flash pointThe Golden Jackass Jim Willie has finally given his long anticipated first public thoughts on Cyprus.

Willie states that Cyprus is the long awaited FLASH POINT the metals community has been anticipating, and it will in time invoke a great awakening as to the reality of today’s Western financial system by the public, and will result in a massive shift into physical gold and silver.

Willie states that Cyprus was Russia’s back door banking gateway into the Western financial system, and that the true numbers of Russian wealth hidden in the Cypriot banking system is not $20 billion as is being reported by the Western press, but $trillions!

The Golden Jackass states that mind-numbing hundreds of $billions have been fleeing Cyprus for Dubai, Hong Kong, and Singapore over the past 9 months, and that the depositor outflows will devolve into contagion and full-scale bank-runs throughout Italy, Spain, Portugal, Ireland, & Greece.
The tipping point is coming, and those who don’t remove their funds proactively will be slaughtered!

Jim Willie’s full MUST LISTEN interview on the implications of Cyprus is below:



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  1. Ok.  Despite the report that most of that money has been withdrawn just before and during the Cyprus bank holiday and despite the lack of chaos that has resulted in reopening of these banks, and finally, despite the lack of price increase in gold and silver on the paper markets in the past 2 weeks, I am still not convinced this is THE flash point.  Just another doomsayer newsletter trying to hit one out of the park.  Eventually, someone will I guess…

  2. This interview has been out for a couple of days.  Not one of his best.  It appears that we have to wait for this so called Flash point to have much affect on gold and silver and that is assuming that it has any affect at all.  As long as the Central banks continue to invest in price suppression of metals we have to be content with boring sideways trading.  The public is already buying metals.  The paper market is ambivalent and not ready to buy yet.  Sentiment is still in the toilet.  Maybe when Slovenia get’s their bail in things will begin the change.

    • Willie states that Cyprus was Russia’s back door banking gateway into the Western financial system, and that the true numbers of Russian wealth hidden in the Cypriot banking system is not $20 billion as is being reported by the Western press, but $trillions!

      Now, If you only can deliver any proof from this being the case, I will be a Jim Willie believer for the rest of my life. Also will buy his newsletter. It is just out of size with his other information, like the $8000 gold price. If even a part of those trillions would head to physical gold and silver, we would have 100 x prices immediately.

    • @Luigi:  I doubt Jim is right re. trillions.  Cyprus was a conduit — a transfer mechanism just as much as a banking center.  It served as a tax “efficient” (loophole) for Russian money moving back and forth between the Russian oligarchy’s businesses.  Cyprus didn’t have a lock on the creation of structured products and countless other products of financial engineering, domiciled in Cyprus.    Cyprus was no Switzerland for Russians. 
      I do believe the dollar value is likely well into the hundreds of billions, but not much more.  I don’t know the real number.  Most banking execs in Cyprus wouldn’t know total numbers either.  

    • @AGXIIK:  heck, I’m old enough (barely) to remember the good old days when bankers used to give people toasters and other crap just for opening an account.
      AGXIIK:  c’mon, admit it.  You gave out a free toaster once or twice.  😉

    • Soon to be substantial penalty for not keeping money where the greedy bankers can rob it. Like social security going direct deposit or a debit card(who runs that program? JPM I bet!)

    • A good con artist always returns to his mark and second time.  Why. Because the mark can be taken twice.  Cypriots are going to see a second bailout since the Russians got their money out ahead of time. When the Cypriots come to fully realize the extent and depth of the theft and that they are being hosed twice, then things will get dicey. But gun control is strongin Cyprus  People are not allowed to own pistols or rifles, only double barrell shotguns and ammo is strictly controlled by the police.  Hmmm, see any similarities here???

  3. PS  It just occurred to me that the regular and vicous price suppression of precious metals is the government and central banks screaming fear that  if people see gold and silver as a safe haven, instead of listening to the MOPE and BS,  the over night repudiation of FIAT and the rush to leave the paper currency paradigm.  It’s happened before during the gold and silver rush in 1979 to 1980. The situations are quite similar.  But then we did not see the terrible theft of our bank accounts with the exception of 10% inflation, wage and price controls, 90% tax rates and a DOW that had done nothing for 13 years.

    • @AGXIIK:  And just think, back in late 1979 through the PM spike, the powers that be were late to recognizing just how hard they had to suppress gold and silver (citation:  I base this on Paul Volker’s memoirs, where he notes regret about not adequately managing the price of precious metals doing the period).  Even while late (i.e., less manipulation than today), we still saw gold lose half of it’s value in the middle of that multi-year bull run — a correction that has some similarities to what we have been going through over the last two years.  It still took nearly a decade for the blow-off top of Phase III of the bull market to manifest.

  4. Today we have an entire generation who has accepted that real money is, as according to Bernanke, is what the FED prints every day at the paper mill. Right now there are trillions of scared dollars all around the world. There are 100s of thousands of bankers, billionaires, and corporative executives trying to figure out what to do as they observe the beginning of the collapse of their fragile economies. And this does not include the millions of investors who are looking for a safe haven for their investments. If only 1% of these people decide to turn to gold and silver, no one here could remotely predict the true price of precious metals. When these days arrive, the price of PM will look like they are on steroids. No one will be selling PMs at any price until a predictable value can be sustained. After all, APMEX would not sell silver for $100/oz when they can see within two weeks they will be able to sell silver at $400/oz. We may not recognize the country we live in by September 1st of this year. 

  5. for those who think this is over, think again. refer to zerohedge for an article recounting how a medium sized business is now wiped out. they will fire all cypriot employees and move. every business there has the same decision to make. they joined the eu what in 08 and were fine? now their economy is ruined and all businesses there at this point would be insane to rebuild.
    flashpoint probably. the only question is how fast or slow the fuse will burn.

  6. CDL  I just read the same article.  After working with tens of thousands of businesses over the last 37 years, in most cases a business fails for internal reasons such as losses, loss of client base, obsolescence of business model or management failures.They become insolvent and unliquid simultaneously.  Some times the businesses are destroyed by external economic events like a natural disaster, currency devaluation, aggressive competition or regulatory and tax policies that can’t be overcome.
    Rarely in this country have we seen blatant theft of deposits destroy a business  much less an entire economy.  This is why  I call the IMF ECB theft as a FIAT Neutron Bomb.  It destroys the banks account but not the buildings   It also destroys the businesses populated by owners and customers.  I would not be suprised to see 50% total unemployment in Cyprus then followed by an exodus that would make Moses and Israelites look like a family outing.  Cyprus could easily be destroyed for decades.  The Greek people and their economy was just a warm up, with their junk bonds  the tipping point of garbage DDD- rated securities representing Weapons of Mass Destruction of the entire Euro Zone  Germany will not escape this since their banks have trillions of junk bonds from the PIIGS in their portfolio. 
    By destroying Cyprus the ECB destroys Greece due to their close ties to this island’s peoples.  As Greece goes thus goes the entire continent.  Greece holds $250 billion Euros of debt and $1 trillion in derivatives.  The extremely overleverage Eurobanks with their ratios of 35 to 1 and up to 50 to 1 means if they lose $2 they are bankrupt.  KABOOM
    The ECB and IMF define the circular firing squad and they have  yet to find out that Russian roulette is best played with an unloaded revolver.

  7. Cyprus is ruined.  They will now experience full blown depression with soup lines and everything else.  Of course this isn’t over.    Its just the beginning for them.  Now, if the IMF’s plan to increase the velocity of money, and inflation etc, works, then maybe they are buying some more time for the EU.  Businesses will have their hands full trying to figure out what to do with excess cash.  Maybe they will start spending it and get the economy’s snapped out of their funk.  Wishful thinking in my view.  

  8. Duckvision’s video of the grocery store food being thrown away kicked off another thought.  If there wasn’t a small cadre of cops with their glock 19s and full battle rattle ‘protecting the food’ so it could be thrown away, I absolutely guaranty you that this crown of hundreds would have descended on the piles of food like locusts on a corn field. Instead, they stood passively by, bitching about the waste but doing nothing.
    It makes me wonder how long this abuse and wastage will continue until people revolt. How big an insult will it take before we run out of cheeks to turn? When will the Cypriots say ‘enough, we will take no more’ and then put some teeth to that statement?
    You see this same passivity in Cyprus.  The sheeples have been rotoscrewed into the ground by bankster criminals, watching their businesses, jobs, FIAT and country driven into the ground while they bleat and moo, standing in lines for a miserable handout of FIAT left over after this theft. 
    Why do they do this? 
    Is it like the well fed crowds at the grocery store, cowed and intimidated at the Praetorian class bristling with weaponry.  We have weapons. We need to be like porkupines. We need to bristle back.
    Cypriots have weapons even if they are limited to blunderbusses.  If 50 MEN with double barrel shotguns came to the front of the line and faced down the constabulary, the cops would be outnumbered 20 to 1.  Once relieved of their weapons the cops would be given the option of siding with the people or dying.  If foreign troops were brought in, the people would have uparmored themselves to the degree that they would be a formidable group that the UN and the banker Nazis in German would have to note of AND fear. 
    Just because Merkel and Legard managed to take over one small country with a bloodless FIAT coup does not mean blood won’t flow. Maybe not theirs but many bankers and fellow travelers in Cyprus should know that if this is tried elsewhere, the first thing that would happen is the streets would flow red with the blood of the politicians and bankers.  It only took a tiny handful of brave men and women to start and complete the American Revolution.   There needs to be a serious reckoning in Europe over these thefts.  If Germany and her allies was to try to conquer the continent bloodlessly they should know there will be dire consequences to their actions and the price will be enormous as a result

    • With patfields throwing in an Adam Smith quote on a previous thread;
      About now seems perfect for Andrew Jackson; an excerpt from his 1837 Farewell Address:
      Reading this a few years back was the final evidence I needed to mobilize against today’s banker crooks….
      “It was not easy for men engaged in the ordinary pursuits of business, whose attention had not been particularly drawn to the subject, to foresee all the consequences of a currency exclusively of paper, and we ought not on that account to be surprised at the facility with which laws were obtained to carry into effect the paper system. Honest and even enlightened men are sometimes misled by the specious and plausible statements of the designing. But experience has now proved the mischiefs and dangers of a paper currency, and it rests with you to determine whether the proper remedy shall be applied.
      The paper system being founded on public confidence and having of itself no intrinsic value, it is liable to great and sudden fluctuations, thereby rendering property insecure and the wages of labor unsteady and uncertain. The corporations which create the paper money cannot be relied upon to keep the circulating medium uniform in amount. In times of prosperity, when confidence is high, they are tempted by the prospect of gain or by the influence of those who hope to profit by it to extend their issues of paper beyond the bounds of discretion and the reasonable demands of business; and when these issues have been pushed on from day to day, until public confidence is at length shaken, then a reaction takes place, and they immediately withdraw the credits they have given, suddenly curtail their issues, and produce an unexpected and ruinous contraction of the circulating medium, which is felt by the whole community. The banks by this means save themselves, and the mischievous consequences of their imprudence or cupidity are visited upon the public. Nor does the evil stop here. These ebbs and flows in the currency and these indiscreet extensions of credit naturally engender a spirit of speculation injurious to the habits and character of the people. We have already seen its effects in the wild spirit of speculation in the public lands and various kinds of stock which within the last year or two seized upon such a multitude of our citizens and threatened to pervade all classes of society and to withdraw their attention from the sober pursuits of honest industry. It is not by encouraging this spirit that we shall best preserve public virtue and promote the true interests of our country; but if your currency continues as exclusively paper as it now is, it will foster this eager desire to amass wealth without labor; it will multiply the number of dependents on bank accommodations and bank favors; the temptation to obtain money at any sacrifice will become stronger and stronger, and inevitably lead to corruption, which will find its way into your public councils and destroy at no distant day the purity of your Government.”

  9. After reading this piece I question how Cyprus is a “flashpoint” that triggers massive increases in PMs?
    There have been many flashpoints that could spell a sudden rise in PMs.  Korea, Iran, Syria, and others come to mind.  Just because the euro is adversely affected, big deal.  I don’t see any appreciable rise in PMs until the cartel is sufficiently long enough to rid themselves of their shorts.  What that happens….and it will…then the rise of PMs could be meteoric.

    • @silverrrr:  Flashpoint probably isn’t the best word.  The events were a flashpoint all by themselves and to those directly impacted.  But when it comes to the loss of confidence in the banking system, that has already proven to be an evolutionary process.  Cyprus just pushed us further down that path.  We’ve even had bank runs on individual banks in the US and the UK in the last few years above and beyond Cyprus and taken all together, we have yet to see a system-wide, global run on the banks. That could still come.  But even if it doesn’t, the bottom-line is that confidence in the system is eroding, and that underpins demand for precious metals. In the very least, Cyprus represents a phase-shift upward in the level of conseqences and the speed at which this evolutionary process is unfolding.

  10. May be a scenario like they provoke a meteoric rise in PM, and just after rise also to meteoric taxes on overvalues on PM sellings : and it will appear as normal when people will get used to these taxes attacks on personal goods.

    • @Ranger:  For over 20 years Dent has made it his style to make five-sigma+ style predictions.  As a demographer, first and foremost, he was able to make his one truly “good” call by calling the big 1990s-March2000 bull market, which rode the back of the baby boomer generation socking away money into the stock market.
      Other than that, his track record is really poor.  The media almost never holds him accountable for his track record.  New investors in each cycle flock to him and the pattern repeats — Dent sheep get slaughtered.
      He thinks we’ll have a deflation crash that will produce Dow 3300.  I think he has a dangerously limited understanding of monetary history and what the central banks can do in a pure fiat system.    If we were going to have that style of crash, conditions would have to more than replicate 2008 and the central bankers are no longer letting anything big go bust, unlike what they did with Lehman, which was conscious decision on their part (partly because they didn’t think counter-party entanglements would cause the carnage that resulted).

  11. If Miguel and everybody else takes their Euros out of the banks then Germany would have the option of reflating bank reserves with the printing press.  Stuffing fiat under the mattress won’t stop monetary inflation.  Individual deposits from the public are a pittance.  The banks will milk the public in some way.  Don’t have an account sir?  It’s going to cost you umpteen basis points more to cash your paycheck now.  If there is a divergence in the price of Gold from spot in Asia then I think they are the ones with the problem.  There is way more than enough above ground inventory of Gold for industrial and military applications.  The world is awash in Gold and flooded with fiat.  I’m with the 99 out of 100 Americans who are too stubborn to buy Gold anymore.  I’m not a complete fool however.  I’ll hold on to what I bought at $240/oz.  

  12. Agree with andrew james, but mostly with the point that they will tax gold and silver sellings overvalues, to 40%, …, 80%, like  they did in Cyprus for banking accounts. And people who don’t have gold or silver will find it “normal”.
    They have the power to win, we don’t, That’ our problem.

  13. Eric    As a recovering banker I can tell you just how easy it is to mistake a T for B when noting billion or trillion. Usually Trillion is used for what the client owes us.  Billion is for what we owe on fines and penalties.
     I’ve made the same B and T mistake plenty of times on this site too.   M’s are hard as well, but I’m lettering dyslexic.  Maybe Jim made the same mistake
    Now Q’s are another thing. 
    As for toasters, oh yeah! We’d give you a toaster, Eric.
    But even more fun was giving something fun to those sweeties on the teller line something. Bankers love happy endings. LOL

  14. people, i am so old that i remember walking into my neighborhood bank with a small savings passbook in my hands & some silver dollars to deposit.   i also remember making deposits of $2 or $3 or $5 & the wonders of compound interest being paid to me were the norm.   & the most amazing thing i remember is when i was at the teller window with my money & my small passbook the teller would take my money & use a rubber stamper & an inkpad to stamp into my passbook what i had deposited.    imagine that, an old fashioned rubber stamper & inkpad was the proof that i made a deposit.    
    (we are living in criminal times & the young people don’t even realize it.   young people of the world unite & revolt against the FEDERAL RESERVE BANKING SYSTEM that hijacked the U.S. GOV’T in 1913, it is our only salvation.   only gold & silver are money.   i remember the mercury dimes in my pockets & the quarters (2 bits) & i remember seeing dates in the 1800’s on some of my coins that i spent.)

  15. “Lithium-ion battery melts, another catches fire in Mitsubishi vehicles.”
    –Japan Times 3/29/2013

    When will people learn that, when safety is of utmost importance, Silver-Zinc batteries are the way to go?  Why keep tinkering with lithium-ion technology, now proven to be risky in large-scale applications?

    Yes, widespread use of Silver-based batteries would drive Silver prices higher, but that is the price that JPM and the likes of them have to pay.

  16. Really good interview. Jim covered a lot of ground. The U.S. & China trading lead in Africa was a surprise. Probably shouldn’t be the way the are both all over that place making deals… I’ll be looking for more on that.

    • @rocketsRedGlare you said it, Africa was a shock to me. How come we aren’t hearing this shit on our local media. China in Africa, man that’s big news and I also tend to believe that Russia did have trillions going through Cyprus and it was hit by the west just to piss off the Russians. Man the shit is starting to come fast and furious.
      Jim at his best with information to either believe or dis-believe.

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