jim willieMany are the signals of breakdown, in the financial system and the Gold market. The day is near for release of gold from under the thumb of the criminal bankers.  They can no longer operate in the shadows, recently in full view. The best information coming to my desk indicates that three major Western banks are under constant threat of failure overnight, every night, forcing extraordinary measures to avoid failure.
They are Deutshe Bank in Germany, Barclays in London, and Citibank in New York.
The contagion that will hit is assured, since these three big banks are all interconnected, their positions intertwined, their fates tied like a common millstone around their necks.
When they go down, and they will go down hard, the gaggle of Western financial firms (banks, investment banks, hedge funds, exchanges) will sink together into a sea of red ink, toxic swill, and more than a few orange jumpsuits.

SBSS large


From Jim Willie, Golden Jackass.com

Judging from the ongoing defense from prosecution and cooperation (flipped) with Interpol and distraction of resources, the most likely bank to die next is Deutsche Bank. They are caught with accounting fraud and outright financial fraud over collateral shell games, pertaining to USTreasury Bonds, other sovereign bonds in Southern Europe, and OTC derivatives linked to FOREX currency contracts. D-Bank is a dead man walking.


The contagion that will hit is assured, since these three big banks are all interconnected, their positions intertwined, their fates tied like a common millstone around their necks. When they go down, and they will go down hard, the gaggle of Western financial firms (banks, investment banks, hedge funds, exchanges) will sink together into a sea of red ink, toxic swill, and more than a few orange jumpsuits. The legal route might be more likely a vanishing act, as hidden banker prisons have begun to be populated, very quietly, under extreme secrecy. Remember that since the great London gold drain last spring 2012, a new sheriff has been in town and hard at work. And he is taking bankers, mid-level bankers, the ones who know too much information, but who do not have the privileged high rank.


Every passing day brings the world closer to ruin, a necessary step for release of the cable lines from corrupted derivatives and basic hemp from futures contacts. The Wall Street traders (with their cocaine habits) and the Wall Street executive bankers (with their satanist rituals) are on the way out. On the other side is the release of gold from shackles over 20 years. A funny line was quipped, that people confuse the price of gold with the gold price. Meaning, people confuse what is offered as the COMEX gold price as being real. In any true market, the Price is set as the equilibrium point where Supply arrives to meet Demand, where Demand from customers clears Supply. Neither is present in today’s gold market. Shortage is enormous. Even scrap supplies are near zero. Demand overwhelms available inventory. No equilibrium is remotely apparent. The Jackass thoroughly enjoys that COMEX gold ambushes executed by New York and London criminal class bankers, done with full impunity, done with full blessing, if not direct pleading by government finance ministries. The ambushes are done with execution aid by the central banks, reinforced by the wags in the financial press. The bankers indeed slit their own throats on stage in mid-April with the gold price ambush. In June, they castrated themselves with dull blades in full view on stage in the latest ambush. They have accelerated the Gold Supply drainage. They have magnified the Gold Demand worldwide. They have hastened the imminent COMEX & LBMA shutdown most assuredly.


The signals are mounting for systemic breakdown. They will not be elaborated upon here in any great detail, only listed, since so numerous. The details are provided in the Hat Trick Letter reports, lengthy and integrated, many of the dots connected as they say. Lately, the entire stories arriving on the newswires, the financial tickers, and the television sets seem like an amalgam from

  • Al Capone gangsters residing in Wall Street and USGovt officers
  • James Bond and the hidden syndicate, orchestrating car crashes and murders
  • Andromeda Strain, in a global war on engineered viruses disguised as vaccines
  • The Day the Sun Stood Still, with fabricated hurricanes and targeted earthquakes
  • Invasion of the Body Snatchers, complete with Sandy Hook venue
  • Black Holes in formative stage on earth, from USTBonds and sovereign bonds
  • Alfred Hitchcock on suspense, as the bank failures and bail-ins cometh
  • Nightmare on Elm Street with Freddy Kruger, as martial law approaches
  • Manchurian Candidates in high office, in a succession of White House occupants.


But the collapse and nightmare and endless storm is our reality, somewhat an end product of the forced feeds in propaganda format. The signals are many and growing, even spreading to wider platforms and stages. The tragedy is that many people will lose life savings, duped to the end, demonstrating limited mental acuity. The required step is that certain markets go dark. My full expectation is that before the gold price is released to find the rightful $7000/oz price that comes, the entire gold market will turn into a fractured hidden chain of arenas, loosely connected and sparsely supplied. It will feature different prices and different availability. According to my sources, the process has already begun,.




Negative GOFO gold forward rates: at They are the rates at which contributors are prepared to lend gold on a swap against USDollars. They provide a basis for some finance and loan agreements as well as for the settlement of gold Interest Rate Swaps. The most likely explanation is a run on allocated gold accounts within certain bullion banks, and a possible bankruptcy of a bullion bank. Next will come the Backwardized gold price stucture. Actually, Turk claims the London Bullion Market Assn website reports a gold backwardation right here, right now, as in today. The full-blown backwardation is predicted by Karen Hudes (formerly of World Bank) and by James Turk (founder of Gold Money).


Vanishing JPMorgan gold vault inventory: Since the April ambush event, the client partners of JPMorgue have been jumping ship. On a single day in early June, the JPMorgue upchucked a whopping 60% of its gold inventory. The date was June 11th. The news went unreported by the intrepid harlot clownish press. Between March and June, JPMorgue client accounts saw fit to remove a total of 13 metric tons (13,000 kg) of gold. They clearly have lost trust in the big bank, which is the object of criminal investigations and fraud and thefts on a monthly basis.


Raids on GLD gold inventory: The reductions to the GLD gold bar inventory match closely the Delivery volume on COMEX. The data is clear and more than a coincidence. The variation is often under a few percent in volume. The GLD exchange traded fund has earned a new label, the bullion central bank, assured for easy access by Wall Street banks. They short the GLD shares, then drag out the bars off the ramp overnight. The stupid clueless morons who invest in the GLD fund have to be the dumbest mammals on earth, behind whales and wallabies.


Arbitrage of Shanghai gold contract versus New York gold price: Actually a very intriguing statistic has popped up. Over the last 18 months, the correlation between the GLD gold outflows and the Shanghai gold price premium has reached about 80%. Such figures are not seen outside the scientific laboratories. Corruption does that. The finger is pointed at the Wall Street banks, which appear to be raiding the GLD gold inventory in obvious outright manner. The suspicion is therefore that New York banks are selling gold to China from GLD inventories. They would sell their mothers’ livers.




Volume of USMint and Canadian Mint silver coin sales: The volume exceeds the silver mine output for the two nations by an estimated 25 million ounces for the current year. Therefore, all industrial North American silver demand is in deficit. The demand has seen a quantum jump up since the April market ambush, with no let-up. The USGovt had announced some rationing plans, but they are obligated by law to honor all customer orders. They must be importing the silver.


Growth in Chinese gold imports from Hong Kong: The growth is impressive. Just when the growth more than doubled in the past couple years, doubt rose of its continued path. Yet the growth rate is at 100% annual rate for year 2013. A picture truly is worth 1000 words, and tells the story. The months January through April in 2013 saw a total of 498.0 tons moved through Hong Kong, a 108% increase. The East continues to buy any and all supplies put before them. The greatest transfer of wealth in world history is underway. The West sells fraudulent bonds, while the East purchases Gold.




Huge growth in Indian gold demand: The known Indian gold imports are fast rising, coupled by tremendous cross-border smuggling, despite the central bank obstacles. Almost half the Indian trade deficit is linked to gold imports, in huge volumes. For the two months April and May, the cost of gold import purchases exceeded $15 billion. The single month of May trade saw a deficit for India of INR 1108, equal to US$19 billion. The 2Q2013 gold imports (over 250 tons) will be at least double from last year, despite new rules placed as obstacles. It is said that Indians will continue to buy gold for savings and weddings in spite of legal obstacles, just like Americans would continue to watch football games even if banned.


Advancement of the Eurasian Trade Zone: The organization and construction of the trade zone is led by Russia and China. It is being fortified by vast energy pipeline buildout. The flow of funds from the energy pipelines to China is being paid in the form of USTBonds to Russia. From there, the funds flow to London banks as part of the Rosneft buyout of the British Petroleum stake in Russian energy firms. Think return of USTBonds to sender, stuffing them down their throats. When Central Europe joins the trade zone, it is game over. Already, a network of heavy rail facilities runs from Russia to Germany. Few have noticed. The United States will be increasingly isolated.


Chinese Yuan Swap Facility proliferation: The developments started slowly back in 2007, with Brazil signing on. But in the last couple years, add Japan, Australia, Russia, and many more nations. The facility is being installed in England, with applications from France. The whopper lately is the Euro Central Bank requesting a $130 billion Yuan Swap line for facilitation of trade among the major banks. One must wonder if European leaders will soon turn their backs on the United States for bank leadership, foregoing the USDollar Swap for the Yuan Swap. The Jackass viewpoint is that the Swap Line is a precursor to a fully convertible Yuan currency and the open capital account. Then comes wide trade in Chinese Govt Bonds, which will replace USTreasury Bonds. Then comes the Gold-backed Yuan currency, which might be the temporary denomination of the Gold Trade Note, used in bilateral trade settlement in gold. Presto, a path to the new Gold Trade Standard!


The G-20 Meetings are defiant against the USDollar: They are led by the two superpowers Russia and China. The nuts & bolts of Gold Trade Settlement were to be worked on in Turkey during the June G-20 Meeting, but it was hi-jacked and interfered with by a gate crasher delegation from the panicky G-7 finance ministers. The September G-20 in Moscow will not permit any interference or uninvited guests. Barging in on Ankara is much easier than on Moscow. The agenda for three months among G-20 nations has been to put on fast track the development of the trade settlement alternative outside the USDollar sphere. It requires many important platforms for implementation. The day is near, and only awaits the collapse of the Western banking and currency system that rests atop the toxic bond foundation.


Turkey emerges as primary gold intermediary bank: The entire Iran sanction story has resulted in vast workarounds. One of the most important is the rise of Turkey as a gold bank intermediary. Two parties want to settle on trade, for crude oil or metal ore or foodstuffs or cars or home electronics. They wish to settle on a net basis outside the typical USDollar framework. Turkey provides the necessary gold bullion to settle the trade transactions. They are working toward facilitation of Gold Trade Settlement.


BRICS Development Fund described in disguise: It poses as fund for infrastructure, but really will become the processing plant for converting USTreasury Bonds into Gold bullion for the emerging nations, in possession of outsized reserves in toxic FOREX paper. The common story told is to fund a railroad in Tanzania, indeed a true story but totally misdirected emphasis. Their Emergency Fund is already funded by $200 billion. Next the Development Fund will be filled, like a giant war chest. It might have a few $billion spent on connecting railroads or highways in designated African locations. But its real purpose, according to my source close to its design, is to process toxic USTBonds and direct the purchase of Gold bullion. The fund in time will serve as the Gold Trade Central Bank, and will issue Gold Trade Notes in replacement of the Letters of Credit based in crumbling fiat paper currencies.


SBSS authorized dealerAllocated Gold Account frauds: The Jackass must boast as being the first analyst back in 2011 to openly mention the revealed frauds of thousands of tons of improperly used, leased, and confiscated gold accounts under contracted storage. Thanks to The Voice, my source of the tip. The center of the fraud is Switzerland. The initial hint of pervasive fraud came with the Venezuelan demand for return of gold held in London. The previous demand by Mexico was completely suffocated and dissolved in a mass of convoluted paper. When Germany joined the demand for repatriation of allocated gold on account, the firestorm reached a critical temperature. The New York Fed rebuffed German Parliament officials at the door, when they wished to inspect their gold on account. A required Mali War ensued to replace the missing gold bullion and to raid the West African nation, where Islamic terrorists have been conveniently sighted by PsyOps staff members. The Swiss bullion banks receive fresh exposures on a monthly basis for Allocated Gold Account improprieties, often from Egon von Greyez, the brave gold war veteran, the defender of true wealth, the caped crusader of gold. The wealthy of Europe have begun an insurrection against bullion bankers, seeking redemption of their gold held on account. The gold is largely gone. Heads will roll.


Death of King Abdullah and sunset of Petro-Dollar: Someday will be revealed the death of Abdullah, which many expert analysts (not the State Dept clowns or Wall Street harlots) expect will result in the fall of the House of Saud. Accompanying his death will be the demise of the Petro-Dollar, which has served as the critical foundation for the USDollar for 40 years. Actually, a new energy cartel is forming. It is the current powerful new force emerging as the Natural Gas Coop, with key players Gazprom of Russia, Qatar and Iran in the Persian Gulf (strange bedfellows), Turkmenistan, and Israel.


Growing Eastern energy pipelines: Called Pipeline-STAN by some analysts like Pepe Escobar, an excellent analyst whose work appears on Asia Times, featured on the Hat Trick Letter. A key pipeline through Syria is called the Shiite Pipeline by the Jackass. The big new pipeline with conflict and controversy is the Iran-Pakistan pipeline. The USGovt is trying to play the same losing game, by banning banks that cooperate with its funded construction. But China has entered the fray, guaranteeing its full funding. Pakistan is no longer friendly to the United States, not after thousands of civilian deaths by USMilitary drones. Russia is the chief architect of energy pipelines, for natural gas, for crude oil. They will supply Europe and Britain, and thus turn the alliances of Europe eastward toward Russia. The United States will be increasingly isolated.


Movement by Israel away from the US fold: The tiny nation is fast entering into a Russian alliance, starting with the Tamor floating as platform, extending into hidden deals with Putin of Russia. The Tamor natural gas output is under contract to Gazprom, a giant surplus assuring significant capital inflow to their economy. Also, a notable number of Israeli immigrants are of Russian descent, estimated between 25% and 40%, maybe higher. The nation might sound like a US partner in the Syria battles, but not so, not really.


Fast rising long-term USTreasury Bond yields: Rising loan rates will certain torpedo the US housing market. The market is being upheld (held up) by the Wall Street banks and their devoted private equity funds, which together are gobbling up large packages of REO bank property tranches, otherwise known as foreclosed homes. For several months, if not a couple years, the US housing market prices have excluded the off-market bank sales to unload inventory out the bank back doors. The home price data is more corrupted than the price inflation data or the Wall Street bank profit statements or the official gold accounting by the USGovt. As much as the housing market is vulnerable to rising rates, the bank derivatives such as the infamous Interest Rate Swap contracts lie in the danger zone. They react very badly, with $trillion losses, whenever the long-term rates move just a moderate amount. Between August 2012 and April 2013, the 10-year USTreasury yield had been fluctuating from 1.6% to 2.0% in firmly controlled fashion. However, since May all hell has broken loose. This week, the reported TNX yield has zipped to 2.7% and come back to 2.55% in highly dangerous fashion. Expect major losses in IRSwaps very soon.


Official gold holdings by Russia & China: The word is slowly getting out. China owns well over 10,000 tons of gold bullion in reserves. They have been accumulating at a feverish pace since the 2008 Lehman bust. Actually they have been accumulating probably since they were refused the return of the Mao Tse-Tung era gold from the 1999 lease by Wall Street. The Manhattan crew reneged on the deal, letting it be known in 2007. The Chinese earned the Most Favored Nation status before the millennium change by leasing out a large block of gold reserves. The US betrayed them on the deal, to be sure standard fare for the American Nazis. The Beijing leaders decided five years ago to pursue Gold, and overturn the United States with their armada of paper mache craftsmen and bankers dedicated to espionage and hegemony. As footnote, my source informs that under the Kremlin lies perhaps 20,000 tons of gold in reserves. They have gold as old as the Vatican. The Eastern Orthodox has a large contingency in Moscow. The Russia & China tagteam are fed up with the Anglo-American monetary wars. Power is moving eastward with the gold. A new chapter cometh.


Bernanke Live Stress Test: The hack economist, whose PhD thesis has been proved false by the Bernanke Fed itself and the endless QE to Infinity, really needs a new nickname. Helicopter Ben no longer fits, since his helicopter has been dedicated within Wall Street walls, surely not to Main Street businesses or US households. How about Big Ben of the Matrix? Or Ben the Wrecking Ball? The Jackass has been firm since summer 2009 that the USFed would not escape the 0% bound on interest rates, that the USFed would slip into QE on a permanent basis, that the USFed would be stuck with ZIRP and QE forever, that the USFed would cause a global financial collapse if they tried to hike rates and return to a normal monetary policy. The Live Stress Test conducted in May and June proved by point. Next comes the derivative accidents, the beaching of the next London Whale, the arrival of more spectacular JPMorguen derivative losses, the contagion caused by a Deutsche Bank that drops dead.


Tide turning against US leadership: The seminal defeat occurred in the wake of the Lehman Brothers failure, the New York bank insolvency, the FASB accounting fraud blessing, and the major blemish to the USFed since the breakdown occurred on their watch.  Last month, the British high court ruled against the London bankers to remove sanctions against Bank Mellat, the largest private Iranian bank. Next come damage claims by the bank. The momentum has shifted. Even the onerous FACTA regulations on bank account disclosure ordered by the USGovt have been repealed.


Egypt coup d’etat is a global game changer: The Cairo leadership folded, new military power imposed, in response to rising food prices, not reported properly. Very little in political factors were at play. The ugly side effect of three years in printing money by the USFed has been to lift the entire global cost structure. The softest flank is Arab food prices. The Arabs are infamous for spending a whopping 80% of income on food. Without energy reserves, they appear to have nil skill in developing an economy without a USMilitary base on the scene. Natives in the US had been spending 15% on food until a few years ago, by comparison. The US will catch up to the Third World ratio, as it enters the Third World. The Arab Spring is not about politics, as much as rising food prices, the principal cause of revolution over the centuries. The photo from Tahrir Square in Cairo Egypt shows masses. They are very unhappy, especially with USGovt policies, both on monetary policy and on support of insurrections.



Snowden and the USGovt spying data: The young man Snowden operates as the front man stage hand in a global chess game of espionage, terrorism, embassy abuse, financial subterfuge, financial shenanigans, and much more to come. He is a kid, not a big player. He is put forward as a pawn chess piece, with heavyweight supporters. The key is knowing that 50 back doors remain open, available, with regular passage in the next few months in the vast US security databases. What will be revealed is a cornucopia of vile slimy vicious American and British directives, movements, attacks, and projects that can no longer be kept hidden behind the curtains. A vast conflict has emerged in the United States between psychopathic bad spooks and good security professionals, simply put. The lid is off. The fur will fly. The US & UK will be on the extreme defensive for nasty revealed deeds for some time to come, as stories are pried out and leaked on a systematic basis. The presentation of Snowden as a key veteran knowledgeable player is highly amusing. He is a kid whose career resume is almost as sketchy as the leader of the US land.



All the above dire signals paint a picture of a collapsing financial system, of major Western banks folding like the house of cards they are, of a global revolt against the USDollar, of an unsustainable system. The events will finally result in a release of Gold from a corrupt stranglehold. The beneficiary will be the Gold & Silver prices. A grand reset is in progress. The paper wealth of the Western world is undergoing a disappearing act. The Paradigm Shift has been in progress for the last four to five years. The banking system will be restored only by return of Gold as money, with Gold placed at the center of the global financial system. Unfortunately for Western interests, the movement led by Russia and China for a trade zone and gold trade settlement will trump the Western gamers. The Eastern solution overturns the entire system with center in the New York and London crime syndicates, holed up in big bank fortresses. The Eastern solution avoids the USDollar and the entire FOREX system. It will be built upon gold trade settlement, will issue Gold Trade Notes to function like Letters of Credit, will operate as peer to peer instead of passing through the monolith banks, and will be conducted on portable devices like Smartphones and Blackberrys.


The USGovt might next ban the usage of portable telephone devices with internet capability, and deem them as terrorist tools of mass destruction. The truth of the matter is that the USDollar and its obverse USTreasury Bond are the greatest devices of mass financial destruction in the modern history of mankind. Departing from the Gold Standard in 1971 will  prove to be the root cause of a global collapse. The destruction to the US system was assured by repeal of the Glass-Steagall Act. The solution to the bank collapse is the Gold Standard, which will arrive through the trade channels, not the big dead corrupt insolvent banks, and not through the corrupted FOREX tables with links to every type of fraudulent tether imaginable. Watch for the birth of the Gold Trade Standard, as history is to be made.



From subscribers and readers:

At least 30 recently on correct forecasts regarding the bailout parade, numerous nationalization deals such as for Fannie Mae and the grand Mortgage Rescue.


“I commend the Jackass for being the most accurate of all newsletter writers. Others called for the big move in Gold right away, but you understand that the enormous fraud in the system needs to play out before free market forces can begin to assert themselves. You seem to have the best sources and insights into the soap opera that is our global financial system. Most importantly, you have advised readers to be patient, stay safe, and avoid mining shares like the plague. Calling the top in the USTreasury Bond (10-yr yield at 1.4% yield) stands out as a recent fine accomplishment. The Jackass understands the markets, understands the fraud, and also has the sources to keep him the most up-to-date on the big geopolitical and financial events and scandals. Few or no other writers have all three of these resources.”

(Austin in California)

“After first reading the Hat Trick letter a few years ago, I was amazed at Jim Willie’s prophetic calls concerning the economic forgery and corruption worldwide. His knowledge, coupled with his worldwide contacts and gutsy fortitude to call out and expose the evil criminal bankers, and to expose the lying US government, forced me to become a subscriber. I have no plans to cancel. Willie’s work creates an anticipated excitement for new reports issued in the middle of the month.”

(JeffH in Virginia)

“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]


Warbird launch


  1. “The best information coming to my desk indicates…”
    Well, that doesn’t make is correct.  I like JW, but his calls the last few years have been off base. What happened to Morgan Stanley blowing up, shares are up 2-3 fold since that call.

  2. “Volume of USMint and Canadian Mint silver coin sales: The volume exceeds the silver mine output for the two nations by an estimated 25 million ounces for the current year. Therefore, all industrial North American silver demand is in deficit.”
    Is this a bogus comment?  There are MANY things that are not created in North America, yet manage to get here via trade anyway.  Tin and rubber come to mind immediately.  South and Central America have huge silver deposits that way more than satisfy their local markets, so they export it to the US and Canada in return for currency from these two nations that they can then use to buy food, fuel, automobiles, tractors, aircraft, and thousands of other things.
    “The East continues to buy any and all supplies put before them. The greatest transfer of wealth in world history is underway. The West sells fraudulent bonds, while the East purchases Gold.”
    Indeed they do and indeed it is.  The West also sells many high-tech items that are not made in many parts of the world.  Want an NMR or CAT medical scanner?  Only the West sells these and mostly the USA and Germany.  Luxury cars?  Also made in the West by German, US, Italian, and UK factories. 
    The problem in the East will be one of producing sufficient food for their huge and restive populations.  Countries like the US, Canada, Argentina, and France are huge food producers and will export much of what they grow to China and India as they develop and require more food than they can grow.
    “BRICS Development Fund described in disguise: It poses as fund for infrastructure, but really will become the processing plant for converting USTreasury Bonds into Gold bullion for the emerging nations, in possession of outsized reserves in toxic FOREX paper.”
    Surely this is not a secret.  TPTB in the West MUST be as aware of this as JW.  Given that, what will they do about it?  Stand there and take it?  Doubtful.  It would be interesting to know their action plan against this.  With a long-time wheels-within-wheels approach to governing and doing business, they must have a plan of some sort.

  3. Profile photo of
    Proverbs1616 says:

    Canada is making its move to be a middleman for Yuan trading. Ah, and remember which country is the most sympathetic to Israel these days? Canada. Watch, China won’t attack Israel with Iran and Russia.

    As for Russia and Israel becoming new friends because of Gazprom’s taking over the Tamar gas field (spelled ”tamor” by Mr. Willie): huh?
    That sounded odd to my ears because I knew of Texas-based Noble’s big involvement, so I did a Wikipedia search. Sure enough, Noble owns 36%, Isramco 28%, Delek 15%, Avner 15%, Dor 4% (36% American-owned, 64% Israeli-owned).
    Israel is a competitor to Russia, not a friend. Russia will try to snuff out the competition. Russia will get snuffed out.


    • Bay, I listened to his interview twice, and YES, if what his sources are saying (they are melting down German gold bars from central banks), that is a very bullish case, but who knows for sure if it’s a fact, we just don’t know.
      What will be very interesting to see is, if the gold price moves higher, will gold investors return to GLD, and where will GLD get its gold? Or will it really even matter, because GLD never has full backing?   Either way, it will be interesting to watch.

    • Only point I was making on GLD is that it is a bullion bank fraud. I am really tired of people giving this ETF any credibility at all. It deserves none and needs to be exposed for what it is. A Ponzi and a sham. 

    • has it not accurately tracked the price of gold?  Note i have not, and have no plan to put money in this fund, but it seems to track the price of gold, paper in paper out, but not seeing how this is a ponzi scheme.

  4. zman   Willie predicted the demise of Morgan Stanley about a year ago.  The Fed started their QE MBS purchases of what was then a modest $50 billion a month. MS offloaded some of the worst of their portfolio and were saved. MS could have failed with a few months had that not taken place.  His prediction of the 10 yr UST going to 1.25% was off but the poison policies of ZIRP and now NIRP has worked their wrecking balls.  UST rates will destroy the IR Swaps with losses in the hundreds of billions, badly contained if the UST rate continues to climb. I’m of the opinion that if the Fed tapers, the rates on any treasury issuance will need to be priced significantly higher to attract buyers or taper is off . If that does not happen then the UST and government will come after US pensions in earnest.  That is a $10-20 trillion feast of our money that will slake the thirst of the government for a few years. After that they will be out of gas.

    • “If that does not happen then the UST and government will come after US pensions in earnest.  That is a $10-20 trillion feast of our money that will slake the thirst of the government for a few years. After that they will be out of gas.”
      Oh, great.  When that happens, then both the Gov and we will be completely f***ed and dead-dog broke.  God, what an amazing plan this could be.  It would be bad enough dealing with a collapsed economy with our resources intact but it will be impossible to deal with it with no resources whatever.  Good thing that The Bank of Mother Earth ( as Pat likes to say) WILL be open for business, when needed.  lol
      “More than likely, FedGov will require 401(k)’s to have 20% of their investments in UST’s, paying 2% or less.”
      That could well be.  But… what are the odds of the FedGov keeping it at 20% and not raising it to milk even more money out of us?  Damn near zero, I should think.  This is one of those camel nose under the tent deals.  Whatever it starts at, it WILL increase with time.  The real hurdle for the FedGov is to get this crap started.  Once started, it is a lot easier to just keep it rolling along… for our own good, of course.  

  5. So why would Citi fail?    They are getting bailed out with MBS purchases, what else would take them down? Interest rate swaps?
    And DB?  I don’t think Germany is going to let their biggest bank go away, not gonna happen.
    As far as going after US pensions, maybe so, but that’s tough politcal sell if you ask me, a huge funding crisis will be need to justify that option.

    • “As far as going after US pensions, maybe so, but that’s tough politcal sell if you ask me, a huge funding crisis will be need to justify that option.”
      Yes, it would be a HUGE political problem and one that is filled with the potential for disaster.  Still, the reward of pulling it off successfully is also great and thus very tempting.  A “funding crisis” WILL be manufactured, if needed, so don’t let the lack of one now convince you that this won’t happen for lack of one.

    • go DIAF with your constant israel bullcrap. Harper, the stooge has destroyed much of canada’s international good will thanks to spending his time on his knees with the war criminals in israel.
      As for brain cell rich? Right, more like elitist, terrorist, genocidal people who are useless other than begging or guilting money out of foreign governments.. How many currencies have they gone through since their occupation of palestine started?
      LEt me point out again, you’re the worst poster on this site by a long shot.

      here’s a couple of perfect examples of the brain cell rich synagogue of satan sitting mother fukkers handy work.

    • Profile photo of
      Proverbs1616 says:

      those words were mean.
      http://www.israelnationalnews.com/News/News.aspx/169832 Those evil Jews and their medical advancements! No wonder Egypt is having a civil war between the secularist military and the Islamic Brotherhood; those Israelis are instigating civil war  by preventing blindness.
      http://www.timesofisrael.com/israeli-computer-whiz-kids-bring-home-the-gold/   Again, those scheming big-nosed Jews, what, who do they think they are, showing the World that less than 0.5% of the world’s population which owns a piece of land less than 1% of the entire Middle East can out-smart them… yeck, these teen whiz champs are exactly why the Assyrian Christians of Northern Irak get slaughtered Friday evening by Muslim Kurds as they leave their mosques. What toads those whiz kids are!
      Mmmm, Jewish brain cells. Groovy.
      As for Canada’s reputation, it’s quite good actually. The Chinese are so pleased with the Canadians that they lent them pandas for a few years despite Obama making a push to get those pandas: they represent China being pleased with Canada.
      And for the record, I forgive you.
      With John Baird as Foreign Minister, many countries around the world have be surprised by how proactive and interactive the Foreign Ministry has become on so many levels, especially compared to the Chretien/Martin Liberals, who were not very proactive on much and who showed very little leadership on anything.
      As for the Synagogue of Satan, lol, where is this coming from? I wasn’t discussing Pauline NT issues, I was discussing geopolitical machinations between China, Canada, and Israel.
      As for currency since 1948: lol what is your point you meany (with a mouth like yours, you belong in America, not Canada, mister).
      To answer you: 3, 4 if you count pre-Independence.
      Oh, and since you mention it: the pre-Independence currency was called the Palestine Pound because of the British mandate (who had taken over from the Ottoman Turks… hmmm, who owned it before the Ottoman? Crusaders. Oh, who owned it before them? Muslim conquerors from Arabia. Who before? Roman Empire. Who before? Persians. Who before? Babylonians. Who before? David and Solomon and the Jews.
      Anyway, “Palestine”… guess what, today’s Jerusalem Post was called the “Palestine Post” before 1948, and was the same Jewish paper. Hmmm. Oh, and Jews living in the British Mandate (previously Ottoman etc.) called themselves… “Palestinians”. Hmmm.
      Oh, and the Palestine Pound had three languages written on it, as do modern New Israeli Shekels. The Palestine Pound was replaced by many currencies, Israeli liras in Israel, Jordanian Dinar in the new state of TransJordan, and Gaza eventually adopted the Egyptian Pound. Hmmm. https://en.wikipedia.org/wiki/Palestine_pound
      As for war criminals… what is a war criminal? Bashar Assad is a “hero” for slaughtering over 100,000 in a few years because he’s fighting Obama’s Al-Qaeda mercenaries, but Israel killing less than that in the past 40 years… surrounded by Judeophobic Muslims? Ah… war criminals!! Hehe.
      Anyway, if you’re going to claim to be a Christian and a Canadian, you could at least use vocabulary that reflects that instead of using vocab that reflects atheists and Yankees.

    • France is in big trouble, so far it has managed to keep off the radar, but it won’t be long. Hollande’s policies have accelerated the decline.
      The French people are very feisty when the economy goes tits up, they like setting fire to things. A number of years ago there was a dispute about lamb imports into France from the UK, the mad French farmers blocked lorries, turfed the lamb carcasses out on the road and set fire to them.
      France will be one to watch.

    • ” Hollande’s policies have accelerated the decline.”
      Gosh!  Who would have thought???  Who, indeed.  lol
      As to France.  I dunno, guys and gals.  Sometimes, I just have to think that being French is punishment enough.  If not, I am sure that they will soon invent some additional misery for themselves.  :-/

    • @Ed_B
      Oh I don’t know the French people Per se are decent like all ordinary people of the world. The only care about important things like family, jobs and continuity. It is the political classes that are the enemy.
      I give you a question who do you think will revolt first the Americans or the French? I think we all know the answer to that one!!

    • @Neo
      Lighten up a little, Neo.  If we can’t poke a little fun at the French, then just who can we laugh at these days?  After all, they DID choose a socialist to solve their economic problems.  If that isn’t worth a few hoots, I don’t know what is!  Unfortunately, there seems to be a LOT of that going around these days and it is working just as poorly everywhere else it is being tried.  Besides, as someone with an (over?) active sense of humor, I find much of the world laughable… including myself!  lol

  6. I expect soon enough we’ll find out that Russia and China both have substantially more gold than they officially report and their goal now is more aimed at emptying the West of her gold rather than accumulating more gold for themselves.

    • Agreed.  The size of their gold hoard is pretty much one of those national secret types of things, so is not something that they say much about.  When they do say something about it, it is far more likely to be misdirection than the truth.  The US government does this but in reverse, claiming to have 8,000+ tons of gold that have likely already been “leased” (Gov speak for SOLD).

  7. Imagine if China just bought every single gold and silver paper contract because the can, and had a nice bonfire, then when it looked like it was starting to die out poured all their USD foreign currency reserves on it and for good measure a trillion US Treasury notes were flicked on the fire… Wait I think thats basically what is happening now! America should be happy their debt obligation is being reduced but instead they want to create moar debt for themselves ?? Arrrr good o’l free market capitalism at its finest !! You got to love it 🙂

  8. Aurum  Your note about debt and China writing off some UST investments is telling. It’s a strategy they’ve thought through and have been initiating for the past few years. They know our bond ratings are complete frauds. China engaged in many bouts of paper money, all of which failed miserably. They’re watching us and seeing a great opportunity to do turn around and payback at the same time. Their gold and silver was stolen regularly for the past several centuries including the late 1990’s gold leasing scam that ended up with the Wall Street goons repudiating their promise to return the Chinese gold.
    The UST debt could easily lose 50% or more of its value due to nothing more than interest rate increases. To any lender, a bad loan is just s sunk cost to write off—allowing the lender to move on whether the loan goes bad due to bankruptcy, a refusal to pay or rate increases that make the loan impossible to pay.
    If China accumulates enough GOOD quality assets for pennies on the dollar, a strategy practiced by western banks for the last century as they put generations of our people into interest rate hell, then the Chinese will have completed the circle that banksters mastered for the last 400 years. Building that debt corral and then closing the door on the chattel.
    We are destined for both ends, endless debt and bankruptcy. I think we will handle this in an Argentinian way. Bad for the lenders and really bad for the people. No one in DC seems to know about this or if they do, they don’t care.
    China’s plan includes the use of the bond holdings as investment capital, handing off this Worse-than-France’s Fitch rating junk bond collateral fiesta to petroleum projects, pipelines, miners, water and food production and anything else of tangible value. They play global chess; we play tiddly winks and Angry Birds. Those bonds are then pushed though by the countries to the central banks and eventually find their way back to the US.  The Chinese are shoving our crap debt back down our throats. Call that a vomit burp–a VIRP. Eventually that pea in the shell game will stop when the USD and UST are seen as junk. 
    By then the Chinese will have acquired a hard asset base unlike anything we have seen since the US started acquiring assets world wide, mostly by force of FIAT coercion and seduction. The Chinese are doing this without firing a shot. And they are doing this with outr money. The irony is thick and rich.
    We’ve spent trillions conquering territories and forcing allies into aubmission with our heavy handed political policies, debt enslavement and military bases. At a time in the past we provided military bases to protect our allies from the ‘Hegelian Dialect Enemy’ Now it’s all about enforcing Pax Americana–or worse.
    We are hungrier for debt than a crack whore is for her fix. She’ll sell her children for crack. For the last 3 generations we’ve been selling our children into the next three generations for our perpetual fixes of debt crack. Now our children are fully addicted and indebted to free stuff, student loans, housing debt and $200 trillion in mandated payments, we’ve placed 100,000,000 people in this country into near total reliance on food supplementation FROM THE government. That’s one third of the the US population relying on the unsteady, institutionally unstable and power mad set of ghouls in our government to fill our stomachs. Who is going to pay for all of this? Not the Chinese.
    That will not end well—all Bread n’ Circuses n’ s***. It might continue for a while longer, subjecting us to additional years of debt penury, but I know of only two ways to get around that end.
    Become part of the system that supports and promotes those policies.
    Not likely.
    Or stacking the same items that the wise folks in China are doing.
    China is not invulnerable to mistakes and bad policies. They are prepping for the coming fall. When this US Goliath falls it will be thunderous. I think China’s been preparing for this mathematical certainty for decades. Their leaders have 1.3 billion hungry restive people demanding a better life. Their necks are on the line to get the strategy right. We are making it very easy for them to win this contest. 

    • “The UST debt could easily lose 50% or more of its value due to nothing more than interest rate increases.”
      Yes, it could… and it probably will.  Another source of loss will be if US Treasury paper is given a lower credit rating.  If the truth were known, UST paper should not carry a rating above A at best.  Rating it as AAA or AA+ is wishful thinking on the part of those who think these ratings are at all accurate and not coerced.
      “We are destined for both ends, endless debt and bankruptcy. I think we will handle this in an Argentinian way. Bad for the lenders and really bad for the people. No one in DC seems to know about this or if they do, they don’t care.”
      I think that we can safely bet that TPTB in DC KNOW ALL ABOUT this.  Their task is not in figuring it out but in finding some way by which they can profit from it at our expense.  In other words, how to do “business as usual”, despite a financial collapse and the chaos that results.
      “The Chinese are shoving our crap debt back down our throats.”
      Which would be a LOT more difficult for them to achieve if we didn’t always have our mouths open.
      “We are hungrier for debt than a crack whore is for her fix. She’ll sell her children for crack.”
      Indeed we are.  Well, at least those of us who are addicted to debt, that is.  Stackers have an asset that is not debt based, unless they have borrowed money to buy their stack.  Shame on them if they did because that would be counter to the essence of stacking.
      As for her children, they are easy to make and of no consequence once made.  Why should they have any value to her?
      “China is not invulnerable to mistakes and bad policies. They are prepping for the coming fall. When this US Goliath falls it will be thunderous. I think China’s been preparing for this mathematical certainty for decades. Their leaders have 1.3 billion hungry restive people demanding a better life. Their necks are on the line to get the strategy right. We are making it very easy for them to win this contest.
      It looks to me as if this will be a fall that is aided by a few pushes from just the right direction at just the right time.  Both Russia and China are in on this shoving match.  Not that the US and the rest of the West has not aided and abetted this looming disaster via their own idiotic debt-based monetary systems, including excessive “liquidity” and credit and all the economic fallout generated therefrom.
      I would really like to read a well thought-out and written piece on what the future might look like AFTER the fall.  Much has been said and printed about the time leading up to a fall and its causes but little has been written about what life will be like afterwards.  A good deal of thought put into that would be MUCH appreciated.  Any takers?  Eric?  Doc?  AG?  Just a thought.  🙂

  9. Profile photo of
    Proverbs1616 says:

    So what is Jim Willie talking about in this article about Israel and Russia becoming friends? Israel just secretly bombed huge stashes of Russian weapons in Syria, apparently after Putin warned Netanyahu that such actions would result in Russian reprisals against Israel (and after Assad warned that more bombings from Israel would result in swift Syrian action).
    Assad… I don’t know much about him, his technique for the past few decades has been to keep it cool with Israel and then arm  and train Hizbullah and encourage them to go after the Jews… but Putin… I keep saying Russia and Iran will attack Israel. People seem to think I’m crazy. I’m only stating what Ezekiel prophesied in Ezekiel 38-39, I’m not a super-analyst or privy to special info… I just believe the Bible and understand geopolitics. Now this Debka article (Mr. Sinclair, TF and Steve Quayle quote form Debka a lot, so can’t I?) confirms what I’ve been saying.
    Israel just crossed one of Putin’s red lines and several of Syria and Iran’s.
    Oh, and men will often avoid a fight even if money is involved, but destroy expensive weapons, lots of them, and then make the Syrians and Russians look like fools by evading detection on both Syrian systems and on Russian Navy systems, and then you deal a blow to their pride. Hurt pride leads to fights.
    Sorry Jim Willie, I disagree with this article’s stance on Russia becoming friends with Israel. Israel is a Natgas competitor to Russia, and is close to Cyprus which also has mucho Natgas (and who insulted the Russians by listening to their EU-German overlords and stealing though bail-ins…).
    May I remind everyone that Russians and Germans have a deep dislike for each other? To this day, modern Russian pop/rock songs make fun of and denigrate Germans because of WWII. Germany essentially stuck it tongue out at Russia by ordering its proxy-state Cyprus to steal Russian money.
    Mucho hurt Russian pride these days… think Russia will attack Berlin or its EU proxies? That would set Europe versus Russia. Who’s the advanced and annoying thorn in Russia’s side, and a juicy target? Israel!
    I think Mr. Willie is better at statistical analysis than this kind of stuff.

  10. Profile photo of
    Proverbs1616 says:

    Ah, just found this link on Steve Quayle’s site:
    Those poor Russian military families… down the pipe there will be many heart-broken and mourning military widows in Russia. Their leader’s pride, hurt by Israel’s refusal to be masochistically suicidal, will lead to much grief on their part as God says “Niet” to Russia’s plans to crush Zion.

    • Steve Quayle’s is a f*****g nut job.
      We have enough problems without f*** aliens and giants. I haven’t looked but I bet he mentions planet X and Nibiru
      How to lose credibility 3,2,1

  11. http://www.zerohedge.com/news/2013-07-14/israeli-german-made-subs-destroy-russian-missiles-syria-russia-holds-largest-post-so
    Ah, this from ZeroHedge.
    So, no wonder Israel evaded Syrian and Russian Navy radar… they sent a warning shot that they can accurately reach their enemies not only with the air force but with the navy too… (jets would have evaded radars anyway, Israeli avionics are top-notch and only America’s X-band radars allow it to monitor Israeli activities).
    Now this is ironic! German proxy Natgas-rich Cyprus attacked Russian mafia wealth, and now German submarines operated by Natgas-rich Zion attacked Russian expensive&advanced weaponry. 2-nil for Germany.
    I can see a growing motive for Russian aggression on Zion.

  12. “Departing from the Gold Standard in 1971 will  prove to be the root cause of a global collapse.”
    Not for those who still have some gold.  The Russians, Chinese, Indians, and some in the ME are all collecting as much gold as they can… and at fire sale prices these days to boot.  There are reasons for this and none of them bode well for the fiat mongers.  Stackers get it and are doing what we can to have some gold and silver in reserve. Got phyzz?
    “As footnote, my source informs that under the Kremlin lies perhaps 20,000 tons of gold in reserves.”

    If so, that would be about THE dumbest storage location possible, considering the multi-megatons worth of firepower targeting that area. Whatever their faults, this is not something that the Russian government would do. No, their gold will be stored in multiple well-dispersed deep bunkers where it is WELL protected from complete disaster. Think heavily fortified concrete and steel bunkers built deep under the Urals and other mountains.

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