk in the debt and the risk of inflation, they would be hundreds of basis points higher and under that event the debt couldn’t be serviced. So there will be some form of default.”

Jim Grant Says All The Things That Ben Bernanke Avoided During His Press Conference, And Much More

Considering the only soundbite that was relevant from Ben Bernanke's 45 minute 2:15pm oratory was that "we don't have a precise read on why this slower pace of growth is persisting" America, and the entire civilized world, could have done just as well without it. Instead, we should have listened to Jim Grant, who once again correctly identifies all the things that the Fed chairman should have said (Bernanke certainly focused on the other side): "What we are not going to get is a concession that QE2 has achieved its unintended consequences, namely a lower dollar exchange rate, a higher gold price meaning weaker confidence in the dollar, slower economic growth and a higher measured rate of inflation. Those are some of the things that have come out of this experiment and let us call it by its name money printing...

The dollar is headed higher – here’s how it will affect you

Quantitative easing (QE – money printing) is the main influence on markets right now. Don’t believe me? Then just look at what happened yesterday. Investors forgot about the drama of the eurozone, and spent most of their time holding their breath ahead of the Federal Reserve’s latest interest rate decision. Vague hopes that Fed chief Ben Bernanke would hint at a third batch of QE saw the dollar dip, stocks rise and gold surge. Then, when ‘helicopter Ben’ stayed firmly on the launch pad, stocks ended the day down, with the Dow Jones sliding 80 points or so. So if hopes and fears for QE3 are what’s driving markets right now, when – if ever – can we expect it to arrive?

How to insure your wealth against a Greek default

The Greek government won its confidence vote. In case you missed it, prime minister George Papandreou had demanded that parliament back his government amid turmoil over austerity measures. This was a foregone conclusion of course, which explains why the euro actually fell in the immediate aftermath. No sane politician calls a vote of confidence unless they know they’re going to win it. It’s a theatrical call to arms, rather than a genuine career risk. Of course, if Papandreou had lost the vote, it could have been very nasty. But his victory hardly means the eurozone is saved (again). There are still some very significant hurdles to jump. So what happens now?

Britain should save the euro – and then cash in

Full fiscal union would allow us to profit from Europe, even as we sat on the sidelines, says Jeremy Warner.

Greece's ace card: help us or we'll take you all down

Rarely have the goings on of the Greek parliament commanded so much international attention. Once a complete irrelevance, its machinations, and in particular its apparent refusal to accept austerity, have assumed centre stage.

EU leaders in race to avert Greek debt default, euro crisis

EU leaders gather in Brussels today keenly aware that they are in a race against time to stop Greece defaulting on debt and preventing the euro from collapse over the next week.

Greek debt crisis: key dates in a race against time

EU leaders have to move fast over the next week to avert a Greek debt default that could trigger a collapse in the euro. Here is a timeline of their race against time.

Moody's puts French banks on review for downgrade over Greece

Moody's Investors Service on Wednesday placed France's top three banks, BNP Paribas, Societe Generale and Credit Agricole (CASA), on review for a possible downgrade, citing the banks exposure to Greece's debt crisis.

Sinclair - You’re Out of Your Mind If You Sell Gold Assets Now

With stock markets and other asset classes getting mauled, real money, gold and silver, are attempting to hold their ground, so today King World News interviewed legendary Jim Sinclair. When asked about the action Sinclair stated, “Well I think the gold market today is acting extraordinarily well being on the positive side when every other asset that people can find are being thrown out the window, especially in the equity markets...Where gold is concerned you are dealing with the condition of the international banks, with the balance sheets of the financial entities of the world.

US Housing Crisis Is Now Worse Than Great Depression

It's official: The housing crisis that began in 2006 and has recently entered a double dip is now worse than the Great Depression. Foreclosure Sign Getty Images Prices have fallen some 33 percent since the market began its collapse, greater than the 31 percent fall that began in the late 1920s and culminated in the early 1930s, according to Case-Shiller data.

The One Thing To Watch as the Fed Abandons U.S. Stocks

Without any more help from the U.S. Federal Reserve, U.S. stocks are on their own - and they're in for a rocky ride.

The biggest question facing investors today

I had a great time at the MoneyWeek conference on Friday. The talks were all extremely interesting, and I enjoyed the chance to have a chat with so many of you in person. As for the main theme that arose from the conference: well, I already knew you were interested in house prices. And I already knew you were interested in gold. But the biggest question on everyone's minds is still the one we’ve all been asking ourselves ever since the credit crunch of 2008. “Do we face inflation or deflation?” So which is it? And what does it mean for your investments?

The Next Global Credit Crisis: Why U.S. Banks and Greek Debt Will be the Toxic Trigger

Will a hidden link between the Greek debt situation and the U.S. banking system ignite the next global credit crisis? The odds of the "next" global credit crisis are increasing with each new day, and with each new revelation. And escalating fears are hitting worldwide stock markets hard. Just yesterday (Thursday), Greece's leaders revealed that the country's socialist government is on the brink of collapse. Greek protesters - angered by brutal austerity measures that will almost certainly heighten the country's record 16.2% unemployment rate - are rioting in the streets of Athens. On Wednesday, Moody's Investors Service (NYSE: MCO) warned France's three largest banks that their exposure to Greek debt could lead to credit-rating downgrades. There are even concerns that the European Central Bank (ECB) may be technically insolvent - meaning it wouldn't survive a global financial meltdown. Investors are right to be worried. But with the European banking system's financial woes currently dominating the headlines, those investors might be very surprised to discover that it's actually the U.S. financial system that may end up as the real weak link in the event of a Greek debt default. And investors don't even know this link exists.

What the '70s bull run can teach us about today's gold market

The last bull market in gold could be said to have begun on 15 August, 1971, when US President Richard Nixon 'shut the gold window'. He ended the direct convertibility of the US dollar to gold at $35 an ounce. In effect, he took the US – and the world – off the last vestiges of the gold standard. The bull market probably began earlier than that, however. Perhaps even before 1961, when buying pressure was such that the London Gold Pool was introduced to 'stabilise' the price of gold. However, any gains were not visible as the official gold price remained at $35 an ounce, even with all the dollar printing that was going on. The bull market ended on 21 January, 1980 – at 3pm, if you were in Britain, with the London PM gold fix. Gold spiked to $850, at a time when US interest rates were as high as 20%. Today I want to draw a couple of comparisons between the current bull market and that of the 1970s, to see what we can learn.

Is it no longer good to talk

On the surface, the news that mobile operators are making enough money from people surfing the web on their mobiles to offset the decline in voice revenues sounds like it can only be a good thing.

TLG's top ten firms in India

The top ten firms in India is peppered with homegrown companies including Infosys, Tata and Mahindra. Here is the list compiled by consultants TLG.

Europe better have a Plan B to tackle Greek contagion

Supposedly, we were about to miss the boat/train/plane and had to jump aboard before it was too late. So do we now hear an acknowledgement from those doyens of the British establishment who were so desperate to take us into the euro, that on the biggest economic issue of our generation they were profoundly wrong?

Boris Johnson: let Greece go bankrupt and leave the euro

Britain should refuse to contribute to a second bail-out of Greece and the country should be allowed to default on its debts and leave the euro, Boris Johnson has said.

Turk - Gold & Silver Have Bottomed, Summer Explosion Ahead

With gold and silver rallying, today King World News interviewed James Turk to ask him if we have seen the lows. When asked about a bottom forming here Turk responded, “Eric you know from our previous discussion that I was looking for some more backing and filling and that is exactly what has happened over the last couple of weeks. More importantly gold dropped back to test $1,520, while silver probed support around $35 and both support levels held.”

Rick Rule - Silver Will Trade Like an Internet Stock to the Upside

With gold trying to stay above $1,525 and silver bulls looking for a bottom, today King World News interviewed one of the most street-smart pros in the resource sector, Rick Rule Founder of Global Resource Investor, now part of the $9 billion strong Sprott Asset Management. When asked about the possibility of silver trading like internet stocks to the upside in the future Rule had this to say, “I think that’s the case. I’m not a student of markets, I think Eric Sprott in our organization is the best at that, but I certainly remember the silver market going absolutely hyperbolic in the 70’s.

Unasur, looking at the EU, freezes project for common currency and central bank

The Union of South American Nations, UNASUR has frozen the project for a common currency and Central Bank following on conclusions from the European Union experience (and crisis), said the Argentine representative before the organization.

Too Big to Fail, or Too Trifling for Oversight?

It is not very often that business people head to Washington to explain how unimportant they are. Enlarge This Image Chip Somodevilla/Getty Images Representative Barney Frank says mutual fund and life insurance companies were not the causes of the financial meltdown. His Massachusetts base is home to many such companies. Add to Portfolio Bank of America Corporation Citigroup Inc General Electric Company SLM Corp Zurich Financial Services AG Boeing Company International Business Machines Corporation Ford Motor Company Goldman Sachs Group Inc Wells Fargo & Co Allstate Corp American International Group Inc Go to your Portfolio » But over the last several months, executives from more than two dozen financial companies and their trade groups have paraded into the Treasury Department, the Federal Reserve and other government agencies to try to persuade top regulators that they are not large or risky enough to threaten the financial system if they should ever collapse.

The SEC Just Refused To Hand Over Details Of SAC's Trades To Senator Grassley And He's Pissed

Iowa Senator Chuck Grassley had asked "for details of all referrals related to SAC Capital sent to the [SEC] since January 2000." The SEC has said no. Originally it was thought that Grassley's requests for details on certain trades was because he was investigating Steve Cohen's mammoth hedge fund, but in fact, he was investigating the SEC. SAC was being used a case study by the Senator's office, as he is concerned with how the SEC handles insider trading probes and referrals. But the SEC has rejected Grassley's request "to disclose how they have handled referrals they received of suspicious trading at hedge fund SAC Capital," according to the WSJ.

OECD predictions for global economic growth

The OECD has outlined a grim outlook for the euro area as a whole, while it says the UK is on track for a 'slow pace of expansion'. Here is a detailed breakdown of how it thinks the world's biggest economies will shape up in the coming months.

George Soros blames officials as Greek crisis escalates

Billionaire investor George Soros has criticised international authorities for "not providing a solution" for the European debt crisis as Greek sovereign bond yields were pushed to record levels again.

Fed chairman Ben Bernanke says US faces downgrade over debt

Federal Reserve Chairman Ben Bernanke said the US could lose its AAA credit rating and create a new crisis in the financial markets if it does not raise the cap on government debt.

Real metal will beat paper at banks, Eric Sprott tells King World News

Eric tells King: "Just look at the printing of money and the way we've attempted to deal with the stresses in the banking system, and my ultimate end for gold is when people realize they are probably better off not having their money in a bank. They get paid nothing, they take all of the risk of the bank balance sheet, which is incredible, and, in my mind, why wouldn't you own gold and silver, which are going to maintain their purchasing power in almost any circumstance? You are way better off owning physical metal than owning a piece of paper at a bank."

Freddie Mac Refi Percent Cash-Out

Freddie Mac Refi Percent Cash-Out

Losing Streak Sends S&P 500 Looking for Summer Market Lows

With stocks down for the sixth straight week, we need to start looking at where we might expect to see the summer market lows. So here is the question to ponder: How far could the Standard & Poor's 500 Index sink during the summer and stay within its two-year, bull-cycle uptrend?

It's time to be cautious on commodities

Oil cartel Opec is meeting up tomorrow to discuss oil production quotas. It promises to be a fractious session. One member, Libya, is in the midst of a civil war. That makes things complicated enough, as no one is sure who will be representing the country. But on top of that, some of Libya’s fellow members, including Qatar and the United Arab Emirates, are backing the Libyan rebel contingent. So the debate promises to be heated. And beyond the chaos of the ‘Arab Spring’, Opec has longer-term worries. With oil prices still sitting above $100 a barrel, it may seem that the cartel is sitting pretty in financial terms. But in fact, Opec may be facing the biggest threat to its influence on the global energy market it has yet seen.

The "Pesofication" of the U.S. Dollar

I've dubbed this the "pesofication" of the U.S. dollar. But we're really talking here about the dollar's long-term demise. The pesofication of the dollar represents the end of the greenback as a major world currency and figures to be one of the major long-term challenges that we U.S. investors will face. The dollar's demise was set in motion several years ago. But the greenback's fate was sealed in late April, when U.S. Federal Reserve policymakers had a final chance to take a stand against inflation - and failed to do so. Let me explain ...

Why a Greek Default Could be Worse Than the Lehman Collapse

he 2008 collapse of Lehman Bros Holdings Inc. (PINK: LEHMQ) ignited a financial meltdown that resulted in widespread bank failures and caused the Dow Jones Industrial Average to lose 18% of its value in just one week. Yet a Greek default - which (even with a bailout) becomes increasingly likely with each passing day - would actually be much, much worse in many respects. Sure, it's possible that European Union (EU) taxpayers will soon be dragooned into yet another rescue plan. But that would only delay the inevitable - a catastrophic collapse that will drudge up feelings of panic we haven't witnessed since the global financial crisis hit its apex nearly three years ago. Here's why.

How to profit from Germany’s nuclear freeze

Fukushima could change the energy industry forever

We’ve used up all our options, so what next for Britain's economy?

The British and US economies have failed to recover, despite our most desperate efforts, writes Jeremy Warner.

The scandalous way thrift is still losing out to profligacy

At almost every level, public as well as private, Britain is massively in debt.

Germany and ECB disagree over Greece

The stand-off between Germany and the European Central Bank over the Greek debt crisis intensified yesterday causing further unrest in the debt markets.