Jim Willie: I’d Welcome a Gold Move to $1450 & A Silver Move to $25!

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

Willie states that a Big European Bust is Coming- evidenced by the fact that European banks received $1.2 trillion from the NY Fed in January alone!
Willie states that the coming European bust will ignite a global Gold rush, a massive short covering rally, and will result in a powerful 30% to 50% rise in the gold price!

Willie also discusses gold and silver backwardation, the recent paper raids, and whether or not the metals face the risk of a 2008 type collapse as the Western financial markets go down in flames!

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

 

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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.

Make sure to check back Tuesday for the 2nd of Jim Willie’s interviews with The Doc which focused on global gold currency wars, QE5, the Fed’s attempt to inflate another real estate bubble, and the coming European banking system collapse. 
You won’t want to miss it!

 

SD Bullion

Comments

  1. Thanks, Doc & Jim! Enjoyed a lot!
     
    All I’ve ever wished for in these Jim Willie – articles, is the list of links & references..

  2. I enjoy listening to him but is this the same Willie who was trumpeting that Morgan Stanly would explode by the end of last year? I think so.
    Anyway, it’s common sense that the PMs are flowing east.
    I’ll put this bust in the memory bank and let’s see.

  3. Bark Bark Bark, we have all kinds of dogs barking but the Silver caravan moves on regardless.
    Its a matter of when…not a matter of IF.
    When it happens things will be so uniformly so bad that the price of silver will be cold comfort.

  4. Nice interview.  Here is another by Greg Hunter and Willie.


  5. Morgan Stanley was effectively bailed out when the Fed started buying the MBS paper  last year, utilizing QE 3 to buy junk mortgages.  MS was one bank that had a large inventory of these soured tranches. They were choking on them and bad loan rations reduced their banking ratings. They were able to rid themselves of many billions of CCC negative paper through QE 3, recapitalzing their balance sheet.  It’s my opinion this too big to fail bank’s problems were one of the primary reasons Fed QE funding targeted the purchase of MBS.  Now we have $1 trillion in junk mortgages being moved off these banks balances sheets.  They can then purchase USTs and use excess reserves to gamble in the equitiy casinos.
    The Fed sent $100 billion to the Euro banks last week. If it’s true that 41.2 trillion was send in January, and I heard it was ONLY $237 billion, this is the phone call that Ben’s been expecting for well over a year. The Euro banks are fatally wounded buy defaults, badly collateralized loans, bank runs and economies in freefall. The Fed is plugging holes in the dikes.
    Luigi, the links you ask about are in the Willie news letter. In the 70 pages or so of his news letter he provides the links to other articles and there are dozens of of those in each edition of the two papers. It’s $110 per 6 months and worth every penny of the subscription cost. Just be warned, it’s often grim news and will take you a few days to digest it all.

    Turkey is rumored to have 5,000 ton or more of gold. They are being blacklisted in the good bar exchange in Dubai, preventing them from paying for Iranian oil. This is unprecendented and does harm to a NATO ally. The islamists in the political arena of Turkey are getting very tired of being kicked in the teeth and prevented from conducting their normal business of buying Iranian gas and oil. This breakdown of the compact between Turkey and its allies is pushing this large and powerful nation eastwards. This will harm us and do nothing to stop trade between these two nations.

    • AGXIIK- I have read many posts by you.  You are full of knowledge.  Keep up the good work.  Here is a good read about the bond bubble.  It has a lot of good info.  I’m sure you already understand most of the article but for people like myself, it’s a good reminder of how much debt is in the world.
      http://www.caseyresearch.com/articles/coming-crash-bond-market
      Basically, rates don’t rise until they do.  It’s fast, rapid increase.  A perfect example is Greece.  With all the swaps, put options to synthetically keeping rates down, the JP Morgans and MS can’t allow rates to rise much more.  The spreads will continue to widen on those tranches like the IG-9 trade.  Willie has mentioned Europe being the trigger of the markets blowing up.  He could be right.  With the new 1.2 trillion dollar of swaps by the Fed into euro banks, this is evidence of the banks were about to bust at the seems.  The ESF controls the FX markets without any oversight.  This day of reckoning can continue longer than most people think.  Since most of these interventions are off balance sheet, it’s very difficult to see the movement of the currencies within the banks.  All of these currency pegs will be harder to keep.  The swiss/euro at 1.20 is going to be very hard to manage.  If the euro tanks because of the event of a breakdown, the Swiss will need to buy more euro’s to keep the peg.  That would be death to the Swiss.  I don’t see the peg continuing much longer if the Euro tanks.  All of these FX markets will be lit on fire.  The dollar could see a huge run up short term.  The dollar could strengthen with the metals at the same time.  There just seems to be something in the air.  You can almost feel it. 
       

    • Willie has talked a lot about Turkey being a swing state.  Turkey is going with the East not the West.  I’m not sure about the 5,000 tons of gold but I’m sure they have much more then they report.  Willie has also talked about a gold exchange fund.  Gold will be revalued if this happens.  He has mentioned gold being around 8,000 and silver would be around 100-200 per ounce.  This is all just speculation but a revaluing of the metals will happen but at what price?  If all the currencies are junk, is 8k for gold per USD even good enough?  What about other commodities like natural gas, oil, food?  Will they be revalued at the same levels as the metals?  So if everything is revalued, how is the system any better off?  All I know is that central banks and the elite’s of the world wants gold, silver, and land.  They are buying it like crazy right now.  They love it at these prices but the metal is moving fast from West to East.  As the price goes lower, the metal moves faster from West to East. 

    • The extraordinary measures that the Fed and the ECB are taking these days should be all the proof required that the Western banks are VERY sick in spite of comments to the contrary.  If they were not, none of these measures would be needed.  When the docs are doing a heart transplant, one can readily assume that the patient is very sick and will die without such treatment.
       
      Willie mentions the Spanish banks in particular and they are in terrible condition but I wonder if Greek banks and their economy is not even worse off than that.  It seems to be that they are.  Greece… Spain… Italy… France… all look like dominoes waiting a chance to topple.

  6. Duck Vision. 
    You hit all the important points and then some.  The Casey essay is accurate and pretty gloomy.  I missed this one last Friday being super busy setting up inventory for the gun show next month.   There are some interesting points made in that post that’ll give us some idea of when the wheels might start falling off. There may be one thing that’ll help us predict when things are going to get sticky.
    Casey notes that when the Fed starts buying assets to curb the inflation rate that’s increasingly evident and hard to disguise—lie about—that’s when the Fed’s powers are at an end.If food inflation starts here and elsewhere, that could be a tipping point. The MSM will start shouting about this and things could start rolling down hill from there.  The people will start to sniff out inflation. The velocity of money will increase as we, the people, start to use our FIAT to buy some assets of value and the repudiation and confidence in the dollar will start to erode quickly. That’s the hyperinflationary scenario talked about so often here and elsewhere.
     Porter Stansberry’s work started me down the bond bubble road 3 years ago.  It’s being played out now with US rates at a 200 year low.  The average rate has been 5.5% in that period so there’s a lot of room for rates to rise.  Last week 10 USTs went up 19 BPS to 2.05%.  A year ago they were 1.45%   That’s a large jump.  I don’t know what will happen when and if rates go to 5-6% and the fed is holding $6 trillion in assets. They have to be junky, USTs, Euro, Yen, Swiss.  They’ll all going to end up badly. The Swiss Euro problem could be the canary in the mine field but another really telling event was Banca Monti Peschi’s fourth derivative loss bailout last month or so.  A senior officer took a swan dive out of a high window due to that. Monti GS drone’s finger prints are all over that fiasco.
    That $1 trillion in 2012 personal net worth bump noted last week?  Big whoop there.  We had a GAAP increase in collective US debt of $10 trillion in 2012, well over $1.5 trillion in car and student loans and a fed deficit over $1T as well.  The debt to net worth increase has to be at least 10 to 1.  As a lending person, all I can say is that is a terrible ratio.  It’s probably worse than the Greek debt to GDP.  Their bonds took a 70% haircut the first go around and they are on their third 70% bond bailout haircut  right now. Greece and  Europe have pretty quiet lately so that probably means something bad is going to happen.  When the next pile of Shumer  hits the fan, the MSM will be a few days behind the curve but the markets will react quickly.  That’ll be a solid indicator that Europe is going to have a bad summer. The Fed shoveling way over $1 trillion into that bottomless pit is not going to stop a $45 trillion bank asset FUBAR. It just delays that bad results and the Fed ends up owning a few trillion of CCC minus Euro trash bonds (that’ll go to zero in value) It’s interesting how the Fed can ship trillions to Europe and it doesn’t show up on the BS balance sheet.
    All the upwards bumps in the housing and equity markets is QE driven, with trillions of new FIAT trying to find a warm spot.  These valuations are total crap. S&P earnings YOY were down nearly 6%.   It’s just like the tech wreck, Greenspan’s ZIRP to stimulate the economy which caused the 2006 housing bubble and the ZIRP bond bubble pumping going on today.
    When rates go to 6%, 8% or even 10%, the Fed BS balance sheet will crater by 50% or more as will the entire world’s bond bubbles;  Euro, Japan and US.  State, local and US  government is over 43% of our stuck-in-neutral  GDP. With private sector GDP in reverse, I can see a day when the government is over 50% of the GDP, like most of the big Euro nations.
      We’re from the government and we’re not here to help cuz we own your ass, so bend over.
    This is a heck of a Monday morning.

    • Funny that you mentioned Porter Stansberry.  I listen to his audio presentation.  I kept hearing this ad on the radio about this very important information that will change your life.  You had to go to this website that had this audio of him.  I listened to it and just sat in silence for a hour looking at my screen.  I didn’t understand much about finance or global markets but something hit me like a ton of bricks.  I came to reality and out of my trance.  It was one of the weirdest feelings of my life.  It was like everything changed of how I looked at the world.  I thought there was cornerstones of how the world worked.  It was a total lie of what I used to believe in.  I haven’t followed Stansberry since but his audio was a important moment of my life to wake me up.  

    • Biggest risk to the U.S. dollar is a loss in confidence in the currency, not a rise in interest rates.  Greece cannot print money, so they are susceptible to credit risk(interest rates) much like an individual is.  However, in this new world of accepted global fiat printing the Fed can and does monetize the debt meaning there will always be a buyer for U.S. Treasuries.  The bond vigilantes know this and confine their attacks to sovereigns subject to credit risk.
       
      The Fed controls the interest rates.  But, it’s a dance between all the other variables like inflation, money supply, velocity, rogue waves, and black swans.  Something will trip them up and then it’s armageddon.
       
       

    • “The Fed shoveling way over $1 trillion into that bottomless pit is not going to stop a $45 trillion bank asset FUBAR.”
       
      The ECB is a GIANT wealth-sucking black hole that can consume every bit of fiat currency on the planet plus a whole lot more.  The problems that they have are genuinely systemic and not subject to being cured via cosmetic applications by the US Fed.  The UK and the US have PLENTY of problems of this type of their own.  They do not need to be importing any from the EU.  The REAL question that the US and UK central bankers need to address is not how or whether to attempt to save the EU banking system but CAN it be saved.  At this stage of the train-wreck, I do not believe that it can… but like a large drowning man, it CAN pull the UK and the US under with it as it goes down for the 3rd time.
       
      “It just delays that bad results and the Fed ends up owning a few trillion of CCC minus Euro trash bonds (that’ll go to zero in value) It’s interesting how the Fed can ship trillions to Europe and it doesn’t show up on the BS balance sheet.”
       
      It is interesting that the people running governments and central banks never seem to understand that a crisis delayed is a crisis made worse and much more difficult to solve.  Huge problems like this are like trying to deflect a meteor that is heading towards the Earth.  The sooner it is nudged off its collision course, the smaller that nudge can be and still be effective.  The longer it is delayed, the bigger the nudge has to be.  Small nudges are much more easily done than large ones.  At some point, a line is crossed and it then becomes impossible to deflect the meteor with any technology available to us.  All this makes me wonder just what part of the meteor deflection scenario we are in.  Clearly, we have passed the point where deflection is easy.  That time has been squandered with all that stupid can-kicking.  But have we reached the point where deflection is now impossible.  If we have not, we must be awfully close to it. 
       
      “When rates go to 6%, 8% or even 10%, the Fed BS balance sheet will crater by 50% or more…”
       
      There was a time when that was possible, even likely, but I wonder if that same thing is possible now.  In the old days, the Fed controlled the short rates while the bond market controlled the long rates via a competitive bidding process.  Now that the Fed will buy any and all UST bonds at any low rates of interest, the bond market cannot force rates higher in response to excessive money printing, excessive borrowing, or any other risky financial move on the part of the US Gov.  The Fed and the Gov are now in an unholy alliance wherein bond vigilantes now have no pressure whatever that they can bring to bear on UST bond “auctions”.  They have removed the brakes from the train of runaway spending and borrowing… and we are heading downhill into a region of deep rocky chasms and curves.  If there is a way for this not to end very badly, I am not seeing it.
       
      “Something will trip them up and then it’s armageddon.”
       
      Perhaps.  The fact that their present method of operation is unsustainable and inherently unstable may not require ANY trigger to generate a complete disaster.  The whole house of cards could easily come tumbling down all of its own weight with no external force applied or required.
       

  7. That’s exactly what happened to me.  I listened to his video, subscribed to one of the newsletters and read the book by Addison Wiggins.  After being kicked in the nuts by the tech wreck and the 2007-8 market crash, I started to understand what a ponzi scheme we have in this country.  20/20 hindsight helped me understand what was really happening and since then it’s been a race to get the cblinders off before the Clinton hits the fan again. 

  8. I’m ready for fifteen dollar silver.  Could it be the lull before the storm?????

    • Why would you be ready for that?  Will you sell your silver at that price?  No?  Well, no one else will either.  Now, $25 silver, on the other hand, WILL be bought and sold.  If you are looking to add to your stack, hope for $25 silver and not $15 silver.  :-)
       
       

  9. well max keiser called for a crash to start by april, santa says the correction should be done by his birthday, Free Willie forecasting doom.
     
    Let’s get the show on the road.

    • Don’t forget Gregg Mannarinno.  He says we are going to see a crash very soon also.  Gregg Knows.  David Morgan says silver is going to have a good year this year.  Silver will touch 49 several times and settle in to about 40 dollars per oz this year.  Don’t worry.  

    • Yeah, Silverdoctors needs more Mannarino videos linked.  We haven’t had one in weeks.  I wonder why?  He has so much credibility unless you actually track some of his calls.  He called for the sequester to have downturn in the market.  Short everything!  Well, that was 500 dow points later on the upside, old Greg was wrong again. 

    • WTH is it with these guys and THEIR birthday predictions?  They on an EGO trip, or what?  ;-)
       

  10. “I will take $ 25 Silver for 500, Alex!” 

  11. Just amazing that I am viewing the Asian Market right now. Silver has been moving parallel with $29.00 level for the last 90 mins. What no one is buying PSLV….

  12. More dominoes added to the beginning of the chain and any one could start the cascade…

  13. You don’t even have to think about it much.  We will see $45 Silver again and the sky will not fall at that price.  $25 bucks an ounce would be like living in a short lived fairy tale.  Investing in Silver here and now is the biggest no brainer in history.  Get some now  while Uncle Ben’s prices are insane.  

  14. Hi,
    I am new to silver doctors and wanted to look listen to the interview – but in the display of this article, I miss the (youtube?)-link, and the second part is labelled private, so I can’t access it – I’m logging in from Europe, does that have to do with it? Is there a way I can see it?
    thanks so much for help!

  15. I’ll be also glad to see gold even at 1400$ per ounce and silver at 20$ per ounce. If the cartel actually does that, it will allow us all to stack precious metals cheaply, faster and easily. Although if actually happens, then the premiums would sure also rise a lot.

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