Eric Sprott: Real 2012 US Deficit $6.9 Trillion- Not Reported Anywhere By The Public Press!

sprottIn the midst of the latest epic cartel paper gold and silver raid this week, legendary precious metals expert Eric Sprott sat down with The Doc for an exclusive, MUST LISTEN interview. 
In one of his best and most shocking interviews ever, Eric discusses the latest gold and silver raid, his take on the platinum & palladium markets, the Bundesbank’s recent gold repatriation request and the correlation with massive physical gold buying in Asia, and his view on how the endgame of the Western financial/ debt crisis will play out.

Sprott stated that the Treasury Department’s 2012 GAAP budget deficit report was an astonishing $6.9 Trillion, and this has not been reported in 1 single major news outlet!  He also stated that the US government may be exporting German gold from the NY Fed to China, and that despite their recent apparent success, he expects that one day soon the cartel will be brought to their knees simply by traders standing for delivery of physical metal.

Eric Sprott’s full MUST LISTEN audio interview with The Doc is below:


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When asked whether the current gold and silver correction is the beginning of a 2008 like collapse, or as Jim Sinclair has suggested, the last major shake-out prior to major bull moves for gold and silver, Sprott responded:

It’s getting chaotic out there in the financial world.  We have a worldwide economic recession, we have governments which have hugely over borrowed, and we have so much printing of money it’s surreal.
Interestingly, this whole time the price of gold and silver has gown down, which I find incredibly unusual because all of the data that you and I and other people in the precious metals business look to on a physical basis is so strong.   I’ve always surmised that because it’s so chaotic, and because Paul Volcker stated back in 1980 that the mistake we made was not getting control of the gold price (of course the gold price at that time had gone from $35 in 1971 to $850 a mere 9 years later) and we ended up with double digit inflation.  I certainly believe that precious metals are the tell on the irresponsibility of the central planners. 

And I think that the central planners would know that these are massively unusual and irresponsible, but it’s the only thing they can do.  They have to keep interest rates down because any uptick and all governments will face almost immediate bankruptcy because they wouldn’t be able to afford the interest. 

We’re living in very unusual times, we see incredible volumes on the paper markets of silver and gold, which obviously bear no relationship with what’s going on in the real world. 
When you trade 1 year’s silver production in a day- matter of fact I think we traded one year’s worth of gold production yesterday, which is absolutely ridiculous!

They just trade the paper like it’s the real thing but as you and your readers know, it’s not the real thing, and there’s a whole other market out there which ultimately will determine the price. 

 
The Doc asked Eric his thoughts on the massive physical silver demand in 2013:

As we all know there is the paper market and the physical market.  As you’ve pointed out the demand for coins has been stunning.   I think the important thing to point out for a silver owner is to look at the US Mint’s statistics and to look at how much silver is sold and how much gold is sold.   For 2011, 12, and so far in 13, the US Mint sells 50 times as much silver as they sell gold. 

We know that the amount of silver produced in the world is only about 11 times greater than the amount of gold each year.  We also know that there is 150 x more dollars of gold in inventory than there are dollars of silver in inventory. 

So when people are buying at a rate of 50 to 1 (and I can also use the example of our gold and silver trusts, in the last traunche we sold 50 times more silver than gold)- these are people choosing to buy silver- we don’t force people to buy our trust, no one forces them to buy from the Mint, but that’s the relationship that they’re buying gold and silver at!

When I talk to bullion dealers, my favorite question is what percentage of your business is in gold and what percentage is in silver in dollars, and almost to a man, the answer is 50/50!

So how long can people continue to buy 50 times more silver than gold?  Because for investment purposes  it’s really only available on a 3 to 1 basis, because most silver is used for industrial uses, whereas most gold is used for investment. 

 

 

The Doc asked silver how tight the physical silver market is currently, and if he might soon be able to  achieve his goal of not being able to source the last bar of silver for an offering:

That’s always one of my dreams!  Some of the things that those in the precious metals market might hope for:  1. Money printing- I mean who would have imagined when they got involved in 2000 that we would see money printing which began in 2008/2009?

And then we see bank runs, which are two of the most wonderful things for precious metals owners, because those are reasons you own precious metals, and then you see the physical demand coming through, these are the perfect things that we want to see.   As long as these continue we’re going to be ok.  Someday it will break, I don’t know what will break it to be honest- is it going to be a COMEX default, is it going to be an industrial users that can’t get enough silver that produces iPhones or the S3′s or something like that- I think SD had the article that one of the car maker’s was stocking silver in Switzerland – so I don’t know exactly how tight it is, I have the same anecdotal evidence you have, and the most obvious one is what you just mentioned- the US Mint is running out of blanks. 

It has to be tight, we know that the COMEX bears no correlation to what’s going on in the real world, but seemingly (for now) that determines the price.   Someday, the physical demand (which it probably already has) exceeds physical supply, and it’s only a matter of breaking the backs of the short sellers on the COMEX and the LBMA who double, triple, quintuple counting of how much gold people think they own- I dont know when that’s going to happen, all I know is that if I had a choice of to buy bonds, to buy stocks, or to own precious metals, I know exactly what I’d do because over time we know we’re going to win the race.

 

 

The Doc also asked Eric about the Treasury Department releasing the results of their 3 year audit of the Treasury’s 34,021 gold bars held at the NY Fed- particularly with the timing of the release only a month after the Bundesbank requested the repatriation of Germany’s gold, and whether the official denial by the Treasury department of any purity issues with it’s gold stored at the NY Fed in fact confirms our worst  fears:

Well Doc, I read the so-called audit report.  It really said they audited the schedule of holdings- which I don’t even know what that means, the schedule of holdings.  What the NY Fed holds is a very small fraction of the total gold theoretically that’s owned by the US government, and in fact the gold held at the Fed might be German gold!  The Germans might be surprised to find out there’s only 350 tons in the NY Fed and it’s all supposed to be theirs!

It was a sham, and it was another example of those who are attempting to mislead us as to what is going on, and there have been so many examples of things that are just not right and are totally misreported.

Let me give you the biggest example of that.  On Jan 17th, the Dept of Treasury released their GAAP budget deficit , and it was $6.9 TRILLION.  That’s the change in present value of true obligations in ONE YEAR plus the cash deficit- total deficit $6.9 TRILLION!  This is in a $16 trillion economy where politicians fight over $100 billion in spending cuts when the deficit is $6.9 T!  What I find most interesting about that number?  You will not see it reported ANYWHERE in the public press!

You would think that would be something that would be deserving of some comment, but if you Google GAAP budget deficit 2012 you will not find it in any public news release, even though it was released by the Department of the Treasury.  We’re just ignoring the biggest elephant in the room here, and that’s the way they want to work it- more disinformation.

 

 

Sprott also discussed the massive physical gold buying in Asia:

Every time I look at the gold data, you see more and more physical buying of gold all the time.  If I annualized the latest imports into China from Hong Kong in their latest reported number, and if annualized the latest India purchases, my goodness the shortage we would have in physical gold- I calculated 2,300 tons per year!  That shortage would be substantially higher.  And I might add that I don’t get to see data on what people who buy bars- we don’t get to see that data!

We don’t know what Russian billionaires have done.  We don’t know what the Saudi Shieks have done.  For example, when the University of Texas’ Teachers endowment bought $900 million in gold- that’s not an item where we see the transaction in the public domain, so I suspect the shortage is well above the number I calculated, because I can only add up the public data.

As you know the gold market is only a 4,000 ton market, and we’ve seen this change of 2,300 tons per year- where is the gold coming from?  How does China import 95 net  tons of gold in a month when the mines ex-China only produce about 180?  They bought 50% of the world’s gold! Then I turn around and read that India bought 100 tons, over 50% of the world’s gold per month!

The US gov’t has to be selling!  We saw the Treasury customs report for the month of December where the US gov’t was an exporter of $4 billion worth of gold!  (They call it non-monetary gold by the way)…which is 2.5 million ounces!  In a month!  The US only produces 8.8 million ounces in a year, where do you come up with 2.5 million ounces?

Most of the gold produced in the US is consumed in the US!  There’s not much left over for exports.
In the last year, the US gov’t has exported 250 tons of gold!  Where does 250 tons of gold come from?
There’s no excess gold available other than what might have been at the central bank!   It might have been the German gold, might have been the Austrian gold, might have been the Dutch gold- all of my analysis tells me that’s whats happening!

The Western Central banks – the guys trying to solve the problem- have been huge, non-transparent sellers of gold.

 

The Doc also asked Sprott how much gold China might have accumulated since it’s last official update of 1,054 tons in 2009:

I don’t think they’re going to update the statistics.   If you or I were running the financial affairs of China, we would want to be selling Treasuries and buying gold, but we don’t want people to know that we’re selling Treasuries and buying gold.  Simply because they want to buy as much gold as cheaply as they can.  To me it’s obviously a godsend for the Chinese that the price is where it is.   You mentioned they bought 900 tons of gold last year, I would venture to say that 3 years ago, they probably didn’t buy 100 tons of gold.   So you have an 800 ton buyer come into a 4,000 ton market, and the price goes down.  It’s an impossibility.  They took 25% of the market!  I always like to say what if the Chinese bought 25% more of the oil market or 25% more of the wheat market?  Wouldn’t people say there might be a problem, or how could you do that, is it even physically possible?

The data we get from China is only from Hong Kong!  We don’t even know how much gold is going from Switzerland or Canada into Beijing- we only know what goes from Hong Kong into China, and I know that there’s lots of gold coming into China that doesn’t go through Hong Kong!

Who knows what China’s reserves are, I don’t think we’ll find out until there’s some kind of collapse of the system or they want to make their move in terms of backing the Yuan with gold, and that could be some time soon.  I’m sure they are happy to sit there and accumulate gold at these prices, and we know that it must be coming from the Western Central banks!

 
With Sprott recently launching Palladium and Platinum trusts, The Doc asked Eric whether he still believed silver to be the investment of the decade:

I do, but I must say, that I am not a student of the platinum and palladium markets.  I don’t spend multi hours/ day looking at that.  I leave Rick Rule and other people in our office in Toronto in charge of understanding that market and I think they have a good grasp of it.

I don’t get into the minutia, but all the data we see on a macro basis- the problems in South Africa, the purchasing of platinum and palladium for investment purposes are all moving up here.  I’m actually a little stunned that the price hasn’t moved more than it has because in my mind, we have an absolute shortage of the two commodities!   There’s no telling where the price could go when somebody wants that last bar of platinum or palladium and they’re not going to get it.   I think the outlook for both metals is great, but it certainly doesn’t diminish any of my fervor towards the silver market.  As a precious metal, I think silver is more precious than platinum or palladium and will be the investment of the decade.

 

 

Sprott also stated that silver should be trading at $100 currently!

With a debt of $60 trillion and a GDP of $16 trillion, bonds will not be paid back.  You have to own physical things- silver and gold being the primary ones.   Gold is by far the bigger market and has more money go into it, but I think silver has a chance of massively outperform gold, simply because of those ratios we talked about.  It’s only available in a 9 to 1 ratio, the inventories are a ratio of 150 times more of gold in terms of silver, and yet we see people spending the same amounts of money on gold and silver.

Silver should go back to that 16 to 1 ratio, so gold at $1600 should be at $100.  I certainly imagine that gold goes much, much higher here.   If for example it went to $3,200, the price of silver would be $200.
That’s the sort of move I expect, but you know you can’t pick a top on these things, and we have so much money printing, so fast, that it’s impossible to calculate where it should be because we don’t know in the future what these government’s will do.

All we know is that the price should be up massively.  Anyone who’s been a student of the market sees these ridiculous trades, but some day these guys will be brought to their knees by people just taking delivery, and I hope it happens sooner rather than later.

When you look at for example the February month, every day so far we keep getting new people nominating for delivery!  I think yesterday was another 300,000 ounces of silver.  This in a contract that’s a very minor contract, but people are going in and taking physical delivery.  Sooner or later the problem is going to manifest itself, and who knows that happens that day.  I always worry Doc that I’ll end up being right one day, and they’ll just stop the market!   If they stop trading the stocks, and they say we’re going to stop trading in silver and gold, I mean we’ll be absolutely correct, but they may take the market function away, in terms of the market we’re supposed to trade, but certainly in the black market, gold and silver will be worth as much as they have been in history and will buy you what you need.

 

Doc:  You wrote last year Eric that the recovery had no clothes, and that call was spot on.  There was a report last week that the Fed has purchased more US debt in 2013 than the Treasury has issued!  
How do you see this all ending for the US?  Will we simply end up with 2 lost decades like the Japanese, will we actually see a hyperinflation of the US dollar, will China one day announce official gold reserves of 15,000 tons and introduce a new gold backed renminbe?   How do you see this whole financial crisis ending?

 

As you said at the outset, will we lose two decades?  I might argue we’ve already lost one decade!

If you ask 70% of the population are they better off, the answer will be no, and it’s probably a lot higher than 70%.   Here in 2013 we have a 2% tax increase.  We have a possible sequestration.  You read the internal communications that leaked from WalMart that their February sales so far are a total disaster.

We’re printing all this money, and we’re spending all this money, and where do we stand today?  We stand in almost a world-wide recession after all those moves!  What more can we do to turn the economy around?  It’s just not turning around!

Yes, I suggested that the recovery has no clothes, because you could see that it was temp earnings that was fueling the optimism early in 2012, those things all faded towards the end of the year, we ended up with a negative print in GDP.   We’re going to start this year with a negative print in GDP, and I wrote another article last year saying Weak begets weakness.

For example, if somebody lays off 5,000 employees, it’s not just those 5,000 employees that get impacted, it’s the people who are relying on those people to buy goods from them that also get impacted.
There’s only one way that weakness won’t beget weakness- you have to have outside measures come in in terms of fiscal policy or monetary policy.  In terms of fiscal policy we have no room for fiscal policy initiates anywhere.  Here we are arguing about sequestration and how much spending we’re going to cut.  There’s no fiscal stimulus.

Now let’s move on to financial stimulus.  We have 0% interest rates, and we’re buying $85 billion of our own bonds a month.  How much further can we go here?   There’s nothing left to try!  The printing of money has been a total failure other than making things look calm.  I can assure you it’s not calm, but it looks calm, and it will look calm until one day we all figure out that we’re just going down this slippery path of greater debt, greater money printing, and people will figure out that I don’t want to own these bonds because I know exactly how this thing’s going to end.

 

 

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Comments

  1. While the ounces sold in the form of silver Eagles are significant globally, and increase there can already be offset by a smaller decrease in industrial demand. Let alone any slight increase in mining supply.
    So it’s hard to be sure that additional Eagle/Maples type of sales are directly deducted from the above grounds reserves. 
    While the investment bullion g/s ratio is greater than that of the world supply since investment bullion is a small part of total demand, it basically only means that investors are less into gold. Some gold may be left there, rather than silver being extincted.

    I am thinking that investment demand can only kill silver stockpiles if we crank it up a few notches more. We’re obviously not buying quick enough, as we’re still being supplied, and industry report of shortages were anecdotal at best.
    Silver shortage Eages? They closed the months with shortages on sales records anyway. Nothing proven there.

    My hunch…Perth Mint will ration or either cease silver exports. Why export the heck out of something that is rare and underpriced? Also, the AUD/USD may become less and less favorable. 

    • But factor in rising energy prices, instability around the world and silver shortages are going to be a given. Plus a LOT that is used for industrial is thrown away never to be recovered.

  2. A couple of comments on this data.  The government calculates the cost of weapons systems, pension plans and infrastructure purchases over a 30 year period.  They calculate tax revenues from investment streams and pension plans out 30 year as well.  The $6.9 trillion Treasury department calculation is very low. They are lying to themselves.  The actual GAAP accounting would show something on the order of $10-11 trillion in real and nominal deficit.  Which will never be paid IMO
    The other thing regards China and their $1.3 trillion USD reserves.  As they use these reserves to buy gold or acquire it thought demanding delivery from bullion banks, they are perfectly willing to lose this USD investment in part or whole. The dollar value will decline just as the assets acquired will rise.  The USD’s a  sunk cost. 
    These reserves have served their purpose in the past, boosting the Chinese economy. They serve a purpose at present time, allowing the Chinese to use these reserves to buy vital things.   Once the Chinese are done with the dollar they will dump it, take the loss and consider themselves fortunate that they acquired commodities, hard assets and precious metals at a discount once these commodities assume their real value.Their dollar holdings will be superfluous.
     The values  are not just the dollar denominated calculations.  The dollar will be damaged badly, devalued in a desperate attempt to hold up its value while other countries, including China, move forward.
    The USD won’t go quickly but the Dollar could easily become a relic, a novelty FIAT like the Zimbabwe currency. Not today but within a foreseeable time line.

    • Agreed, AG.  But I would add this.  To the Chi-Coms, money and economics are merely a means to an end.  If they could sacrifice every bit of their assets and economy for political and / or financial hegemony, they would do so in a heartbeat.  The Chinese are an amazing people.  Their view of history is LONG, with anything that happened within the past 800 years considered as “recent” history.  In the West, the view is not only shorter but MUCH shorter, with many of us worried about this month or quarter and a few even stretching it out to (gasp!) next year.  This is a classic tortoise and hare / slow and steady wins the race deal that does not favor us wild hares!  

  3. China could simply open trading in their currency more. So Chinese exporters can demand Yuan figures, let go of the USD denominations. Huge amounts of USD would hit the market, looking for Yuans to match. China might get expensive to Americans, and they might tune down their demand, but China’s currency will be strong, allowing their middle class to start driving European cars. And use American construction workers to build their new homes in suburbs. 

    • Perhaps the US will then help Japan start a war against China because of the Spratley islands. China knows they should be somewhat careful imo. The US military is still by far the most powerful in the world.

    • If the US desires a war between China and Japan, it would be incredibly easy to arrange it.  Just put one of our subs between 2 of their surface ships, bring the sub up very near the surface, launch anti-ship cruise missiles at BOTH ships, submerge, and slip quietly into the depths to await the fireworks.  I don’t see how this would benefit anyone but if it did in any way, it could be done.
       
      If there was a war between China and Japan, it would likely be limited to air and sea battles; a classic greater numbers vs. superior technology clash.  Neither side would want this to become a land battle.  The Chinese have long memories and they remember being savaged by Japan in WWII.  Nukes are very unlikely to be used.  Even one of them would erase all of the good will and many of the trade deals that China has worked hard to create over the past several years.  Besides… it is likely that Japan can whip up nukes of their own on very short notice.  Their technology and industry are way more than capable of doing that; and who knows what nuke contingency plans they may have in place already?  Living next door to China and North Korea would have most countries on edge about their future.
       

  4. Arrogant central planners always get defeated in their criminal battle against market forces. It happened in the USSR, it happens right now in Venezuela and it will happen in the US. This controlled depreciation and appreciation of the POG and the POS will at one point blow up. Completely. For now, perhaps a next controlled appreciation. To 2300 USD for gold and 100 USD for silver. Or something like that.

  5. Eric didnt answer  the first question, his answer is going arround in the air , i believe he didnt or can not answer this question 
     

  6. Silver and Gold is going to go up and down for a couple of years yet. IMO I follow the principals that the Elite are in control and it’s all about Debt, Control and One World Order.
    When everything crashes it will be because of the Derivatives Market and that won’t happen till after the Currency Wars, Trade Wars and when the Interest Rates start to rise.
    So I have plenty of time to stack more silver and try and get out of my debt and be ready for the crash. Keep Stacking

    • Makes sense to me, Charlie.  In fact, the usual sequence of events is:  currency war, trade war, and world war.  Where does world war fit into your view of things?
       

    • Ed_B I don’t think there will be a world war, just a few countries toppled. The Elite don’t want a war but they want countries with any sort of  Dictator out hence the ongoing unrest in Syria, then next will be Saudi Arabia then Iran. But a world war I don’t believe so. But what the hell do I know. Lol

    • History shows that the Elites profit immensely from war and have for at least the past 300 years, if not longer.  They DO like to be out of the line of fire, however.  ICBMs make that rather difficult these days and the world’s financial centers ARE prime targets.  
       
      Your Middle East progression of events looks reasonable to me.  
       
      As to a WWIII event, who knows?  Anything is possible and screw-ups of immense magnitude HAVE happened in the past.  It would not HAVE to be a nuke war to be a world war.  Even conventional weps are quite deadly these days.
       
      As to what you know, lol.  No less than any of the rest of us would be my guess and your opinion is just as valid as anyone’s too.
       

  7. How long will the US army remain loyal to its’ government? As we hear, the country is becoming more and more a police state. Will the army personel stay happy about everything? Look at the number of suicides inside that one army. Better countries have suffered from millitary coups, or mass mutiny. They are already forced to hire civilians to fly drones, and rent-a-soldiers to stir things up on the ground in the middle east (both involve killing children for varying reasons).
    Anyway, I know the might of the US army, but they get defeated also. And they are their own worse enemy. When they’re all out fighting wars, who’ll protect leaders from millitia?

    • “Anyway, I know the might of the US army, but they get defeated also. And they are their own worse enemy. When they’re all out fighting wars, who’ll protect leaders from millitia?”
       
      Defeating the US military is damned near impossible.  It is the suck-head weenie-brained politicians who get the collywobbles and order the field commanders to do something idiotic or that prevent the field commanders from doing what should be done to secure victory.
       
      Yes, much more of the current load of BS from DC could result in a military take-over in order to force a return to Constitutional government.  A single well-armed regiment would be sufficient to arrest and detain the current anti-liberty poli-tards.  Thorough investigation of their crimes against the American people in an open court would be interesting as well.  I am sure that any number of them could be convicted of treason and other serious crimes.  The lapdog media should be included in these investigations as well, not to mention any number of extremely corrupt state governments.  Illinois, California, New York, and Colorado would make good starts.  A fitting punishment could then be administered.  Once all that drek was cleaned up, a MUCH smaller non-professional volunteer civilian government then could be formed.
       

  8. Eric Sprott is a business man and he is selling his book.  The fact is that what is black is white and what is white is black right now.  Nothing is happening now that makes any sense.  We all know the fundamentals and they don’t seem to amount to a hill of beans in this fascist market model.  Eric sticks to the fundamentals.  That is why his information is pretty much worthless.  Just like TA is worthless right now.  Until something happens that allows normal markets to function we are going to see pretty much the same ole same ole.  The banks have been given carte blanche to harvest as much money as they wish from the metals market.  Stealing as much as they want from working people and honest people.  We continue to get no new information, just reviews of the fundamentals.  Thats OK.  There is nothing we can do but wait right now, or if you got nuts then buy some more metals.  If you sold your stack where would you re invest?  We are stuck between a rock and a hard place.  I seriously believe that this could go on for a while longer.  We need to be prepared to continue waiting.  

  9. Ed B  The Chinese do have long views.  There was an interesting essay countering Antal Fekete’s comment that the Chinese have not exported much silver in the last 300 years. 
    But the Chinese spent almost all their millenium-long  silver stack in the opium wars, losing about half a billion ounces of silver for drugs.  That might not sit well with the present dynasty of rulers.
      And then there’s that little matter of the Chinese gold sent to the US in the mid 1930′s to protect it from the Japanese.  It’s taken them about 80 years but it seems like they are getting much of it back.  I’d venture a guess that the Chinese might have a bone to pick with the western world and I would not blame them.  There were other parts of the story re the Rockefellers and Rothchild and the suppression and manipulation of gold and silver prices  They’ve been doing this for the last 300 years. The Pilgrim Society figured heavily into that essay but commentary on that is way beyond my pay grade.  It’s very interesting conspiracy theory material, pretty fascinating and if true, we are going to be very old and gray before they stop their games   Maybe we’ll outlive them  Some think they are losing control of the situation

    • China was treated miserably during the imperialism of the 17th-early 20th centuries and considerable harm was done to their country.  Of course, Asians have a pretty miserable record in that department too, so WTH?  Still, it is likely that China harbors a grudge for the former policies of the US, the UK, and other EU countries.  As they say, payback really IS a bi+ch!
       
      I do not know if the elites are losing control, people are hoping that to be the case, or if it suits their goals to make people THINK that they are losing control when they are not.  It would also be interesting to know just how heavily invested in the paper paradigm the elites really are.  My guess is that they don’t give a rat’s royal red patootie about it and use it like any other tool they have handy for political and financial manipulation. While all this is fascinating speculation, it really does not matter very much in terms of what we can do about it.  Given that, all we can do is care for our families as best we can and keep on stacking various items.
       

    • @ AGXIIK
      @Ed_B
      Ed, your comments above and AG’s input have ignited a thought.
      The “elite” financiers have been running this game since not long after the Industrial Revolution took off then really ramped up their ROI’s in the spice trade then slavery, racketeering etc down the line. They did this through the mechanisms of lobbying government to enact laws of governance thus making it legal to operate as they see fit, this has been an ongoing process becoming more and more transparent over the last few decades, and the families who have owned the Central Banks in each country have been pushing their own agendas all along just in the name of fattenign their wallets.
      The Chinese are not silly, and because they have such a long “political cycle” have a very good memory of events and culpability. The loss of jobs and movement of manufacturing may well not be aimed specifically at the US, UK, French and other government or the peoples of the countries but at the Owners of the Central Banks for all the profiteering and malignant geo-political bullying “arranged” to maximise the “take” of their businesses.
      I postulate that the effects of the war going on right now are actually the side effect of the Chinese going whole heartedly at those very families and the Chinese goal is to bankrupt them and their money making schemes.
      The Gold being sent to China now directly from the US reserves is being black-mail out of the US government with the trillions of US bonds being held over the heads of the western world. These Bastard Families have wind of what is going on and are arranging for protests of repatriation of Gold, no wonder the Fed and US Tresury don’t or won’t let anyone see the “stockpile”, they are over a barrel.
      One of the effects of this is the Owners of the Big Banks of the US have to push metals prices down so it doesn’t cost them so much in the loss, but that is not going to work because once the Chinese have what they believe is the lions share of the PM’s or they believe that the se Banksters are dust they will dump those tresuries anyway and the Dollars the Banksters have been trying to save will be worthless in the end – A LOSE LOSE situation.
      And all this is in the name of bankrupting those “elitist” bastards who have been shafting us since God knows when, we are the meek here.
      More reason to keep stacking, make hay while the sun shines and yay for cheap metals : )
      DISCLAIMER : none of this lets any of those involved off the hook, it should have been nipped in the bud a long time ago.

    • “Ed, your comments above and AG’s input have ignited a thought.”
       
      Excellent.  Glad to have your response on this and any other matter that comes up.
       
       ”The “elite” financiers have been running this game since not long after the Industrial Revolution took off then really ramped up their ROI’s in the spice trade then slavery, racketeering etc down the line.”
       
      Agree that they have been involved in criminal behavior for a very long time and in virtually any time, place, and cargo that can be imagined.
       
      “The loss of jobs and movement of manufacturing may well not be aimed specifically at the US, UK, French and other government or the peoples of the countries but at the Owners of the Central Banks for all the profiteering and malignant geo-political bullying “arranged” to maximise the “take” of their businesses.”
       
      An interesting thought, indeed, and one that had not occurred to me.  But when presented, as you have here, it makes a great deal of sense.  Do the Chinese have their own equivalent of these old banking cartel families?  One would think that they would.  If so, are they the ones pushing this to bankrupt their competition?
       
      “…no wonder the Fed and US Tresury don’t or won’t let anyone see the “stockpile”, they are over a barrel.”
       
      If they had the gold that they claim to have, showing it and auditing it would be the best way to halt all of the speculation about it in its tracks.  It would be the best political move as well.  Yet, they are not doing that and I believe as you do that they do not do this because they can’t.  They simply either do not have it or it has become so terribly encumbered that they do not know who owns it.  Rehypothecation is one thing but if it is done hundreds of times, all sense of ownership must be lost by now.  Then again, perhaps that is all part of the criminal plan… sell the same gold bar many times over but store it in their secure vault where it never leaves.  When the game is discovered, well, they still have possession of the physical gold and can simply keep it… probably for “state security reasons”.
       
      “One of the effects of this is the Owners of the Big Banks of the US have to push metals prices down so it doesn’t cost them so much in the loss, but that is not going to work because once the Chinese have what they believe is the lions share of the PM’s or they believe that the se Banksters are dust they will dump those tresuries anyway and the Dollars the Banksters have been trying to save will be worthless in the end – A LOSE LOSE situation.”
       
      I agree that the banksters, particularly in the UK and the US, have colluded and conspired amongst themselves and with the Govs of these two nations to manipulate the prices of gold and silver.  Gold is surely their primary interest but silver is coming into its own as both a precious / monetary metal and as a highly valued industrial metal.  I believe that they have done this to skim massive profits from these metals on both the long and short sides of their trades and that the Gov allows this as the price for them depressing the metals and making fiat currency and Gov bonds look better to investors than the fundamentals of those things can support.  It is indeed a criminal conspiracy of epic proportions.  
       
      What I have a harder time with is the thought that the banksters really care about fiat currency.  I see them as using it as a means to an end and that they really do not care about it other than as it serves their purposes.  As Thomas Jefferson pointed out over 200 years ago:
       
      “If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered…I believe that banking institutions are more dangerous to our liberties than standing armies… The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”
       
      We have seen this happen.  Although it happened many times during the 1800s, the best examples are ones that are closer to our time.  Specifically, this would be the Panic of 1907, a serious recession that prompted the Gov to “do something”.  Well, they did, and it was of dubious constitutionality with the creation of the Federal Reserve System in 1913.  Not coincidentally, the US income tax was born in that very same year.  I believe that this was done specifically to enable the payment of the debt for the currency that the Fed would borrow into existence.  We also have the example of the Roaring 20s (inflation) and the resulting collapse of the 1930s (deflation).  We saw a replay of this in late 2007 / 2008 with the collapse of the housing bubble and MANY foreclosures of homes and businesses.  It is through this loan and foreclosure whipsaw that these things are stolen by the banksters, only to be sold later when times are better.  Repeating this process about every 40 years allows the US Treasury to be milked on a regular basis and always by these same banksters.  Lately, they have refined their theft procedures to include outright grants of free money directly from the US Treasury.  What these bastards deserve is to be hung.
       
      “More reason to keep stacking, make hay while the sun shines and yay for cheap metals : )”
       
      Agree 100% and am pursuing a plan to add to my stack on a regular basis.  I believe strongly in the *4* precious metals: gold, silver, brass, and lead.  ;-)



    • Bloody Hell we’re waking up the Sheepie. Ahaaaaaaaaa Gotta get more Physical. Keep Stacking.

    • It IS a vexing question, isn’t it?  Is it better to awaken the sheeple and have more friends on board the PM bus or is it better not to awaken them and generate a lot of additional competitors in the silver buying market?  ;-)
       
      So, Charlie… did you get some items for the stack this weekend?

  10. The truth is not to be reported, EVER. Thats why they call themselves “journalists” and not reporters. They are no longer in media to report the news or facts but rather create the news and omit the facts.

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