Jim Willie is back with a scathing attack on the debt ceiling hike, big predictions for gold and silver, and a prediction that Italy’s default will cause the breakup of the EU in the next 2 years.
As always, a Must Read.

The Gold market correctly interpreted the vacant gutless debt pact, a deal to make a future deal, a decision to make future decisions. The Gold price rose on Tuesday by $40 and the Silver price rose the same day by $1.50 per ounce. The damage is more hidden than what is seen in nominal price. The short covering process has begun. 
The defended $1600 barrier has been breached, smashed, and overrun. Those who recklessly placed their short positions at that level did not anticipate the power of this bull market, or recognize the strong attack from all four flanks. The $40 barrier is also being overrun. Gold will continue to fight the political battles, to bust the cartel phalanx, and to enable the harsh light of truth to shine on the wrecked USDollar and ponzi ridden USTreasury Bond. Silver will continue to run impressive breath-taking strides through the opened pathways. Expect a run past the $50 mark within the next two months, likely sooner. Things always seem to happen more quickly these days. The clock is running faster with all the fever and ruin.

Prepare for continuation in the long drawn out economic deterioration, business squeeze, financial depletion, and systemic failure. The USGovt debt default process is one for the history books, part of a bold Jackass forecast made in the wake of the Lehman, Fannie Mae, and AIG visible disaster in September 2008. At work was the more important but less visible destruction of the US banking industry. It has not recovered since the Lehman engineered bust kill job, fully exploited by Wall Street. Expect in the next couple years economic martial law, deep rationing, and economic implosion. Protect from lost life savings, forfeited wealth to the USTreasury Bond monster, and the fast pace of toxic paper spoilage. The answer is Gold &Silver, if not commodity stockpiles and energy deposits. For the small investor, the safest is precious metals with no paper securities and thus no counter-party risk. The GLD & SLV funds are both fraudulent, to be revealed in time, if not already for those with discerning eyes. They should be avoided, unless the investor wishes to miss the climax runup in price. The precious metals Gold & Silver have received zero positive press by the corrupted financial media, as well as very little respect despite being the best performing asset in the last decade. Ignore their deceptive messages, and climb aboard the Gold ship with Silver cabins, and watch the unfolding disaster from the heat tempered windows. The Fiat Paper locomotive has already gone over the cliff. The debt deal only defined a lower crash point in the abyss far below.

The second half of 2011 will feature a massive powerful headline Gold & Silver breakout rally that reflects the broken USDollar, the broken USGovt finances, the broken USEconomy, and the broken USFed leadership. The rally will capture global attention and encourage additional investment demand. Even the USMint badly aggravates the Silver shortage domestically.

The gold price is driven by certain immutable principal themes, each powerful in its own right. Combined, they form the basis for a global Paradigm Shift in wealth transfer. Gold has run roughshod over the $1600 supposed barrier. When it reaches $1700, it will make quick strides and long strides in a sudden move to $2000. The overriding themes are:
*ultra-low interest rates, the 0% scourge that urges asset protection
*lost faith in sovereign bonds, ruined on periphery, moving to core
*exploding government deficits, made worse each year.

Click here for more from the latest Hat Trick Letter:

  1. Eric Governor says:

    I was just thinking the same thing Robert! Dr. Willie tells it like it is like no one else can or does, and yet no one dares to touch him?! Thank God for that! I'd for one, miss his posts more than anyone else's out there!

  2. I have followed Jim for years and his advice has literally made me a fortune and protected me from the mainstream financial media aka CNBC and BNN (Canada). In my books he is the top. I challenge the COWARDS at BNN and CNBC to give him 15 minutes on air. Right!

  3. Great article, as always ! Just one thing : Jim's predictions didn't even include the coming BIG Middle East War, so gold & silver are going to rise even faster and higher than he forsees …

  4. Well, it doesn't look like ole Jim Willie's mark is going to be hit as forecasted. What happened? I know the thieves cam eout to push the price down by raising the margins, but even so $50 Ag is not expected until December.

  5. just another reason why people shouldnt pay any attention to the pumps…who sell stories.. one moment you have the shorts covering and scrambling.. the next minute when a correction happens its manipulation and due to the big boogie man ( which armstrong predicted in june, a low in november).

Leave a Reply