gold eagleWhen does the current unsustainable and lopsided business model of the precious metals market blow-up in a default?   To address this question, Catherine Austin Fitts, a former Wall Street insider and Assistant Secretary in the Bush I administration, takes us on a tour of the present ‘slow burn’ of Central Planning with the two key dynamics at play. Though she feels the primary trend of Gold is up over the long term, there are critical short term hurdles now hindering the central planners.
Both impact Gold. Within this context Catherine defines what she refers to as the Breakaway Civilization and how “Mr. Global” operates within it:

Lowered Prices




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  1. I don’t trust this old bird. Awfully bright and awfully nice, but, I believe she is an insider. The term Breakaway Civilization is a hugely suspicious term, implying that there is simply no stopping the globalists (=zionists) (to see a few of them in action click here And while the chances of stopping them may be unlikely at this stage (sadly, that is my opinion), it is simply predictive programming to use such a term BEFORE the evil work is completed.
    Another angle on it is … who works (at this level) for Bush and is NOT an insider?

  2. It’s going to take a huge crisis(such as the gfc 2008), to ignite PM prices, i sense something big is coming, maybe  a series of events that culmanate into something huge. I wonder what it will be in the end? A war, bank runs, hyperinflation, an asassination?, all of the above? Now i wonder where i left my crystal ball.  What will be the final straw? the trigger? I’ll take a guess, i’d say this happens within 5 years time and war is very central to the final economic collapse. What do you guys think?

    • Hate to say it, but this is getting to be War territory. If there isn’t demand, nothing like a good old war to create demand. World War two did wonders for the economy…

    • @bayofpigs
      Demand, as in economic demand for products, services and commodities. Velocity of money. Not demand for physical. God your on a mission aren’t you?  No looking left or right for you…just metal, can’t see nothing but metal 🙂 

    • i’m with silver on this one, if demand is really off the hook, wouldn’t the natural state be for prices to rise?  If not paper, then certainly in the cash markets, yet premiums keep shrinking everywhere you look as the big pm dealers try to outdo one another to gain market share… which of course they should do.
      anyone in the dealer biz wants to make as much money per product and sell as much volume as they can, and price their products accordingly, when the market will bear more they’ll charge higher prices.  I’m sure the best dealers made good money on the crash having bought cheap premiums and then raising their premiums to 7-10 immediately on the crash, recognizing the demand would be huge, that inventory sells out, they buy more at cheaper premiums than they sold and sell that new inventory.  That cycle appears to have happened a few times now.
      We all look at us mint data, wouldn’t it be great to see some Tulving, Provident, APMex data on all silver sales.  I bet after the initial drop sales are steady to sluggish based soley on what i see in the cash markets, and my view is not even in the cheap seats, its through a hole in the fence at the ballgame!

  3. Interesting post, I liked it a lot.
    Couple of questions:
    Can you debase a Fiat Currency (backed by nothing)?
    The commentator mentions Hyper Inflation, has the US ever had it?
    The commentator mentions Hyper Inflation, speaks of velocity, the graph comes up, it shows the velocity ratio low, where will this inflation come from, let alone hyper?

  4. When Ms. Fitts said that the PM manipulation could go on ‘forever’, I was tempted to immediately bailon the interview. There’s a finite amount of circulating gold and ‘forever’ isn’t physically POSSIBLE. All her econometric gobbledygook and unqualified presumption that ‘central management can manage longer that anyone thinks’ is totally unrealistic.
    Midpoint in the discussion I was particularly fascinated in a tracking detailed by Mr. Long, discovering a consistent correlation between gold ‘price’ and bank balance sheets of 210 per ounce per trillion extending back into the late 1980s. Great. Just wonderful. That’s a dead give-away as to just how stupidly over-valued their ‘new’ … ‘gold-backed’ … banknotes will really be. ‘Meet the new boss, same as the old boss.’

  5. @WaitingForSilver–Whenever I hear people say war is healthy for the economy I feel my head about to explode. If you pay for the war with deficits it will appear that the economy is better because of the increased employment. If you accept that demand is low and you need government to step in, why would you spend it on bombs and bullets which benefit no one but the people with the new jobs producing something no one can use? And besides, you are maiming and killing people!!!! Are you telling me that there are no infrastructure improvements which could actually increase the bs GDP numbers and actually improve the living standards of the populace?? Instead of war, it would be less destructive if we started a company run by the federal government that built refrigerators and then dumped them in the ocean!!! 

  6. This interviewed rocked!  I thought they gave some pretty good insight on what is going on in the world.  Ms. Fitts gave a good interview.  You have to listen fully to understand what they are saying and not bypass just “fly words”.

  7. I find war abhorrent. But wars are created for financial reasons. Just look at history.
    The mobilisation of America during world war 2 got the American economy out of a real economical doozey.  The lending of money also created a dependency on the dollar and world wide political power.
    World war 1 and 2 were wars generated by the foulness of Empire. Its just a shame that the story wasn’t picked up that economic systems are symbiotic and not one country beating another.
    If your going the infrastructure route then your talking Keynesian economics. Wars whether we like them or not are exports.
    I hate war. Especially ones generated by selfish greed.

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