Bill MurphyGATA’s Bill Murphy was interviewed by Finance and Liberty for his thoughts on the latest smash in gold and silver, taking the metals back under $1400 and $23.
Murphy stated: We’ve been having waterfall attacks every other day for the past 2 weeks. It’s clearly the gold cartel, why no one else talks about this is beyond my comprehension! Plan A (for a metals smash) is around 3am NY time when London traders report for work, and Plan B after the London fix, they hit it when the COMEX opens with thousands of contracts in seconds.  Sentiment, retail sales, absolutely nothing matters to this market except bullion banks discharging their bazookas!
On how far gold & silver could fall if $1300 & $22 give way: There’s no telling. This is like the German’s invading Russia in WWII.  They kept going & going, but they overextended themselves, and had to fall-back.  This was orchestrated in the beginning of October, & I’ve never seen anything like it.

Murphy’s full thoughts on the latest gold & silver take-down are below:

 2012 Silver Maples As Low As $2.99 Over Spot At SDBullion!

Silver Maple

  1. Here is an interesting tidbit.  One of George Soros’s funds picked up $25 million in call options on the GDXJ, Junior miner ETF.  Give the Devil his due, if Soros is betting heavily and to the tune of $100,000,000 into the mining juniors, (see this commentary on Bro Jo’s site)  this could be the most telling factor in these junior stocks AND maybe, just maybe, the price of gold and silver.  Soros bailed on GLD well before the big drop, no doubt warned by his paper homies of the coming price suppression.  If he in investing in this sector when overall, every equity class is overpriced POS, then this  indicate his sense that precious metals will ramp up and draw the  GDX and GDXJ ETFs upwards
    He sold bullion and other PM related assets prior to April while a less connect billionaire, John Paulson, rode the GLD into the pits.
     I dont the exact totals of his investments and divestments since Soros and I am not on speaking terms.  But check out this intel  Soros is one sharp connected SOB who just made a billion shorting the Yen and is heavily into shorting the Aussie Dollar. If there was a poster child for the NWO, Soros is the leading candidate.
    BTW  Zim–welcome to the site.  Your blog was pretty chilling.  I would never want to see hyperinflation here.  We, the people, would not do well in that environment no matter how prepper we are.  At least our confirmation and normalcy biases are much less than most.

  2. AGXIIIK, I agree with your comment that I would not like to see hyperinflation here in the USA. I had lived through one before (in the early 1980s) and almost did not survive. Also experienced being hungry, because I had no money to buy food. A very chilling and brutal mental experience, aside from the physical hunger.

  3. Genius8  I read your other post   Would that be Thailand that suffered the huge financial setback. 
    Your comments and the history of the Wiemar Republic, makes me wonder if it could occur here.  I think it could  happen and would be much like other events in the hyperinflation world only with an  order of magnitude or two greater than most. It might include a few western countries and possibly Japan as well.  Their debt to GDP ratios are worse than ours and they are printing even faster than us.
       Most of the western countries are hyperinflating currency and debasing same at a rate never seen in modern history.  Even the Romans were not able to pull this off in less than 200 years.
    America is winding down 10 years of war and it’s debatable that after $5 trillion in war related costs that we ‘won’   A stalemate’s more like it but at a cost in blood and treasure that equals Vietnam.  And that war precipitated extreme inflation, massive new debt, civil unrest not seen even in WWII.  
    Will we fall into the Wiemar trap? Will we suffer a ‘guns and butter’ financial failure that has been the fate of so many other empire building countries, German and Great Britain included?   Are we being forced to print to QE infinity to pay war reparations.  I can’t connect those dots right now but given the $12 trillion in new debt since the start of the Iraq Afghanistan war in 2002,  it seems to me that things are just not right with this country since those epochal events.  Will that $5 trillion may not be war reparations it is certainly war damages to our country.   War is bad for currencies.  Uber war is even worse. Bin Laden astutely noted that 9-11 was designed to bankrupt the US, not destroy it from the outside.  He knew our nature and that we would spend any amount of money to defeat terrorism while reducing our freedoms as we chased the bad guys.  Franklin saw this too.
    We may have seen our Waterloo with the Arab wars.  Vietnam did great damage.  These last 10 years are even worse.

    • AGXIIK, the country I referred in the other post is The Philippines. The incident was the killing of Ex-Senator Benigno Aquino Jr (father of the current Prez, husband of Ex-Prez Cory) on 8/21/1983. It was blamed on Pres. Marcos (who had nothing to do with it) and the coordinated pull out of all foreign currency deposits by international depositors (you know who has that capability).
       
      This crippled the country’s import … more like FROZE IT !!! I was an independent computer consultant who developed application software for new computer buyers (companies) that includes the complete accounting, finance, and production & inventory management systems. Ugly 8-9 months for me, until I finally landed in the USA, to find work as a computer programmer analyst.
       
      As for my personal thoughts about what could happen here in the USA – There will be no bank or government default as we can print as much paper money. What will happen will be the loss of the buying power of the US$ and whether you call it inflation or deflation, the result will be … less goods for the same amount of paper money. When this will happen? It is already slowly happening. My own calculation is about 10-12% increase of price for basic goods (bread, breakfast, lunch, dinner, etc) that I incur every day.
       
      I think a major trigger for accelerated hyper inflation is when the BRICS nations have increased their trade bypassing the USD, and China no longer accepting the USD as trade payment, coupled with the OPEC/Oil producers accepting Non_USD as payment. Our import costs would go through the roof. Feds might have to come up with a Gold-Backed Trade-Dollar for international transactions, much like the 3rd world countries today need to convert local currencies to USD for international trade. This means losing our Internation Reserve Currency status is a very critical bubble burster… just my thoghts.

    • Have always appreciated those that said , “Don’t measure wealth in dollars–count oz”  type of thing.
       
      Have found that with all the daily calisthenics I’ve been blessed to do since April 12th, a new level–even a personal level of understanding of grasping that discipline has become mine.
       
      Clearly I was for so long resisting the idea even while giving my assent to it. 
       
      While knowing myself too well,  and can’t say that I’ve arrived or anything, I do find that I have reached a ‘Breakthrough” place, and at the very least a new level of —don’t give a shit what the dollar price is—I’m all about adding oz where and when I can, baby!

  4. Last night I had a nightmare. TPTB knocked the paper price of both gold and silver to under $400 and $10 respectively in the mother of all takedowns. The next day our government announced confiscation of pm’s from all Americans leaving us irredeemably f**ked once and for all time.
    Has anyone else thought of this scenareio?  Please tell I am paradoid and it can’t happen.
    Comments encouraged.
    John in Philadelphia
     

    • The last time they confiscated, gold was ubiquitous.  Everyone had a little, it was just money.
      Today very few people have any gold at all, the percentage might be 2 or 3% holding so much as a few coins.  They would have to announce the grab to the whole country, shaking down everyone for gold, and coming up with an empty sack for their trouble.
      They instead are confiscating the value of the gold, hoping for a psychological break that will dampen demand for the stuff. 
      They’ve become more cunning and sly than they were in 1933.

    • “Get your Gold out of the US and you have nothing to concern yourself with.”
       
      Riiiiiiiight… like we have the only sticky-fingered criminal government.  LOL!
       

    • “Get your Gold out of the US and you have nothing to concern yourself with.”
      You might have a concern with trying to access it. And as Ed_B avers, it’s hard to think of any government in the world these days that if push came to shove might not simply shoot you and take your gold, or turn you over to another one that would.

    • You think Russia, China, Brazil and the rest of the world are going to tolerate much more of this?  Think again because they will clean out the sewer in London and Chicago and own the worlds Gold.  The US is not the entire gold arena; in fact, we aren’t even players anymore since Bill Clinton sold all of our Gold.  Don’t think beyond the fact that the US is no longer a democracy, it is now a tyrannical government run by gangster bankers and their day will come like every gangster.  If you truly believe what you wrote, why wouldn’t you sell out and buy some Google stock and see the value evaporate when this con game comes to an end.

    • Thanks, John. 
      Look at the sales of ASEs this year.  While they can damage the paper price with their operation, they have yet to choke off demand.  Some pretty smart people are buying low, and holding on tight. This is a strategy they can’t defeat. 
      I think the banks should be frightened.  A quadrillion in derivatives could blow up- on them.  

  5. Kenneth  I think it’s increasing difficult for anyone in the US to remove their precious metals from the US. Crossing the border with PMs in your vehicle is questionable given the requirements to diclose the value of monies in your possession as you transit from the US to Canada or Mexico  While I don’t have alot of confidence in Mexico providing safe haven to a PM stacker, mainly because I dont know their rules or safety in vaulting in that country.  Canada is pretty much under the thumb of the US and fearful of taking any US monies or precious metals though there are ways to get past that gatekeeper with private vaulting.  But transiting the border is going to be tricky.  Going to Mexico is pretty easy at the borders south are pretty porous.  I’ve been to Tijuana dozens of times in the past with little more than a nod from the border guard.  But never with anything of high value in my vehicle.
    Alternate transportation systems like VIAMAT were available until VIAMAT notified the US customers that they would no longer accept shipments of precious  metals from the US to another country, like Swizterland, Singapore or Hong Kong  They had been warned by the US treasury and IRS of accepting US PM shipments.  These government agencies warned this firm of potential fallout with their clientele due to money laundering, drugs, etc etc, making VIAMAT concerned that shipment couldbe questioned.  Thus VIAMAT decided not to place itself in harm’s way by accepting any shipments to other shores in order to avoid trouble with the US government.  In other words the US Gov completed another ring fence of our rights to move OUR PROPERTY without state control.  This was chilling to me since I have a stack and if I wanted to move it offshore to another country I have few alternates to do so. 
    There are vaulting services available but it wouldprobably require selling the PMs, taking whatever cap gain hit there it, making my sale known to TPTB, then wiring my funds to another country’s bullion bank, rebuying the same phyzz and then storing it offshore 
    imagine if you had $1,000,000 in gold.  Not a hunge amount but not something you would want to have on your person, car or luggage.  It would be impossible to fly somewhere with it. The TSA procedures would assure that it would be noted and possibly seized.
    If you tucked it into your car and crosses a border without showing this to the authorities, you might have the gold seized.
    This is a major ring fence of ou property much like the FACTA and FBAR forms requiring you state with complete disclosure what you hold in other countries.  I’ve had to deal with those disclosures more than once due to a piece of property I owned in Canada. The forms are harsh and intrusive.

    • PS I asked my CPA and attorney in Canada to tell me what the situation was with Canadian bankers as they dealt with US Account holders.  My Canadian CPA told me that C Bankers accepting US funds outside the small and narrow rules of accounts they could set up for US deposits COULD BE CHARGED CRIMINALLY AND GO TO JAIL.   Those are the new rules for C Bankers as of the last time I spoke to my CPA and that was about a year ago. These details wer posted here on SD before the best of was implemented so my details are missing
      Suffice it to say, the US depositors are pariahs in the world wide banking system  The Swiss have seen their bank secrecy and even some of their banks destroyed by the havy handed Gestapo-like tactics of the Treasury and IRS to stop US citizens from offshoring their assets
      There was ways to get offshore if that is something a person wants to do but it is tricky and one can easily run afoul of the law. the penalties are SEVERE if one tries and is found to be out of compliance.  Fines stard at $50,000

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