China goldHas the END-GAME Begun?
BIG NEW DEVELOPMENT ON GLOBAL FRONT
Chinese finance officials and the Basel-based BIS are NEGOTIATING A GLOBAL REFORM OF ALL BILATERAL CONTRACTS.  They strive to alter US Dollar based contracts, and CHANGE THE CONTRACT TERMS TO GOLD SETTLEMENT.
THE CHINESE & BIS ARE WORKING ON A GLOBAL CONTRACT AT THE $5000 GOLD PRICE…

By Jim Willie, GoldenJackass.com

The big US banks are dead, as in giant hollow reeds. Such has been the Jackass refrain for eight straight years. They are insolvent monsters and destroyers of wealth and capital. They are massive criminal enterprises. Events prove the case well. The Too Big to Fail policy has instead assured the wreckage and destruction of the USEconomy. Save the big banks, but ruin the capital base. The USGovt under the management of the banker cartel since the 9/11 event, which they orchestrated in a bold move, has systematically brought down the macro business sector, permitted the USDollar platforms to decay completely, and rigged the financial markets in every conceivable arena. The central bankers are running scared. The Jackass wishes they would all depart in exile, locate on a lovely Polynesian island, and eat each other, with the winners wearing their bones and teeth.

 

USTREASURY BOND BLACK HOLE SEWER

The growing fear about the global banking system has driven the 10-year USTreasury Bond yields to all-time record lows as a safe haven. Investors might perceive the powerful 2016 Silver Eagles SaleWestern Economic recession, provided they are not of low intellect. The USTBond Black Hole is drawing capital from the US land mass and the global centers, just in time for the new currency launch with devaluation. The wealth loss will be magnficent for all the dopey clumsy mindless investors who believed the bond market offered safe haven. No security can be offered by a bond market with almost no legitimate buyers, an annual $1 trillion deficit (huge supply), and deep dependence upon the Interest Rate Swap derivative contract which produces artificial bond demand at zero cost. The free ride comes as a result of the Zero Interest Rate Policy, which will never change. The entire bond market depends upon it. The truly remarkable fact is that millions of investors believe the USTBond market is a safe haven. Let Darwin do his work, and remove them from the scene, along with their wealth, which is mostly phony anyway.

 

Meanwhile, they might enjoy a little more gains as the TNX sets sights on 1.0% flat on the yield. The risk is acute from a list of dangers. a) The derivative machinery might break down. b) The actual price inflation might be published, as well over 6% or 7%. c) The pension funds across the United States might be forced into new Special Treasury Bonds, and thus tarnish the pristine USTBonds. d) The New Scheiss Dollar might be launched, with a devaluation, casting a bad light on the protected USTBond toilet paper. e) Narcotics might be revealed as holding up the entire US banking system nucleus, namely Wall Street banks. f) As new gold-backed currencies arrive on the financial tables, the USDollar might be recognized as a Third World currency with nearly $20 trillion in debt to default.

 

willie

 

The TNX reached lows of 1.35% in recent bond trading. The rebound will face resistance with the pair of declining moving averages. The captive range for around a full year was 1.75% to 2.45%, showing a 7.0% range. Subtract the potential to arrive at an intermediary target of 1.05%, which due to the psychological factor can be called a 1.0% target. Loud gongs and alarms will go off when the target is reached, not if but when. To claim an economic expansion is in place is one of the greatest economic lies ever told. The nation is gripped in its eighth consecutive year of recession.

 

Here is the significant factoid, drawn from historical records. New history is being made. USTreasury yields during the Great Depression were notably higher than today, which should warrant a serious dialogue on the reckless monetary policy stuck in place by the US Federal Reserve. They are conducting ruinous experiments with Quantitative Easing which have driven out legitimate bond investors. They claim reinvestment of principal gains on a $4.5 trillion Fed balance sheet. If truth be known, the USFed is sitting on the largest toxic waste paper basket in history. Its only close rival is the Euro Central Bank, which has over $3.0 trillion in its toxic paper vat. They each act as buyer of last resort, of garbage. They will each be declared bankrupt entities, a process well along in stages.

Best Prices on 2016 Silver American Eagles!
2016 Silver Eagles Sale

BIG US BANKS ON THE BRINK

The Wall Street bank stock selloff was powerful from July 2015 to February 2016. The rebound has been pushed surely by the USFed easy money channels. The central bank has no authority to buy stocks, but it does so via its bank cohort accomplices. The declines have put the big US banks in the danger zone. Their selloff will resume soon, as the moving averages for the Bank Stock Index BKX are in a downward slide, and the downtrend line is strong in resistance. Their monetary policy has undermined the safety and soundness of behemoth banks that constitute the core of the US financial system. Attention could be given to the broken banks and the decidedly errant heretical policy. A risk stands for the big US banks to be suddenly booted from the revered Dow Jones Industrial Index, the marquee stock index. They are insolvent hollow reeds, steeped in criminal activity. Their profit is from bond carry trade and accounting gimmickry.

willie2

 

The chart shows an important turning point in the making. The intermediate downtrend provides some strong resistance. The moving averages were penetrated quickly, probably with enormous easy money from the USFed pushed into bank stocks. The move up in the last week for the BKX index went against the Jackass forecast in the July Hat Trick Letter report. The banks are their boyz, a protected lot. The 20-week and 50-week MA’s might still serve as some resistance, to be seen immediately. The inescapable truth is that the big US banks are deeply insolvent and dependent upon casino activity and narcotics money. They have been perverted beyond all recognition in the last two decades. The Jackass maintains that a major systemic Lehman event is in progress, with the collapse of several national banking systems. The risk is ripe for bank failure in contagion. Italy and Germany are in focus.

 

The on again off again USFed rate hike talk in 2013, 2014, and 2015 has worked against the big US banks. The hint or threat of a rate hike sends their stock values down. At the same time, the next in the endless series of fraud investigations (never criminal for the exceptional players) also works to send their stock values down. They had to absorb $280 billion in just fines and penalties from bond fraud in the last few years. Then tack on the credit portfolio losses, most recently suffered in the energy sector. With QE to Infinity stuck in place, and lending to business put on hold due to endless chronic economic recession, the big US banks look vulnerable to a systemic breakdown. Nothing describes better the systemic Lehman event heralded by the Jackass than the BKX Bank Index and $750 trillion in derivatives on the verge of blowing up.

 

MONEY VELOCITY CONTINUES DOWN

Nothing displays the failure of modern central bank monetary policy better than the falling Money Velocity chart. They speak of stimulus, when the only benefit is to big banks in redeeming worthless bonds. They puff up the bond market, even the stock market. They neglect the muni bond market. They send wrecking balls into the pension fund system and the insurance company sector, which cannot possibly cope with the nil interest rate yield. No stimulus is given to the USEconomy by sustaining dead insolvent criminal enterprises call the big US banks. The QE monetary policy is destroying capital, seen in the mass of corporate job cuts. The USEconomic recession rivals the Great Depression, in all but recognition.

 

willie3

The proof is in the pudding, the money velocity defined as the number of annual round trips for existing money within the system. If truth be told, and it never is by the big banks or their agents running the USGovt, the USEconomy has been mired in recession since 2007. The gray shaded area should extend all through 2007 and in every year since. However, the Fascist Business Model rules dictate that any desciption of economic performance must place an adjective before the word RECOVERY. The favorite is the sluggish recovery. Mine is the fierce economic recession that qualifies easily as a depression.

Silver Rounds From 49 Cents Over Spot!
Silver Rounds SD Bullion

DESPERATE MONETARY POLICY MEASURES

Many are the desperate monetary policy measures. It has been over three years since Bernanke admitted that the USFed had exhausted its standard tools. It has had to resort to non-standard tools since that time. Each policy item is fraught with risk, danger, and a deeply destructive element certain to undermine the wrecked monetary system to yet another level of degradation. The high risk desperate policies are racking up, adding to the risk, worsening the central bank integrity. If some professor had been asked in the 1970 decade about current modern day policies, the response would have been that none could possibly be installed, since all are insane, destructive, and counter-productive. Yet they are all in place, and more might be soon proposed. They are necessary to sustain the broken system. Consider the list of truly mind-boggling insanity in monetary policy.

 

  • Zero Percent Interest Rate: It causes distortions in asset allocation. It wrecks the pension system and insurance sector. It offers no reward to savers. It acts like a wet blanket on the entire economy. It makes a mockery of the entire credit system. However, it is required to fuel the Interest Rate Swap derivatives which make artificial bond demand, from the feeder tubes.
  • Quantitative Easing & Bond Purchase: It redeems worthless bonds owned by the Wall Street banks, providing them with urgently needed liquidity and capital. It prevents big US bank failures. It has been exported to the BLICS nations as secondary buyers of USTreasury Bonds. It forces hedging, thus raises the entire cost structure, resulting in lost profit margins. The result is killed capital, shut down in businesses, and job cuts. The experiment has failed, since no stimulus is evident within the chronic recession and decline in Money Velocity.
  • Negative Interest on Savings: It will encourage departure of money held in banks, and soon cause widespread bank runs. It will push investors into the Gold market. It is possibly required in order to maintain a constant spread on the bonds, from long-term to short-term. It is a banker elite tax on the entire system, like vultures.
  • Bail-in on Private Accounts: It is a powerful threat on confiscation. Banks require 50 to 100 times more funds than private accounts, in order to be rescued from derivative losses. It is a nationalized poverty step imposition. More risk of bank runs from threat of loss in accounts. More banker desperation and tax.
  • Phony Interest Rate Hike: The effective Fed Funds Rate made the USFed out to be a liar. It was a gimmick to enable Reverse REPO bond purchases. It resulted in the big US banks leveraged higher. Think taller narrower Tower of Babel, more unstable.
  • Helicopter Money Dispensation: It is lunacy. The effect would be fleeting. The prices would rise immediately, then return to the previous levels. Nothing spells central bank stupidity and recklessness more than helicopter money drops on households. Its administration might be a nightmare, since those receiving the funds probably would see it from tax rebates. The lower class might not see anything hit their lawns. The fuse again might light the Gold bullion market. Any helicopter drops would mean the end of the central bank franchise system. Bring it on!

 

BIG NEW DEVELOPMENT ON GLOBAL FRONT

THE CHINESE FINANCE OFFICIALS AND THE BASEL-BASED BANK FOR INTERNATIONAL SETTLEMENTS ARE NEGOTIATING A GLOBAL REFORM OF ALL BILATERAL CONTRACTS. THEY STRIVE TO ALTER USDOLLAR-BASED CONTRACTS, AND CHANGE THE CONTRACT TERMS TO GOLD SETTLEMENT. THEY ARE WORKING ON A GLOBAL CONTRACT AT THE $5000 GOLD PRICE IN CONTRACT CONVERSION. CHINA REPRESENTS EASTERN INTERESTS, WHILE BASEL REPRESENTS WESTERN INTERESTS.

It is not yet clear what will happen to commodity price mechanisms.

 

If and when the global contract reform is completed, all bilateral contracts will be shifted into Gold settlement, no longer USD settlement. The result will be the USGovt is then made free to launch a domestic-only new USDollar, called disrespectfully the New Scheiss Dollar by the Jacksass for the last two years. It will resemble a Third World currency, and be subjected to a sequence of devaluations. A $500 billion trade deficit will require several years to overcome. If reduced by 50% in five or six years, it will be a miracle. The $1 trillion federal deficit has a different solution in mind. The USGovt plans to commandeer pension funds, forcing investment in the Special USTreasury Bond. It will not be a confiscation, but rather forced conversion with all the disadvantages of currency devaluation that come.

SilverMapleSDBullion

HAT TRICK LETTER PROFITS IN THE CURRENT CRISIS.

“As a Golden Jackass subscriber, I greatly enjoy listening to your interviews because it really lends a sense of passion that lies behind the tremendous body of information and formulation that goes into your monthly research. Though I must admit, it scares the hell out of me most of the time. Still, I will not miss it for the world. I feel that having a truly objective insight from your research, in depth analysis, and accurate forecasts gives me and my family an important life saving advantage. And I mean that sincerely.”

   (MichaelS in Ontario)

“I have continued my loyal patronage of your excellent commentaries not so much because of my total agreement with your viewpoints, but because you have proven yourself to be correct so often over the years. When you are wrong, you have publicly admitted it. You are, I suppose by nature, an outspoken and irreverent spokesman for TRUTH against power, which differentiates you from almost all other pundits on world affairs.”

   (PaulR in Hawaii)

“For over five years I have been eagerly assimilating any and all free information (articles, interviews, etc) that Jim Willie puts out there. Just recently I finally took the plunge and became a paid subscriber. I regret not doing this much sooner, as my expectations were blown away with the vast amount of sourced information, analysis tied together, and logical forecasts contained in each report.”

   (JosephM in South Carolina)

“Jim Willie is a gift to our age who is the only clear voice sounding the alarm of the extreme financial crisis facing the Western nations. He has unique skills of unbiased analysis with synthesis of information from his valuable sources. Since 2007, he has made over 17 correct forecast calls, each at least a year ahead of time. If you read his work or listen to his interviews, you will see what has been happening, know what to expect, and know what to do.”

   (Charles in New Mexico)

“A Paradigm change is occurring for sure. Your reports and analysis are historic documents, allowing future generations to have an accurate account of what and why things went wrong so badly. There is no other written account that strings things along on the timeline, as your writings do. I share them with a handful of incredibly influential people whose decisions are greatly impacted by having the information in the Jackass format. The system is coming apart on such a mega scale that it is difficult to wrap one’s head around where all this will end. But then, the universe strives for equilibrium and all will eventually balance out.”

   (The Voice, a European gold trader source)

Jim Willie CB is a statistical analyst in marketing research and retail forecasting. He holds a PhD in Statistics. His career has stretched over 25 years. He aspires to thrive in the financial editor world, unencumbered by the limitations of economic credentials. Visit his free website to find articles from topflight authors at  www.GoldenJackass.com. For personal questions about subscriptions, contact him at  [email protected]

Buy Junk Silver Coins at SD Bullion
As Low As $1.29/oz Over Spot!

LIVE and Historical Data

    • Rocks in his head, more like… do you dig his many references to ALIENS in his newsletters?  He has toned that down lately, as his newsletter subscriptions have tanked, me being one who left.  And if the banks have been dead for 8 years… why are they still operating?  Let me guess, government crooks keeping them alive… but EIGHT years?  Before Odumbo??  LOL.

    • DEBT CLOCK SHOWING TRUE METALS VALUE
      http://www.usdebtclock.org

      In 1913 the M2 Money Supply or Dollars in circulation was

      2.64 for each ounce of Silver on hand

      29.13 For each ounce of Gold

      Giving us A  Silver Gold ratio of 11-1

      Today we have 879.73 Dollars per ounce of Silver and growing

      Gold is 7959.00 Dollars per ounce and growing daily due to QE.

      Our new Silver to Gold Ratio is 9-1 which is almost our present day mining Ratio.

      SO REMOVE THE PAPER OUNCES AND THIS I BELIEVE IS

      THE TRUE VALUE OF GOLD AND SILVER.

      ANY TROLLS READY TO POUNCE?

    • I suspect that when we see $5k AU,

      We will see $25 Starbucks coffee, $20 Chic Filets and $12 gallons of milk in the mostly empty selves grocery store.

      This is not going to end well…

    • SirKLN  writes ”

      In 1913 the M2 Money Supply or Dollars in circulation was

      2.64 for each ounce of Silver on hand

      29.13 For each ounce of Gold

      Giving us A  Silver Gold ratio of 11-1

      Today we have 879.73 Dollars per ounce of Silver and growing”

      Actually, all you have to remember is that in 1913, when an Englishman was paid one pound, it was a receipt for one pound of silver.  That is pretty amazing.  Queen Elizabeth smiles sweetly on today’s pound note which promises the bearer “redeemable for one pound.”  Of what?

      Gold is 7959.00 Dollars per ounce and growing daily due to QE.

      Our new Silver to Gold Ratio is 9-1 which is almost our present day mining Ratio.

      SO REMOVE THE PAPER OUNCES AND THIS I BELIEVE IS

      THE TRUE VALUE OF GOLD AND SILVER.

      ANY TROLLS READY TO POUNCE?

    • This time it wasn’t “The Voice” who told him…instead it was “Deep Throat” one of his mystery sources. And by the way John Kerry was shot be the Taliban, Fukushima was caused by an US HAARP attack and the Chinese eldest hold hundred thousands of tons of gold.

      Serriously, if China were about to introduce gold into the financial system they would have to get much more control over the global gold mining industry. In particular, they would try to acquire companies with large gold resources, such as Seabridge, Midas, Chesapeake, Exeter or Int Tower Hills. These companies have market capitalizations of around 150 mio US-$. I am not aware of any significant takeover by the Chinese. This tells me that Willie is either lying or he is an idiot.

    • Re: “they would have to get much more control over the global gold mining industry”

      Nope. China knows miners in foreign jurisdictions will get nationalized, so buying them is a waste of dollars. China exchanging dollars for gold at $5k/oz will be a good deal when the spot price is $15k/oz.

       

    • Skunkworks,

      not sure if it is a good ieda to steal from the Chinese.

      Generally, liquid markets do not allow different prices for the same PGM because of arbitrage. So, 5000 US-$ and 15000 US-$ for an ounce of Gold at the same time is an impossibility.

    • Unfortunately, just another “kite flying exercise” and a chance for Jim Willie to start another article with the famous words, “Has the end game begun?” …for the 33rd time in the last 48 months.  At this point, I am kind of hoping that the end game HAS begun, finally, maybe….????

    • This got me thinking. If this were true someone is taking a big loss. Is that the Chinese? Why take each ounce at 5k if they can buy one now for a lot less?
      Does not look good.

    • “Why take each ounce at 5k if they can buy one now for a lot less?”

      Maybe this is their way of revaluing gold to $5,000 an oz.?  If they do, then it will not be possible to buy it for a lot less because that will be the official price.  China has a HUGE gold hoard.  Depending on whom we listen to, it could be upwards of 25-30k tons.  Of course they would want this hoard to be as expensive as possible.  We all want the assets we own to be higher, rather than lower, in price.

      All of this looks to me like a fancy way of devaluing the US$ and other fiat currencies.  If so, then all of our fiat cash would become worth about 1/4 of what it is now while our gold and silver would be worth much more than we paid for them.  While all this certainly seems possible, one has to wonder just how likely it is.  Can we trust JW to know and share info of this kind?  :-/

       

    • @ed_b : so you are saying that there if they sign this deal, the price of gold can change overnight because the fundamentals are there but how do you explain the fact that you can get an ounce of physical gold today, at your door, for a lot less than that? Is it that everyone with money is stupid enough to not invest in gold?

      Or is it that your thinking is biased towards your desirable outcomes?

      Also regarding price: remember you can always sell some and buy back when it tanks, right? But that kind of strategy is never discussed I guess.

      Price will never fall, but guess what, it does fall and it will continue to fall.

       

    • Re: “Why take each ounce at 5k if they can buy one now for a lot less?”

      Please read FOFOA. It is impossible to buy a trillion dollars of gold at the current spot price.

      Yes, you can go to your local coin shop and buy one ounce, even one hundred ounces at current spot; but you can not buy 30,000 MT AU at the current spot price of $1,350.00 per oz. The market just does not work like that.

      Go back to 1981 and look at what happened to the price of Silver when the Hunt brothers tried to buy a big hunk of the silver market.

    • @SkunkWorks : I have read on this very site the following ..

      Adding this all together…For all of 2015, the Comex “delivered” 16,218 contracts of gold. This was 1,621,800 troy ounces of “gold” or about 51 metric tonnes.

       

      Are you saying that delivering 135k ounces per month is not happening? Because it looks like someone does get gold delivered from Comex. Also we hear so much about India, China, Russia, etc buying so much gold .. where do they get it from?

      About 3000 metric tons of gold per year mined, are you saying no one buys all that? They just mine it to stash it? Please elaborate.

    • @NotAnOwner

       

      “so you are saying that there if they sign this deal, the price of gold can change overnight because the fundamentals are there…”

      Yes, the price of gold can change at any time when governments move to set an official price that differs from the so-called market price.  FDR already did this back in 1934.  He reset the price of gold from $20.67 to $35 per oz.  One day, the price was under $21 and the next day it was $35 an oz.  The fundamentals had zero to do with it because it was a political decision.  The very same thing could happen again, only this time is will be China, Russia, and perhaps some Arab countries and not the US demanding a change in the official gold price.  Those who own a lot of gold want the price to be high, unless they are playing currency games that benefit from a lower gold price.  This is in their best interests.  Those who do not have much gold will not see this in their interests, so will oppose such a move.

       

      “… but how do you explain the fact that you can get an ounce of physical gold today, at your door, for a lot less than that?

      Quite simply.  They haven’t reset the current price of gold yet.  Until they do, we have $1350 or so per oz.

       

      “Is it that everyone with money is stupid enough to not invest in gold?”

      Stupidity may or may not have anything to do with it.  People who have significant financial assets often differ on how best to deploy those assets.  Some like real estate while others prefer stocks, bonds, cash, or precious metals.  In a lot of ways, this is a judgement call and not an IQ test.

      I’m one of those investors who can see value in many kinds of investments.  Because of this, I have a diversified portfolio that contains a number of different asset classes.  About 12% of what I own is in PMs.  This is a healthy amount and serves as an inflation hedge and insurance against financial disaster.

       
      “Or is it that your thinking is biased towards your desirable outcomes?”
      Everyone’s thinking is biased in one way or another.  Our biases are shaped by our life experiences, which differ considerably from one person to another.  No one is immune to this, although it helps to be aware of it so that it does not have undue influence over our decisions.

      “Also regarding price: remember you can always sell some and buy back when it tanks, right? But that kind of strategy is never discussed I guess.”
      Typically, this is not discussed because it is counterproductive to the way that many of us buy and hold gold and silver.  But yes, we can sell and repurchase at any time, if doing that seems wise at the time.  Those of us who see gold and silver as long term holdings think in terms of several years to decades as our holding time.  Because of this, we buy and accumulate and rarely ever sell.  We can if we want but we seldom want.

      “Price will never fall, but guess what, it does fall and it will continue to fall.”
      No one knows the future.  Gold and silver prices will do what they do and they are not predictable.  We’ve all seen every single person who tries to predict the future fall flat on their faces time after time.
      Every single investor needs to ask themselves, “What am I trying to do by owning this asset?”, “How long do I intend to hold it?”, and “What would cause me to either sell what I have or buy more?”.  Unless a person has good answers to these simple questions, they probably shouldn’t invest until they have had a chance to give these some thought.

    • @ed_b thanks for the lengthy and thorough response, really appreciate it.

      On a personal note you strike me as a guy old enough to know better, but also ‘young’ enough to stick with the answers he knows. For example you say “They haven’t reset the current price of gold yet” .. we are past that, gold is an investment now and the price is set on the open market, the price is no longer ‘reset’ by countries as in the past.

      That alone renders much of your assumptions invalid. But thanks again.

    • @NotAnOwner
       
      ed_b thanks for the lengthy and thorough response, really appreciate it.”

      No problem.  I do get a little carried away with this sometimes but do want to give as complete an answer as I can.

      “On a personal note you strike me as a guy old enough to know better, but also ‘young’ enough to stick with the answers he knows. For example you say “They haven’t reset the current price of gold yet” .. we are past that, gold is an investment now and the price is set on the open market, the price is no longer ‘reset’ by countries as in the past.”

      Your response strikes me as naive.  Not wrong, just naive.  Countries do all they can behind the scenes to affect the price of gold.  This is what all the gold and silver manipulation is about.  You don’t think that the bankers and hedge funds could do all this if it weren’t for government acquiescence, do you?  Yes, they are less obvious about it these days but this is all part and parcel of the rigging scheme in which so many engage.  With trillions of dollars in the LIBOR and FOREX markets and rigging there proved to have occurred, why not rig gold and silver?  Why not manipulate these monetary metals to the extent possible… quietly?  They can, do, and are doing this, most likely to support the value of their fiat currencies.  The pattern of manipulation is quite clear as has been pointed out by multiple authors on the web.  When a 7 or 8 sigma event occurs, it is WELL beyond what typical free market action is capable of doing.  It is not an accident or a freak occurrence.  It is being done deliberately, repetitively, and with purpose.  We can all disagree on what that purpose might be but it would be foolish to assume that there is no purpose to it or that it isn’t happening.

      What is likely to be coming over the next several years is a gigantic financial reset.  This is not just an opinion.  It is a mathematical certainty.  We simply cannot continue with what we are now doing with debt.  Dept has exploded and is threatening to overwhelm the financial and economic worlds.  The only question in my mind is whether governments around the world will reset the current system into something that is actually sustainable or delay making the necessary decisions and taking the necessary actions until this one implodes.  Good arguments can be made for either case and to me it looks a lot like a coin flip as to which way it will go.

      We can’t know what the future holds.  It just doesn’t work that way.  Best we can do is make the best educated guesses we can based on what we do know today and then adjust that as newer info comes in.  This can help us to spot trends before they become obvious and perhaps profit from them.  It could also help us to spot a coming train-wreck in the stock and / or bond markets, such that we can avoid substantial losses.  All we can do is play the odds as we see them.  But we can only see them if we are looking.  All too many people are simply not looking.  When, not if, the SHTF, they will be completely at the mercy of forces that are not only beyond their control but beyond their comprehension.  Sites like this one can help raise the level of awareness of many people, hopefully for the better.  Most will admit that it is better to be prepared than not.  This is why people buy health, life, car, and home insurance against loss.  If nothing happens and they are prepared, they will be OK, just like everyone else.  If something does happen, then they will be OK while many others are not.  Most on here believe that this is a better choice for them and their family members.

      A significant part of all this is that we do not know the level of desperation that will occur when governments face financial collapse.  What will they be willing to do that they are not now doing in their attempts to keep the governments running?  A common thought here is that they will do whatever they want and think will work.  If that includes breaking the law, then so be it because they are doing it for a “higher purpose”.  While that may actually be their intent, that path very quickly leads, as history shows, to the darker side of human nature and actions.

      “That alone renders much of your assumptions invalid. But thanks again.”
      That would be your opinion and you are welcome to it.  Many here, including me, have a different opinion on this.  We know that whatever has happened in the past can certainly happen again.  This is not a guarantee but it is in line with a legal theory called “precedence”, which uses the result of one trial to support legal actions taken in another trial.  It is a known fact that governments at one time set the prices of gold and silver in other units of currency as well as the prices of gold and silver in each other.  That they have done this before means that they can do it again, not that they must do it again.  One can also look at this as playing the odds.  While we can’t have much effect upon the future or on the behavior of the state and national governments, we certainly can have an effect on what we are doing to prepare for an uncertain future.  Anyone not caring to join us can do that too.  The choice is theirs.  But info and opinions are offered here as to what some of the better courses of action to take could be.  This is free advice that all are welcome to take or not as they think best.  But it would, IMO, be unwise to assume that any government has the best interest of its citizens as its primary raison d’être.  They do not.  Their primary interest is in doing whatever it takes to maintain the government and their positions in it.  History is loaded with examples of rather unsavory actions taken by governments, most often when they are under great stress.  Many here simply think that such a time is coming and that so are the unsavory governmental actions appertaining thereto.

    • None of my financial network sources have any feedback on this “story”

      Most likely just another Hat Trick trow it against the wall and see what sticks fabrication.

      BUT, that doesn’t mean the Idea has no merit. The Chinese are in an economic quandary with America, their greatest consumer trading partner world wide. How do they trade with the Yanks and not keep taking the FIAT USD toilet paper as payment.

      Its time to Trust In God, all others pay in HARD MONEY!

  1. He said this in his trunews interview as well. He also AGAIN talked about US ships needing to use silver bars as payment LMAO – while saying it’s hard to get proof of that. No kidding? Like it’s hard to get proof of a base on the dark side of the moon inhabited by aliens right?

     

     

  2. I wish we could get some kind of verifiable official source to comment on a claim like this. I am open to the the possibility that an upwardly revalued official gold price is something that is conceivably possible in the future, but without an official source for verification, it’s hard to do much with a statement like this except to just wait and see if it is later verified somewhere officially. If someone does find that, I would be interested seeing it and would certainly cover that on my blog. You can reach me here:

    [email protected]

     

     

     

     

     

    • There won’t be an official verification of anything even remotely like this UNTIL it happens.  There won’t be any warning that it could happen or that it is about to happen.  BANG! and it happens.  Things like this happen in haste and then we all get to deal with the mess it creates at our leisure.  🙁

    • If the universe is infinite …. then the chance of life on other planets is 100%, infinite times over…. how can humans be so self absorbed to think, We are the only life form in the cosmos….

    • Re: “without an official source for verification, it’s hard to do much with a statement like this”

      There will not be (actually, there cannot be) any official advance announcement. Otherwise, the market will front run the action to prevent their paper wealth from being stolen. Don’t you understand, the whole purpose of the devaluation is to enable the bankers to steal your paper wealth. Just keep an eye on growth in the M2 money supply, and wander over to the bottom right hand corner of http://www.usdebtclock.org/ to check out the dollar to gold ratio which is currently about $8k/oz.

    • Yeah, I’ve heard one too many of these revaluations, COMEX default and silver shortage stories to believe this stuff anymore.  Remember folks this is all for your entertainment sort of like reading the Enquirer.  Putting these type of numbers and garbage out to the public is really a cruel hoax.  Some will actually believe this hype and stick all of their retirement funds into metals with the real belief that $5,000 gold is just round’ the corner.

      As much as you may want to believe the Chinese are revaluing gold it all comes down to their trade with the U.S.  As long as they can run huge trade surpluses to help float their economy they may rock the boat but they’re not dumb enough to tip the boat over.  Anyway I read this article as another cruel hoax on the stackers sort of like cheering on a college football team that doesn’t realize they are taking on the New England Patriots.  Anyone that has listened to ole’ willie and the direction of gold and silver prices for the past 5 years has been led to slaughter.

  3. The BIS IS the Central Bank counterfeiter banksters. I for one don’t want the Rothschild counterfeiter cabal fixing the price of gold and silver in the future any more than they do now through their NY Fed/Comex/LBMA paper gold and silver price rigging racket. As Willie said in an interview the BIS is setting itself up to be the Central Bank of the world and therefore will become the depository of gold backing gold trade notes used to settle international trade. What’s wrong with this picture? As surely as night follows day the BIS bankster counterfeiters will do what they do best which is, counterfeit. To any thinking person it’s obvious they will create paper gold to back any future gold trade notes in order to manipulate and control the system to their advantage. The Rothschilds are and have always been nothing but two-bit chiseling low-life counterfeiters be it currency, commodities or gold and silver. You better pray that the world rejects this scheme and let’s a free unfettered market decide the price of gold and silver. Because I for one don’t want business as usual.

  4. Quote: THE CHINESE & BIS ARE WORKING ON A GLOBAL CONTRACT AT THE $5000 GOLD PRICE…

    I think I spot an SD typo.  This quote should read: THE CHINESE & BIS ARE WORKING ON A GLOBAL CONTRACT AT THE $5000 GOLD PRICE…?

  5. I’m not going to put all my eggs in one basket and say that the govern meant is out of Gold.  I do stack like that could be the case.  If all this is true then this was put in the pipeline along time ago.  I’m all in. I call.  Let’s see their hand.

  6. I checked with Falco My Belgian Malinois,  He is not confirming or denying the story, but he did laugh, snort and let out a long YAWN, when asked to verify the story.  He always does that when I read him Jim Willie articles!   I think he is suspicious of all the breaking NEWS stories that nobody else on earth knows anything about except the BIG JIMMY..  IDK.

  7. At least DR WILLIE has a forecast record of about 90% correct and I haven’t lost a dime on his advice from his news letter.Where as the [******] BO POLNY has a correct forecast of less than 1% and hasn’t been right EVER.Compare both of their charts,my dog can draw better than POLNY who turns his charts at a 90 degree angle.Who does that shit? Only a fraud with no back ground or experience in finance.DR Willie will answere questions.Blow he just steals your money and then blocks your emails.I hate his guts.

    • Sounds like Bo has some of your cash… yes? And NO, Willie is not right 90% of the time, he has been predicting collapse incorrectly for many years. Will he be right in the next 10 years?  Probably.

  8. In matters of the future, many seek the refuge of Roseanne Barr for insight and inspiration.

    Just think how profound her proclamation of “oh $h!t” encapsulates the present economic predicament so briefly yet so succinctly.

    Moreover, her sagacious assessment of American democracy in her best Latin quip “ewhateus ufukem.”

    Jim Willie, for his part, helps us to better appreciate the establishment’s financial woes and complexities that have resulted in assphyxiation whilst “breathing through their a$$.”

    For that reason, the triumverate of Rosanne, Jim, the Punksatony  groundhog and SD all harmoniously humor the world with their prognostications…and even get some right along the way.

    • Why would a country triple the price of gold at the expense of their currency?

      It may be that this country has pretty much cornered the gold physical market..  That coupled with the fact that the world reached peak gold output in 2015, gold mining across the globe is dwindling, and known world reserves have been depleted in recent years.

      Could it be?

      Why would a country attempt to depress the price of gold with various elaborate Ponzi schemes, at all costs?

      It may be that this country doesn’t have any more gold, cause they sold it all to the Chinese at bargain basement prices.  This country’s bankster elites have shot theirselves in the foot by allowing their Ponzi scheme to get out of control, betting every ounce of gold at Fort Knox in order to prop up an already failed fiat US dollar.

      What will be, will be.

      Stacking more.

       

  9. Jim Willie is the newsletter  equivalent of the boy who cried wolf…sure …eventually he will be right…is it this time? Who knows, but I personally am losing faith in his prognostications. I like the guy, I think he’s a hoot, but I would much rather have a beer with him than buy his newsletters. I’m buying the beer, Jimmy boy! Whaddaya say?

  10. US has 8177 Tonnes in Fort Knox, UNLESS PROVEN OTHERWISE!

    The dollar is king of the hill till it crashes.

    I just keep stacking no matter the news, good or  bad.

    US Fiat still buying the silver and gold.

    China can do whatever it wants with its gold, backing the yuan, or the NWO currency the especial dollar.

    Packing and stacking

    • If you believe that, you probably believe Hillary is honest and smells good.

      A full audit of our gold has not been done since Ike… that is a hint… and Germany not getting their gold back is another.  If there WAS the gold there, and unencumbered, why would they refuse to verify it?

    • I think no country will ever tell the real size of their gold stocks. It’s obviously of strategic importance, but saying US has no gold is plain wrong. Just look at the export numbers for last year ..

       
      Below are the 15 countries that exported the highest dollar value worth of gold during 2015:

      1. Switzerland: US$72.4 billion (24.4% of total gold exports)
      2. Hong Kong: $45 billion (15.1%)
      3. United Kingdom: $38.5 billion (13%)
      4. United States: $19.3 billion (6.5%)
  11. Because they know the shit will hit the fan, that is why no audit, and a slow boat to other countries in returning the shiny. Those who hold the Gold make the rules. 

    Does everyone think the US has more Gold than stated? 15000 tonnes or 25000 tonnes.

    Just think about it, do you all think that the US Government has not added to the gold stack for over 40 long years?

    If I was a betting man, I would say the US government has added to the stack.

    Stacking and packing in the heart of Texas

    • do you all think that the US Government has not added to the gold stack for over 40 long years?”

      Can’t speak for “all” but as for myself… no, I do not think that the US Gov has added so much as a bent farthing to their gold stack in the past 40 years because they have been WAY too busy shelling it out.

      IMO, this is how they have been partying it up for so long spending more than they take in, why the Arabs did not go ape when Nixon closed the gold window, and also why there has been no independent audit of the US gold hoard.  The Arabs were getting paid IN GOLD under the table for at least SOME of their oil and gas.  It was “hush money” and it was paid to protect the petro-dollar system for the past 4 decades, which it has.

      When the local bank vault is empty, they do not leave the door open for everyone to SEE that fact.  No, they do their best to cover up the truth and let life go on as if all was well when it is not.

      As with most such things, there is no easily available proof for any of the above.  BUT… these conjectures DO fit the available behavior of all involved.

       

    • I’ll add to this…

      For sure there is (was?) little to none left of the 8100+ tons because they stole it, used it to dump on the market to suppress price, and what Ed_B mentioned above.

      BUT, when they eventually figured out what China was doing with amassing gold, as well as knowing well in advance of collapse of the USD and global financial markets, FOR SURE they began buying up big covertly. I wouldn’t be at all surprised if some of the tightness in the physical market was due to the west (including banks) buying up all they could get their hands on.

      Especially with people like former the Financial Threat and Asymmetrical Warfare Advisor to the Pentagon and CIA Jim Rickards being involved one can easily see what NOBODY seems to be talking about. Have you noticed the complete silence on even this kind of speculation? There is definitely something here if nobody even dares to talk about it.

    • @silver-nurse

       

      Your comment makes a lot of sense.  I hadn’t considered a change of heart on the part of the US Gov / Fed due to strong buying by China, Russia, and some Arab countries.  Still, one would think that such strong buying would lead to higher prices at a faster rate than we have seen so far.

      Unfortunately, this entire area of speculation is very complicated and involved.  There are no doubt multiple wheels within wheels in all this and none of us gets a copy of the official playbook.

       

  12. SD would make a killin’ if they kept a bookie around and started putting out odds for the likes of Mr. Weiner and co.

    I’d be willing to bet silver to $40 by next October if payout is 3:1 or better.

     

  13. China has always stated that gold notes would be $7500, this figure [while they were still stating it] never changed for years, but when they got news of inclusion of themselves in IMF SDRs the stories stopped running, i used to always read this until maybe 1.5 to 2 yrs ago when stories stopped, u can probably still google chinas trade bank $7500 gold notes

  14. These ratio’s make a historymaking formation . Only 1 or 2 times in 100 years that a chance like this happens.

    1: 50 ratio by oktober/ november  .

    Bigg holes everywere . Stash it . Like a bird before a uge winter. looks like ice age is forming ?

    eat en drink silver.

     

  15. I am totally convinced Willie just makes this crap up. To say that there is no buyers of treasuries is total nonsense! Huge capital flows are flooding into the dollar, treasuries and the Dow because of negative rates in both Europe and Japan, the EU economies are all collapsing due to these rates, austerity, rising taxes,  extremely high unemployment, all causing the banks to buckle under NPLs. All of these policies have destroyed the EU not to mention the cost of the refugees. Investors have finally realized that Brussels, the Germans and the ECB have simply destroyed most of Europe and capital is leaving. Add to the chaos in South America and there is no other markets left where large amounts of liquidity are needed except in the US. This all contributes to dollar strength so the idea that the dollar is going to be replaced with a new one has no basis in economic reality. Adding to this is the fact that other countries have been devaluing their currencies against the dollar to stimulate exports and if the Fed were to raise rates this would cause more dollar strength collapsing US exports even more. The idea that some countries like China and Russia are going to a gold backed monetary system is fantasy as this would increase the value of their currencies and collapse their export markets. In fact they have been doing the opposite and are devaluing. To say that the ECB and the FED would go bankrupt is again fantasy as central banks that print their own currencies can never go under. Also his statement that the derivatives will cause an Lehman movement is nonsense too as he like others assume that they were all written naked and this is simply not true as they are hedged in one form or another. Even if the markets caused a default since no one has been using GAAP accounting rules since 2008/9, entities would simply not pay out and at the other end entities would not write down the loss. It becomes a zero sum game. The idea that China and the BIS is working on a gold trade settlement deal is simply not true either and Willie has been ignoring what the IMF has been doing and China as publicly stated twice recently that they want the IMF to speed up the process of using the SDR for trade settlement and not wait until 10/1/2016. Both China and Russia have recently made large gold deposits to the IMF in exchange for SDRs and now most countries hold them in their reserves. China announced that their Asian Investment and Infrastructure Bank will issue SDR denominated loans and London announced it will issue RMB denominated loans. The BRECSA countries will use the SDR to settle trade with the west and have been using each other countries currencies to settle trade now. China and other countries where they have currencies swap agreements are using each other currencies. The BIS will manage the SDR daily conversions and not Washington.  This is all part of the international bankers who are in a live or die battle with wall street to move away from a uni-polar dollar denominated world to one that is multi-polar using the SDR and other currencies to settle trade. As all countries hold dollar denominated assets, (China with over $1 trillion alone), they all have a vested interest in making sure that these assets don’t collapse as there has been an orderly process going to this new multi-polar world. The only part that gold may play is whether the IMF will place it in the basket backing the SDR. This was initially scrubbed but since countries have been depositing gold with them in exchange for SDRs this has suddenly been brought up again. Now the idea that the BIS and China is going to magically raise the price of gold to $5000 is nonsense to as they don’t have that ability. The only way that could happen if they removed the floating price of gold and go to a fixed price. This would absolutely crash gold as it has two primary functions, a store of wealth and for long term investment and the last function would be destroyed under a fixed price system. People would not buy it for investment because the price would never go up and this would collapse demand. In fact it was announced today by the London Metals Future Exchange that they added gold futures back to the market. The price is dictated by supply, demand and currency strength or weakness. Gold cannot go up with dollar strength unless people have lost total faith in government and we are not there just yet! The movement to this multi-polar world is main street news outside the US but here no one in media is speaking about it! This is the true reality of where the financial system is headed!

    • @JJ,

      I agree with everything you wrote except that the picture you have painted about Europe is a little too dire. Firstly, some EU countries do rather well, even though others are in poor shape. Debt monetarization and negative interest rates will cause the Euro to depreciate further against the Dollar, which makes investments in US-based assets attractive for Europeans, but will boost Europe’s export on the other hand. (As far as I know Europe still has a moderate trade surplus). Europe’s banking sector might be insolvent, but is far from collapse due to two reasons. Firstly, the ECB keeps the banks liquid (they can do this almost for an indefinite period of time) and secondly the bad assets are basically secured by the deposits of the savers, according to the bail-in rules (one might call it theft, but it is a kind of life insurance for the banking sector). I think it is fair to say that Europe’s fundamentals have somewhat deteriorated; however, now there are mechanics in place which substantially stabilize Europe’s financial system. (I kow that this statement is likely to cause a very severe shitstrom among the SD-Bloggers).  Only the kick-in of inflation would change the game as this would force the ECB to reduce their QE and desaster would unfold. Currently, prices for commodities and agricultural products are low, even moderately going down; wages only increase moderately. So no inflation in sight. Yes, the European Union will desintegrate at one point of time, but we are many years away from such an event.

    • “Huge capital flows are flooding into the dollar…” and,

      “This all contributes to dollar strength so the idea that the dollar is going to be replaced with a new one has no basis in economic reality”.

       

      Except the USDX hasn’t made a new high since March of 2015. I might add that UST’s are being bought heavily by the FED itself. Straight up monetization. That certainly doesn’t bode well for USD strength either. Fact is, ALL currencies are being debased and devalued.

  16. DEBT CLOCK 

    http://www.usdebtclock.org

    In 1913 the M2 Money Supply or Dollars in circulation was

    2.64 for each ounce of Silver on hand

    29.13 For each ounce of Gold

    Giving us A  Silver Gold ratio of 11-1

    Today we have 879.73 Dollars per ounce of Silver and growing

    Gold is 7959.00 Dollars per ounce and growing daily due to QE.

    Our new Silver to Gold Ratio is 9-1 which is almost our present day mining Ratio.

    SO REMOVE THE PAPER OUNCES AND THIS I BELIEVE IS

    THE TRUE VALUE OF GOLD AND SILVER.

    ANY TROLLS READY TO POUNCE?

  17. @notanowner @jamie-dimon So, 5000 US-$ and 15000 US-$ for an ounce of Gold at the same time is an impossibility.
    Once again JD, not true. If two parties agree to exchange dollars for gold at a fixed price independent of the spot price, they may contract to do so whether the spot price is higher or lower than the agreed upon price.
    So, China negotiating contracts to exchange dollars for gold at $5k/oz (while not attractive to China when the current spot price is $1350) will be a very good deal for China, when the spot price rises to $15k/oz. All China needs to do to set the price to $15k/oz is offer to buy any quantity at that price using their multi-trillion dollar stash of cash. Simultaneously, they can demand delivery from the counterparty of their previously agreed contract price of $5k/oz. Of course their counterparty can (and will) default (again), so China will need to more carefully craft the terms of default this time.
    The 1934 Gold Reserve Act, “required all bullion gold and gold coin to be surrendered to the Federal Reserve … Foreign Gold held by the Treasury was also surrendered to and thus leased to the Federal Reserve, which resulted in the issuance of the series of 1934 Notes by the Federal Reserve.”
     
    Source: Riad vs. US, and Keenan vs. US

    • @Skunkworks,

      “All China needs to do to set the price to $15k/oz is offer to buy any quantity at that price using their multi-trillion dollar stash of cash.”

      To put this in a perspective: 3000 tons annual gold production at current price equals 120 billion US-$. At 15 k US-$ per ounce it would equal 1.3 trillion US-$. So, China’s stash would vanish quickly.  Once the Chinese have spent their foreign reserves, the gold price would drop like stone, as no one else would be willing to buy at this price level.

    • @vegasidler You said: “why The BIS would settle contracts with China in gold for 5000 an ounce when you can currently get all you want at 1350 or so?”

      The BIS knows using the same method used to price gold in dollars during the Bretton Woods agreement, the current price per ounce of gold should be $7,962, not $1,350. The price was defined as year over year M2 growth divided by annual gold production.

    • The current price of gold is around 1350 an ounce. That is what it is. That is the price you can buy it. That is the price you can sell it. What it “should be” is total nonsense.

      The people running the BIS are not retards. They are all well educated.   They know what the price of gold currently is and they wont buy it for more.

      I have a bunch of Krugerrands I would love to sell you at 7000 a piece. According to your bizarre calculations you would be getting them for about 1000 less than they are worth! What a deal!

       

  18. Food for thought…

    What do you folks think would happen if China were to offer, say $1500 an oz. to buy gold?  Further, what would happen if after all the buying were done at that level, they were to offer $1750 and then $2,000 per oz. of gold?  You can see that this process is one that CAN push the price of gold higher and perhaps a LOT higher.  Done in stages, it would be the perfect way for China to vacuum up all of the loose gold in the world while at the same time ridding itself of hundreds of billions of soon-to-be-devalued US dollars.  Would that not then be THE best time for them and the Russians to push for a new world trade currency, with gold as a part of that currency?  All thoughts on this and anything related to it would be most welcome.  🙂

     

  19. This is not happening anytime soon, and how China ends up issuing gold bonds as well as contracts denominated in gold in the future isn’t going to follow Willie’s path as outlined, above.  China will likely issue gold backed bonds in the future, first, but they’re not in a hurry because they are still benefiting by playing along and within the Western system while at the same time setting up their own infrastructure and relationships.

    Jim is shooting from the hip.

Leave a Reply