on Precious Metals
"In the Carboniferous Epoch we were promised abundance for
By robbing selected Peter to pay for collective Paul;
But, though we had plenty of money, there was nothing our money could
And the Gods of the Copybook Headings said: "If you don't work
you die." --Rudyard Kipling
- <<End of the Dollar>>.
- In Gold We Trust. By Koos Jansen. Regularly updates the state of the gold market around the world. An excellent researcher. Mr. Jansen believes (from his research) that China, as of 2014, has accumulated over 14,000 metric tonnes of gold.
THRIVE: What On Earth Will It Take? Good information on how the
elite control the economy, health care, food, energy, etc. Somewhat
utopic (i.e. the "torus" pattern), but informative, otherwise.
Robert Kiyosaki ~ Interview By Glenn Beck. Glenn Beck sits down
with Robert Kiyosaki, of Rich Dad Poor Dad, and many other mega financial
book best sellers. They talk about cash flow, the 5 G's (i.e. Gold,
Guns, Grub, Ground, and Gas). They also discussed the future of America,
of the Road: How Money Became Worthless. Good one hour summary
of how we got here. Costs $5.00 to rent.
Silver is The Achilles' Heel to the Entire Economic System. Posted
3/21/2012. David Morgan commentary. See also: Global
Silver Taxes Part of Global Agenda to Dissuade Individuals From Buying
Silver which lists the high taxes on gold and silver purchases
in Europe. This is in contrast to China, India, and Russia where taxes
on gold and silver are minimal to non-existent.
'Financial repression' is gold price suppression. Posted 12/30/2011.
What we see at present is a battle between the central banks and the
collapse of the financial system fought on two fronts. On one front,
the central banks preside over the creation of additional liquidity
for the financial system in order to hold back the tide of debt defaults
that would otherwise occur. On the other, they incite investment banks
and other willing parties to bet against a rise in the prices of gold,
oil, base metals, soft commodities, or anything else that might be
deemed an indicator of inherent value. Their objective is to deprive
the independent observer of any reliable benchmark against which to
measure the eroding value, not only of the US dollar, but of all fiat
currencies. Equally, they seek to deny the investor the opportunity
to hedge against the fragility of the financial system by switching
into a freely traded market for non-financial assets....as a mere
high school graduate remarked a few years ago, "There are no
markets anymore, only interventions."
supply explosion will lead to accelerating inflation. Posted 12/17/2011.
Singularity or the point where the gold price goes to theoretical
infinity, is in February 2014, only 26 months away. Unless this long-term
trend (since the 1900s) is somehow broken, gold is also telling us
the dollar is heading for hyperinflation.
Bass on the Fate of the World. Posted 12/16/2011. Must watch video.
Ludwig von Mises Institute
and the State. Posted 2/1/2013. The process of civilization:
(1) There must be an inequality of skills and wants among people.
This is a necessary condition for people to want to seek cooperation.
(2) Man must recognize that higher productivity is possible through
a division of labor. The inequality of skills and wants, accompanied
with the assumption of a minimum intelligence, leads people to engage
in the division of labor and specialization. This, in turn, brings
about the need for interpersonal exchange. The primitive form
of an exchange economy is barter. Barter has limitations, however.
Sooner or later, people will realize that using an indirect means
of exchange is economically beneficial. The indirect means of exchange
that becomes universally accepted is called "money."
Money is an economic good like any other. As such, it will be economized,
like any other good. People will demand convenient ways of
holding and exchanging their money proper. With people differing in
individual time preference, there will be savers (those who hold excess
balances of money proper) and investors (those who demand money proper
in excess of their actual holdings). It is against this backdrop that
two kinds of money businesses would emerge in the free market: deposit
banking (or money warehousing) and loan, or credit, banking.
The Incentive for Aggression. There are several ways of acquiring
property: homesteading (which
actually denotes the first-user-first-owner principle),
production, and voluntary contracting. There is also theft--the forcible
appropriation of the property (or labor) of others. Man's inclination
is to aggression. It is the individuals economic incentive to
aggress against other peoples property that is at the heart
of the emergence of what is typically called "government."
A government can be understood as a territorial monopolist of compulsion:
an agency that engages in institutionalized property rights violations
and the exploitation in the form of expropriation, taxation,
and regulation of private property owners. There are various
forms of government, but they can be distinguished between private
(monarchy/feudalism) and public (democratic-republican) ownership
of government. Public ownership of government will lead to an ongoing
erosion of the encompassing interest of the majority of the people
in the market income of society. (The average voter will support those
politicians who are expected (rightly or wrongly) to improve the voters
economic situation. A voter has every economic incentive to act in
this way irrespective of the fact that the income he may obtain
in this way results from expropriating fellow citizens.)
(1) If and when public ownership of government takes hold, commodity
money will be replaced by fiat money. (2) Fiat money leads to collective
corruption on a grand scale. And (3), once collective corruption has
become sufficiently widespread, the fiat money regime will be destroyed
It Will End in Hyperinflation. Collective corruption, once
it has become sufficiently widespread, will lead to hyperinflation
meaning an accelerating increase in the quantity of money,
leading to an erosion, or even a total destruction, of the purchasing
power of fiat money.
Ted Butler's Newsletter
Manipulation Explained In A Simple Way By Ted Butler. Posted 11/12/2012.
Let me speak in simple terms. JPMorgan is stuck in silver, in my opinion.
They bought a pig in a poke when they bought Bear Stearns in 2008
and took over the manipulation of the silver price. Armed with US
Government financial assistance that probably included a promise of
immunity against being charged with manipulating the price of silver,
JPMorgan plunged headlong and willingly into that manipulation. Armed
with virtually unlimited capital and regulatory carte blanch from
the government, JPMorgan set out to dominate the paper silver market,
just as Drexel Burnham, AIG and Bear Stearns did before that. Because
the counter party technical funds could be bamboozled into and out
of the market by the rigging of prices, JPMorgan came to own
the silver market. But they became too clever for their own good.
JPMorgan became such a dominant force in silver that the tables became
reversed and it is unclear if whether silver now owns JPM. That may
sound extreme, but lets look at the facts.
There is an unusual concentration on the short side of COMEX silver.
So unusual is this concentration that the CFTC, when faced with hundreds
of complaints about the concentration began a formal investigation
more than four years ago, unresolved to this day. In response to requests
from lawmakers back then, the CFTC (inadvertently) identified JPMorgan
as the biggest silver short. Since then, it has been easy for me to
calculate JPMorgans continuing concentrated position. Even though
it is perhaps the most aggressive and litigious of all financial firms,
JPM has remained silent to continuous allegations that it is behaving
illegally in silver. That silence has only help spread the growing
awareness of JPMorgan as being the big silver crook.
No one reading this has ever witnessed a giant financial organization
ignoring allegations that they are breaking the law. That includes
me and I admit that it seems other worldly to me that I am the one
making the allegations, as that was never the plan. But that doesnt
change the fact that whatever JPMorgan does will determine the price
of silver. JPMorgan recently added 100 million oz in paper shorts
because no other combination of traders was willing to do so. If JPM
hadnt sold short such large quantities of paper contracts, silver
prices would have exploded, threatening to expose that silver had
been previously manipulated in price. Having added such a manipulative
short position, JPMorgan must now somehow rig prices lower to force
the technical longs to sell so that JPM can buy back its manipulative
shorts. When you get to the extreme position that JPMorgan holds in
silver, you are damned if you do and damned if you dont. I hope
this is simple enough.
Ann Barnhardt - The Economy Is Going To Implode
"Communist Manifesto" by Karl Marx
The 10 steps to create an ideal state. See: Jim
Marrs - The Trillion Dollar Conspiracy & the NWO (2010).
- Abolition of private property.
- A progressive or graduated income tax.
- Abolition of all inheritance.
- Confiscation of property of dissidents and immigrants.
- Creation of a monopolistic central bank.
- Centralize all communication and transport.
- Central control over all factories and farm production.
- Central ownership of capital with deployable work force.
- Blur the distinction between rural country and cities.
- Free public education for all children.
Commentary on Inflation, Deflation, or Hyperinflation
or Hyperinflation?. Posted 5/5/2012. The US Government (USG) is
not an economy but the largest consuming enity ever known to man.
The USG is net-emitting $3.6B per day, which is being "mopped"
up by foreign central bankers. Our fate is now in their hands.
Exorbitant Privilege. Posted 4/3/2012.
Gary North Rallies My Deflationist Side. Posted 4/29/2011 by Rick
Ackerman. For now, I view myself as perhaps 55% hyperinflationist
and 45% deflationist. However, the illuminating discussion of hyperinflation
vs. deflation in the Ricks Picks forum has made it clear to
me that neither side holds all the cards. Because of the cosmic sums
of debt needing to be liquidated, and the fact that the dollar is
the worlds sole reserve currency, it can be said that there
is no precedent in history for the disaster that looms not
Weimar, not Argentina, not Zimbabwe. Under the circumstances, the
advice of anyone who claims to know for certain how things will play
out should be scorned. The safest prediction one could make is that
each of us, and everyone, will prove to have been wrong in some significant
or Hyperinflation. Posted 4/23/2011.
Your Future: The Ultimate Pyramid Scheme - Good information
on this infomercial, but don't buy it
1. Introducing the three experts.
2 . Oil in the crosshairs.
3 . Food is threatened.
4 . The myth of American debt.
5 . Here's how you can survive.
6 . The cost of the pamphlets is $339. No need to buy, since most
of this information is already available elsewhere for free.
Events to occur in an Economic Collapse
service) What Radical Measures to Expect in the Post-QE Era. By
Gregor Macdonald. Posted 8/1/2012.
Expect the 'benefits' of QE 3 to be short-lived. It will take about
6-9 months for (the coming) QE 3 to fail. Expect more radical
solutions to be rolled out by Capitol Hill (not the Federal Reserve)
within 90 days after QE 3, including:
- Infrastructure build-out on a massive scale, such as rail systems
and solar power.
- Military resource redeployment to civilian projects
- Debt jubilees, such as on student loans.
- Tax holidays
Also, a weaker dollar policy will be pursued. A weak dollar helps
"By this time next year, central banks will be out of bullets.
And a hyperfocus on jobs will usher in a very different political
climate, one that pays much less attention to banks and much more
attention to labor."
Bank runs. Posted 12/28/2011.
Most think the final resolution of Fiat and ZIRP is through expansion
of the MB (Monetary Base) or a governments inability to sell bonds.
I don't believe this is the case. We are at a point where the CB (Central
Bank) and governments are "all-in" to protect the status
quo. The ruling class can effectively increase MB to infinity and
they can become the only buyer of debt. Rates can be zero and those
not at the table (individuals) no longer matter. The end-point comes
from a different mechanism. It comes when flight of demand deposits
ruin the reserve banking system.
MB and CBs balance sheets can expand to infinity - it doesn't matter!
What matters - IMHO - is deposits. While these are a tiny fraction
of the numbers involved in global debt they support the reserve banking
system which supports a countries currency. Focusing on monetary base
and central banks expansion of balance sheets is barking up the wrong
tree. Now that individuals are close to being out as buyers in the
debt market, increases in MB does not effect their purchasing power
of deposit or currency. "Money" is already now effectively
valueless other than as a medium of exchange.
I have been tracking what I think is the key - the ratio of currency
per capita to non-institutional deposits per capita. When this grows
it is the signal that belief in money as a medium of exchage is eroding.
This is what sets off hyper-inflation. When countries finances are
widely disparate such as Argentina in the 90s or Germany in the 20s
it comes when currency flees one country to another and like a fever
breaking the currency is destroyed.
Also read: Europe
Bank Run Underway, Why You Should be Worried
Why is the price of gold and silver declining? Posted 12/28/2011.
It's a reflection of the flight from the Euro to the Dollar, the
selling of assets to raise fiat, and the threat of deflation. Gold
is going down in dollar terms but rising in terms of Euro. But rest
assured. The more purchasing power the Dollar has the more expensive
it makes our goods to the rest of the world to purchase. Thus slowing
down our GDP growth which is already nearly flat. The Fed. will be
forced to print even more. Although maybe not announced as QE but
printing none-the-less. Trying to time the bottom is impossible. Just
pick an entry point you can live with and keep enough cash on hand
to make sure you don't have to panic sell to raise cash. Also,
- You can't get physical metal off Comex. It's a paper casino where
the rules change as the house decides.
- Stolen money if you used MF Global as a clearing house.
People fleeing Comex because it's a rigged market...open interest
is down 9% since the MF Global failure. Ann Barnhardt and Jim Willie
recently had some great insight on that. See here.
Bottom Line: Expect the phoney paper prices to keep declining, but
the real physical price in the market will stay steady and then rise.
price set for hyperbolic increase. There are five apocalyptic engines
pushing the growth in US money supply: they are the governments
budget deficit, its debt trap, the financial condition of the banks,
the delusion of Keynesian solutions, and lastly simple compounding arithmetic.
- The US government collects only 55c in taxes for every dollar
spent. It is relying on economic recovery to reduce welfare payments
and increase tax revenue to close the gap. This prospect is receding
and establishment economists advise against cutting government spending.
- The US governments debt trap is concealed by the exceptionally
low interest cost of funding. The only reason this cost is not higher
is the Fed maintains a zero interest rate policy. However, as surely
as night follows day, price inflation will start rising as monetary
inflation feeds through, forcing the Fed to allow interest rates
to rise long before any economic recovery occurs. The rise in interest
costs will escalate the budget deficit, which will be financed,
directly or indirectly by further monetary expansion.
- The banks balance sheets are considerably weaker than stated,
because of unrealised losses on assets, loan collateral and write-downs
on their own debt. Real estate collateral write-downs alone probably
exceed bank equity of $1,400bn. On an honest analysis the US commercial
banks are collectively bankrupt. To simply survive the banks have
no alternative other than to reduce loan exposure while requiring
continuing monetary support from the Fed.
- Keynesian economists, aware of the banks difficulties are
terrified of bank credit contraction. For this reason, the macroeconomic
establishment strongly promotes the expansion of narrow money to
buy off a deflationary depression.
- As the purchasing power of the dollar falls, the result of past
monetary expansion, yet more dollars have to be issued to cover
increased government costs. Past inflation becomes a compounding
factor behind price rises.
Essentially, money will be printed at an accelerating rate to buy
time rather than face the three realities of government default, an
over-indebted private sector, and a bankrupt banking system. The Keynesians
are belatedly aware of the dangers and see no alternative to printing
as much money as is required to defer these problems. The monetarists
in the central banks are hesitant, torn between Keynesian fears of
outright deflation and worries about the rate of monetary expansion
so far. However, the history of monetary inflation confirms that once
it enters a hyperbolic phase, it is almost impossible to stop. Armchair
critics have derided the stupidity of central banks and economists
in past hyperinflations, such as in Weimar Germany, Argentina and
Zimbabwe. The truth is that when hyperinflation has become visible
at the price level, it has already gone past the point of no return
at the monetary level.
Panic Sweeps Europe As The Head Of The IMF Warns Of A 1930s Depression
Right now, financial panic is sweeping across Europe, but most Americans
are not too concerned about it because they simply don't understand
how important the EU is. The truth is that the EU has a much larger
population than the United States does. The EU has an economy that
is nearly as large as the economies of the United States and China
combined. The EU has More Fortune 500 Companies that the United States
does, and the banking system of Europe is substantially larger than
the banking system of the United States. Anyone out there that believes
that a massive financial collapse in Europe would not dramatically
affect the rest of the globe is being delusional. The European debt
crisis is one of the biggest stories that we have seen in a long,
long time and the coming financial meltdown is going to permanently
change the global economy.
Is Finished: "Mathematically Beyond Point Of No Return":
(Posted November 9, 2011):
- At this point, it seems Italy is now mathematically beyond
point of no return
- While reforms are necessary, in and of itself not be enough
to prevent crisis
- Reason? Simple math--growth and austerity not enough to offset
cost of debt
- On our ests, yields above 5.5% is inflection point where game
is over. See
Italian 10-year Govt Bond Yield here
- The danger:high rates reinforce stability concerns, leading to
- and deeper conviction of a self sustaining credit event and
- We think decisions at eurozone summit is step forward but EFSF
- Time has run out--policy reforms not sufficient to break
neg mkt dynamics
- Investors do not have the patience to wait for austerity, growth
- And rate of change in negatives not enuff to offset slow drip
- Conclusion: We think ECB needs to step up to the plate, print
and buy bonds
- At the moment ECB remains unwilling to be lender last resort on
- But frankly will have hand forced by market given massive systemic
State of the U.S. economy:
- Unemployment rate is 9%. That's the "official" (U-3) rate.
Everyone knows that the rate is much higher (see Alternate
- Real wages are falling
- Income advances go to the wealthy
- Middle class is shrinking
- Jobs hard to find. Minimal job creation and historically low investment.
Also, globalization is precluding the hiring of domestic labor due
to cheaper alternatives in developing countries.
- Approval ratings of Congress and Obama at record lows
- Consumers have high debt ratios
- Home prices are still falling
- Homeowners are trapped in their homes, unable to refinance
- Boomers need to save for retirement. Consumption is now turning
Selected from: Norcini
- Central Banks Collapsing the Financial System.
Right now the trading markets
have become electronic battlefields. Much of this volatility is being
created by a lack of stability in the Western hemisphere. If the current
monetary system were a train, the engineers in the front would
be the heads of the various central banks and they are certainly leading
us to destruction....This tremendous volatility and lack of stability
is being fueled by the reckless behavior of central banks....The volatility
and the instability of the markets is a mirror image of the current
monetary system. At some point the sheer volume of debt will carry
us to a day of reckoning which is going to bring the system to its
Selected from: Bizarre
Love Triangle by Jim Rickards.
The world is now in a beggar-thy-neighbor phase, last seen in the
1970s and before that the 1930s, where countries steal
economic growth from neighbors by currency depreciation to
cheapen exports. The main event is the three-ring circus of the U.S.,
Europe and China and their respective currencies, the dollar, euro
and the yuan. The dynamic is straightforward all three would
like a cheaper currency, relative to the others, to help exports.
The U.S. devalues against yuan and the euro it gets all of
what it wants. China revalues upward against the dollar, but keeps
a peg to the euro it gets half of what it wants. And the euro
remains strong against the dollar and pegged against yuan so
it gets none of what it wants. This has been the prevailing paradigm
since June when the Chinese finally let the yuan appreciate against
the dollar in a serious way.
Theres only one problem with this neat solution to the currency
wars. Germany may be able to survive with a strong currency but the
rest of Europe cannot and parts of Europe, especially Greece, are
facing insolvency. Up to a point, the Greeks have to accept the fiscal
austerity forced on them by the Germans. But beyond a certain point,
either the Greeks or the Germans balk, and the crisis goes critical
and threatens the stability of the global financial system.
If the euro weakens and China re-pegs to the dollar as a result,
that is the signal for more QE. Its hard to know how this will
play out, but at least we know what to look for. If you want to see
QE3 ahead of the market, watch the euro.