Nov 17

- Russian lawmaker seeks to ban US dollar, predicts 2017 collapse (RT, Nov 13, 2013):

To protect Russians against the “collapsing US debt pyramid”, a Russian legislator has filed a draft bill to ban circulation of the currency in Russia.

Once a Moscow mayoral hopeful, Mikhail Degtyarev, 32, likens the US dollar to a worldwide ponzi scheme which he says is scheduled to end in 2017.

“If US national debt continues to grow at its current rate, the dollar system will collapse in 2017,” the submitted draft legislation says.

“In light of this, the fact that confidence in the US dollar is growing among Russian citizens is extremely dangerous,” Degtyarev wrote in his explanatory note attached to the bill.

The bill would impose a ban on dollars within a year of its passage, and any private citizen holding accounts in dollars would either need to spend the money or convert it to another currency. There is no proposed ban on the euro, British pound, yen, or yuan.

Continue reading »

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Nov 12

- What A Confidential 1974 Memo To Paul Volcker Reveals About America’s True Views On Gold, Reserve Currency And “PetroGold” (ZeroHedge, Nov 11, 2013):

Just over four years ago, we highlighted a recently declassified top secret 1968 telegram to the Secretary of State from the American Embassy in Paris, in which the big picture thinking behind the creation of the IMF’s Special Drawing Right (rolled out shortly thereafter in 1969), or SDRs, was laid out. In that memo it was revealed that despite what some may think, the fundamental driver behind the promotion of a supranational reserve paper currency had one goal in mind: allowing the US to “remain masters of gold.”

Specifically, this is among the top secret paragraphs said on a cold night in March 1968:

If we want to have a chance to remain the masters of gold an international agreement on the rules of the game as outlined above seems to be a matter of urgency. We would fool ourselves in thinking that we have time enough to wait and see how the S.D.R.’s will develop. In fact, the challenge really seems to be to achieve by international agreement within a very short period of time what otherwise could only have been the outcome of a gradual development of many years.

Continue reading »

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Nov 08

- How China Can Cause The Death Of The Dollar And The Entire U.S. Financial System (Economic Collapse, Nov 8, 2013):

The death of the dollar is coming, and it will probably be China that pulls the trigger.  What you are about to read is understood by only a very small fraction of all Americans.  Right now, the U.S. dollar is the de facto reserve currency of the planet.  Most global trade is conducted in U.S. dollars, and almost all oil is sold for U.S. dollars.  More than 60 percent of all global foreign exchange reserves are held in U.S. dollars, and far more U.S. dollars are actually used outside of the United States than inside of it.  As will be described below, this has given the United States some tremendous economic advantages, and most Americans have no idea how much their current standard of living depends on the dollar remaining the reserve currency of the world.  Unfortunately, thanks to reckless money printing by the Federal Reserve and the reckless accumulation of debt by the federal government, the status of the dollar as the reserve currency of the world is now in great jeopardy.

Continue reading »

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Oct 31

- Don’t Worry – The Government Says That The Inflation You See Is Just Your Imagination (Economic Collapse, Oct 29, 2013):

If you believe that there is high inflation in the United States, you are just imagining things.  That is the message that the U.S. government and the Federal Reserve would have us to believe.  You might have noticed that the government announced on Wednesday that the cost of living increase for Social Security beneficiaries will only be 1.5 percent next year.  This is one of the smallest cost of living increases that we have ever seen.  The federal government is able to get away with this because the official numbers say that there is hardly any inflation in the U.S. right now.  Of course anyone that shops for groceries or that pays bills regularly knows what a load of nonsense the official inflation rate is.  The U.S. government has changed the way that inflation is calculated numerous times since 1978, and each time it has been changed the goal has been to make inflation appear to be even lower.  According to John Williams of shadowstats.com, if the inflation rate was still calculated the same way that it was back when Jimmy Carter was president, the official rate of inflation would be somewhere between 8 and 10 percent today.  But if the mainstream news actually reported such a number, everyone would be screaming and yelling about getting inflation under control.  Instead, the super low number that gets put out to the public makes it look like the Federal Reserve has plenty of room to do even more reckless money printing.  It is a giant scam, but most Americans are falling for it.

Meanwhile, the prices of the things that most Americans buy on a regular basis just keep going up.  The following are just a few examples of price inflation that we have seen lately: Continue reading »

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Oct 24

- The Growing Rift With Saudi Arabia Threatens To Severely Damage The Petrodollar (Economic Collapse, Oct 23 ,2013):

The number one American export is U.S. dollars.  It is paper currency that is backed up by absolutely nothing, but the rest of the world has been using it to trade with one another and so there is tremendous global demand for our dollars.  The linchpin of this system is the petrodollar.  For decades, if you have wanted to buy oil virtually anywhere in the world you have had to do so with U.S. dollars.  But if one of the biggest oil exporters on the planet, such as Saudi Arabia, decided to start accepting other currencies as payment for oil, the petrodollar monopoly would disintegrate very rapidly.  For years, everyone assumed that nothing like that would happen any time soon, but now Saudi officials are warning of a “major shift” in relations with the United States.  In fact, the Saudis are so upset at the Obama administration that “all options” are reportedly “on the table”.  If it gets to the point where the Saudis decide to make a major move away from the petrodollar monopoly, it will be absolutely catastrophic for the U.S. economy.

The biggest reason why having good relations with Saudi Arabia is so important to the United States is because the petrodollar monopoly will not work without them.  For decades, Washington D.C. has gone to extraordinary lengths to keep the Saudis happy.  But now the Saudis are becoming increasingly frustrated that the U.S. military is not being used to fight their wars for them.  The following is from a recent Daily Mail report: Continue reading »

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Oct 22

The real green light for gold:

When the markets will be functioning again & when the gold and silver manipulations will have ended.


- Peter Schiff Asks “Is This The Green Light For Gold?” (ZeroHedge, Oct 21, 2013):

Submitted by Peter Schiff via Euro Pacific Capital,

It is rare that investors are given a road map. It is rarer still that the vast majority of those who get it are unable to understand the clear signs and directions it contains. When this happens the few who can actually read the map find themselves in an enviable position. Such is currently the case with gold and gold-related investments.

The common wisdom on Wall Street is that gold has seen the moment of its greatness flicker. This confidence has been fueled by three beliefs:  A) the Fed will soon begin trimming its monthly purchases of Treasury and Mortgage Backed Securities (commonly called the “taper”), B) the growing strength of the U.S. economy is creating investment opportunities that will cause people to dump defensive assets like gold, and C) the renewed confidence in the U.S. economy will shore up the dollar and severely diminish gold’s allure as a safe haven. All three of these assumptions are false. (Our new edition of the Global Investor Newsletter explores how the attraction never dimmed in India).

Recent developments suggest the opposite, that: Continue reading »

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Oct 20

- Ron Paul Knows “The Longer QE Lasts, The Worse It Will End” (ZeroHedge, Oct 19, 2013):

In this exclusive interview with Birch Gold Group, former Congressman Ron Paul shares his opinions on a number of topics, including investing in physical gold and silver, the future of the U.S. dollar and the role of the Federal Reserve.

Full audio if the following interview is available here.

Rachel Mills for Birch Gold Group (BGG): This is Rachel Mills for Birch Gold Group. I am speaking with Ron Paul today. How are you, Ron Paul?

Ron Paul (RP): I am doing very well. Nice to talk to you Rachel.

BGG: It’s good to talk to you again, and by the way of information for Birch’s audience, I was your last press secretary on Capitol Hill in Congress and I worked for you for the 5 years. So I may be cheating a little bit because a lot of your answers to my questions I maybe have a pretty good guess at what you might say. Continue reading »

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Oct 18


YouTube Added: 11.10.2013

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Oct 18

Related info:

- China Imports Over 2,000 Tons Of Gold In Last Two Years:

The unofficial China gold holdings number since 2009 based on our internal calculations: about 2500 tons higher, which would make it the world’s second largest official gold holder below the US and surpassing Germany, and rising at 100 tons per month.


- 9 Signs That China Is Making A Move Against The U.S. Dollar (Economic Collapse, Oct 17, 2013):

On the global financial stage, China is playing chess while the U.S. is playing checkers, and the Chinese are now accelerating their long-term plan to dethrone the U.S. dollar.  You see, the truth is that China does not plan to allow the U.S. financial system to dominate the world indefinitely.  Right now, China is the number one exporter on the globe and China will have the largest economy on the planet at some point in the coming years.  The Chinese would like to see global currency usage reflect this shift in global economic power.  At the moment, most global trade is conducted in U.S. dollars and more than 60 percent of all global foreign exchange reserves are held in U.S. dollars.  This gives the United States an enormous built-in advantage, but thanks to decades of incredibly bad decisions this advantage is starting to erode.  And due to the recent political instability in Washington D.C., the Chinese sense vulnerability.  China has begun to publicly mock the level of U.S. debt, Chinese officials have publicly threatened to stop buying any more U.S. debt, the Chinese have started to aggressively make currency swap agreements with other major global powers, and China has been accumulating unprecedented amounts of gold.  All of these moves are setting up the moment in the future when China will completely pull the rug out from under the U.S. dollar.

Continue reading »

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Oct 16

- Jim Rogers Blasts “This Is Going To End Badly… And The Rest Of The World Knows It” (ZeroHedge, Oct 15, 2013):

The only thing exceptional about the USA is “its the largest debtor nation in the history of the world” is how Jim Rogers begins this brief interview with RT and he doesnt back away from the rhetoric. The sad truth, he notes, is that the US “has been kicking the can down the road for years…” how do you think we got so much debt, he chides. “Every year that goes by we go deeper and deeper into debt,” adding, rather ominously, that it “will be solved one way or another.” They will kick the can once more; then next week, we will be told that the problem is fixed and compromise is here. However, Rogers warns, eventually the market is going to turn away; “this is going to end badly… and the rest of the world knows it.”

For some clarifying thought before an onslaught of headline hockey in US equity markets, Rogers comments are a must view to comprehend the game we are playing…


YouTube Added: 15.10.2013

Flashback: Continue reading »

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Oct 14


- How Much Longer Will the Dollar be the Reserve Currency? (Ludwig von Mises Institute, Oct 12, 2013):

We use the term “reserve currency” when referring to the common use of the dollar by other countries when settling their international trade accounts. For example, if Canada buys goods from China, it may pay China in US dollars rather than Canadian dollars, and vice versa. However, the foundation from which the term originated no longer exists, and today the dollar is called a “reserve currency” simply because foreign countries hold it in great quantity to facilitate trade.

The first reserve currency was the British pound sterling. Because the pound was “good as gold,” many countries found it more convenient to hold pounds rather than gold itself during the age of the gold standard. The world’s great trading nations settled their trade in gold, but they might hold pounds rather than gold, with the confidence that the Bank of England would hand over the gold at a fixed exchange rate upon presentment. Toward the end of World War II the US dollar was given this status by international treaty following the Bretton Woods Agreement. The International Monetary Fund (IMF) was formed with the express purpose of monitoring the Federal Reserve’s commitment to Bretton Woods by ensuring that the Fed did not inflate the dollar and stood ready to exchange dollars for gold at $35 per ounce. Thusly, countries had confidence that their dollars held for trading purposes were as “good as gold,” as had been the Pound Sterling at one time.

Continue reading »

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Oct 13

- China’s Official Press Agency Calls For New Reserve Currency, And New World Order (ZeroHedge, Oct 13, 2013):

We assume it is a coincidence that on the day in which we demonstrate China’s relentless appetite for gold, driven by what we and many others believe is the country’s desire to have a call option on a gold-backed reserve currency when the time comes, just posted in China’s official press agency, Xinhua, is an op-ed by writer Liu Chang in which he decries the “US fiscal failure which warrants a de-Americanized world” and flatly states that the world should consider a new reserve currency “that is to be created to replace the dominant U.S. dollar, so that the international community could permanently stay away from the spillover of the intensifying domestic political turmoil in the United States.”

Continue reading »

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Oct 12

- America’s default on its debt is inevitable (Washington Post, by Jim Grant, Oct 11, 2013):

There is precedent for a government shutdown,” Lloyd Blankfein, the chief executive officer of Goldman Sachs, remarked last week. “There’s no precedent for default.”

How wrong he is.

The U.S. government defaulted after the Revolutionary War, and it defaulted at intervals thereafter. Moreover, on the authority of the chairman of the Federal Reserve Board, the government means to keep right on shirking, dodging or trimming, if not legally defaulting.

Default means to not pay as promised, and politics may interrupt the timely service of the government’s debts. The consequences of such a disruption could — as everyone knows by now — set Wall Street on its ear. But after the various branches of government resume talking and investors have collected themselves, the Treasury will have no trouble finding the necessary billions with which to pay its bills. The Federal Reserve can materialize the scrip on a computer screen.

Things were very different when America owed the kind of dollars that couldn’t just be whistled into existence. By 1790, the new republic was in arrears on $11,710,000 in foreign debt. These were obligations payable in gold and silver. Alexander Hamilton, the first secretary of the Treasury, duly paid them. In doing so, he cured a default. Continue reading »

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Oct 10

- Peter Schiff Warns Yellen’s Nomination Means Any QE Taper Expectations Are “Delusional” (ZeroHedge, Oct 9, 2013):

Submitted by Peter Schiff via Euro Pacific Capital,

Now that Janet Yellen has been named to lead the Federal Reserve the global financial markets should factor out any possibility that the Fed will diminish their Quantitative easing program anytime during her tenure. In fact, financial forecasts should assume that not only is a taper off the table, but that the QE program is now more likely to be perpetuated and expanded.

Unlike her predecessors, Janet Yellen has never had a youthful dalliance with hawkish monetary ideas. Before taking charge of the Fed both Alan Greenspan, and to a lesser extent Ben Bernanke, had advocated for the benefits of a strong currency and low inflation and had warned of the dangers of overly accommodative policy and unnecessary stimulus. (Both largely abandoned these ideals once they took the reins of power, but their urge to stimulate may have been restrained by a vestigial bias against the excesses of Keynesianism). Janet Yellen, who has been on the liberal/dovish end of the monetary spectrum for her entire professional career, has no such baggage. As a result, we can expect her to never waver in her belief that stimulus is the answer to every economic question. Continue reading »

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Oct 10

- Ron Paul Redux: “The End Of Dollar Hegemony” (ZeroHedge, Oct 9, 2013):

In a little-known 2006 speech (in the US, though widely known around the world), entitled “The End of Dollar Hegemony,” Ron Paul discusses the breakdown of the Bretton Woods system – which most people know about – and the de-facto system that replaced it – which most people do not know about. As Casey Research’s Nick Giambruno notes it is a must listen with the most important part of the speech where Paul discusses the petrodollar system, a primary factor in maintaining the dollar’s role as the world’s premier currency after the breakdown of Bretton Woods.

The End of Dollar Hegemony Part 1

The End of Dollar Hegemony Part 2

The End of Dollar Hegemony Part 3

Via Nick Giambruno of Casey Research,

The speech is an absolute must-listen…

The most important part of the speech is where Paul discusses the petrodollar system, a primary factor in maintaining the dollar’s role as the world’s premier currency after the breakdown of Bretton Woods.

It all ended on August 15, 1971, when Nixon closed the gold window and refused to pay out any of our remaining 280 million ounces of gold. In essence, we declared our insolvency and everyone recognized some other monetary system had to be devised in order to bring stability to the markets.

Amazingly, a new system was devised which allowed the US to operate the printing presses for the world reserve currency with no restraints placed on it—not even a pretense of gold convertibility, none whatsoever! Though the new policy was even more deeply flawed, it nevertheless opened the door for dollar hegemony to spread. Continue reading »

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Oct 09

- Debt ceiling: Obama issues fresh warning to Republicans as stalemate drags on (Guardian, Oct 9, 2013):

President shoots down new suggestions among Republicans that US could prioritise payments to avoid lasting damage

Barack Obama has warned of immediate damage to US creditworthiness if Congress fails to raise the debt ceiling – even if the Treasury can find funds to avoid triggering a technical default in the bond market.

With billions of dollars of payments to social security, recipients and lenders competing for possible attention if such a crisis were to occur, the president shot down new suggestions among Republicans that the administration could prioritise payments to avoid lasting damage.

Continue reading »

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Oct 09


USA: RIP Uncle Sam

- USA: Uncle Sam is Dead (ToTheTick on Oct 8, 2013):

Isn’t it wonderful how the US believes (whether that be the citizens or the politicians) that the state will never default on its debt repayments? It’s the unfailing belief that your country will pull through and anyone that says otherwise is always either shouted down or told to go elsewhere. It’s all well and good having the belief that you will come out tops. But, the times of the US being at the top of the roost are well and truly over today. We should be playing the funeral march as Obama leaves office for all the debt that has been piled onto the country rather than the Star Spangled tune. The Stars just aren’t that spangled anymore, are they? Unprecedented debt, a budget that isn’t going to get passed, two sides that are playing a stand-off, a country that is held hostage, a debt rating that will be reduced and the Chinese and the Japanese that are now pointing the reprimanding finger.

When the US defaulted on their payments for their mortgages, they got called into the banks and had their houses repossessed back at the start of the financial crises. They were living on credit then and they still are. Obama should get the first plane to Tokyo and then fly on to Beijing. He will be needing to sign a few papers before he hands over the Good Old US of A to the Asians. Uncle Sam is dying a slow and painful death. A death by debt that has shot through the roof of the White House.

Uncle Sam is dead!

Stand-Off

Continue reading »

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Oct 03


YouTube Added: 01.10.2013

Description:

This video documents how the U.S created Al”qaeda to foment ww3. And to be an extension of the U.S army, to overthrow the opposition forces, and keep the World bankers in power. World bankers need ww3 to acquire the existing powers they have not yet brought into control. After ww3 they will control us as slaves since there will be no more opposition. We need to stop ww3 and to do this we have to end the federal bank. We can do this by refusing to elect their president puppets into office again. Don’t be fooled again.

Flashback:

- The Real Reason Why They Killed Muammar Gaddafi (Video)

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Oct 02

Karen Hudes: We’re Running Out of Time! We’re Dealing with Whether We Can Continue as Humanity

YouTube

- World Bank Whistleblower Karen Hudes Reveals How The Global Elite Rule The World (Economic Collapse, Sep 30, 2013):

Karen Hudes is a graduate of Yale Law School and she worked in the legal department of the World Bank for more than 20 years.  In fact, when she was fired for blowing the whistle on corruption inside the World Bank, she held the position of Senior Counsel.  She was in a unique position to see exactly how the global elite rule the world, and the information that she is now revealing to the public is absolutely stunning.  According to Hudes, the elite use a very tight core of financial institutions and mega-corporations to dominate the planet.  The goal is control.  They want all of us enslaved to debt, they want all of our governments enslaved to debt, and they want all of our politicians addicted to the huge financial contributions that they funnel into their campaigns.  Since the elite also own all of the big media companies, the mainstream media never lets us in on the secret that there is something fundamentally wrong with the way that our system works.Remember, this is not some “conspiracy theorist” that is saying these things.  This is a Yale-educated attorney that worked inside the World Bank for more than two decades.  The following summary of her credentials comes directly from her website: Continue reading »

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Sep 30

- Government Shutdown: The Next Step In The Collapse Of The Dollar? (ALT- MARKET, Sep 30, 3013):

There is a considerable amount of debate in alternative economic circles as to whether a federal government shutdown would be a “good thing” or a “bad thing”.  Frankly, even I am partially conflicted.  I love to read mainstream news stories about how a shutdown in the capital would be “horrible” because Barack Obama might have to reduce the White House cleaning staff and wash his own laundry:

http://www.bloomberg.com/news/2013-09-27/obama-stripped-to-skeleton-staff-in-a-government-shutdown.html

It’s about time that sellout bastard did something to clean up his own act.  I also love the idea of the federal government out of the picture and removed from the U.S. dynamic.  Americans need to learn again how to live without the nanny state, even if only for a few weeks, and what better way than to go cold turkey.  I can hear the tortured sobs of the socialists now, crying for their SNAP cards and low grade government healthcare.  It’s like…beautiful music…

That said, as much as centralized government needs to be erased from the face of the planet, there are, indeed, consequences that must be dealt with.  It is foolish to believe otherwise.  No social system, and I mean NO SOCIAL SYSTEM, changes without pain to the population.  I am not among those that cheer a federal shutdown, because I understand that the only people to ultimately feel suffering will be average citizens, not the establishment itself.  The sheeple may be ignorant and blind, but no one deserves the kind of unmitigated hellfire that could rain down upon our country if a shutdown continues for an extended period of time.  Call me a humanitarian…

As I write this, mainstream media projections estimate a 90% chance of government shutdown by midnight on September 30th.  Though technically, government funds will not run out until October 17th: Continue reading »

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Sep 29

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Sep 17


YouTube Added: 15.09.2013

Description:

Canadian billionaire businessman Ned Goodman predicts the end of the U.S. Dollar as the world’s reserve currency. He predicts the transition out of the U.S. Dollar will become, “…quite ugly.” He delivered the lecture at Cambridge House’s Toronto Resource Investment Conference 2013 on Thursday, September 12, 2013.

Stay Connected!

http://www.cambridgehouse.com/
https://twitter.com/cambridge
https://www.facebook.com/cambridgehou…

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Sep 14

- Marc Faber On Protecting Wealth In The Coming Collapse

Faber begins by noting that “a deflationary bust, whenever it may happen (tomorrow or 10 years), is inevitable; and is the opposite of an increase in prices from inflation.” Of course, it is the central banks’ response to even the fears of that bust (e.g. whether it washes around the world – from EM to DM) that will turn an asset-deflationary bust into a hyperinflationary collapse in fiat currencies; and focused on the long-term, ‘Gloom, Boom, & Doom Report’s’ Marc Faber looks at how to preserve wealth through this as he ranges from the obsolescence risk of equities to the political risk of real estate and banking risks of cash and deposits. Faber reflects on various lessons from the past (hyperinflations, wars, banking crises) and geographies as he moves from asset class to asset class highlighting the pros and cons of each. Preferring a mix of gold and diversified real estate (and not government bonds), Faber warns investors to be highly skeptical of anyone who believes they can forecast what is going to happen over the next 5-10 years.

Starting at around 3:35, Faber begins to focus on wealth preservation… (the preceding discussion of higher education’s failings are also worth the time).


YouTube

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Sep 06


YouTube Added: 03.09.2013

Dr. Paul Craig Roberts was Assistant Secretary of the Treasury during President Reagan’s first term. He was Associate Editor of the Wall Street Journal. He has held numerous academic appointments, including the William E. Simon Chair, Center for Strategic and International Studies, Georgetown University, and Senior Research Fellow, Hoover Institution, Stanford University.

Description:

When it comes to war in Syria, economist Dr. Paul Craig Roberts says, “This time the big lie didn’t work like it did in Iraq.” On fallout of a possible Syrian war, Dr. Roberts worries, “If they start abandoning the dollar, the collapse of the exchange rate will bring down the whole house of cards in the United States. The Fed will lose control. The banks will fail. Prices will rise dramatically. People will essentially not be able to pay their bills. It will be an unbelievable mess.” What would happen to gold with a Syrian war? Dr. Roberts says, “If you get a real collapse in the dollar, gold could be $30,000 an ounce. Who knows?” Join Greg Hunter as he goes One-on-One with former Assistant Treasury Secretary Dr Paul Craig Roberts.

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Aug 31

- What To Expect During The Next Stage Of Collapse (Alt-Market, Aug 29, 2013):

For years now at Alt-Market (and Neithercorp.us) I have carefully outlined the most likely path of collapse to take place within the U.S., and a vital part of that analysis included economic destabilization caused by a loss of the dollar’s world reserve status and petro-status.  I have also always made clear that this fiscal crisis event would not occur in the midst of a political vacuum.  The central banks and international financiers that created our ongoing and developing disaster are NOT going to allow the destruction of the American economy, the dollar, or global markets without a cover event designed to hide their culpability.  They need something big.  Something so big that the average citizen is overwhelmed with fear and confusion.  A smoke and mirrors magic trick so raw and soul shattering it leaves the very population of the Earth mesmerized and helpless to understand the root of the nightmare before them.  The elites need a fabricated Apocalypse. Continue reading »

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Aug 20

Gold backwardation is signaling to me that we are approaching the endgame.

Prepare for collapse.

Related info:

- JPMorgan Puzzled By Record Gold Backwardation

- Physical Gold Supply Tightness (2 Powerful Videos)


- Gold is Flooding Out of London to Switzerland at an Alarming Rate (Liberty Blitzkrieg, Aug 19, 2013):

This is one of those stories about the gold market that almost seems too wild to be true since the numbers are so extraordinary. According to a Reuters article from earlier today, Australian bank Macquarie has reported that gold is flooding out of London and into Switzerland at a mind-boggling rate. Specifically, 240 tons were exported in May alone and 797 tons during the first half of 2013. That means gold is being exported at a annualized run rate of 17x the 92 tons exported for all of 2012. That’s insane.

Moreover, it seems a lot of that gold is being sent to Switzerland so that the 400oz bars can be melted down into different sizes that are more amenable to Asian sensibilities. So, as many of us suspected all along, what has happened is lobotomized Westerners have sent much of their gold to Asia just as the financial system prepares to melt down again. The fact that the market has absorbed all of this and yet we still have a backwardated market is extremely bullish.

From Reuters:

Aug 19 (Reuters) – Britain’s gold exports to Switzerland surged in the first half of this year, Australian bank Macquarie said on Monday, suggesting bullion being sold out of exchange-traded funds may be heading for Swiss refineries before being sold on in Asia.

Continue reading »

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Aug 15

- China, Japan Sell Most US Paper In Years; Foreign Treasury Holdings At 2013 Lows (ZeroHedge, Aug 15, 2013):

And the bid hits just keep on coming.While previously we reported the foreigners as an aggregate class sold the most gross US securities ever in the month of June, we also learned that in June the biggest selling came from America’s two largest creditors: China and Japan (excluding the Fed of course, whose P&L losses are now approaching $300 billion in the past 3 months, or would if the Fed marked to anything but unicorns).

In June, the two countries combined sold $42 billion, with each selling over $20 billion: the most in years.

What is interesting is looking at the composition of the selloff: the bulk of was in the form of short-term Bills, as both countries were actually buyers of coupon securities. Net of coupon purchases Bill sales were even worse, or over $50 billion for the two countries alone.

Continue reading »

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Jul 16

- Is This The Chart Reflecting The True State Of The US Economy? (ZeroHedge, July 16, 2013):

By now even five year-olds understand two simple things: i) the market is no longer a discounting mechanism thanks to the Fed’s 4+ year experiment in manipulating equities in order to generate a “wealth effect” and ii) virtually all economic indicators are distorted, as such critical measures of economic “health” as GDP confuse credit creation by the Fed with traditional private-sector credit creation (commercial bank loan growth).

As such, it has become impossible to disentangle the Fed’s artificial policy, manifesting itself most tangibly in $3.5 trillion in “stock” on its balance sheet and $85 billion in monthly flow, from the market and from the economy. And since the US monetary system is (mostly) a closed loop, it has become impossible to rely on the US stock market for anything besides “analyzing” how many hot potatoes the excess reserve-funded Primary Dealers are juggling with each other. However, there may be one place that remains untouched by the Fed’s intervention: foreign opinion of the US, which manifests itself in capital fund flows, the same fund flows that the TIC data reports every month with a 2-month delay.

Continue reading »

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Jul 15

From the article:

“Gold is the absolute best and only bet against currency collapse—which is coming, courtesy of central bank irresponsibility.”

PHYSICAL gold and silver are the absolute best and only bet against the greatest financial/economic collapse in known world history that is well on its way.

Food, water, a (self-sufficient, fully equipped) remote farm and like-minded friends are still more important.

This is the Greatest Depression.

FYI.


- Gold is a Crap Investment—Unless… (Gonzalo Lira, July 15, 2013):

About gold as an investment, Barry Ritholz said it best:

This is not to say gold is not affected by Macro issues. But that is very different than saying Gold has a fundamental value, an intrinsic worth. It does not. [. . .] Gold is not, and can never be, an investment. It has no true intrinsic value, no cash flow, no earnings, no coupon[,] no yield. What people call fundamentals are nothing more than broad macro analysis (and how have your macro funds done lately?). Gold is the ultimate greater fool trade, with many of its owners part of a collective belief theory rife with cognitive errors and bias. [bold emphasis in the original]

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Jun 29


Humor: Government Bonds

- Foreign central banks’ U.S. debt holdings fall: Fed (Reuters, June 27, 2013):

Foreign central banks’ overall holdings of U.S. marketable securities at the Federal Reserve fell in the latest week, data from the U.S. central bank showed on Thursday.

The Fed said its holdings of U.S. securities kept for overseas central banks fell $29 billion in the week ended June 26, to stand at $3.3 trillion.

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