mali goldThe Golden Jackass Jim Willie sat down with The Doc for a MUST LISTEN interview regarding the markets, gold & silver, and a coming European banking collapse.

Willie made explosive allegations regarding the banking cartel, stating that the US & France launched an invasion of Mali in order to utilize Mali’s gold production to meet the Bundesbank’s 300 ton gold repatriation request.
Wille states that there is a huge shortage of the metal, and that a massive gold rush will soon be ignited, resulting in an epic short covering rally and a 50% explosion in the price of gold.

Jim Willie’s full MUST LISTEN interview with The Doc is below:

1 Oz Gold Buffalo As Low As $74.99 Over Spot At!




Regarding the recent volatility in the gold and silver market’s and backwardation in the two metals Willie stated:

The forward month is cheaper than the spot price.  It comes from shortage at the spot, shortage in the current or present. I’ve heard some of the arguments, and I dismiss them rather quickly that we have a big meltdown coming in the paper gold and silver price.

This is not 2007, this is not 2008, which means we dictate here a much softer washout event. What’s different about now compared to 5-6 years ago?

China is now buying frantically, whose access through Hong Kong is experiencing about a 100% annual growth!

The Western nations citizens’ are buying coins frenetically, about 80% annual growth across the board!

The Shanghai Gold Exchange is the new kid on the block, it didn’t exist back then.  They’re setting up arbitrage with Shanghai- it’s just starting, and it will pull apart the London price  and cause drainage to the London banks. 

It’s a very different world with tremendous Eastward gold flow.  Gold is moving from London to the East- particularly China.   You’ve got to look at the flow, just like you look at money flow in the stock market and bond market in the US.  Look at the gold flow! 

So the flow is moving, it has huge  momentum on the metal side moving East. 

It reminds me of some of the shallow comments we heard a few years ago, like we have a repeat of 1980 with the Hunt brothers!
That was the epitome of stupidity!  We have the exact opposite of what happened in 1980 happening today, and we have a totally different situation today compared to 2008.  I’m frankly a bit tired of the shallow analysis that the gold community is subjected to- sometimes by its own members.

I would welcome a gold move to 1450 and a silver move to 25.  It would hasten the draining moving from West to East, and quicken the demise of New York & London scum that are operating their banks. 

One must pay strong attention to the heavy volume flow from West to East.  Therefore a lower offered G&S price would accelerate the bank system breakdown because gold is probably the only asset they have in their system that’s not paper and crumbling into confetti.

The principal vulnerability though is with the COMEX itself. 

As the Gold price declines, the COMEX will approach a default.  They’re running out of candidates like MFGlobal and PFGBest from which to steal with total approval of the US government regulatory agencies, and court system.  I’m surprised it didn’t go to the Supreme Court to bless their crime

The COMEX has almost no metal, and has almost no clients, compared to five years ago, then I don’t expect we’re going to see a similar event to five years ago.  Again, I’m very tired of shallow, stupid analysis. 



The Doc asked the Golden Jackass what is the most likely trigger event for a complete systemic collapse:


I don’t think we’re going to see a default as a trigger event in gold or silver.  I didn’t say we won’t see a gold and silver default, I said that it won’t be the trigger.  There are just too many deep sources for gold that the central banks have access to.  I refer to Basel Switzerland, the Roman catacombs, and the BOE, I think they’re pretty close to the bottom of their gold barrel, but they have big powerful friends in Rome and Basel Switzerland.

The trigger is not even going to come from within the US, because it’s just so controlled- the markets are being controlled from multiple different centers, in particular the Federal Reserve and the Treasury Dept, JPM, Goldman Sachs.

It’s just so corrupt to the core, and we’re seeing a blossoming of the fascist business model and the corruption that’s accepted.

Attention should be drawn to Europe.  Look at some of the most recent events that are really quite staggering.

The Italian elections kicked out the GSax preppy Mario Monti.  I’m surprised that he’s not being thrown off a palace balcony.  It’s directly in response to hikes that Monti imposed on property tax to finance the bankers!  The Italian people have a much more effective political system than the US!

Italy actually has elected a comedian!  This is like electing John Belushi to form a coalition government!  Mario Monti is on the way out.  What does that mean? 

The defense of their dead banks with liquidity lines and property tax hikes will end in the near future!

In Spain you have new high level financial corruption events that have paralyzed the nation at a time when they’ve already seen a string of big financial firm failures!

This at a time where they have 25% unemployment.  I think that the likelihood of violence on the streets is greater in Spain than in any other country. 

Spain’s bank insolvency and wretched unemployment is causing tremendous distress, and there will be a breaking point there. 

Then in France you have Hollande, the leader of the socialist clowns has raised the highest tax brackets to 90%.  The resulting capital flight to Scandinavia is astounding, leaving the nation extremely vulnerable.

Then you have the German economic slowdown which is really capturing some attention, which will remove ability and patience of bank rescues.

Then you have the London banks which are joined by French banks in broad deep exposure to Southern Europe.  They’ve set themselves up to have their heads cut off. 

Recall that the Draghi solutions like LTRO were recently insulted by debt downgrades, which was unprecedented.

Then you have the USFed, which is the only buyer of USTBonds, and the Euro Central Bank as the only buyer of PIIGS Govt Bonds.

Here is a note as to the stress in the system: the European banking system received $1.2 trillion in Dollar Swap funds from the NY Fed in January alone to prop up the ECB banking system.

European banks are collectively much larger than the US banks, but are in suspended animation while the US banks are being supported by narcotics money laundering. 

A big European bust is coming When the European bust events occur, the mad scramble for safety will be on, and they’re not going to be looking for Switzerland any longer because of their Euro peg.  A massive rise in the European gold price is coming and it will be staggering, shocking and not reversible.  It will ignite a global Gold rush, a massive short covering rally, and powerful 30% to 50% rise in the gold price will come in response to the European collapse. 

Following that will come the arrival of the Gold Trade Finance platforms.  Gold settlement for trade across the world- primarily though coming out of the East. 

In other words, trade involving two parties not involving the US, one of them being an Eastern nation, and they will settle not in dollars anymore, they will settle in gold, and they will have some help from their friends in Turkey.

We’re going to see an end to the USDollar reserve status following these events, and the funeral will have a speech given by the Saudis to bring an end to the Petro-Dollar itself. 

You have to look to Europe and not to the US, the US is a joke in regards to crisis, management, propaganda, the ESF, narcotics money laundering, sponsored fraud, it’s just unbelievable what’s going on in the US, it’s not going to be the trigger, the trigger will be Europe.

We have 15 to 20 potential sites to force the breakdown.  It’s not just one or two.  Every couple months there are a few more potential areas to cause the breakdown.  That’s very, very dangerous, and new.  We didn’t see that 3-5 years ago.  Back in 07 it was really just sub-prime.  We have about 12 different areas now which are just as dangerous as sub-prime, and both of them are in Europe.


With QE4 and the recent return of NINJA loans as the Fed attempts to re-inflate the housing bubble, The Doc asked Willie whether the Fed would be able to kick the can down the road one more time with one last bubble:

They have 15-20 fingers and toes, but there are just too many different areas that they need to plug.
This real estate bubble is a joke.  There’s no new bubble coming or even on the horizon.  What we’ve got is the US government has sponsored a whole new round of sub-prime mortgages.  Expect instead of the big banks underwriting them, it’s the Federal government.  We have not seen a rebound in demand for housing, even though the 30 year mortgage rate is under 4% and has been for quite a few months.

What’s not shown in the press is that there’s still 10 million homes that are sitting on the bank balance sheets.  They’re called REO’s, and they’re selling their REO’s or short sales, which ARE NOT INCLUDED IN THE CASE SHILLER INDEX! 

It’s a parallel of the discouraged workers no longer included in unemployment!  They’re bringing labor market calculations to the housing market.  They’re not going to revive the housing bubble for a simple reason- there’s not widespread finance available, it’s exclusively coming out of the FHA.  The other reason is that people have a great distrust for buying homes after they saw so many people foreclosed on.  Another reason is that the people don’t have brisk income.
The factors are not there, it’s kind of a lunatic claim to state that the housing market is going to be re-bubbalized.  Not even close, it’s stuck in a depression!




The Doc asked Jim whether we face a lost two decades like the Japanese, or what type of collapse we face in the US:


I said this back when Lehman Brothers fell in the autumn of 2008.  The US is on a path that cannot escape systemic failure and total dependence on the printing press to cover its debt and for a debt default of the US government debt, which will come in the form of a global conference to organize and co-ordinate the debt write down.  There will be US military outside the room to make sure everyone complies.

If the US goes ahead with sequester cuts, they’re talking about $4 trillion over 10 years.  I cannot emphasize how small that is.  But let’s go through some of the points why I believe the collapse is at our doorstep:

The collapse is happening now– it’s no longer ultra-slow motion like 2 years ago.   It’s a new event every few days or weeks.  The pace is quickening.   

The extreme nature of current events is alarming.  Just in the last few months:

The US Fed announces every month their extension of 0% forever (denigrating their own exit Strategy talk).

 $1.2 trillion was doled out by the USFed to European banks in January alone!

We have the Germans demanding repatriation of their official gold account (Allocated Accounts).

We have the Italians electing a comedian like John Belushi to halt the property tax hikes that bail out banks.  This is an insult to their entire political system which experienced that Mario Monti appointment without an election.

We have the London banks recently sponsoring a Chinese Yuan Swap Facility, cow-towing to Asia.  This is unprecedented!  New York will not do such a thing, but London did, which means that London and NY might be at odds!

We have an attack announced on Mali in North Africa to wrest gold & uranium timed when the  Germans asked for repayment of their gold reserves.  The quantities really fit.  There was a suspicious comment by the French and British saying it will be repaid in 7 years.  300 tons over 7 years is approximately what Mali produces in gold that will cover almost exactly the German repayment.  That was organized by France and the US. 

We have the shutdown of the gigantic Mongolian copper & gold mine by Rio Tinto which is an example of resource nationalism. 

We have raids larger and bolder of the GLD inventory that prevents a COMEX default and will produce a bigger price discount vs. the spot for GLD shares.  I think it will go down towards a 20% discount, which will cause alot of problems. 

We have the USFed preparing for QE5 (or rather QE187, as in QE to Infinity). 

We have events like the major central banks losing credibility while engaging in open currency war.  The franchise system of central banks is being questioned.  They’re in battle with each other. 

We have the US facing a fiscal cliff, which forces a quantum leap in job cuts (recession alert).

We have the Japanese ratcheting up the competitive currency devaluations (only USTBond buyer).

We have the Swiss managing their Euro-Franc peg, but suffering losses in Japanese & British bonds.

We have the Russians hosting a G-20 Meeting to coordinate the alternative to US$-based trade.

We have the emergence of Turkey and soon India as gold trade finance intermediaries.  They’re going to supply 1 of 2 parties engaged in trade with gold so they can make the settlement of the trade. 

We have the Iranian sanctions coming to a conclusion in US acquiescence.  The US is surrendering to the Iranians! 
All these events have occurred just since the new year began less than two months ago!  The pace of extreme events is quickening!

Extreme events have become the norm, putting tremendous additional stress on the system which the boys are trying to manage.  They don’t have enough people, enough resources, enough channels, and they don’t have enough brains to do it.

The managed system cannot succeed, it’s too complex.  They are attempting to work towards a system of total system management, and it’s just not going to work.

A series of climax events is coming very soon.  The changes will be rapid and breath-taking

Vast wealth has been moving East the past 3-4 years, and with it great power. 
Look for some seemingly minor bank failure to cause a ripple effect of deeper damage. 
It’s going to involve larger banks tied with commitments such as counter-party contracts or intermediary supply functions, and things are just going to start wrecking. 

I think vast wealth is going to be lost in the US and the West, except by gold and silver owners. 
Owning gold and silver will become harder to do because the rules are becoming stricter.
Those who have set themselves up in the last few years are going to be the big, big winners, and the ones who are bold enough and brave enough to do it now are going to be glad for their actions. 

I have a family member who refused my advice three years ago, and now that family member is facing the conversion of her very large privately managed IRA pension fund into these new special Treasury bondsThat’s going to cause a real firestorm by the public, and they’re going to wish that they had converted their IRA’s into a gold account.

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  1. Something certainly feels like it has changed. CRIMEX trading FEELS different. JS might just be right, we have seen the bottom of the last 18 months consolidation and this is the start of the move to $3,500 and beyond. 
    Plus the Silver Eagles to Gold Eagles sales ratio over at the US Mint is even wiping the floor with last months numbers so far in March. Feb concluded with an approx 41 – 1 ratio…currently it is 61 – 1 at just under half way through the month.

    • Doc said in his Willie interview that Russian finance ministers talked of adding silver to their reserves, which obviously would have catastrophic effects for the silver comex/slv ponzi and were perhaps a veiled threat against the US? Anyone post these links?

      Its also been hypothesized that JPMs CIO’s IG9 position has a silver component to it, and is begining to get more notoriety (ie. ZHs tempest in a towering inferno).

      At the same time, bankster pet cockerspaniel Bart Shill-ton talks of how the CFTC is ”internally investigating” London metals price fixing (such an appropos term for what they do there).

      Funny how Russian money laundering haven Cypress gets smacked at the same time as these other potentially connected events are occurring.

    • Strannick, I have always appreciated your contributions over @ the Hedge and here. You connect the dots very well. Best wishes and good luck to you friend.

  2. I am trying to stay positive.  I believe Sinclair is right.  We are at or very near the bottom.  Even if we get a little more pull back it should be short lived.  Sinclair wouldn’t be doing these KWN interviews and doing conferences in New York City if he didn’t have a lot of conviction behind his opinions.  He is putting his reputation on the line.  For the moment we just need to sit tight and remain as positive as possible.  This is hard because I have never seen market sentiment so low.

    • Agreed, Pollo.  And you are right, it IS hard to do.
      All of the markets are very strange these days and the precious metals are no exception.  I believe that this is due to the manipulation that is going on.  No investors out there can make good educated guesses as to what the market will do in the near to mid term future. The manipulations instigated by the Gov and the Fed preclude this.  Fundamentals still matter but their effect is delayed until investors can figure out the relevant policy issues.  This seems to be why important events do not affect the markets immediately.  That delay in reaction is the time investors need to figure out whether or not policy will trump the actions that occur.  I also think that we are seeing a bottom in gold and silver prices here and that now is a good time to accumulate additional PMs.

    • No problem here staying positive. I understand that the fundamentals will ultimately rule. Silver is already hard to find and is being consumed rapidly. What else is ultimately more important? Hard to not be positive in this environment.

    • Yep.  No gas shortage in Mexico and frijoles are big down that way.  😉
      As to battery powered cars, I would be impressed to own one so I could hummmm past all the damned gas stations, giving them the finger.  😀

    • Many don’t realize that batteries are not all that innocent. There is a lot of pollution that comes from them from manufacturing to disposal. Lithium is particularly bad. Lead batteries, lets not go there. Sulfuric acid and such. Of course the industry and government only counts what is good about them after they are made and before they are disposed of. Good thing they can’t blow up.

    • Why would the bull market be over?  If I thought the bull market was over I would be depressed.  I am staying cool.  Now, please convince me why this bull market is over?  I believe we are at the bottom.  We will see some gains this year in my opinion.  Maybe you should sell your silver?  You will sell it very fast at these totally suppressed ridiculously low prices.  Especially if you give it away at spot.  

    • The bull market in gold and silver will be over when:
      The politicians get their crap together and stop spending more than we have.
      The Fed gets its crap together and stops printing fiat currency out the wah-zoo.
      The mooch class in this country gets their crap together and figures out that their hands fit rakes, shovels, hammers, and saws better than they fit unearned freebies.
      The voters get their crap together and stop electing empty heads with pretty faces.
      No, the bull market in PMs is NOT over.  In fact, it is just beginning.

  3. Makes perfect sense for prices to drop with currency printing. NOT. The idea that the bull market should be over is contrary to facts. A corrupt system gets in the way of those facts. That is a fact. Trying to draw conclusions from rational analysis in a controlled market is lunacy.
    Either way, maybe a second waterfall starting?

    • They can not hold back a long time bull market. The last 12 years is the best proof of this. They can be successfully manipulated only if they have no other problems. But today they have a lot of other problems. So now they have no other way but to play all-in.
      But they will lose. Their ship is sinking from a lot of different holes. And every day there are new holes. They are currently working at full capacity. But they have no power to batten down all the old holes and all new holes for a short time. Their ship already doomed. It’s agony. GAME OVER.

  4. PK  I gave a quick thought to selling some gold at $1,580 last week, hold FIAT and buy back in if gold went down $200-300 an ounce.  Since there is no certainty at that happening, I decided to hold off.  It was not for fear that I would sell but on the off chance that gold would drop.  The paper trail, and work to sell and having alot of FIAT waiting for a good buy point just didn’t make sense.  I dismissed that thought but did sell 10 kruggers to buy more silver (Day of Resistance Rounds)  for the Reno Gun show. My FIAT level was a little too low lasst week so selling was a reasonable tactic.  GTSR was about 52 to 1.
    Other than that I’m long and strong.  My belief that gold have way more chances of going up than down has not wavered.  The notion that $1,250 was a lower price point is no longer worthy of consideration.  Timing to sell based on that speculation is moot and too hard to gauge.

    • AGKIIK-I think the gold and silver prices are stuck at this price level for a lot longer.  It could trade sideways for many more months.  They will keep the prices really close to the mining cost of the metals.  Someone said silver cost 28-30 bucks to mine.  I think this is where we will see silver for months ahead.  They can’t smash the price down much lower or the supply chain will be gone.  If inflation starts to go crazy with crude and other commodities, then maybe gold and silver will increase since the mining cost will also increase.  I do like silver over gold right now and long term.  52-1 is a strong indication to hold silver over gold. 
      Also, thanks for the reply back on the Paul Brodsky question I had about how he see’s the global economy (revaluation of gold).  Not sure why you aren’t writing articles and publishing them.  You have a great grasp of the global world.  Funny, zerohedge just linked his article a few minutes ago.

    • @ duckvision
      You make it sound like China India and Russia do not exist. They can not keep prices low for a long time. They can keep the prices low just at the expense of the large loss of their physical gold and silver every day. But their stocks of physical gold and silver not unlimited.

  5. @Canadian Dirtlump, thanks for posting that entertaining link in your 12:30 post.
    Snippet:  “The Karma travels about 50 miles on lithium ion battery power…
    Is Boeing ever in deep doo-doo after designing lithium ion batteries into their 787.
    Ya gotta wonder if they are going to place a label in the cockpit reading:

  6. NetRanger808 says:
    March 12, 2013 at 7:43 PM

    We have an attack announced on Mali in North Africa to wrest gold & uranium timed when the  Germans asked for repayment of their gold reserves.  The quantities really fit.  There was a suspicious comment by the French and British saying it will be repaid in 7 years.  300 tons over 7 years is approximately what Mali produces in gold that will cover almost exactly the German repayment.  That was organized by France and the US.
    This speaks volumes…

  7. Interesting article about Hugo Chavez by Paul Craig Roberts.  A little different perspective about Chavez compared to what we get from the MSM.
    Chavez was not an enemy of America. He was an enemy of Washington’s hegemony over other countries, an enemy of Washington’s alliance with elite ruling cliques who steal from the people they grind down and deny sustenance. He was an enemy of Washington’s injustice, of Washington’s foreign policy based on lies and military aggression, bombs and invasions.

  8. “We have an attack announced on Mali in North Africa to wrest gold & uranium timed when the  Germans asked for repayment of their gold reserves.  The quantities really fit.  There was a suspicious comment by the French and British saying it will be repaid in 7 years.  300 tons over 7 years is approximately what Mali produces in gold that will cover almost exactly the German repayment.  That was organized by France and the US.”
    Very intersting stuff, for sure, but not proof of anything.  Hopefully, there will be a follow-up article to this that contains some solid info on just what is happening in Mali and why.
    “I have a family member who refused my advice three years ago, and now that family member is facing the conversion of her very large privately managed IRA pension fund into these new special Treasury bonds.  That’s going to cause a real firestorm by the public, and they’re going to wish that they had converted their IRA’s into a gold account.”
    So, what is it about IRA gold accounts that prevent them from being converted to “special Treasury bonds”?  If the Gov wants to grab retirement money, why would what the money is invested in be any kind of a deterrent?  Would they not simply order the custodian to sell all of whatever the money was invested in and buy those special T-bonds with the proceeds?

  9. Duck Vision   I think you might be right on the PM prices and this holding pattern. We’ve been stuck in second gear for two years.  That’s tightening the coiled spring even tighter. But central banks can remain irrational longer than we can remain liquid.
     What we need is a Massive Squirrel Event (MSE).  Like a Black Swan, the MSE provides a huge, enormous  distraction to the present meme.  It draws the TBTF attention like a 25 vehicle car wreck, something you just can’t turn your eyes away from; it’s that horrible and amazing.
     This takes the TBTF, Central government and Fed’s attention completely off precious metal supression and voile, $55 silver.  I think this might work.  Greece was the big deal along with QE 2 back in early 2011. Before you knew it silver was $49. Greek and Fukushima were MSEs.    It took some serious effort to knock it down and in doing so exposed this completely BS suppression for the world to see. It may have even tipped the balance in favor of GATA and the silver speakers ire, calling out the crooks and their handlers. It even got Holder to admit TBTF banks were extra legal, confessing his inability to take legal action.  About all TBTF can do is nibble around the price supression edges today.
     My plan at the gun show is to educate the public of this supression with a hand out that give a brief  silver story in 10 bullet points.  Who knows what the tipping point may be.  I’m just trying to spread the word. 
    That MSE?  Willie says there are 10-15 or more.
    The Brosky article got me to thinking about what he said.  With due respect for his work, the essay reminded me of a South Park Episode called  “The Underpants Gnomes”   The gnomes would creep into people’s homes, steal  skivvies and take them back to their underground factory. 
    When Cartman asked them what’s up, they said  “we take  underpants and “Something, Something” and make profits.” 
    As a business owner IMO that entrepreneurial model needs a bit of work. 
    Then there’s Brodsky’s model.  QE plus ‘something something’ gets us a painless reset all the while remaining the world’s reserve currency.  I think there’s something in that second part that needs a pinch of work.  Not that I could come up with something better since resets have been tried for 2,000 years.  That second part’s the pistol.
    Writing is fun, helps me get my thoughts in order and maybe puts something out that is informative. But I’m an amateur and prefer keeping that way. My business is what pays the bills.

  10. FW. “Squirrel” was used by Sarah Palin to describe how the MSM is distracted by silly events.  MSE is just my add on to that idea.  It’s not trademarked
    Mary B I hear you  We’ll see. If my prices work I’ll report back on results.  Gun shows are a real feeding frenzy

  11. The main mistake many pessimists is a lack of understanding of the processes occurring in the world. Pessimists see only those processes that occur within the United States and no more.
    Pessimists do not realize is that the centers of pricing formation of gold and silver, already have big shift from west to east. Arbitration in the amount of $ 15-20 between the price of gold on the London Stock Exchange and the Shanghai Stock Exchange it is unnatural paradox, that can not continue for long. Otherwise, all the physical gold will flow from London to Shanghai.
    The market will force London to raise the price of gold.
    Otherwise London would be no market at all, and no pants.

  12. First, the USA invaded previous countries for oils or because the other countries’ policies were against the USA’s interests and now, the USA is planning to invade other countries for gold but this time, it has invited another country to help him which is France!

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