Jim Willie collapse

*Editor note: Willie’s prediction that a European triggered complete collapse is at our doorstep is looking extremely timely with Europe staring a banking crisis in the face in the wake of the Cypriot depositor haircut announcement.

The Golden Jackass Jim Willie sat down with The Doc this weekend for the second part of an extraordinary interview regarding gold, silver, and what Willie believes will soon be a massive European banking collapse.

Willie states that a global financial collapse is now at our doorstep, and that the endgame will be triggered by a small-medium sized bank failure in Europe.

Willie informs SD readers that the coming European bust will ignite a global Gold rush as the only remaining safe haven, will see an end to the reserve status of the USdollar, and will result in the arrival of the Gold Trade Finance platforms. 

Willie also discusses The Fed’s futile attempts to re-inflate the housing bubble, and the series of climax events that will bring a breath-taking global financial collapse to our doorstep!

The Golden Jackass states that the coming collapse will devastate everyone in the West except those who are bold enough and brave enough to buy gold & silver NOW!

Jim Willie’s second part of an explosive, 2-part interview with The Doc is below: 


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The Doc began by asking the Golden Jackass what will most likely be the 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.

Readers can find out more about Jim Willie’s Hat Trick Letter and subscription services at the GoldenJackass.com


If you missed the first part of Jim Willie’s interview with The Doc, it is available here:


SD Bullion

  1. If I”m not mistaken we’ve already experienced an economic collapse right here in 2009.  This one is just going to be bigger and badder this time with a “30-50% increase in the price of gold”.  Of course the collapse will negatively impact assets denominated in fiat currency like stocks and bonds.  Ha ha. 

  2. Cant wait for the reset..2015 is going to be a big year  for silver and gold. Why 2015? Because the larger economic issues that are driving the metals market will need some more time to take hold.

  3. I don’t discount anything Jim Willie says, in fact I absolutely agree with all the facts he has presented. Now many will ask when? When will it all collapse? I glad he stayed away from exact timetables. So many Gurus have posted their best guess, and when those times come and go, they will be discredited, many not for the first time. With the chaotic mess our financial system has become exact timetable predictions are foolhardy at best and irresponsible at worst.

    • It’s entirely possible that all too many readers put too much stock in what the gurus are saying.  Like most of us, they are playing the odds when they make their comments and predictions.  Odds can be tricky things, though.  They are percentages and not hard facts.  So, what constitutes a “guru” in these terms?  Probably someone who is right about their predictions 1/2 to 2/3 of the time.  Most people are not anywhere near that in terms of prognostication accuracy.  Most of the people I know, for example, can give me a lot of great timing advice if I just do the opposite of what they are predicting.  😉
      Some of the best info we get comes in the form of trends.  These are not given as hard data points but as the general direction in which something, such as the economy, is moving.  Even knowing that and how it might affect us can be worthwhile.  We need not have an exact time and date for everything that’s going to happen.  Only God knows the future to that degree and He does not share the script!  😉

    • My thinking is in the same boat. All the Gurus have been around for a while and yes they know their shit but against the Elite they are just students.
      I know when the crash is coming, God told me and I feel it inside. this year, next year, year after that, or after that. In either case I Continue to Stack. Keep Stacking

    • Lol, Charlie!  Yeah, if God was to talk to any of us, I am sure that it would be you!  Only problem is when you ask when it will happen and He says, “Soon, my son”.  What was that biblical comment, something about “a thousand years being as a day to our lord”?  That kind of skews the meaning of time, at least for us mere mortals.  😉
      I agree with your plan, though. Stack as much as we can for as long as we can. Every day that things hold together is just another day blessed with more prep time. 🙂

  4. Tiger, I have to disagree.  I just searched “jim Willie” on youtube and the first few “predictions” were rediculous.  The first was Sept 2012 predicting Morgan Stanley’s failure within “weeks”

    • I think you misunderstood, I was glad he stayed away from predictions (in timing of a dollar collapse) in this interview as I said “With the chaotic mess our financial system has become exact timetable predictions are foolhardy at best and irresponsible at worst.” or perhaps I am misunderstanding what you wrote? Tiger

    • Sorry I was just talking about discounting what Willie says.  I discount just about everything these guys say considering they have been off for almost 2 years on everything that escapes their mouths.

    • @jiggysmb, no apology necessary. I try to ignore timing scenarios myself and go with my gut.  Hang in there and remember the only one you can truly trust is yourself. Keep piling it high Tiger

    • “I try to ignore timing scenarios myself and go with my gut.”
      Words to live by.  The Gut is the only one who goes hungry if we are wrong about something, so it has quite a vested interest in giving us good advice.  I also tend to go with the gut, as it has been right FAR more often then not.

  5. Willie made a very clear point in his newsletter what we’ve been talking about for a couple of years regarding the theft of private pension plans.  He called it ‘a controversial seizure of private US wealth in order to cover the US Fed’s ruin balance sheet.   That’s a different take on what I thought would be the theft to help with the budget deficit.  But if the Fed needs additional funding to ship to Euro banks bolster their failing asset bases, the laws are already in place.  The legal work to stop or stall NDAA was implemented by a journalist names Chris hedges and others.  
    The action is in front of the 2nd Circuit Court. If the government arguments prevail, the suit will reach the Supreme Court where a ruling favoring NDAA could go in favor of the Obama Admin.  If that legal action is stop gapped in favor of the Obama administration, the US rule of law  and Constitution has met its Waterloo. Just like Obamacare and the Supremes ruling in that action, NDAA could be a done deal with Kagan running high cover.
    She stopped legal actions against Obama back when lawsuits were going against the President regarding his birth certificate and passports, citizenship and standing to be president.  She owes him more that you can imagine.  If the administration wins, the results would bring a Nazi-like state to the US according to Willie.  The MG Global thefts would then become little more than a footnote to the now fully  open door to theft of private wealth. Remember the systemization of “nudging” by Cass Sunstein.  To accomplish the administration’s goals, the actions have to be small, little nudges to moving the policies along.  Now that Obama has the hundreds of EOs in place plus NDAA and NDRP, it won’t take too many more nudges before we fall into a fully fledged fascist state with all the Nazi trappings. No wonder the TSA needs $55 million for new uniforms.  Think gold trim, peaked caps and knee high boots with an emphasis on Lane Bryant sizing with a scosh more room in the waist and butt.
    jiggysmb. Morgan Stanley was very close to failure. Their balance sheet was a wreck. Willie called it right but the Fed stepped in with QE 3 and 4 and started buying $hundreds of billions of bad mortgage loans. MS was able to unload its junk MBS tranches on to the fed just in time. I followed that closely and it worked like a charm. Willie’s prediction were not wrong, just delayed. MS and other TBTF banks are still destined for the bone yard

    • @AGXIIK, Don’t you think that making anything close to an exact prediction in timing is dangerous? It can lead to misunderstandings and weaken credibility. I never understood the need for exact timing predictions, after all if you see thunderheads on the horizon, you shouldn’t need someone to tell you take a slicker and umbrella with you when you go out. Your point with MS is well taken, and they like the rest can only paddle against the currents in the economy so long before they are swept away. Peace Tiger

    • Yes, making exact timing predictions is irresponsible.  But, Willie said that this collapse was imminent.  That means soon in my vocabulary.  Like, in the next few months.  Most pundits use the words, sooner, rather than later.  That could mean years.  Imminent means it will happen extremely soon.  It is at our doorstep so to speak.  This is a very ominous prediction.

    • “He called it ‘a controversial seizure of private US wealth in order to cover the US Fed’s ruin balance sheet.   That’s a different take on what I thought would be the theft to help with the budget deficit.”
      This is something that can be difficult to get a grip on… for me, anyway.  If the Fed can print all the currency it needs, why does it need to be screwing with pension plan money?  Why not just zap up a few more trillion as needed?  Yes, we all know that unrestrained money printing is dumb policy, but it is also a policy that the Fed already has in progress.

  6. I’m with you on that Tiger. It’s difficult to understand much of what is going on now even after it’s happened.  I confess that I fall into the habit of trying to understand what is going on today and what might happen in the near future by offering up sort of analysis after connecting a few dots.   Call it a personal fear factor and real concern that has me wanting to get a notion of how to act and react as national and world events are a state of flux. This seems to be on the minds of many people as we try to get a handle on the moment.
     Willie’s working it like a day job and  says there are dozens of ‘trip wires’ in the world today. Even he’s not 100% sure which ones will produce a crimactic event.   When a really important one is triggered and starts that avalance, I’d like to be ready. Ready for what?  I’m not quite sure.   But I am working hard to make sure I have a few fox holes ready if needed.  Some are silver lined too.  The end results are hard to define. Prepping is one way to maybe stave off the worst of the worst.
    I will make one prediction.  People will continue to predict the unpredictable until the Holder hits the fan and then we’ll see who’s right.  I’m probably wrong most of the time do I’ll be wearing  my DA hat a lot more.

    • “Prepping is one way to maybe stave off the worst of the worst.”
      Indeed it is, AG, and it is also one of the few things over which we have some real control.  One thing is for sure and that is that history has not suddenly decided to take a vacation.  History is filled with examples of disasters of all kinds.  They not only have happened but they continue to happen on a routine basis.  Whether they come to us as the natural events of severe storms, earthquakes, floods, tsunamis, blizzards, tornadoes, etc. or as man-made events such as terrorism or social / political upheaval, something WILL be coming that most people will be unaware of until it hits.  Of course, we do not need to know what it is that is coming because something is always on the way.  Because of this, some kind of general prepping to ensure that we can be as independent as possible will be good.  Having some food, water, meds, comms, heat, light, and other basics of life is just a damned good idea.  What none of us needs is to become sheeple… ignoring such possibilities until they hit us and then rushing about madly to do the things at the last minute that SHOULD have been set up and ready months in advance.  We’ve seen this happen in every big storm that has come along recently and will probably keep on seeing it because sheeple DO NOT PLAN for the unlikely.  Those of us who know better than this do what we can to blunt the effects that these events will have on us and our families.  Because we do this, we are able to do more important things than running out to clear off the shelves at the local stores just in the nick of time.  Instead, we can check our supplies and equipment to make sure that they are ready to do their jobs, check on family and friends, and get any of them to safer locations, board up windows, start the generator and check its fuel supply, check weapons, check medical kits, etc.  These are the things that can be a lot more helpful than adding to the local traffic jam and tearing through the stores to get that last can of beans.   

  7. I have been seeking out Jim Willie for the past five years.
    He may singularly be why I have a substantial stack now.
      Thank you Doc for bringing  him here.
     I know that a collapse is inevitable, and I feel that is it eminent. Things cannot get much worse without creating a snowball effect, an avalanche.
     I have become a serious “prepper”,  and I continue to stack food, ammo, their delivery systems, and everything I need to live off the grid.
     Nobody knows how bad things are really going to get,
     but I strongly believe that this will not end well.

  8. Jim Willie was screaming from the rooftops in 2006 about how CDOs and MBS would destroy the banking system and gold would soar.   He correctly called the equity collapse that came 2 years in advance and also had the foresight to tell you to load up on gold and silver when it was half the price it is now.
    What I would like to know about is what is talking about his relative having her IRA converted to Treasuries?   Can someone elaborate on that one?

  9. Slvrizgold.   Willie was referencing the expropriation of  Federal pension funds that are presently being used to fill the budget deficit gaps. He mentioned this and other pension threats in the feb Hat Trick letter. These public pensions are the low hanging fruit.  If Willie’s relative is or was a Fed employee and receiving a pension, there’s been a seismic shift in the speed at which these funds are being rotated into the fed coffers.   This ‘nudge’ is the real evidence that private pension plans are next. Corday was talking openly about the need for the Feds to ‘manage’ private pension plans since they should be under the control of the CFPB.
     Spain just snorkeled up private pension funds  to the tune of $85 billion, 90% of vailable pension funds, to buy Spanish bonds.  That government is  completely  broke.  This direct theft is one of the reasons the Castilians are threatening secession. 

  10. Read you loud and clear Jim! If you read the comments here, some more points. They love numbers, like 911, astrological star patterns, symbology etc…is their something like that soon where the masonic illuminati freaks will use as a date to pull the plug? Also, would they collapse it all before flipping the House back to Pelosi? Might as well throw in their plans of Islamic conquest…like lots of gold to be stolen from Iran and House of Saud. Roubini said the other day, they can keep this slow train wreck going until…like some date, or star alignment, or until people and governments are in place. Just saying.
    BTW, seems the silver short etf’s are seeing high sell volumes? No more stop raids below 28.00 silver?

  11. Ed I wondered about that statement Willie made re the Fed pensions used to fill the damaged Fed balance sheet. My only guess is along the lines of your note that the Fed balance sheet could become very damaged as they buy trillions in junk rate MBS tranches   It’s like me buying a few million in ETFs, seeing them drop in value by 50% and instead of selling them and taking the permanent loss on the sale, i try to back fill the losses by putting more funds into the portfolio. I disguise the loss by adding to the portfolio so it has the same original balance and can disguise the losses on paper.  Or something like that.
    My contention was the private pension plan expropriation by the GRA gambit was to fund the deficit and the $4 trillion in  USTs coming due this year by forcing  IRA and 401k holders to purchase these UST annuities.  It my assumption that this will be done soon.  It is commonplace in Europe but they are in worse shape that us.  As the Fed ships trillions of FIAT to Europe by QE whatever, that new money sloshing around the Euro zone banks could kick off some real inflation.  The Germans are worried about that too.  So we could be a few years away from the IRA grab since we can still print the deficit and some dummy countries still by our CCC minus debt.  Just one more outrage lurking in the near future.

    • Yes, I understand that their balance sheet sucks and so does the quality of the stuff on it but still do not get why THEY need OUR money to paper over problems that THEY created and that they can paper over by printing any amount of money they need.  I can see why they do this in Europe where individual countries cannot print their own currency.  To get euros, they HAVE to get them from the ECB because no one else has any in the amounts that they need.
      I’m not saying that something along these lines is beneath the level of skulduggery to which the Fed and Gov will stoop, just that there does not appear to be a real reason for it… unless… this is just another move on the part of the elites to thoroughly screw up America and its middle class.  Now, THAT would make sense to me.
      Another thing to consider is the political backlash from something like this.  This would be THE biggest hot-button issue to ever hit DC without a doubt.  These politicians have proved over and over again that they cannot take much in the way of political heat, scurrying and running for cover just about any time the wrath of the voters looks like it will descend upon them.  Even the gun control rhetoric is dying down now, not because the lefto-communists are giving up on the idea but because the American people are pretty solidly against their gun grabbing ways and WILL throw their butts out of office if they persist.  2014 is coming and there will be a real struggle over the Senate this time around.  No Dem senators who are up for re-election in the western and mid-western states can afford to support a gun grab and they know it.  If there is anything more beloved by politicians than their own position in government, I do not know what that would be.   
      “As the Fed ships trillions of FIAT to Europe by QE whatever, that new money sloshing around the Euro zone banks could kick off some real inflation.  The Germans are worried about that too.”
      Agreed.  The Germans will be especially sensitive to anything that looks like it will cause runaway inflation.  Adding more money to the system than the efficient exchange of goods and services requires WILL lead to inflation and is already doing so when measured truthfully and not in a way that is designed to hide the truth rather than expose it.  Perhaps this is the bottom line?  They COULD print the money but if they do they will have let the inflation Genie out of the bottle and they may not have a way to stuff her back in there.

    • AGKIIK and Ed B or anyone who would like to comment. I would like your opinion on this article.  Kingworldnews is kinda crazy.  I read it but with all of this 10k for gold and 500 for silver articles, it gets a little nuts.  This article is a little different.  Talks about revaluation of assets and using inflation to get out of this mess. 
      Another link by the same guys at QB asset management.  His name is Paul Brodsky.


  12. 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…

    • I really don’t know why Max made that silly April prediction.  He is wrong.  No one will be mad at Max for being wrong though. His comedy act lightens up a very serious subject but it also takes away from his credibility.  Being wrong won’t hurt him.  Go Max!!!!!!

  13. Duck Vision.
    Reviewing the two essays at KWN and Daily Capitalist, I have some fundamental problems with this idea that revaluating gold  to $20,000 an ounce,  with the Fed buying the US Treasury gold and assuming there is any gold to buy, that would have the appearances of instant hyperinflation as if that would be a good thing
    That evil Genie is not something you can shove back in the bottle just because his short term job is somehow done.  This also assumes that a skeptical  gold owning public that will sell at $20,000.  Gold owners know why they own gold and not one is unaware of the nature of central government and banks eyeing gold covetously. FDR proved that a government that asks we sell them at any price, is not doing it for our wellbeing.  There is a hook to everything that Uncle Sam proffers as a to-good-to be true deal.
    If we really did have 8,000 tons left in the US, including central bank and personal resources, $20,000 a ounce would not be enough to solve our debt issues. Gold goes for about $65 million a ton.   Increasing its value to $650 million a ton means our gold might be worth $5.2 trillion.  That is less than 1/3 of our national debt or 2-3 years of deficits. That would backfill our deficit problems for a few years if the gold was used to pay the government bills. It would do nothing to resolve our GAAP based $200 trillion in debts. 
    If the Fed was able to do a controlled chamber implosion of its balance sheet, filled with trillions of old bank MBS tranches and treasury bonds, and assuming it owned ALL the treasuries, thus protecting the former holders of USTs, it could wipe out a great deal of its debt with a hyperinflationary spike in interest rates of bonds held within the Fed.  Containing artificially extreme interest rates is as false a premise as the present 2% rates that the Fed deems reasonable. The damage would be as profound as the present policy of ZIRP and that is doing incalculable damage. That the Fed would be able to do ‘good’ with some snapshot hyperinflationary rate is ridiculous. No one is that smart. Bernanke is a complete fraud given the nature of his PhD thesis and its completely false assumptions and conclusions.
      Somehow there is an assumption that these rates would not bleed over to other loans and other countries.  There’s also an assumption that banks would benefit from interest rate increases but ARMs would explode as the payments increased exponentially.  Most business loans are variable rates. Reflecting on the time when  gold was at  $800 an ounce, it took 15-20% rates to crush inflation in the first 4 years of the 1980’s.   Gold went up by 2,000% then assumed a more normal price but that did not seem to be of any benefit to the debt and rate problems of that era. It just reflected the people’s distrust of currency.
    Banks loan values imploded. Rates went to 20%. The S&L industry was destroyed with a cost to the government of $150 billion in bail outs. Property prices were smashed down by 25-50% since high rates crush real estate prices. I was there through the whole debacle and no one went through it without pain. But the reboot did work.
    To pull a magic trick like the one proposed would be miraculous since no country or empire has even printed FIAT to prosperity or increased debt to pave a way to wealth and gotten away with it. All suffered a reset. There is always a limit and it comes sooner or later.  
    The Romans debased their gold and silver with base metals until worthlessness. The  Empire fell and other sovereinties assumed power.  The Dark ages lasted 1,000 years.
    To do what’s proposed would require perfect knowledge, 100% agreement of all parties including those who would see their debt asset holdings drop by 90%.  This has been tried in Greece with bond holder receiving 25-200% rates only to see default and 70-90% haircuts in the value of their bonds.  All the bailouts in Greece benefited only the banks. Nothing benefited the people who now suffer under 30% unemployment.
    This Greek debt  is now in its third default evolution. If this doesn’t prove that higher rates in an inflationary environment with extreme austerity and a GDP that is dropping at a rate of 5-15% a year offers a painful resolution to the problems that beset a debt ridden economy, nothing will. 
     Those present debtors would see their debt  principle value  drop by 90%, benefiting them tremendously as their gold could be used to pay down their debt. Future debtors would be on their own since banks would be reluctant to take another run at lending if they knew the government gave the borrower a means to rid themselves of debt in a unnatural way.
    If someone does not have money to pay their debt, this would be moot since their rates would increase and offer no relief in payments.  Their wages would probably not go up enough to manage this increase in cost of living. They would still have debt but be forced into a poverty of hyperinflationary diminishment.  No one wins who has debt without the boost in income or rapidly appreciating assets to pay that debt and thus stopping that quick increases in interest rates. Ask the folks who got on the wrong side of the rate explosion that starting in 1980.
    What the KWN essay suggests is that we are moving past the first part, the QE portion, and need to enter into the second phase.  That is untenable since no country with a unbacked paper money FIAT currency has been able to resolve the inevitable crash of their banks and economy once their particular form of QE printing and debt overwhelms their ability to pay their way, stimulate their economy with printing and contain inflation.
    It’s been tried over 200 times, each ending in failure. 
    The third part is the post reset era.  A crash beget a reset but there is no easy way past stage 2, even if it involves a $20,000 gold. Germany tried much of what is being proposed; QE printing to pay war debts, using a faux gold backed currency and then simply losing control and falling into the Weimar Republic problem. The mathematics of hyperinflation are set pretty in stone. The reaction of the human nature is another predictable but uncontainable quality.  
    Their economy was smashed, people’s savings were devalued to nothing, pensions became valueless and only the gold and other precious hard assets retained value.  German did  finally reset but only after World War II. That post war recovery required billions in aid from the US.
    That inflation equation and the hypothesis that if a country’s debt to GDP ratio is over 90% the best they can expect is sub 2% growth, are two critical elements of the solid wall  that will prevent any sensible resolution to our debt problems and  insolvency of the government despite trillions in liquidity and retain a normally function economy.   If we tried it as the world reserve currency with everyone in this country agreeing to  a $20,000 an ounce gold price, it does not take into account the spread of world wide inflation as we experiment with this plan.  Someone, and maybe a few billion someones, who don’t have gold but see hyperinflation visit their shores, would not be so agreeable as  we try some grand untested  debt reboot experiment in a global petri dish. Their hunger will trump our experiment in an attempted painless reset.
     Our friends to the East might like the idea of $20,000 gold since it would further their plans to back their currency.  They would likely not help us with our peaceful and ‘perfect world’ attempt at a soft landing. It’s more likely they would not only not thank us for the gift but just see this crazy experiment as a window of opportunity to further their cause to create a new reserve currency.  It we did try this experiment, assuming we can get through the harshness of phase II and enter phase III of the reboot, the chances of reentering as the world’s reserve currency is slim.  That vaccuum during phase II would be filled by something or someone who wanted to remove us from the world stage.
    We are a nation hated for good reasons. Even if our attempt to reboot were painless, our exit from this wound cleaning time would not go unnoticed.
    It’s that second phase that’s filled with landmines and many vested interests, some of whom will take a serious financial loss.  Future payments and expected receipts by those counting on those payments will be sand in the gears. There is ample historical precedent of those people with pensions, public and private, who would see extreme hardship, like the women with the Austrian pension bonds that became valueless during the Weimar disaster.
    America’s spent 50 years digging its debt grave with a golden spoon. The consequences of any attempt on our part to fixed our national problems would spread to other countries, all of whom are tied in some economic fashion to this country. I expect that some would suffer greviously.
      Some of us’ve felt some real prosperity due to the trillions of dollars of build up national, state, corporate and personal debt.   Some of us did not ride this wave of prosperity and were left behind; yet all of us are mired in tens of trillions of debt.  We all are forced to pay this debt as well, whether directly or indirectly through reduced economic opportunities.
    Ridding ourselves of these debts is likely to be painful since the wealth and prosperity enjoyed by some will be removed in the expected  Great Reset. The 1% may avoid the worst but there is no painless way to do this, even with $20,000 gold. 
    Debt resets requires great austerity. Ask the Greeks, Spanish and Italians what that feels like.  They are a microcosm, reflecting the people trying every trick in the bag to reduce pain. Through each attempt, the hamhandedness of those efforts increases the damage.  Bankers and central governments have NEVER been known for their deft touch.
    We  American do have a habit of trying to get out of jams without suffering the consequences. The line of least consequence  in pain reduction is not a mark of character, though.  We have some severe suffering in this country right now, largely due to prosperity-damaging tax, regulatory, debt and inflationary issues.  Magic wands are absent.  The ideas presented on the way to OZ probably won’t solve much. 
    While I would love to see $20,000 gold since I have a stack and would liquidate my mortgage and then some, it does not seem to me that the Fed would be successful in magically creating a price at this level, while maybe benefiting  the few with gold and expecting everyone else to go along with the plan.

    • About that $20k / oz. gold price…  is that what the price would be without all this BS / manipulation?  Or did this figure come from somewhere else?  I did not have time to view the articles Duck mentioned.
      I think that the bottom line is that there is so much debt out there that it simply cannot be paid.  There will have to be a great reset of some kind but I have no idea what form that could take.  It is likely that the creditor nations will be in the driver’s seat on this and that the debtor nations will do as they are told OR there will be no reset.  How many times has the US and the IMF done this to countries that are in need of our money?  Many, I would say.  It is likely that we will be on the receiving end of this when the reset comes and we will NOT like it a bit.  Well, too bad!  This is what happens when a nation parties like there is no tomorrow but tomorrow comes anyway!  The piper MUST be paid, so there is no use in discussing whether or not to pay him.
      Two aspects of any such reset are likely to be that the US dollar ceases to be the World Reserve Currency and the US dollar is significantly devalued.  There is no way to know by how much but at a guess, say 75%.  This will essentially put an end to the US importing goods from other countries because they will all cost more than our cheap dollars can afford.  Such is the fate of those who abuse their currency the way that we have.  Those who have REAL money, however, will be able to get what they want because the currencies of gold and silver will be MUCH higher than they are today.  In both cases, they will be measured in dollars, only today’s dollar actually has some value while tomorrow’s dollar will be just a shadow of its former self.

    • $20k/oz seems a bit high. There is plenty of supply which minor profits are made on at current price points. The demand for gold is mostly due to the CB mess. And gold production can never ever expect to keep up with demand resulting from a monetary crisis. Decades worth of gold above ground.
      The revaluation, if it comes to that, will already be a done deal by now. Something from the Bilderberg group’s magic hat. They’re not telling the outside world, just make sure gold/silver are talked down much as possible. All the gold/silver the people bring to specialized shops (who rarely also sell), will be bought by the elite on the cheap. With that gold also into strong hands, it’s time for them to allow only themselves to do the leverage game and THEN revalue gold. 

  14. Hi,
    I am new to silver doctors and wanted to listen to the interview – but the video-link is labelled private, so I can’t access it – and I’m missing the (youtube?)-link in the first part of this interview – is there a way I can see/listen to it?
    thanks so much for help!

  15. This is aying there is a shortage of silver, this weekend KWN weekly wrap with cmi said sales were not strong. Supposed to be 1 of the biggest dealers in the states. Last year people were screaming shortage, Bob Moriarity scoffed and said there was no shortage, supply right now outpaces demand, it is invesment that is takeing up most but not all of the oversupply.
    I find this confuseing, why wouldnt the “experts” agree on supply and demand? Dont they all have access to the same info? Just like everybody does. I can see a shortage of “junk” silver in the states, but there was lots to be had on ebay, of course I checked out canadian and lots is relitive, but there was “junk” to purchase, I can also buy in town.
    So, basicaly just wanted to say I find it confuseing. Also, if there was a shortage, it would just be a shortage at this price. Personaly, I am not selling at this time. lol. glta

    • Much of what is being said is relative.  As with real estate, location matters greatly.  SOME areas are VERY short of silver while others are not.  While I have had no trouble buying 100-200 ounces of silver on-line at times of my choosing, very little junk silver is for sale in my area.  It is also a MUCH different matter to get, say, 1 million ounces of silver.  Small amounts are easy to get, large ones take a few months to get… and practically all of it will be recent production and not bars that have been sitting around in a vault somewhere.
      Yes, there is a lot of info out there and one would expect it to be freely available to all who want to see it.  Unfortunately, some of the people in the precious metals arena have their own agendas.  Maybe spreading the truth as they see it is part of their program and maybe it isn’t.  What we need to do is gather as much info as we can from as many different sources as we can and then sift / compare and toss out any that seem wildly out of step with the others.  By taking a slice of info from the middle and not the fringes we can usually come close to knowing what is really happening.
      There is also disinformation out there and much of it is brought to us by the same people who are manipulating the precious metals markets and doing other skulduggerous things.  Mark Twain’s comment about “Lies, damned lies, and statistics” come to mind.  Don’t give up, though.  Stick around, read, think, and soon you will develop a decent filter that rejects the things that do not make sense while retaining the things that do.

  16. “The collapse” isn’t going to be sudden off the cliff. It is going to be a continuing degradation of the dollar until it isn’t worth anything. By then we will have violence in the streets and an excuse for the government to use their shiny toys and 2.1 billion bullets on US citizens in the big cities.

    • An economic collapse is most likely to be a process and not an event, so there will be a long string of small events that eventually add up to the collapse.  Like the “slow motion train wreck” analogy, we can see it happening all around us but can’t do much to prevent it.  About all we can do is watch what is flying which way and be ready to duck.  
      The general prepping for problems of most kinds is something that we can do and everyone who can, should.  Extra food and water should be the #1 priority.  At best, it can save your life.  At worst, it is stuff that you would have bought anyway and can use any time. It is likely that it will save you money if you buy in quantity and store it for a while.  Inflation will cause prices to rise but the prices of your stored food items are locked in and not inflating.
      Personally, I don’t think that the Gov has a clue as to what a cluster**** urban warfare in the US would be.  The most expensive war ever fought by the US, in terms of lives lost, was the US Civil War.  Americans, by and large, are bad to the bone and love to fight against oppression… no matter who is providing it.  The DHS needs to Molotov Cocktail test one of those new RVs they are so proud of just to see what $2 worth of wine bottle, gasoline, and a rag can do to it and those inside it.  Patrick Henry would approve.  🙂

    • @ Mary…The violence in Hawaii has escalated to an all time high. I can’t recall the amount of violence on the islands. Stabbings, murders, shootings etc. Just a never ending saga that has arrived here in Hawaii. I rather be in a place, I am able to move around than just sit here and watch some of these idiots kill one another..

    • One thing many overlook when prepping is food preservation techniques. When garden harvest is coming in and you may be relying on that food until next harvest it won’t be the time to be learning. Do it now even if it is small batched so you have the technique down. Munching apples I pressure canned last fall as I type this as an example.

    • Words to live by, Mary.  Betting our lives on whether or not we can succeed with something the 1st time we try it would be foolish in the extreme.  
      I watched and helped my Mom can MANY pints and quarts of home-grown produce.  We always had a large garden and several fruit and nut trees.  Not that nuts are canned, of course, but they too require some care in drying and storing.  I have not done any canning on my own but I do remember the care that Mom put into it and plan to do the same.  
      We will be canning veggies and fruit this summer.  I have one of those Ball Canning books and will follow it plus some info from the Internet.  The main things are keeping everything clean, watching the processing times and temps,  and making sure that the pressure cooker and its safety valve are in good condition.  As a retired chemist, I know about batch times, mixing, and heating / cooling.  Should be fun.  
      We also plan to can some things that we will buy from the local farmers market.  That should be good too.  Will be good to make some contacts with local farmers and talk to them about their growing techniques.  
      Canning meat also has appeal to me, so we will be doing some of that as well. I understand that low acid foods require a canning temp of 240F or so, or about 10 psi in the canner for 75-90 minutes.

      For some reason, my wife is fascinated with the idea of canning butter.  I never thought of doing that until I read about it on Internet.  Supposedly, this works well, and is a good way to preserve butter when it comes on sale or when one trades for a large amount of it.

      One tip that would help a lot would be knowing how tightly to put the rings on the jars as they go into the canner. I am thinking not all that tight… maybe finger tight + 1/8 of a turn? Any comments on this would be appreciated.

  17. Recently, it looks like that European countries are having more economic problems than the United States and Canada. The collapse is also at all countries’ doorsteps since they are all economically related together. Although, countries like China have doors made out of precious metals which means the collapse won’t touch them that much compare to the Western countries.

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