panic crash

At 397.9 million barrels, U.S. crude oil inventories are at the highest level for this time of year in at least the last 80 years.
What it appears has been going on now since at least October is the United States government has been purchasing hundreds of millions of barrels of oil and storing them.  
The maximum total withdrawal capability from the SPR is only 4.4 million barrels (700,000 m3) per day, so it would take over 160 days to use the entire inventory.  160 days.
That might be just the amount to time required to operate efficiently during the world’s greatest economic collapse EVER and during its aftermath- while the rest of the world recovers from the depths of despair and chaos, death and destruction, when after 3 days all their food is gone from their store shelves and there is NO TRADE since all currencies have failed and it takes months for world leaders to convene and agree on a one world economic system going forward.
Silver is below $18 and anything below that is my announced buy target but as we go into February, I am changing my guidance.  I now recommend buy with total abandon, not waiting, on all precious metal, particularly silver, even if price goes to $20 or higher as time is limited before the great, planned crash.
Get physical while you can.

WASHINGTON (AP) — The government’s health insurance website is quietly sending consumers’ personal data to private companies that specialize in advertising and analyzing Internet data for performance and marketing, The Associated Press has learned.
The scope of what is disclosed or how it might be used was not immediately clear, but it can include age, income, ZIP code, whether a person smokes, and if a person is pregnant.   It can include a computer’s Internet address, which can identify a person’s name or address when combined with other information collected by sophisticated online marketing or advertising firms.

Supermario Draghi

You may have heard the news, the European Central Bank have started up the printing press. They are soon to print upwards of €60 Billion a month. The crowds of economic pundits have collectively cheered. Ireland stands to enjoy significant near term benefits, but at what cost?
They speak of lower government borrowing costs for new debt, by lowering funding costs and thus the hurdle that projects must meet to become viable.  They believe our exchange rate will fall and our goods will be come cheaper abroad. US products and services will be flying off the shelves, etc. Well, it is absolute nonsense. 
Yes there will be short term benefits.  Any time you give a liquidity jolt you temporarily relieve pressure.  But the longer term risks are far far greater, now that the act of QE has been taken.  Essentially the technocrats have short circuited the capitalist system which continuously prices risk based on perceived repayment risks and cost of funds.  This is a road to ruin as returns become obscured by official and politically motivated credit flows.

goldcore_bloomberg_chart1_28-01-15Russia and surprisingly the Netherlands were the largest central bank buyers in December – accumulating a significant 30.34 tonnes between them as currency wars intensify. 
The Netherlands, which has the ninth-biggest gold reserves, raised its bullion holdings for the first time in 17 years. It added  9.61 tonnes to bring total gold reserves to 622.08 tonnes.
Russia raised its gold reserves for a ninth straight month in December as the country continued its multi-month gold buying spree, adding to the fifth-biggest gold holdings in the world, data from the IMF showed yesterday.
Russia continues to dollar cost average into gold and increased its bullion holdings by another hefty 20.73 tonnes to 1,208.23 tonnes in December.

*Update: The Dutch Central Bank has quickly denied that the Netherlands have increased gold reserves for the first time in 17 years- is the cat out of the bag that quietly a global Central Bank gold run has begun? 

launch rocket vertical

The gold shares rebounded sharply today as the bankers covered their massive shorts in the gold/silver equity shares.  That is a sure sign that gold and silver will have a very strong day tomorrow. 
The crooks are controlling the precious metals market every minute of every trading day.

crash

That moment of failure is coming closer and closer.   Recent actions by central banks have exposed their increasingly desperate mindset and have even called into question the one thing that absolutely cannot ever be questioned: the ability of the central banks to deliver on the promise of endless growth.
Central bank credibility (as fictitious as that may be) is essential to maintaining the current narrative, BUT central banks are rapidly losing their credibility (which should have happened simply via deductive reasoning a long time ago) and the strains are showing. Their actions are increasingly wild and extreme (SNB, anyone?), and it’s our view that 2015- 2016 will mark the end of this long run of overly-ambitious central bankers and over-complacent markets.
When credibility in central bank omnipotence snaps, buckle up.
Risk will get re-priced, markets will fall apart, losses will mount, and politicians will seek someone (anyone, dear God, but them) to blame.

China gold

China does not have enough gold to have a seat at the table right now.   Think of it as a game of Texas Hold’em. What do want in a poker game? You want a big pile of chips. Gold is going to be your chips. It doesn’t mean that you automatically have a gold standard, but the gold that you have will kind of give you your voice at the table.
So here’s the problem: If you took the lid off and ended the gold price manipulation and let gold find its level, China would be left in the dust.  It wouldn’t have enough gold relative to the other countries, and because their economy’s growing faster and because the price of gold would be skyrocketing, they could never acquire it fast enough. They could never catch up. All the other countries would be on the bus. The Chinese would be off the bus.”
So, when you have this reset, and when everyone sits down around the table, China’s the second largest economy in the world. They have to be on the bus.
So the global effort is to keep the lid on the price through manipulation, which is very obvious. I tell people, if I were running the manipulation, I’d be embarrassed because it’s so obvious at this point.
So the price is being suppressed until China gets the gold that they need. Once China gets the right amount of gold, then you can take the cap off.    

A jury found CIA whistleblower Jeffrey Sterling is guilty of all charges against him, according to RT’s Manuel Rapalo at the Virginia courthouse. The government accused Sterling of illegally revealing classified information about a mission.
Sterling was charged under the Espionage Act for disclosing classified information about a mission meant to slow Iran’s nuclear program to New York Times reporter James Risen, who then wrote about the CIA’s Iranian plot in his 2006 book, “State of War.”

The plan’s goal was to learn more about the country’s controversial nuclear program and impair its progress, and the schematics were reportedly funneled to the Iranians via a Russian scientist with the codename “Merlin”.
Sterling was the fifth person in history to be charged with mishandling national defense information under the Espionage Act.

Reuters/Brendan McDermid

US-based credit rating agency Standard & Poor’s has cut Russia’s sovereign rating to BBB-, leaving it below investment grade for the first time in a decade.   Moscow termed the decision “overly pessimistic.”
“The downgrade reflects our view that Russia’s monetary policy flexibility has become more limited and its economic growth prospects have weakened. We also see a heightened risk that external and fiscal buffers will deteriorate due to rising external pressures and increased government support to the economy,” said a statement from the agency.

(Doc’s Translation: We learned our lesson in 2011

dollar

It’s amazing to think the dollar is being discarded around the world considering the recent “strength” of the dollar index. But don’t forget that the commonly referenced measurement of the dollar is the U.S. dollar index, which measured against the euro, yen, pound, Canadian dollar, Swiss franc and krona.
Get it?
Who cares if the dollar is strong vs. other dying fiat currencies?

“How did you go bankrupt?  “Two ways:  Slowly then suddenly.”  (Hemingway, “The Sun Also Rises”)

Radical leftists have been catapulted to power in Greece, and that means that the European financial crisis has just entered a dangerous new phase.  Syriza, which is actually an acronym for “Coalition of the Radical Left” in Greek, has 36 percent of the total vote with approximately 80 percent of the polling stations reporting.  The current governing party, New Democracy, only has 28 percent of the vote.  Syriza leader Alexis Tsipras is promising to roll back a whole host of austerity measures that were imposed on Greece by the EU, and his primary campaign slogan was “hope is on the way”.  Hmmm – that sounds a bit familiar.
Syriza plans to call for a European debt conference during which they plan to demand that the repayment terms of their debts be renegotiated.  But the rest of Europe appears to be highly resistant to any renegotiation – especially Germany.
Syriza says that it does not plan to unilaterally pull Greece out of the eurozone, and that it also intends for Greece to continue to use the euro.
But what happens if Germany will not budge?
Syriza may be faced with a choice of either submitting to the demands of their international creditors or choosing to leave the eurozone altogether.
And if Greece does leave the eurozone, the consequences for all of Europe could be catastrophic

Gold in Euros - 5 Years (Thomson Reuters)The crushing victory of the Greek opposition party Syriza in yesterday’s Greek elections has added to jitters in already jittery financial and foreign exchange markets.
Syriza leader Alexis Tsipras promised Greeks overnight that the five years of austerity imposed under bailout programs worth 240 billion euros from the European Union (EU) and the International Monetary Fund (IMF) were over.
The euro tumbled and gold in euros surged to its highest level since April 2013, at €1,167.94/oz as markets opened in Asia.
The euro has since stablized but remains near an 11 year low against the dollar and is now down 16.7 percent against gold in January alone.