Deepcaster: Inflation No Longer An Option for The Fed; Bankruptcy Looms!

BernankeSubmitted by Deepcaster:

Real Inflation in the U.S. for example, is a Threshold Hyperinflationary 8.7% (as of May, 2013) per shadowstats.com. Shadowstats measures Inflation the way it was measured in the 1980s before the Official Figures became Politicized and therefore Bogus. One must decide what asset or asset class one will use as the “baseline asset” against which to measure one’s wealth and income increase or decrease. And one must also take account of Real Inflation.
The Ultimate Measures of Value should be Tangible Assets such as Gold , Silver and Key Strategic (especially Food and Energy) Commodities (i.e., generally, Tangible Assets rather than Paper “Assets”).
Why? Because the Private-for-Profit Fed, the ECB, and other Central Banks are increasingly Printing/Digitizing Fiat Money and Credit into existence ($Trillions in recent years) well in excess of any increase in Global Production of Goods and Services, thus diminishing Fiat Currencies’ Purchasing Power. This is why the Purchasing Power of the U.S. Dollar (Federal Reserve Note) has declined by over 95% since The Fed was founded in 1913, confiscating, in effect, the Wealth of Savers and Retirees.

 

Silver Buffalo Rounds As Low As
$1.19 Over Spot At SDBullion!

 

Since its inception in 1913, The Federal Reserve Board has been responsible for almost 95% devaluation of the U.S. Dollar. All this has been achieved through its ability to continually inflate the money supply.   And, between 1985 and 2005, the Federal Reserve Board has increased the money supply by five times. This extraordinary money creation is merely the catalyst for debt creation. In a fiat money system, money is debt…there is absolutely no way this money can ever be repaid except by continued inflation. But, now that the credit bubble is blown up, inflation is no longer an option; bankruptcy looms.”

“The Federal Reserve…What Has It Done For You Lately?”  -Ian Gordon, December 29, 2007, www.axisoflogic.com

 

 

Pick any period of rising U.S. Equities Markets whether from the September, 2002 lows through the September, 2007 high, or the December, 2011 lows to the late May, 2013 highs.

 

These Highs lulled some investors and several commentators into believing that they had Real Gains as of September, 2007 or May, 2013. Unfortunately, when properly measured, many of these Ostensible Gains actually are not.

 

The Proper Measure for Gains is Purchasing Power.

 

Consider, specifically, the rise in the U.S. Equities Markets from 2005 through 2006. If one owned shares in the S&P 500 (SPX – the market basket of S&P 500 Securities) for the 12-month period ending April 30, 2006, the value of that market basket of securities would have risen in U.S. Dollar terms.

 

But it would have declined over 30% since the summer of 2005 when measured by the price of Gold and even more when Real Inflation is accounted for (see below). The point is that, from the summer of 2005 until late April 2006 the S&P 500 was in a Bull Market in Dollar terms, but in a Bear Market in Gold terms.

 

Consider also the United States Dollar. From January 2002 through late April 2006; for example, the U.S. Dollar, as measured by the USDX (the U.S. Dollar’s value as measured by a market basket of other currencies) lost Purchasing Power in an amount exceeding 25%.

 

Since many, if not most, of the prices of goods and services purchased are determined in an international economy, such a loss of Purchasing Power is quite substantial. Thus, a person whose increases in U.S. Dollar income from January 2002 through April 2006 collectively amounted to less than 25% actually suffered a loss of Purchasing Power in the international economy in that period.

 

Such Purchasing Power losses are even Greater when one takes Account of Real Inflation. Real Inflation in the U.S. for example, is a Threshold Hyperinflationary 8.7% (as of May, 2013) per shadowstats.com. Shadowstats measures Inflation the way it was measured in the 1980s before the Official Figures became Politicized and therefore Bogus (see Note 1).

 

One key point is that one must decide what asset or asset class one will use as the “baseline asset” against which to measure one’s wealth and income increase or decrease. And one must also take account of Real Inflation.

 

The Ultimate Measures of Value should be Tangible Assets such as Gold , Silver and Key Strategic (especially Food and Energy) Commodities (i.e., generally, Tangible Assets rather than Paper “Assets”).

 

Why? Because the Private-for-Profit Fed, the ECB, and other Central Banks are increasingly Printing/Digitizing Fiat Money and Credit into existence ($Trillions in recent years) well in excess of any increase in Global Production of Goods and Services, thus diminishing Fiat Currencies’ Purchasing Power. This is why the Purchasing Power of the U.S. Dollar (Federal Reserve Note) has declined by over 95% since The Fed was founded in 1913, confiscating, in effect, the Wealth of Savers and Retirees.

 

Another Key point is that this Fiat Currency Creation out of Thin Air continues to increase at an accelerating rate and thus is a sure Precursor to Price Inflation.

 

Thus Gold and Silver Prices should reflect this Monetary Inflation, and indeed they have with the Gold Price increasing five-fold in the past decade, and the Silver Price even more. But owning Gold and Silver is challenging because the prices of the aforementioned Precious Metals and other commodities, as well as Equities, are periodically the victims of Interventional Price Suppression Action by a Fed-led Cartel* of Central Bankers and their Allies and Agents.

 

Indeed, some Interventions are conducted quite publicly. Interest Rate Adjustments are the most publicly visible. The Fed’s Ongoing $85 Billion per Month QE aimed primarily at supporting The Fed’s Mega-Bank Owners/Allies, and secondarily boosting the Equities Markets is one example. Less visible, but not less potent, are the nearly daily Repurchase Agreement (Repo) injections (by The Fed, via their Primary Dealers), used, inter alia, to influence the levels of the Equities Markets. And there are other Potential and Ongoing, but barely visible, Interventions as well. We have written

 

[*We encourage those who doubt the scope and Power of Overt and Covert Interventions by a Fed-led Cartel of Key Central Bankers and Favored Financial Institutions to read Deepcaster’s December, 2009, Special Alert containing a summary overview of Intervention entitled “Forecasts and December, 2009 Special Alert: Profiting From The Cartel’s Dark Interventions - III” and Deepcaster’s July, 2010 Letter entitled "Profit from a Weakening Cartel; Buy Reco; Forecasts: Gold, Silver, Equities, Crude Oil, U.S. Dollar & U.S. T-Notes & T-Bonds" in the ‘Alerts Cache’ and ‘Latest Letter’ Cache at www.deepcaster.com. Also consider the substantial evidence collected by the Gold AntiTrust Action Committee at www.gata.org, including testimony before the CFTC, for information on precious metals price manipulation. Virtually all of the evidence for Intervention has been gleaned from publicly available records. Deepcaster’s profitable recommendations displayed at www.deepcaster.com have been facilitated by attention to these “Interventionals.” Attention to The Interventionals facilitated Deepcaster’s recommending five short positions prior to the Fall, 2008 Market Crash all of which were subsequently liquidated profitably.]

 

Indeed, nearly $486 Billion in OTC (i.e. Dark, not Exchange Traded) Derivatives were available to suppress Gold prices alone as of December, 2012 (as reported by the BIS, the Central Bankers’ Bank based in Switzerland December, 2012 – www.bis.org. (Path: www.bis.org>statistics>derivatives>statistical tables). Indeed, were it not for active Gold Price Suppression by The Cartel, Deepcaster believes Gold would have exceeded $3500/oz. by now.

 

As an example of paper Precious Metals Price Suppression, consider that, in mid-March, 2008 when the Financial Crisis peaked initially with the demise of Bear Stearns, Gold and Silver were smashed down, whereas in a Free Market they would have shot up.

 

Similarly, Gold and Silver prices were smashed in mid-April, 2013, to hide the inflationary effect of QE and protect the $US. Legendary (since 1969) Newsletter writer, Richard Russell, points out.

 

“The Fed wants to kill all signs of inflation to hide the damage they’re doing to the middle class. First the Fed leaves food and energy out of the CPI, and then they get the Labor Department to lie about the figures. Their last trick — smash the price of gold and silver. What are they going to do when the bond market (fearful of inflation) collapses? You can’t fool all of the people all of the time….

 

“The CPI is manipulated, and I believe gold is being manipulated as well. The Fed’s QE4ever is inflating everything — school tuition, hair cuts, food, gas, insurance, medicine. They’ve already “rearranged” the CPI, so what’s left for them to do to keep us from knowing about inflation? Oh yes, it’s gold, so c’mon, Bernanke, keep the lid on gold. Slam it in after-market trading in the thin paper-gold markets of the night.

“I promise you, when the true forces of inflation finally break loose, the Fed won’t be able to disguise what they’ve wrought. When the true forces break out — it will be a national disgrace and an emergency. “Then you will know the truth, and the truth will set you free.” The rest of this year should be something to behold.”

 

“Richard’s Remarks,” Richard Russell

DowTheoryLetters.com, 05/17/2013 & 05/20/2013

 

 

Clearly paper Gold and Silver Prices were and are being capped, as they seem to have been every time negative economic data or market developments are revealed.

 

Therefore, it is essential to consider the Interventionals as well as the Fundamentals and Technicals when making a Market Forecast or Buy or Sell Recommendation.

 

That is, the price of Gold and Silver on any given day may not reflect anything near their Ultimate Value. See Deepcaster’s March, 2012 Article “Profit, Protection Despite Cartel Intervention” in ‘Articles by Deepcaster’ at www.deepcaster.com.

 

Unfortunately, there are also ongoing Interventions in Major Markets other than the Gold and Silver markets. They are especially visible in the U.S. Equities Markets via, for example, the (nearly daily) Repo injections.

 

Importantly, this fact of Ongoing Intervention is one major reason a mere “Buy and Hold” strategy increasingly fails, especially as far as Equities are concerned. A Holder of the S&P through the last decade would have lost substantial value when Real Inflation is considered, and will likely lose more as Fiat Money Printing intensifies. And it Surely will – just consider this Evaluation of the Economy by Economist, John Williams.

 

“Nothing is normal: not the economy, not the financial system, not the financial markets and not the political system.  The system remains still in the throes and aftershocks of the 2008 panic and the near-systemic collapse, and from the ongoing responses to same by the Federal Reserve and federal government.  Further panic is possible and hyperinflation is inevitable. 

“The economic and systemic solvency crises of the last eight years continue.  There never was an actual recovery following the economic downturn that began in 2006 and collapsed into 2008 and 2009.  What followed was a protracted period of business stagnation that began to turn down anew in second- and third-quarter 2012.  The official recovery seen in GDP has been a statistical illusion generated by the use of understated inflation in calculating key economic series (see Public Comment on Inflation).  Nonetheless, given the nature of official reporting, the renewed downturn likely will gain recognition as the second-dip in a double- or multiple-dip recession.

“What continues to unfold in the systemic and economic crises is just an ongoing part of the 2008 turmoil.  All the extraordinary actions and interventions bought a little time, but they did not resolve the various crises.  That the crises continue can be seen in deteriorating economic activity and in the panicked actions by the Federal Reserve, where it proactively is monetizing U.S. Treasury debt at a pace suggestive of a Treasury that is unable to borrow otherwise.” 

“April Employment and Unemployment, M3 and Monetary Base,”

John Williams, Shadowstats.com, 05/03/2013

 

 

The Cartel’s motivation for takedown attempts of Gold, Silver, and other Tangible Assets is clear: they do not want the further legitimization of Gold & Silver (or Tangible Assets in general, for that matter) as Measures and Stores of Value (i.e. Real Money) to compete with their Treasury Securities and Fiat Currencies.

 

But, notwithstanding the Interventions, one can still utilize a “comparative valuation” approach. The benefit of the “comparative valuation” approach outlined above is that it actually gives one a different and illuminating perspective on Asset Inflation, Asset Deflation, and Purchasing Power. For example, if the reader chooses not to use Gold (Deepcaster’s “baseline asset” of choice) or other Precious Metals as a baseline asset, we invite the reader to consider the consequences of using the Agriculture or Energy Assets Class instead.

 

But again, the Interventional Caveat applies: there exist $Trillions of OTC Derivatives available to manipulate the price of Crude Oil and other Commodities – - see BIS Table referenced above. (Total OTC Derivatives outstanding were $632 Trillion as of December, 2012.)

 

So long as the private-for-profit United States Federal Reserve and ECB and now the Bank of Japan and other Central Banks continue to profligately expand the supply of money and credit, we will see continuing debasement of the U.S. Dollar and Euro and other Fiat Currencies in Purchasing Power Terms and this virtually guarantees Price Inflation. Thus much of the Financial Asset and Equities Price Inflation we have seen recently is an “Artificial” (per PIMCO CEO El-Erian) result of ongoing Fed and other Central Bank Q.E.  in terms of U.S. Dollars.

 

In sum, therefore, if one holds appreciated (in dollar terms) financial “assets” one must consider “appreciation (or depreciation) vis-à-vis what?” Depending on one’s choice, one may find that the ostensible appreciation is really depreciation. [And especially so, if one factors in the tax consequences of being taxed on a larger number of U.S. Dollars which have a substantially decreased Purchasing Power.]

 

That is, it is arguably only an artifact of The Fed’s profligate printing of paper money and increase of credit — enabling an unhealthy “borrowed liquidity” as opposed to a healthy “earned liquidity” (e.g. savings) to use the late Dr. Kurt Richebacher’s (R.I.P.) superb distinction. Given this Reality, the ostensible appreciation reflects only the Increasing depreciation of the Purchasing Power of the U.S. Dollar. That is we have Prices Inflation which The Cartel and its Media Allies and Agents try to hide from us.

 

Former Asst. Secretary of the Treasury, Paul Craig Roberts, gives one cogent explanation.

 

“Over the past month there has been a statistically improbable concurrence of events that can only be explained as a conspiracy to protect the dollar from the Federal Reserve’s policy of Quantitative Easing (QE)….

 

“Quantitative Easing has been underway since December 2008. During these 54 months, the Federal Reserve has created several trillion new dollars with which the Fed has monetized the same amount of debt.

“One result of this policy is that most real US interest rates are negative. Another result is that the supply of dollars has outstripped the world’s demand for dollars.

“These two results are the reason that the Federal Reserve’s policy of printing money with which to purchase Treasury bonds and mortgage backed derivatives threatens the dollar’s exchange value and, thus, the dollar’s role as world reserve currency….

“Washington has stifled the threat from other currencies by convincing other large currencies to out-print the dollar. Japan has complied, and the European Central Bank, though somewhat constrained by Germany, has entered the printing mode in order to bail out the private banks endangered by the ‘sovereign debt crisis.’

“That leaves gold and silver. The enormous increase in the prices of gold and silver over the last decade convinced Washington that there are a number of miscreants who do not trust the dollar and whose numbers must not be permitted to increase.

“The price of gold rose from $272 an ounce in December 2000 to $1,917.50 on August 23, 2011. The financial gangsters who own and run America panicked. With the price of the dollar collapsing in relation to historical real money, how could the dollar’s exchange rate to other currencies be valid? If the dollar’s exchange value came under attack, the Federal Reserve would have to stop printing and would lose control over interest rates.

“The bond and stock market bubbles would pop, and the interest payments on the federal debt would explode, leaving Washington even more indebted and unable to finance its wars, police state, and bankster bailouts.

“Something had to be done about the rising price of gold and silver….

“That the decline in gold and silver prices is an orchestration is apparent from the fact that the demand for bullion in the physical market has increased while naked short sales in the paper market imply a flight from bullion.

“What does this illegal manipulation of markets by the Federal Reserve tell us? It tells us that the Federal Reserve sees no way out of printing money in order to support the federal deficit and the insolvent banks. If the dollar came under attack and the Federal Reserve had to stop printing dollars, interest rates would rise. The bond and stock markets would collapse. The dollar would be abandoned as reserve currency. Washington would no longer be able to pay its bills and would lose its hegemony. The world of hubristic Washington would collapse.

“It remains to be seen whether Washington can prevail over the world demand for gold and silver. …

“When the dollar goes, Washington’s power goes, which is why the bullion market is rigged. Protect the power. That is the agenda. Is it another Washington over-reach?”

Washington Signals Dollar Deep Concerns,” Paul Craig Roberts,

paulcraigroberts.org, 05/18/2013

 

Roberts raises the right question. Will The Fed be able to pull it off, i.e., protect the Dollar, continue to successfully suppress the Precious Metals Prices and in so doing, revive the Economy (of course, The Fed’s Main Goal — to protect its Mega-Bank shareholder/Owners and other Mega-Banks — has largely been achieved provided The Fed can continue its Money Printing Game).

 

Our regular readers know that we think the Most likely Result is that Fed and other Central Banks’ Money Printing is creating an Equities Bubble and will result in Hyperinflation (already at 8.7% in the USA, e.g., per shadowstats.com) and an eventual Economic Crash.

 

Thus, Hyperstagflation is the outcome we believe is coming.

 

 

In the long run, Deepcaster believes one can find no better “Safe Haven” and Measure and Store of Value than in the Precious Monetary Metals, Gold and Silver, and selected other Tangible Assets.

 

BUT, we must reiterate that one essential Caveat regarding finding a “Safe Haven” and Measure and Store of Value in Precious Monetary Metals: in the short run they are subject to the considerable price manipulation Suppression Attempts by The Cartel of Central Bankers*.

 

However, there is increasingly reason for optimism. The Cartel’s ability to sustain Takedowns has been considerably weakened recently largely because of increasing demand for Delivery of Physical Gold and Silver (as opposed to “paper” e.g. Certain Precious Metal ETF shares) – See Below. The Mid-April, 2013 Takedown of the Paper Price of Gold by over $200 catalyzed a Skyrocketing worldwide demand for Physical and consequently dramatically increased Premiums (over Spot) for Physical.

 

Moreover, Central Banks are increasingly Acquirers of Physical, and China and India are massive net importers.

 

Therefore, it is essential to study the Fundamentals and Technicals even though the Interventionals can temporarily override the Fundamentals and Technicals.  One must study the Fundamentals not only for all the usual reasons but also because Fundamentals somewhat constrain the timing and effectiveness of Interventions by The Cartel.

 

Similarly, one should study the Technicals for all the usual reasons and, in addition, because it is in The Cartel’s interest to make its actions seem technically plausible in order to continue to “run mainly under the radar.”  It is not in The Cartel’s interest to make its Interventions any more visible than they already are.  Indeed, there is Powerful evidence that The Cartel often uses and/or helps create technical patterns (aka “Painting the Charts”) which lure certain investors (such as hard asset investors) into getting “off sides” before Cartel actions such as taking down the price of Gold or Silver.

 

So the question is, in the next round, will The Cartel price suppressors win out when it comes to Precious Metals and other Tangible Assets prices, or will increasingly bullish fundamentals propel them further up? Deepcaster provides its most recent Forecasts in its latest Alert and Letter posted at www.deepcaster.com.

 

Whatever the answer, the mounting evidence is that the Fed-led Cartel is knowingly creating conditions designed to force the U.S (and, indeed, the entire industrialized world), to eventually choose between a Hyperinflationary Depression and the Cartel’s ominous “End Game,” which Deepcaster has described in its Alert of 8/13/07 “Massive Financial-Geopolitical Scheme Not Reported by Big Media” and June, 2007 Letter “Profiting From the Push to Denationalize Currencies and Deconstruct Nations” all and 9/23/10 Article “Gold-Freedom versus The Cartel ‘End-Game’ & A Strategy for Surmounting It” available at www.deepcaster.com.

 

In addition to acquiring Gold and Silver, another way of surmounting the Hyperinflationary Effect of ongoing Fed and ECB QE is to Invest in High Yield stocks such as those listed in Deepcaster’s High Yield Portfolio with selections aimed at achieving Total Return (Gain plus Yield) in excess of Real Inflation (8.7% as of May, 2013 in the U.S. See Note 2)

 

In sum, among the key components of Deepcaster’s prescription for achieving “Real Gains” are:

 

  1. Locating one’s capital primarily in Tangible Assets which are in great and relatively inelastic demand and which are inflation-resistant, including in

 

  1. The Agricultural Commodities Sector, and in the

 

  1. Precious Monetary Metals (e.g. Gold and Silver) but, preferably when acquired near the interim bottoms of Cartel-generated Takedowns. Timing and Selection here are key. For further details see Deepcaster’s 12/23/07 Alert entitled “A Strategy for Profiting From Cartel Intervention in Gold, Silver, Crude, & Other Tangible Assets Markets” at www.deepcaster.com.

 

  1. Stay informed, daily, if possible, regarding “The Interventionals” as well as the Fundamentals and Technicals.

 

  1. Know the Real News and Real Statistics. Do not rely on often-spun or censored MSM “News” and Bogus Official Data.

 

Ultimately, the authentic stores and measures of value are Gold and Silver and other key Tangible Assets, not paper Fiat Currencies and Treasury Securities. But with the Intervenors extremely active, it behooves investors to regularly attend to the Interventionals as one acquires, and disposes of, and reacquires Key Tangible Assets.

 

Best regards,

 

Deepcaster

May 31, 2013

 

 

Note 1: Shadowstats.com calculates Key Statistics the way they were calculated in the 1980s and 1990s before Official Data Manipulation began in earnest. Consider

 

Bogus Official Numbers vs. Real Numbers (per Shadowstats.com)

Annual U.S. Consumer Price Inflation reported May 16, 2013
1.06%     /     8.70%

U.S. Unemployment reported May 3, 2013
7.6%     /     23%

U.S. GDP Annual Growth/Decline reported May 30, 2013
1.78%        /     -1.98%

U.S. M3 Growth reported  May 25, 2013 (Month of April, Y.O.Y.)
No Official Report     /    4.41% (i.e, total M3 Now at $15.122 Trillion!)

 

Note 2: There are Magnificent Opportunities in the Ongoing Crises of Debt Saturation, Rising Unemployment, Negative Real GDP growth, nearly 9.0% Real U.S. Inflation (per Shadowstats.com) and prospective Sovereign and other Defaults.

 

One Sector full of Opportunities is the High-Yield Sector. Deepcaster’s High Yield Portfolio is aimed at generating Total Return (Gain + Yield) well in excess of Real Consumer Price Inflation (8.70% per year in the U.S. per Shadowstats.com).

 

To consider our High-Yield Stocks Portfolio recommendations with Recent Yields of 17.97%, 10.6%, 18.5%, 10.7%, 26%,  8%, 15.6%,  8.6%, 10%, 6.7%, 14.9%, 8.8%, 10.4% and 15.4%  when added to the portfolio; go to www.deepcaster.com and click on ‘High Yield Portfolio.’

 

Comments

  1. Inflation isn’t all about prices going up. Its more complicated than that. Exchange rates of currencies do not necessarily translate to signs of inflation. Just take the Aussie dollar and the pound. You get more Aussie dollars to the pound, but this does not translate to the UK having a stronger economy. Price parity translates that goods in Australia are far more expensive than the UK. I know, because I saw my ,money dwindle a lot faster in Sydney than London. Check out the Big Mac Index for an example that’s been quantified. Yes there are some flaws, but on the whole the Big Mac index does translate to real life.
     
    Higher shop prices don’t necessarily have anything to with with inflation, or depreciation of the dollar, most house holds have had a wage freeze for three years or more. This translates to year on year inflation accumulation. Also employment figures are down. This does not mean inflation. As said its complicated.
     
    All due respect to the shadow stats for hopefully making people aware, but you don’t replace studying this stuff with your own research. You may as well create a new Central bank if your not going to look for yourself at the figures.
     
    If you do some ratio analysis on the figures, the Fed is a lot more harsh on itself than the shadow stats. Its the relationship between these percentages that’s more important than the figures themselves.  Low inflation does not lead to high employment. Higher inflation means a high velocity of money, which translate to more trade, which should lead to more jobs created.
     
    I beg you, look at the figures yourself, do the calculations. Learn about the importance of velocity of money.
     
    Keep stacking.

    • WFR…with respect don’t fall into the trap of “money velocity”  meaning anything at all.  Fiat money economists like to talk about the Quantity Theory of Money and its accompanying equation of exchange determine the general relationship between money and prices.  To make the equation work they throw in an adjustment factor called ‘money velocity’.  Well it’s all Keynesian academic rubbish.
       
      For example in 2008 the purchasing power of the Icelandic Krona fell dramatically.  According to the equation what must have happened to cause such a sharp increase in domestic prices is either they printed a lot of Krona or the people were spending like crazy(increase in velocity).  Neither were the case.  Because what really happened is people lost confidence in the Krona.  Purchasing power of today’s fiat currencies is based on confidence.  The Quantity Theory of Money  is inadequate to explain the relationship between money and price

    • @UD,
       
      You talking about the time when Icesave  collapsed? Landsbanki, couldn’t refinance its debts because of it high leverage, and the fact that money stopped flowing (velocity stopped)?  The banks debts were 5 times larger than Iceland’s GDP. The state ended up buying the bank, but refused all international protection of depositors thus eroding its credibility, the markets priced in the value of the krona. But, if ever you go there, the exchange rate yet again seems favourable, but the price parity is ridiculous. I think it cost me around £7 for a pint of beer, which compared to London at the time was £2.95.
       

    • Every trip to get groceries I get less per dollar, I class that as inflation. Simple fact.

  2. I know that there are a lot of savvy folks on this site who post. Don’t you think that it is odd that the time of benefit envelope keeps extending more and more and more. Lot more fill in articles that really tell us nothing new. In a local coin shop yesterday, asked John what the price on ASE’s are, $27.00 + tax he told me. Has 2000 coming in next week and already allocated to customers. That’s great I thought, but very hard to understand why ASE’s are still so cheap with supply do low.
    What I see here and articles on KWN and other Guru webs are buy, buy, buy, and the absence of less and less Why and When’s. As the Gurus’s that write articles are backing off with less current predictions and confusing with old rhetoric that is repeated over and over. If I am missing the points, let me know and please don’t tell me that nobody knows.
    Why as intelligent as the Gurus’s are, cannot they produce a predictive map of exactly how the dominos will fall instead of may fall? Way too many May’s and less absolutes with a true time factor (not the month). I look at the London futures several times a day and the reports come in on “Waterfalls” on Gold and Silver. Out of the 25 futures listed maybe 6 will be green and all others are in the same Waterfall as Silver and Gold. Have you ever paid attention to that? There must be a Cartel in every commodity, or is Gold and Silver the catalyst for all other commodities to start the waterfall?
    If anyone can enlighten the stackers, who feel the same as I please feel free to hit us back.
     
    Ranger
     

    • I haven’t bought in quantity since the big hit. Can’t tell you anything about the silver price. Could be that there wasn’t a shortage just coin shops holding until they can adjust the prices to newly priced stock. For example, old stock £3000, new stock £2000, new price £3000+£2000/2= £2500. 

    • Beware the KWN pump and pump. That is all Eric King does and his guests who are all in the precious metals business. The keywords they use to headline their articles are ridiculous. “Stunning” “Massive” “To the moon” “Upside” “Explosion” “Soar” “Shocking” “Mega” “Parabolic” “Incredible” “Unprecedented” “Spectacular”. Go through the archive and judge for yourself. KWN in my opinion is a cheerleading site. 

  3. Inflation no longer an option for the Fed; Bankruptcy looms!
    -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -
    OMG, the f* sky is falling!
    Just remember folks – the markets can remain irrational longer than you can remain solvent.
    Now - as to Silver purchasing & prices – those tubes of ASE’s which I ordered from BullionDirect right during the mid-April price plunge and before premiums jumped, well they finally arrived after a seven-week wait>
    Haven’t made any purchases since then and am just sitting on the fence for now.

  4. Ranger
    I’ve concluded that: 
    Rule #1   All markets and always maniputed all the time. All markets are created equal but some markets are more equal than others. 
    Rule #2  If a market behaves rationally, then see Rule #1.
    Rule #3.  If a market is an outlier, like silver and gold, Rule #1 applies in spades. The banksters need profit over everything else.
     If a market is not manipulated then the money involved in the market is too small to attract attention of the bad money crowd.  I don’t track the markets like you do but  I do try to figure out human behavior and follow Gresham’s Law and Giffin Good Rules.
     Why do some many arrows appear red simultaneously?   It appears that no matter how high up the food chain might the traders be, they are still herd animals.  They don’t follow the same stimuli as we might, but they follow the herd nonetheless, if for no more reason that they can cover their asses in the case of losses, saying that everyone was doing it (to someone else) or in times of profits, they can proclaim their brilliance. That’s the Rule of Holes.  I guess it can be said that running markets into the red is as profitable, or more profitable,  than running green tape.  As unwary idiots enter the market trying to achieve green results, these folks can always shear the sheep below them, as the unwary are always subject to a fleecing.  Trying to get rich quickly paints a target on one’s back.  The sheep have arrived in herds, get the shears out.
    TPTB have their own agendas as we can see in the actions in central banks of Europe, the US, Canada, Australian, Japan and China.  They care little for the results of the tape traders. The traders try to keep up with the actions of the CBs, often playing the markets accurately, as did their fathers and their fathers before them.  Their agendas are self serving and usually based on something other than profit to the trading pits.  Those dictates are sometimes central command in nature as the dictates from above hold sway over anything that might go on in the pits on a daily basis.
    They do dictate absolute policy and commodity directions firmly as the price of silver and gold are presently too important to allow to ‘go rogue.’    TPTB capacity to conceal the  evilness of the CB players as they play marionettes and puppets on the world stage, makes the lower level players think they are insane to be in a market, or at least wrong too often to remain a player, thus completing the theme that markets are not for those who are uninitiated in the market actions.  Shove the sheep to the side instills fear and despair in the hearts of investors so that only the strong hands in silver and gold remain.  Those strong hands are us.
    If I was to assume that there are honest commodities, I would chose 5,000 years of history and make my bet on real money. It scares governments, or at least those in the west; attracts the governments in the east for equal but opposite reasons.  To bet against real money at this moment in time would be imprudent given the number of bubbles we are in at presently.
     Bonds, stocks and real estate, items that comprise maybe as much as 80-90% of all assets classes, are getting overpriced even as the wealthy run from the first two and rush to the third.    As for the red and green arrows, it seems that they are guideposts that might offer us some notion of what the players have in store for us, not that anything they do  is designed to inure to our benefit.
    These are just guesses on my part Ranger  Itt seems human nature, or at least the nature of stackers, can confound the pits and work to our benefits.  Finding those guideposts is the trick to this game.  The actions you see might even be offer some predictions even the very nature of their unpredictability. 
    And besides which, you know how good we are at predicting the future, especially when it’s  already in the past.  Cheers

    • AGXIIK,
      I am 72, have one lung and fair overall health. Wife is 68. We can most likely sustain ourselves for three more years until we sink into the poverty level. Holding over paid in $100,000 for physical Gold and Silver for the last two years. Been through the rah, rah buy Gold and Silver and yes it’s more than likely manipulated. My point is that the rah,rah has more than evaporated in the past month concerning keeping the faith and look forward to the future as the future keeps sprouting wings of sorts and flying farther ahead of us. The true world of commerce for the ages lives in the commodity markets and the demand for those commodities makes a daily statement of the needs of manufacturing and the need for human essentials, food, clothing , etc. If the dollar remains falsely positive, bond yields rising, it makes no sense. I firmly believe without hesitation that both the bond and stock markets are going South in a very short time and also believe that Gold and Silver will go down with them. I appreciate all of your comments.
       
      Below is the closing of London futures on Friday.
      http://www.investing.com/commodities/real-time-futures
       
      Ranger
       

  5. Come now folks, you know he’s doing God’s work…………

  6. Ben, praying to his master Satan.

  7. Sure, Deepcaster nails it. Pretty much sums up the situation. I am looking for the PM prices to bring me what I want. Doc started buying back bullion. Many are selling. Premiums are high in that dealers and coin shops were buying in the 30′s to 40′s and 1600′s to 1700′s the last few years. The high premiums protect their margins. Like a recently fed Boa, the bulge in premiums will smooth out downwards. I also suspect PM prices will stay manipulated on the downside. We will see more US sellers coming in eventually helping to drop premiums. Then I build up my position in PM’s for the obvious reasons(I think supply will be good for the next 14 months). I am holding till Q1 2014 to substantially buy up PM’s, after the mid-term elections. Remember, Bernanke is leaving…and with Corzine out at Treasury, it appears to me Bernanke’s replacement will not function as well with Lew as Geitner did with Ben. The symbiotic’s will hold up to about Q2 2014, then it can break apart fast. I am taking full advantage this year to build, store, create, and grow. 

  8. Thomas  that sounds like as a good a plan as anyone could come up with.  The growing part is tough here in the Sierras  About all we can grow is pine nutz and cheat grass. 

    • copy that Ranger 
      the bond and stock markets may take the precious metals down for a short while.  Like the $8 silver at the Lehman crash that went to $49 within 3 years.  I have noted  that too as I drill myself down to povery level income, stay off the grid as much as I can and present as small a target as possible. Aim small shoot small
      Every commodity vital to our wellbeing; food, water, precious metals, oil, energy, labor and air has been manipulated since the first cmmodity markets were set up in the times of Hammurabi, the Hittites, Assyrians and Phoenecians.  Once the money grew large enough, the bad forces came into the marketplaces, both for proftis and to extract pain and suffering on those who relied on these precious life sustaining commodities.  The smalls get hurt, the bigs get wealthy.   Lather rinse and repeat. 
      Stay well Ranger. My best to you and your wife.

  9. A BRIC Thrown at the luciferians.


  10. Ranger I reviewed the charts  All red ink except food, food, food, coffee(SOB–that explains why my fav coffee went up in price by about 10% at the last Costco run)  Carbon emissions?  I’ll fart on that!  Al Gore is a NWO SOB and then some.  Fat f*****
    The inflationary effects that Waiting for Silver and Thomas are talking about in food is the means by which the Luciferians (love that term) use to kill us off.  GMO foods, overpriced and spreading like a filthy weed across the globe, is just another way to enhance the ‘elites’ population control. 
    A dearth of earth and water will cause hundreds of millions to billions of deaths while fomenting wars across the planet.  Wars that come about due to starvation are financed by the same evil bankster elites who have been manipulating commodity markets for thousands of years.
    How much is enough in the minds of these people?  A residual population of 500,000,000 serfs, peons, and slaves living in a feudal world when the owners of the NWO Matrix use us for battery power in some wet dream Agenda 21 world of total servitude. Watch what happens to the west when interest rates run rogue to as little at 8%.  It’ll make the 1980 time period look like a boom time. All markets willbe crushed by that.
    can they do this?   Yes, and they can because the last  Dark ages last for 1,000 years.  The supply of money in the Roman era amounted to about $1.7 billion dollars. By the end of the dark ages it had dropped to $200 million. This dearth of capital was one of the prime causes of the 1,000 years of darkness.  How will it be made to happen again?  A world wide experimental currency petri dish based on FIAT nothingness which drops the value of the currency  empire by ANOTHER 90-95%, back to the level of the dark ages seems to be one route.  This causes commerce  and trade to collapse globally.  Just the Baltic Dry Iindex and railroad/transport numbers speak volumes to the drop in world wide trade.
    BTW Chinese rose to the level of the global greatest civilization by 1500 AD.  Then the west rebooted and shoved them into a dark hole.  They remember that and are coming back with a vengence.  Just an idle errant thought but it does make sense.
    If the dollar loses it’s reserve status the deflation/inflation spiral will be all consuming to the west and we, as an empire, will collapse just as the Romans did once they debased their currency by a factor of 1000 to 1 to pay for guns, butter, bread circuses and a spending style that parallels our modern era. The fact that most of the world’s largest GDPs are engaged in this means the crunch will leave no place to hide.
    I refuse to be a pawn in this game  BTW and constantly work on ways to get off the freakin’ chess board.

    • I travel East in the 32 degree and am familiar with King Hammurabi as he laid down the first laws, as learned at the`law enforcement academy. Sadly the good laws have failed. I agree with all that you have said.
      Seemingly no one can connect the dots for a valid supposition of chain reaction events that will cause us to be free of Fiat. I just want someone to say with validity where the fuses are that will ignite the probability. I know and you know the fuses are out there. A study of true financial markets and geo-politics all together would be a great read, sorta like the atomic time clock..
      Best Regards,
      Ranger

  11. Get ready for $5/gal. gas this summer, which when it happens could be the trigger for the “Big One” collapse! Just like in 2008 when gas hit $4.25/gal., ushering in the financial collapse and the bailouts of the TBTF banks. With the new $100 bill set for deployment in October, you know that TPTB are going to create a crisis where people will have to exchange their “old” $100 bills for the “new” $100 bills, with a conversion rate of something substantially less than 1-for-1. Mark my words!!!!!  

  12. Inflation will not occur until the money that is printed is in the hands of the common people. Yes there is a lot of money printing but where is all of that money going? To the corporations and big banks. It is more about confidence and perception, long live the dollar.

  13. $5 gas ( I am thinking in the States) will come across as very cheap when the ME situation really begins to heat up. In the last week or so here in BC ( Vancouver) gas was at $5.7/gal – and people think that is not bad… 
    Everyone seems to ask WHEN PM prices will go up. I will throw in my 2 cents and guess: Whenever Iran gets sucked in the conflict that will be the day when PMs take off. Syria is only the bait for the bigger players. Lebanon is now involved and we are already hearing of Iraqis going in.. Turkey is developing its own “Arab spring” – out of the blue I may add – hmm.. all that gold that Turkey has been trading to Iran does not seat well with someone – I will bet a few coins that Erdogan “the dictator” will end up like Mubarak probably before the summer is over..Probably a bunch of people will get killed and we’ll watch Egypt 2.0.
    Bottom line Iran  – with its gold for oil policy – is the greatest threat to the petrodollar that will not be allowed to continue. The only two problems with that plan are Russia and China.
    So Ranger when you ask when the prices will move up probably a safe answer would be when Iran gets into the play. The unfortunate part about that will be that most likely everything else will skyrocket too..

  14. Avatar of @Ben TheWANKER says:

    A limited war in the Middle East would send oil upwards. If US or EU becomes involved in Syria, Iran will close off the Straits of Hormuz. That would send oil back up to 140 USD per barrel at least. And Israel will not sit back and let Syria keep using Chemical or Biological weapons in its close vicinity. When Israel becomes involved then we will see the real ‘islamic’ Obama come out.
     

     
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