CNN Reports that the subprime crisis is for real. Take a position, not a little bit of GOLD but at least 35-40% of your current portfolio and transition into protection not later but NOW!

Iran withdraws $75 billion from Europe: report

Mon Jun 16, 2008 4:58am EDT

TEHRAN (Reuters) - Iran has withdrawn around $75 billion from Europe to prevent the assets from being blocked under threatened new sanctions over Tehran’s disputed nuclear ambitions, an Iranian weekly said.

Western powers are warning the Islamic Republic of more punitive measures if it rejects an incentives offer and presses on with sensitive nuclear work, but the world’s fourth-largest oil exporter is showing no sign of backing down.

“Part of Iran’s assets in European banks have been converted to gold and shares and another part has been transferred to Asian banks,” Mohsen Talaie, deputy foreign minister in charge of economic affairs, was quoted as saying.That is why smart money investor’s are purchasing and transitioning their assets and personal wealth into protection now by securing GOLD and precious metals in their portfolio. Call The Superior Gold Group now and inquire as to how you can do the same by Building Wealth You can touch with People you can Trust at 888-969-6465.

Iranian officials were not immediately available to comment on the report in Shahrvand-e Emrouz, a moderate weekly, which did not specify the time period for the withdrawals which it said were ordered by President Mahmoud Ahmadinejad.

“About $75 billion of Iran’s foreign assets which were under threat of being blocked were wired back to Iran based on Ahmadinejad’s order,” the weekly said.

Iran’s Etemad-e Melli newspaper, also quoting Talai, last week also reported the country was withdrawing assets from European banks but did not give any figures.

On Saturday, Iran again ruled out suspending uranium enrichment despite the offer by six world powers of help in developing a civilian nuclear program if it stopped activities the United States and others suspect are designed to make bombs.

The offer — agreed last month by the United States, Britain, Russia, China, Germany and France — is a revised version of one rejected by Tehran two years ago.

Iran’s refusal to suspend nuclear enrichment, which can provide fuel for power plants or material for weapons if refined much more, has drawn three rounds of U.N. sanctions since 2006. Tehran says it aims only to generate electricity.

“The economy is in an inflationary recession denied by most central banks and in our market manipulation capitals of Washington and New York. Traders and investors need to pay attention to actual stats not those with a mainstream, Keynesian agenda. We find their goofy defense stunningly remarkable and replete with nonsense. Jawboning (shoveling you know what) has become the greatest indoor, totally imperfect sport for Chopper Ben Brenanke and Hank Paulson. We are not calling them liars but perhaps they are fibbing slightly more than usual around the edges. Benny hides it as he appears half asleep most of the time. Paulson on the other hand cannot hide his appearance of naked fear and desperation. On one occasion, we thought he would have a heart attack.” - Traderrog

Keeping Score On Nonsense Is A Full Time Job

• We should have been building a file on market reporting nonsense over the past few five years but it would have been a full time job and we don’t have the time. Instead of a librarians list, we summarize today some critical reasons as to why traders and investors should not give-up on gold and silver. We simply lost control while producing this list and wrote 20 instead of 10. This list took only 15 minutes and we do have time and space constraints.
• We had a credit crunch caused by derivatives but now it’s structurally contained and mostly over. Greenspan’s give-away cash in the US spread to other nations through origination of derivatives. The contagion has only begun to spread and the 10% pittance of acknowledged bad paper allegedly managed at the banks leaves 90% lurking, hidden in banks’ balance sheets.
• The American banking system is sound as a dollar. Bear Stearns was
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Dollar crisis looms, China ponders reform: Mundell

Tue Jun 03 12:23:41 UTC 2008

By Jason Webb,

VALENCIA, Spain (Reuters) - A major dollar crisis could come within five years and China is discussing reforms to the global monetary system to protect its $1.6 trillion reserves pile, says Nobel Prize-winning economist Robert Mundell.

Mundell, who has regular contacts with Beijing officials, said they are considering proposing ways to to fix major currencies including the dollar and the euro, in a system similar to the one which operated under the Bretton Woods agreement from the end of World War Two until the 1970s thereby putting America back on the Gold standard.

“There’s no doubt about it that inside the Chinese government there’s a lot of discussion going on. I’m not sure how they’re doing it but I know they’re going to get an input from me,” Mundell told Reuters in an interview.

Without reform, the global monetary system is headed for a dollar crisis within years, Mundell believes.

However, he thinks the United States will avoid a technical recession during the current downturn and that

Consumers are 70% of the USA buying economy and bonds are 70 times the size of stock markets. Both reside on the doorstep of fiscal hell. What happens next?

Our beloved Federal Reserve Chairman is probably not sleeping too well these days. Benny (Chopper Ben) Bernanke and Treasury Secretary Hank Paulson managed a Houdini escape from Credit Crises Round One by papering over a host of financial disasters with New York’s Big Boy Banks. Problem is the resolution has only begun and they know it. The tip of this iceberg was managed but 90% of it still lurks beneath credit waters in back rooms all over Manhattan. Our fiscal generals are in it up to their necks, desperately, frantically working to contain the uncontainable. They are toast and they know it. It’s only a matter of time as Lehman Brothers, as well as others, could be the next Bear Stearns.

Political Stupidity Reigns Supreme

Congress, our political purveyors of idiocy in Washington, escalates ill-conceived

Inflation Leaves Investors Little Choice

Kurt Kasun

May 30, 2008

The peaceful co-existence between commodity-related investments and most sectors which comprise the broader US Stock indices, is drawing to a close. As inflation tightens its grip over the world economy, US treasuries and stocks (consumer-related, tech, and financials) will suffer while investments in tangible assets will see their gains accelerate higher. I consider the terms “inflation” and “currency debasement” to be largely synonymous. The bottom line is that purchasing power is going to drastically decline. Income and wealth is not going to keep up with rising prices for goods and services for the US consumer. Hard asset investments will emerge as the sole safe haven against the deleterious effects of inflation.

I find it amazing that the majority of pundits and advisors in the financial media are still peddling tech and financial investments. Most of these guys who proclaim commodities are in a bubble are merely trying to persuade their audience to invest in US stocks. “A bet against the American consumer has been a bad bet for 25 years” is a popular refrain. Well, 25 years of living beyond our means to consume is going to have ugly consequences. The government’s highly inflationary and currency-devaluing policies heretofore created asset bubbles, the over-flow of which created a wealth effect that positively impacted consumption and GDP. The problem was that the numbers masked the rot which was occurring in the real economy. Incentives created asset growth and dependency at the expense of investment in this country’s productive capacity in tangible goods. Austrian economists refer to this as mal-investment. Inflation is the inevitable outcome, even in a US-centric world. But things have changed. We are on the brink of massive global inflation, the likes of which the world has never seen.