Bill Holter says that US dollar velocity is the key, but no matter what the Fed does to increase spending, velocity will just not pick up. Then there is the distinct possibility that gold drops all the way down to $10 per ounce before it’s over…

Bill Holter interviewed by Dave Janda

There are times when price and reality are two very different things, and Bill Holter discusses a scenario where that is highly likely. The price of a paper asset versus what is payed in the real world might be staggering, so much so that when the gold cartel pushes too hard, there simply won’t be any gold to come out of hiding.

Bill is concerned for the latest developments with China and Russia regarding ditching the US Dollar. The days of the greenback are limited, and the latest moves, such as the Chinese “oil for gold-backed yuan” settlement pick up velocity in one way – away from the dollar.

In this must listen interview, Bill and Dave bring everybody up to speed on the state of the economic collapse and brewing fiat currency crisis.

    • Be careful or you’ll get called a Troll for stating correct facts on this site.  For the past 6 years the drum beat has been gold n’ silver to da’ moon next month.

      Next month you and your family may be standing in a soup line unless you’re wise enough to take out a 2nd mortgage on your house immediately to buy the metals. 🙂   Quick do it while you still have time.  LOL!!  If you do that then you’ll be sittin’ like a King.  Anyway that’s what I remember was their apocalyptic Doom Porn mantra from around 2011 and 2012 back when I actually listened to these people. Also, make sure you lose weight along with everyone else otherwise they’ll figure out you have a stash and come to raid your household.  LOL !!  🙂

      Today they seem as equally as lost and still unable to forecast their way out of a web paper bag!

       

    • Holter for years has been using fear porn and has been forecasting a dollar and Dow collapse, Comex default and bankruptcy, credit freezes, supply chain disruptions, all markets are manipulated and of course metals going to the moon. None of these have been correct. What delusional nonsense! For over a year people like this have been forecasting a dollar and Dow collapse and it hasn’t happened and won’t. Capital flows especially international capital flows has been moving into both of these most from Europe as the euro, the EU, most of its banks and countries are in serious financial trouble. If you control large amounts you are not going to park it in a collapsing currency or banks in trouble. Capital is simply being parked in markets where there are large pools of liquidity and that is the dollar and the Dow and this will continue. According to Armstrong Economics computer models which track these flows in world markets both the Sovereign Debt and Monetary Crisis will hit in 2018 in Europe. All of their clients are still moving capital out. The models are also forecasting the worst for the Dow is a normal correction at a maximum 8% before moving to 23,000. The reason is that currently we have short term dollar weakness and even if entities in Europe wanted to sell they would not because when they converted dollars back to euros they would take a hit on the exchange rate. This guy is just clueless.

       

      Now a strong dollar would collapse the international financial system. The FED knows this and went into panic mode attempting to weaken the dollar and stopping the capital flight out of Europe. They have been attempting to jawbone markets down using the big banks and Greenspan and Rickards. They even marched out the head of the CME claiming gold should be at $5000 and Rickards at $10,000. They have planted stories like bringing out a BoA analyst claiming that gold is ready to take off. Goldman said gold is a currency and its head claiming all markets are overvalued. They even planted the Chinese BULLSHIT that they were going to allow the yuan to be fully convertible to gold which they are not. This would increase the value of the yuan and collapse their exports, their economy and the new silk road project. They are not stupid. The article states that the yuan would be convertible to gold on the Shanghai International Energy Exchange and the Hong Kong Exchange. The market in Hong Kong is stocks and there is no mechanism to allow convertibility to gold nor are there any plans to do so. If you go to the other exchange’s website there is simply no mention of this convertibility. This is all BULLSHIT!  Then of course we have Trump coming out wanting to do away with the debt ceiling all attempting to weaken the dollar. Even Deutsche Bank came out claiming the US equities markets are going to collapse. Why? The Bundesbank is owed close to 1 trillion euros from central banks in southern Europe as the capital flight has also been moving to Germany. Folks are we seeing a pattern here yet? This all shows how desperate the FED has become and they know the euro is going south along with Europe and there is nothing they can do to stop it but by bringing out the shills jawboning markets down. So much for the absurd nonsense that some “cartel” is suppressing prices to instill dollar confidence. With all this going on the net is still full of people claiming this. Totally clueless people!

      Now the dollar will remain THE reserve currency for at least 10 years according to Martin Armstrong. Why? Countries do not like to hold large amounts of foreign currencies because they do not pay interest. They buy foreign sovereign debt and the US has the largest and most liquid on the planet. China is developing theirs but this will take at least a decade to be large and liquid enough where countries can utilize these. Countries are fully entrenched in dollar based assets and this is not going to change anytime soon as where else are you going to park capital? China was actually forced to set up currency swaps with many trading partners as dollar strength increased trade settlement cost and it is not because they lost faith as many claim. China bought billions in treasuries in both June and July and these proves it. No one buys a countries sovereign debt without having faith in the currency.

      50% of all international trade is still settled in dollars. 75% of all international financial transactions are done in dollars. Most commodities are quoted and sold in dollars around the planet. Banks have lent trillions to foreign entities in dollar denominated loans all serviced in dollars. All of this creates demand for dollars. In fact this is why the SDR was created to provide liquidity to central banks when there are dollar shortages in foreign markets which happened at the end last year and at the start of the year all caused by  the capital flight out of Europe.

      The idea that both Saddam and Omar were killed because they were going to not use the dollar is BULLSHIT. The US actually backed the creation of the euro as they wanted it to be a major world reserve currency and take pressure off dollar strength. By Saddam using the euro this would have actually helped the US in achieving its goal. They both were killed for their country’s natural resources. Period! End of story! The petrodollar died years ago and this is why Congress threw the Saudis under the bus. The whole  purpose was to flood the international financial system with dollar and treasuries and this was accomplished decades ago.  Canada actually exports over 3 times the crude to the US compared to the Saudis.

      Whether the US has gold or not is meaningless as it no longer backs the dollar. The total amount claimed at today’s prices is extremely small compared to the total amount of US liquidity so it makes no difference. There are actually claims on the gold by countries who received dollars instead of gold when the gold window was closed and the US violated the Bretten Woods Agreement. Those that promote gold keep pushing this nonsense as if it was meaningful to any economic or financial reality. It is not!

      No matter how many times these guys repeat the absurd nonsense that gold is money does not make it true. You can’t use to buy anything and like all other assets you cannot realize their value until it is converted back into a currency. It is funny how we always go back to those supposedly worthless fiat currencies. As Martin Armstrong has stated, fiat actually means that a government has approved it use as a medium of exchange whether it is paper currencies, digital currencies or gold or silver.

      Central banks are not propping up markets by buying assets. Only a handful have bought stocks like the Swiss central bank and this is because they want the quarterly dividend distributions as there is very little yield in other assets. The FED cannot buy equities or corporate bonds as they have no mandate to do so. They are limited to treasuries, US government backed agency debt, SDRs, other currencies, etc.

      The net has been completely full people posting total BULLSHIT and these people are just clueless. Folks this is fear porn! Talk about your fake news!

    • OMG Another Einstein !

      Take government intervention out of the markets, and your stupidity (and allegiances) would be revealed in less than a day.

      Pathetic troll. Hope it’s worth it, traitor.

    • Some of you guys make me laugh…

      I read this site often and almost everyone that reads an article has something negative to say about it and more so about the author.  Not agreeing with everything the author says is ok but that’s not what’s happening here…

      Don’t group Bill Holter with Bo-loney, or Rickards. Holter knows what he’s talking about.

      He’s actually said that we’re in unchartered waters and anything can happen. The FED and the powers that be can keep kicking the can down the road for another 10 years.

      And as for the price of silver and gold… they’re being manipulated… obviously.

      And many of you also jump on the Berwick bashing bandwagon. If anyone has had some accurate predictions it’s him.

      The poop is going to hit the fan very soon. It’s going to get nasty.

      Solarguy out

  1. I agree that slamming Holter is easy… and slamming me is probably easier.  I have been preaching doom for years… yet the Fed has held it together with lies and duct tape.  Holter is not talking about the price of physical gold going to $10… He is talking about the price of paper gold on the comex going to no bid… as the dollar is dethroned as the reserve currency.

    Things are rapidly changing now and all fiat currencies will be shaken or inflated  to their true value.   Every country is trying to drop the value of their respective currency… currency wars.  Markets will collapse.  Hell… if you don’t believe that… then why stack… and why hang out on a metals site?    Mock and scoff… but what if you are wrong… and the Holter dooms-clock finally ticks into reality.    Pretend and Extend can’t go on forever.

    • It does seem to be a matter of not if but when. I can’t imagine that the ‘when’ will be measured in years but then again I don’t think anyone has correctly predicted that the chicanery would have lasted as long as it has.

      I am curious though about this continual ‘gold backed yuan for oil’ meme.  How did this come to be known as ‘fact’, which many gold prognosticators/enthusiasts seem to take for granted? If this is in fact true then the when may be sooner rather than later.

    • “Holter is not talking about the price of physical gold going to $10”  

       

      What a great Segway  @Rallyman Thanks.   
      I just can’t *%$#ing believe this. They say that people are stupid (in all countries, not just Americans).

       

      As I’ve said before Mark, come and try this in Melbourne Australia, while I’m in town LOL.   _JOHNLGALT.   

       

       I just posted this on https://www.silverstackers.com/forums/index.php?threads/mark-dice-trying-to-sell-a-1-oz-gold-coin-for-25.86250/#post-1027741 

       

      Selling 1 Oz Gold Coin for $25 (when it’s worth over $1,500) – at the time.

       

      Mark Dice trying to sell a 1 oz. gold coin for $25

       

      https://www.youtube.com/watch?v=ndshbH3qZ6Y  

       

       

    • 1oz gold coins in Australia are mark’ed 50$ too, aren’t they? It might have been easier to sell the coins for face value. But then again, if you don’t follow financial markets your toast anyway. And that would make the issuer of the coin look like a stupid sob.

    • okay, it’s you’re toast. I didn’t listen to Holters interview, sorry. I enjoyed his writings before he started making a living from them. But I understand. In a reset you would want to start counting at 1. Or maybe 0.001, LOL. It would also give back some seignorage back to the coin producers. Silver could keep its one dollar status. cheers. I’m all for gold at 10 bucks. If inflation is always a monetary phenomenon, well deflation is too, and it means money getting worth more, basically. So what would hyperdeflation look like? hmm, gold 10$? yup, sounds logical to me. cheers again.

  2. Although I welcome the fact that you are publishing something different than “to infinity and beyond”, I don’t think $10 is entirely realistic.

    Basically, they can suppress the metals to their cost of production.  Because at some point, physical supply from miners and scrap has to match actual industrial, jewelry demand, etc.

    Right now, that appears to be around 15 to 20 silver, 1200 to 1300 gold.  May go up, may go down, but that’s irrelevant.  The point is, they can always suppress any bull moves because people just speculate in paper, which they can issue an unlimited quantity of.

    Game over, exit while you can, it’s not worth it anymore.

  3. Lets see if this works, $10 dollar gold and $1 dollar silver. Dam I spent way to much fiat on gold and silver over the past 29 years. lmao.. Naw.. pms will continue to slowly climb in value till the US dollar is no more. GS and hedge funds are buying the pm on the lay low, like JP Morgan Chase has, but they have not accquired that big a pm stack, yet.

    Buffett with his 100 billion in Cold Cash sitting on the sidelines, could be an enormas player in the pm phyzz market if he so desires. Just 5% would be 5 Billion, that’s a whole lot of shiny phyzz. just sayin..

  4. You idiots miss the point – that the disconnect between gold and a fiat will be complete.

    It won’t make any difference if it is 10 bucks or 100 bucks, or a 1,000 bucks.

    Maybe you can get some training wheels to stick in your ears till you can think for yourself.

    Ignorant boobs.

  5. I just listened to the whole thing again and I have to say that despite Bill’s purported track record, I never heard him predict that gold would be $10/ounce. I think that at one point he did say that ultimately the price would be irrelevant because wealth would be measured in ounces, not in dollars (or other units of currency).

    He may have then also said something to the effect that then it wouldn’t matter if the price was $10 or $10,000,000 since fiat currency would no longer be a valid measure of wealth but he never predicted $10/oz gold in the sense that anyone would be able to purchase an ounce of gold for $10.00

    In that regard I think he is right but again it all comes down to not if but when…

  6. How about this line of thinking:

    When Mnuchin tweeted “Glad gold is safe” is there any chance this was a signal to the elite to buy physical gold? Was Mnuchin hinting gold is ‘safe to buy’ because there is none here at Fort Knox and the price will go up when some establishment figure states they believe the vaults are empty?

    I look forward to the day the Vampire Squid publicly states that it is its opinion that the USA does not own any above ground unencumbered gold.

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