James Turk - “Silver Will Hit New Highs in a Matter of Weeks”

With tremendous volatility in gold and silver, today King World News interviewed James Turk out of Spain, and subsequently Turk sent the following piece below exclusively for the KWN blog. When asked about gold Turk remarked, “I’m taking my cue here from the mining stocks.  The XAU once again held above the 200 level which has been the bottom of its trading range.  That suggests to me that both the mining shares and gold are sold out here and due for a big bounce.” 

The Osoma Factor is a Non Factor

Submitted by: Francis Soyer 5/9/11


Over the weekend I had the pleasure of a visit with the Parents for Mothers Day. My mother had a question, and it was will Bin Ladden being out of the picture improve prospects for the world economy. My answer was no absolutely not but as I thought about it more it occured to me that these politically motivated actions that are showcased in the media's eye are for a reason and the reason goes beyond beyond Obama being able to claim victory when it comes time to re-election next year.

If you look back iin time and have been following events like myself and other investment proffessionals what a pattern becomes apparent. The pattern is to showcase items of relative unimportance to focus attention away from matters that ar of importance. While our corporate media was abuzz with Bin Ladden news notice how little attention matters of much higher importance were ignored or recieved little attention like:

Secretary Geitner asking congress for $2 Trillion to avoid Government Default on the Governments Debt. Yes the treasury has run out of money and the interest payments alone are now in stage where as a country we can no longer afford the interest payments let alone being able to pay off the principle of those loans. To put $2 Trillion into perspective it is basically the same size of QE (Quantitative Easing Programs) by the Federal Reserve Bank of New York a private bank by the way...for QE programs I and II which has been operating since 2008. A three year program fort he Government or more accuratly U.S. taxpayers to buy the Governments debt in the amount of $2.1 Trillion. As it stands now without this additional $2 Trillion every U.S. Tax Payer if the bill on our tab came due rite now of roughly $16 Trillion would owe $1.5 Million. So for the average tax paying family in the U.S.A. with a household income of $40,000 and falling will spend the next 37.5 years giving %100 of their income in taxes to the Government to pay off that debt if the bill were payable now. That $40,000 annual income represents roughly 98% of the tax paying population in case you were wondering.

We got some bad news on the Job Market and not to no shock ignored:

The latest from John Williams’ ShadowStats.com.

No. 367: April Labor Numbers, Money Supply, Dollar and Precious Metals
- Increasingly Misleading Seasonal-Factors Continued to Pummel Accuracy of Jobs Data
- April Household Survey Showed 190,000 Employment Drop
n- April Unemployment Rates: 9.0% (U.3), 15.9% (U.6),  22.3% (SGS) and rising as we came in with a Initial Claims report of roughly 500,000! job losses. Anything beyond upper 300's means on a net basis the country is falling further  (This 22.3% Unenployment Rate is the REAL Number) The other two are extremely sugar coated by the Bearuae of Labor Statistics. They DO NOT ACCOUNT FOR PEOPLE WHO HAVE GIVEN UP ON FINDING WORK and are now wards of the State, via welfare and food stamps) For those in the investment community who do not understand, go to the BLS and look and how they calculate their findings, your eyes will be opened I gaurentee it.
- Broad Money Supply Gains in April
- Underlying Inflation, Dollar and Precious Metals Fundamentals Unchanged

To Re-iterate what is happening in the Economy on the Macro... THERE IS NO RECOVERY, In Fact the countries financial condition, employment, growth, prosperity all of it is headed down hill and has continued to do so Since 2008! Any news report that claims economic recovery is either on the take, been forbiden to report the truth or is simply brain dead. It is that simple.

So in terms of looking back to Bin Ladden and its relavence is completely irrelavent. The pattern of information flow from out leaders is that they would have you focus on WHAT IS NOT, rather than WHAT IS. They are basically proffessional liars. They opporate in their own self interests, which are the interests of those who financed their political carreer. What about Morality etc.? People act in their own self interests, and have since the dawn of civilization. Is what it is.
 
And while most of us watched Oboma on sixty minutes as if there were important news. The real interview we should have been watching is this one.
 
http://www.zerohedge.com/article/david-stockman-it-will-take-major-dislocation-bond-market-wake-america

Ransquawk European Morning Briefing 5/9/11