Jim Willie: Central Bank Gold Rehypothecation Scandal to Take Gold to $5,000/oz

By Jim WillieGoldenJackass.com

-The battle is on for delivery and verification for official gold accounts
-Evidence grows that much of it is gone, and when demanded, replaced with urgency
-It is soon to transform into a global gold war
-The German Govt gold demand to the London and NY City bankers represents a big escalation in the gold war
-The central bank coordinated QE to Infinity has brought questions of gold account location and integrity
-The Allocated Gold Account scandal is a natural event to follow the LIBOR banker scandal
-QE3 will assure a gold rise past the $2000 mark, but the new scandal will take the gold price to $5000
-The powerful gold factors are aligned and in place, led by permanent ZIRP and unlimited QE

 

A nasty Golden Harp could soon have its cords plucked, with the resonance working to shake loose the bankster cover of improper illicit duplicitous and probably highly illegal usage of Allocated Gold Accounts. When diverse scattered accounts are pilfered and depleted without authorization in Switzerland, resulting in several multi-$billion class action lawsuits in Zurich, all kept dutifully out of the news, that is one thing. But when a few key official government gold accounts are ransacked in systematic fashion from established trusted locations, defying and betraying the trust of the German Govt and other national governments, that is quite another. To be sure, the system can tolerate ransacking and replacing with scurried harried efforts the Venezuelan gold account like in 2011. The media told the story with creativity and aplomb, avoiding the truth, inventing a tale, but finding a credible pile of dung to feed the public, which swallowed it whole. The global monetary war has been raging for four years, ever since the Lehman Brothers firm was targeted and destroyed with planning and motivated execution, for the benefit of Goldman Sachs full CDS redemptions and exploit by JPMorgan in war chest reload under cover of bankruptcy court orders. The media prefers regularly to refer to the global financial crisis incorrectly and improperly. A crisis passes after a year or so. This war lingers like WWI and WW2 and Vietnam, with a clear emerging agenda to defend the USDollar regime from global isolation shun, to conceal the USTreasury Bond support mechanisms in derivatives, to avoid the US banking system from grotesque insolvency but kept afloat by grand money laundering channels, and to motivate an endless war to secure resource thefts and control that center on oil fields and the poppy fields. Witness the slow gradual inexorable collapse of the global monetary and financial system.

 

This is a global monetary war as last hurrah for the longest running fiat paper currency regime in modern history, which has run from 1971. The current dying regime has been held up by pressure to maintain USDollar support and not diversify away from it. It has been held up by amplified usage of derivative support in the form of Interest Rate Swap contracts, thereby keeping USTBond yields ultra-low in the face of chronic $1.3 trillion USGovt deficits, and creating an illusion of a flight to safe haven. It has been held up diverse comical USFed support in the form of a cornucopia of liquidity programs, to supply the big US banks with never ending bond redemption and carry trade aid. The current dying USDollar regime has culminated in an admitted permanent monetary policy identified by a toxic 0% official rate and the emerging reality of limitless bond monetization. It has been held up profound distortion of economic statistics, which have become almost laughable in the abuse.

 

To call this a financial crisis is like calling Hurricane Sandy just a bad storm, or calling a devastating drought just a dry spell, or calling raging cancer just a growth aberration, or calling a rape violation just an unfortunate encounter, or calling a death sequence just a passing, or calling a business bankruptcy just a bad skein on its account, or calling a home foreclosure just an opportunity to clean house. The nation and the world are undergoing a death sequence for the USDollar regime, and a vigorous corrupt defense to extend its life, in order to maintain power, to continue gigantic thefts, to perpetuate gigantic bond frauds, and to enable foreign account thefts of the traditional type and related to gold. The hidden motive in the Libyan overthrow of Qaddafi was to steal his 144 tons of gold held in London. The banksters needed it. The action and the reporting of the events were typical distractions laced with fiction.

 

HORRENDOUS STORM DAMAGE

The nation is heavily distracted by the Hurricane Sandy, its wind, its water, the resulting floods, the resulting electrical power outage, and ruined businesses, the controversies over flood damage versus wind rain and storm damage for insurance coverage. Look for Sandy to surpass Katrina in its total storm damage, which was $105 billion in 2005. Basic research indicates Sandy and Katrina had much in common, as the mad scientists attempt to play god. The efforts to produce a mild winter a year ago might have had a sling shot effect of generating a potent drought. The path was open for a unique storm, called once in a century, for the NorthEast. My memory is clear of the last hurricane to hit the region, which was Julia. The Jackass taped windows in the Boston area all for naught, since the 50-60 mph winds were nothing but a nuisance and cause for numerous downed trees on power lines. This storm is for the history books, perhaps retaliation by Mother Nature for messing in her kitchen, maybe worse. She always reaps her wrath and delivers her vengeance. The High Frequency Active Auroral Research Program has a shady sinister tone, but it is beyond the scope of the Hat Trick Letter. What Mengele was to medicine, HAARP is to meteorology. What Fort Dietrich is to viral weaponry, it is to weather control and seismic generations. What Monsanto is to modified genetic foods, it is to weather developments. The public seems laughably ignorant of devices to produce earthquakes and to amplify then steer storms, with nuclear power packs. Tesla notes and dreams have indeed come to life. Some personal contacts have close colleagues who actually worked on the project for the Boyz.

 

The delusional dopey derelict US economists have surfaced with their errant vacant viewpoints of a reconstruction benefit boost to the USEconomy. If only all could break windows and direct garden hoses in living rooms, the national economy could recover quickly. The key news item is that finally the New York Stock Exchange was finally shut down for two days due to uncontrollable liquidity and its widespread damage, due to a Hurricane Sandy Weill margin call on systemic failure. No amount of high frequency flashes to dry out the systems could succeed. No amount of plunge protection teams could open the drains beneath the damage. No amount of derivative exercises could bring workers to the trading pits.

 

The storm damage is estimated at $20 to $25 billion, again in a process divorced from the real world. Recall the Fannie Mae bailout estimates for $50 to $100 billion at first. Recall that the Iraqi War costs were $200 to $400 billion at first. The Jackass cited cost forecasts multiples higher, all accurate. Quick footnote on storm aftermath. Think Desert Storm, or Desert Shield, or whatever mucky name they offer. The yellow painted bricks taken from the Iraqi central bank were really gold bricks, stolen, then covered by a lame news network story gobbled up by the incredibly braindead public. In a few weeks, some concocted story might emerge about how the New York Fed was without electrical power, its vault systems left unsecure.

 

The Hurricane Sandy storm damage will reach far past the $100 billion level, probably closer to $200 billion. The center of the impact was the NorthEast, the most densely populated area of the country. Already 20% of the entire US population has been affected, with almost 7 million homes without power. Insurance firms will be depleted, at a time when their income has been hampered by the ultra-low USTBond yields, coupled with mortgage bond losses. The USFed will receive a big boost in destroying final demand, as the central bank has conducted a hidden agenda to keep commodity prices down by harming the general economy and thus reducing final demand. They will next enjoy hypocrisy of high order, as the economy pauses, then energizes with rebuilding and cleanup. The central bankers will talk of a boost and stimulus. The price of lumber and cement might become a problem later on. Time to fix the broken windows and mop up the flooded living rooms. It is all good, as people are back to work, the economic recovery enhanced.

 

GOLD WAR STAGE SET

Back to the topic today. The global monetary war has escalated. It began with a profound bond fraud backed by mortgages, often with duplicate usage of income streams. It extended to sovereign bond wreckage, from deep government deficits, from wasteful bank aid to ward off insolvency, and lost trust of heretofore sacrosanct bonds. The war continues. It extended to the desperation by big Western banks to redeem their bonds by USFed and EuroCB largesse, even if illegal, even if unsterilized, even if the averted liquidations wreck the national economies, even if the actions directly result in a higher cost structure, even if bank runs are inevitable. It extended to destabilize further the fragile Middle East nations already beset by rising food prices, so that the departing leaders could either leave with gold wealth (see Tunisia) or have their foreign accounts stolen (see Libya). Tiny Ghana demanded its gold return from London, but suddenly its leader showed up dead. Syria does not have oil wealth, but it does possess valuable ports (see Russian naval port in Tartus). The global monetary war extended to collateral grabs and seizures, like in Greece, but with an entire table full of similar attachments being done in Italy, Spain, France, Portugal, and elsewhere, mostly in deep secrecy. It extended to exert extreme pressures on the European Commission to bend the rules, and to European Central Bank to bend the rules, and on the German High Court to bend the rules. The banker elite require rule changes in order to perpetuate the redemption of their busted portfolios at public expense from additional government deficits. One must be a billionaire to receive public aid, as the commoners need not apply.

 

THE GOLD WAR BEGINS

The absence of solutions offered has forced the major central banks into heretic caustic and destructive policies that are stuck in place. The nations involved are all uniformly subjected to the 0% corner, with their monetary spew reaching all corners of the world. The US Federal Reserve leads the way in justifying the highly destructive ZIRP and QE, the powerful 0% free money clarion call joined by endless bond monetization to pay for the wide stream of federal deficits. The Weimar America has produced a Pied Piper effect among the major central banks, coerced by a powerful Competing Currency War factor, where all must join or see their currencies rise to dangerous levels, sufficient to render deep economic damage in the vaunted export trade. The USFed in effect attacks the successful coveted export trades by monetary recklessness. The impact from the Global QE to Infinity, which the Jackass made reference to in 2011 long before other analysts, is to cause a defense from currency debasement. Wealth is under heavy attack. The impact has caused an undercurrent by the US and UK bankers in pursuit of gold supply to satisfy demands, like from Venezuela. The principal sources of gold continue to be the Bank of England, the Bank For Intl Settlements, and the Roman catacombs. The elite are having their gold vaults raided, done as loans to the major central banks and bullion bank centers. Resentment builds.

 

Alternative supply sources have been urgently needed, thus the project in Libya. Thus the MFGlobal thefts. The list goes on, but the need is rising far faster than the channels can be supplied. Desperation has set in with the major bullion bankers and their clever craftsmen who manage markets with leverage, derivatives, and propaganda. The Gold War is escalating, as the insolvent bankrupt and desperate Western bankers are resorting to whatever means to locate gold assets. They have a two-fold double whammy at work. They must find new gold supply in order to shore up their own insolvent systems based upon gigantic flawed paper structures built atop debt structures. They must also find new gold supply in order to satisfy gold demands within the LBMA and COMEX, or else face market defaults that expose the acute shortage of Gold & Silver. The MFGlobal theft of private accounts was a direct assault and crime scene designed to satisfy a Silver market demand delivery schedule. Investors awaiting silver delivery had their accounts stolen. While permitted by regulators and the courts, the warning was given for a call to arms to protect and preserve true wealth held in gold accounts. It must be located and secured before it is stolen by the London and New York bankers.

 

OFFICIAL GOLD REQUESTS AS ESCALATION

The bond fraud and gold market fraud and futures brokerage fraud and central bank bond monetizations, and desperate reactions to insolvent broken national banking systems, and continued flow of government red ink in deficits, all these activities have motivated nations to check their gold bank accounts. What they see scares them witless, but it pushes them into action. The demand by Chavez in Venezuela over a year ago served as a stark wakeup call. Imagine mature experienced savvy German bank officials observing a socialist backwater Latino renegade like Chavez leading the way in defense from Western banker corruption and colossal thefts. Finally, the Germans are taking action. They tried in September to view their gold account in the New York Fed, but were turned away with insults and disdain. Word has come that the shun event in the Big Apple was probably the fifth time in the last few years that a German delegation has been turned away. The situation is as complex as it is dicey. The Germans under the Deutsche Bank flagship had been a principal accomplice and cooperative partner in the great gold game, where as a large collusive group they leased national gold, dumped it on the market, supported their paper currencies, while the banking elite speculated and profited in the $trillions on leveraged bets that were basic betrayals of their nation. The Jackass prefers the words financial treason. To use the metaphor, the Golden Harp will be busy causing deep damage to the global financial structures, from its broken bond foundation to its uncollateralized major currencies. The Golden Harp will act as a great destroyer from the financial tectonic plates that stand as the faulty bond foundation, to the stormy ether in which the baseless currencies float in infinite volumes.

 

Some historical research reveals that the infamous Brown Folly had a basis in aiding Deutsche Bank. The Bank of England was directed to sell a huge lot of its national gold treasure between 1999 and 2002 to mark the Gold market bottom. It was not sold, but rather handed to D-Bank in order to satisfy a big margin call. They aided both D-Bank and Goldman Sachs, each heavily short and at risk. The Gordon Brown action was done with two unusual signpost markings. The sale was announced in advance, thus permitting front running by London and New York bank buddies. It was done in auction, to assure the lowest possible price. The actions set the low. But the actions bailed out D-Bank secretly. The aid to GSax was one of a string of ugly pearls, which the arrogant elite firm never seems to mind and never bothers to cover up too effectively. They benefited from the TARP Funds as #1 son in the family. They did work feverishly in 2009 to conceal their Unix box for tapping into the NYSE for peeking at trades, front running them, and skimming pennies on billions of trades. They enlisted the help of the FBI to arrest the Russian rogue, painting him as a villain, even prosecuting him, despite the clear legal violations from the GSax tool. He tried to show the world what scum GSax was, how they were common criminals in white collar crime. Back to Germany.

 

In the summer 2012 months, a significant sequence of events took place. The CEO Josef Ackerman was ousted finally. Few realized that his removal was a key event in the change of tide against the Western banker elite. The story went largely unreported. As leader of D-Bank during many years of solid cooperation with London and New York banker games and gimmicks, he knew too much. My best info source reported last spring that several Interpol agents and high level investigators occupied Ackerman’s office while he was present. They obtained files, downloaded documents, and had their way. The shocked CEO made a phone call to an attorney, and was frustrated at the lack of pull. He made another phone call to a ranking judge, but again was frustrated at the lack of pull. He was told that the raid was done from a higher level than the German Govt. The Jackass was told that the raid was the work of a powerful new sheriff in town, with Eastern entity connections, hell-bent on justice, with a no nonsense attitude, with staggering wealth at their disposal.

 

The global monetary war extended in March, April, May, and June to a profound powerful run of gold bullion by Eastern entities against London banks. Margin calls of unusual type prevailed, where cash cannot satisfy the margin calls, where wrecked leveraged bets on currencies and bonds demand action taken to fortify the margin. In all, approximately 6000 metric tons have departed London bank vaults since March, all headed East, in the biggest raids in modern history. The US press, London press, and Western European press have been silent. The silent spring reminds one of the missing bird chatter from DDT decades ago, chronicled by Rachel Carson. The toxic paper has a chemical parallel. These London trades have been the object of Jackass study for a couple months. My firm belief, backed up by hints of confirmation from sources, indicates the Eastern pressures on London banks could involved enormous amounts of Official Gold Accounts and private Allocated Gold Accounts, improperly used (rifled, pilfered, stolen) for the original margin placement. Satisfy the margin call with like kind asset. Conceal the gold account seizures, but in the process the owners recall their gold bullion in huge volumes, with deals cut and secrecy maintained. The London bankers find their nether onions caught in a powerful vise, and the Easterners are hardly in the mood to relieve the pressure.

 

GERMAN AND DUTCH DEMANDS

The German Govt demands a full accounting of its official gold accounts held in foreign lands. They demand a careful accounting that involves inspections, weighing, assurance of gold proof, and examination of markings, perhaps even some testing of bar cores. They demand an accounting that cites locations and storage. They demand a full complete audit. The distrust is thick. James Turk, founder of Gold Money, believes the German gold is all gone, used up in the two decades of gold games that defended the fiat paper currency regime. He lives and works in London, has ties there, and probably is privy to the grapevines. The order is part of a compromise between the German central bank and the Audit Court, which has called on the Bundesbank to take stock of its gold holdings outside Germany, saying it has never verified their existence. Apparently, no longer will the word of the New York Fed or the Bank of England be sufficient. They have been caught lying too often. They have been implicated in deep bank corruption too often. They are being depleted of their gold, in regular shipments to cover the demands, the evidence for which is detailed in the October Hat Trick Letter. Call it backlash from the Quantitative Easing and infinite endless unlimited bond monetization that is an absolute guarantee of systemic currency ruin. Call it a backlash from the sequence of rogue bond redemption plans declared by King Draghi at the Euro Central Bank. The Western Governments are scurrying to locate their Gold reserves, realizing that Gold is the only wealth asset they possess, except for the buildings and edifices that house their depleted gutted central banks.

 

My firm belief is that the Gold Wars have reached a new level, where Germany will be disappointed when it learns the gold is gone. To be sure, big distractions and absurd excuses will be offered. The pressure is on. The Dutch have joined the movement in making demands on London and New York. The call to the corrupt fortress is plain: WHERE IS OUR GOLD?? Maybe like with Jericho, after several calls the walls will fall. The irony is thick, since for 20 years the Western leaders have proclaimed gold as a barbarous relic that pays no yield, a dead asset. So the Germans with Dutch echo want a full accounting of their prized so-called dead asset, which in the end will provide salvation when the new monetary system is put in place. That system is ready, with full trade settlement foundation. It awaits the monetary system full collapse.

 

The outcome will be shown soon enough. The London and New York bankers improperly used the German gold, and official gold from numerous accounts like from France and Spain, from Venezuela to Mexico, to enforce the Strong Dollar Policy and to defend against its collapse. The Mexicans this month performed a formal genuflection before the London Banker Kings, announcing no need to repatriate their gold, as full confidence was expressed. What lackeys, likely offered a bone somewhere. Allocated Gold Accounts have been pilfered with governments as the owners. They will be angry. They must walk a fine line to express outrage but to protect from revelations pointing to their own complicity and benign neglect. The flagship bank of Germany which bears the national name has been deeply involved. In recent months, D-Bank has been cooperating with the Interpol and Intl Court of Hague in pursuing the banker corruption and high crimes against currency, wealth, savings, and humanity. Delicate deals have been struck with D-Bank. It will be interesting to observe how the German demands for gold account audit are met, and how the German Govt reacts to delays and coverup. My belief is that the D-Bank flip was key to the breaking of the LIBOR bank scandal.
GOLD PRICE REACTION

The Allocated Gold Account scandal is at the doorstep. The German Govt demand for full accounting of its foreign gold account is the knock at the door. They were shown extreme disrespect by the New York Fed in September. The recent demand is the consequence, in a ramped up escalation of the conflict, better described as gold war. My best gold trader source has assured that the eruption of the Allocated Gold Account scandal will come in the wake of the LIBOR scandal. They are related links in the exposure of big bank corruption. The LIBOR scandal began the process of investigation, discovery, and action, if not prosecution. Word repeats from key sources that the biggest banker criminals will never see justice. They will just vanish. An important consequence of the LIBOR followup is the lack of trust between bankers. They are all under investigation for collusion, and therefore must be silent as each is subject to indictment and lawsuit damages. The discovery process is unique, as the investigations can legally pursue and request documents, conversations, emails, and testimony that was previously not available. The strong crowbar is being used widely by strong arms and hands, with formidable bodyguards behind them. The Allocated Gold Account scandal is at the doorstep, possibly to break open by German demands.

 

The official in major nations are catching on. Expect more national government officials to make demands of London and New York. They suspect their national accounts are stolen, replaced by gold paper certificates, kind of an IOU left behind by the thief with defiant signature. Now a new twist. Romania has joined, as they recently demanded a full audit of their national gold account held by the Kremlin. The irony and contrast is due next. Expect the Kremlin to comply with the request from Bucharest. Their responsible response will put additional pressure on the corrupt Anglo banking centers, the site which the Jackass has long described as the center of the financial crime syndicate. The contrast will be embarrassing to the Western financial centers and their leaders, the dons to syndicate power.

 

The Gold price is sure to respond to the realization that the London and New York bank vaults do not contain the official gold on account. Supply is not in existence, sure to have an effect on price, as demand escalates globally. The trust has been violated. The anger will be acute. The global reaction will be recognition that the Western Governments do not possess the gold they claim to reinforce the integrity and value of their entire monetary systems. What faith remains in the fiat paper system will vanish quickly. Not only are the various sovereign bonds nearly worthless, but the collateral understood to reinforce their value is gone. The monetary system deserves to be foreclosed upon. The global currency system with the USDollar at its center deserves to be removed, replaced, and reconstructed.

 

Recall Jim Sinclair and his numerous calls between years 2005 and 2007 for a $1560 Gold price. Many called him crazy, but he was proved correct. The critics to the Gold Sound Money Movement still do not show respect. Rather they are loaded with contempt, clinging to failed Keynesian principles and empty beliefs that central banks can install solutions. They are best qualified to manage their gold thefts, manage the heavy narco money laundering, manage the multi-$trillion grants to banker colleagues, manage the bond shell games, and clean up after the mortgage bond frauds. Those are their best work accomplishments. The Gold bull market is entering an important second gear after a long year of consolidation. The feckless idiots who claim the Gold Bull is done seem the most ignorant in the financial classroom, the dumbest and most deficient in mental processes.

 

The Gold bull market has several primary cylinders.

1) Negative real rate of interest. With official interest rates stuck under 1% by all major central banks, the actual interest rate after subtracting price inflation is deeply negative. This factor has been and will continue to serve as the most important among many factors. It is the gigantic blind spot among gold critics. The long-term USTreasurys offer a mere 2% or 3% at most, far below the prevailing price inflation in the real world. Effective returns are thus negative. Investment in Gold as a hedge against the absent compensation for the erosion of money, it just makes sense.

2) Bond monetization. With unlimited bond purchases from QE1, then QE2, then Operation Twist, now QE3, and on and on until QE175, the debasement of currency is entrenched, absolute, and shocking. The movement is joined by the Euro Central Bank, the Bank of England, the Swiss National Bank, and the Bank of Japan. The debasement of money is powerful and without abatement. Investment in Gold as a hedge against the reckless production of bond supply, it just makes sense.

3) Unsterilized bond purchases. The QE3 admission of associated bond sales was a story not adequately told. In fact, it was a story told by omission. In the past, especially with the deceptive Operation Twist, the bond purchases were often made with funds derived from other bond sales. Like sell short-term USTBills in order to have funds to buy long-term USTBonds. The QE3 details indicate that Weimar Amerika has arrived, with extraordinary bond purchases using printed money. The debasement of money has turned nuclear. Investment in Gold as a hedge against the unchecked debasement of money, it just makes sense.

4) Permanence of QE. In the summer months of 2009, the Jackass was vocal and adamant, claiming that the Exit Strategy was a ruse, an impossible door to depart from the drastic desperate duplicitous central bank monetary policy. My stated forecast was that the ZIRP would remain and become permanent, and that QE would come in force. The buyers of USTBonds are long gone, except for other central banks playing the Competing Currency War games. The USFed under Bernanke announced last month that ZIRP would be extended until the end of year 2015. This is an admission that it is permanent. Every three to four months, they assure another year of permanence. The debasement of money has become a permanent fixture in a broken buggy. Investment in Gold as a hedge against the permanent debasement of money, it just makes sense.

 

GOLD BULL BILLBOARDS

The Quantitative Easing coupled with Zero Percent Interest Policy are dual firing chambers of a central bank shotgun aimed at destroying money. They will destroy wealth. They will destroy economies. They will destroy banking systems. They have already destroyed the central bank franchise system and bank integrity. Their actions will lead to a global rebellion against the USDollar, a movement well along. They will assure a USDollar isolation. They will bring about a replacement trade settlement system, which is actually almost in place. When combined with flat-footed Iran sanctions, the movement has accelerated to find USDollar alternatives in trade, and to diversify away from US$-based assets held in reserve.

 

More importantly, the QE and ZIRP assure the Gold price will rise past the $2000 mark, and that the Silver price will rise past the $60 mark. That is the direct eventual unavoidable effect of QE & ZIRP, the signal flares of central bank failure and monetary system ruin. Their permanent monetary easing is incredibly bullish for the Gold price, a guarantee of an endless bull market. As long as the bond monetization continues with the 0% official rate, the Gold bull market will be equally enduring and endless. It is that simple!!

The QE & ZIRP assure the breakout to new highs. However, the Allocated Gold Account scandal will assure the Gold price reaches $5000 and the Silver price reaches $200. The scandal has begun. The stage is set. The official Gold Accounts from foreign nations have been taken. Choose your word: improperly used, illicitly seized, illegally stolen, desperately hypothecated. The point is that national gold treasures held in London and New York have vanished over the last 20 years, a process begun with the Clinton-Rubin Admin, continued with the Bush-Paulson Admin, defended by the Obama-Geithner Admin. The names of the administrations must include the Goldman Sachs representative in charge of the USDept Treasury, the guy with the stealing rights, as my friend in Reno colorfully calls it.

 

THE HAT TRICK LETTER PROFITS IN THE CURRENT CRISIS.

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Jim Willie CB is a statistical analyst in marketing research and retail forecasting. He holds a PhD in Statistics. His career has stretched over 25 years. He aspires to thrive in the financial editor world, unencumbered by the limitations of economic credentials. Visit his free website to find articles from topflight authors at  www.GoldenJackass.com. For personal questions about subscriptions, contact him at  JimWillieCB@aol.com

 

 

Comments

  1. The “Golden Jackass” seems to have forgotten the revaluation of Gold as  Tier 1 Asset, by central banks. 
    That alone was supposed to at least DOUBLE the price of Gold. $6000 anyone? $7500? $10K?
    ALL BY the END of 2013??? They can only “manage” the price of Gold (fall of the dollar) so much… 

    • Those numbers may fit the price of silver instead of gold undeRGRound. When this thing starts to unravel it will be hard to keep up the the price change. The initial warning begin when silver moves over $5.00/oz in one day. By then y have better have all you want because by then it will be too late.

    • snowrider is right! The revaluation will most likely happen to silver because silver is way undervalued compare to its historical price and its demands are rising every year while its above ground availability is getting more rare. More countries such as China are starting to accept silver as an investment.

  2.  ”The hidden motive in the Libyan overthrow of Qaddafi was to steal his 144 tons of gold held in London. The banksters needed it. The action and the reporting of the events were typical distractions laced with fiction.”

    ANY small, out-of-fashion or politically incorrect tin horn dictator, despot OR an elected ruler (in shaky position) had better LOOK OUT and not piss off TPTB. They said that Libya was trying to start up Oil for Gold. Might have been part of it.  

    “Tiny Ghana demanded its gold return from London, but suddenly its leader showed up dead.”

    • And the hidden motive in their Haarp generated storm is to steal all the gold that is being stored in the NY FED
      .

    • We’ll never hear that on nightly news. 

    • “Tiny Ghana demanded its gold return from London, but suddenly its leader showed up dead.””

      We’re supposed to be surprised by this?  Consider that president Andrew Jackson messed with the banksters and had 5 unsuccessful attempts on his life.  President Lincoln messed with the banksters via printing debt-free greenbacks and ended up dead.  President James Garfield supported a bi-metallic money standard and ended up dead.  President William McKinley was assassinated after publicly supporting sound money and a gold standard.  President Kennedy authorized the US Treasury to print silver certificates, interfering with the Fed’s position of sole US money creator and ended up dead.  Am I missing anyone who messed with the banksters honey pot and was killed? Probably.  Murdering your opponents IS the routine behavior of a thugocracy.

    • Every presidents that are against the banks were assassinated or there were an assassination attempt on them. I’m sure that if Ron Paul or Gary Johnson become the USA’s president, then they would have an assassination attempt towards them.

  3. There are some certainties in this world.  If a small country refuses to give up its gold it’s attacked.  Tunisia, Libya, Iraq and others provide that clear demonstration that TPTB will steal what they can’t buy or borrow.  The uber squid drone Monti was inserted into the Italian debacle, pursuing a policy of common man impoverishment with an eye to the 2,400 tons of gold in Italian Banks.  Vatican gold could bein play with the conviction of the Pope’s private secretary and the disclosure of his work with JPM.   Be assured that the moment Spain capitulates to the ECB and Germany, Rajoy will be given the boot and another Squidlette is installed as the new Spainish Premier.  He may be Spainard by name or birth but his loyalty will be to the cartel.  Spain’s gold will be shipped as collateral for the largest bailout in  history, likely to be $2 trillion.  Spain is falling apart as we speak with banks and government out of options, crying for time and particles of money to patch holes.  The gold wars will be nasty.

  4. Will silver ride the coattails of gold, or will it strike out on its own, surpassing gold (pro rated)?

  5. This comment was previously about gold going missing due to the Coned explosion on theintelhub.com, theintelhub.com/2012/10/31/germany-loses-8-2-billion-as-geoengineered-superstorm-covers-heist/, who quotes the dailybell, but when I searched for it, I found it was put out as a spoof from the dailybail.com!! …http://dailybail.com/home/raw-video-coned-power-station-explodes-in-nyc.html

    So, bottom line … more BS

  6. Enjoyed the article, very interesting. But-
    Every time these scandals are revealed I always think, “Oh boy, is this great!”
    Then weeks and months pass and … . nothing happens.
    There’s always hope, I guess.
     

    • Either the German government is not a part of the central bank scheme, like most other governments are, or this is part of their plan in someway. I can see Ecuador doing this but not one of the partners in crime unless it was intentional.

  7.  Hype Hype Hype Why don’t we just say Gold $100,000 Silver $20,000 an oz lol. Get real buy metal to store your wealth who cares what paper price it is. Are you going to convert it back to fiat???

    • Not me unless to eliminate debt, or buy land, or ammo!

    • @snowrider
      Right on hold it bro,

      Im sorry I hate the hype not to mention when people use a currency/fiat as a gauge to place a value on the metals.  

    • @427
       
      While I agree in principle to your notion that it does not matter what price according to fiat, there still remains those of us that need some sort of base from which to value our holdings.  In exchange for other commodities, what value does one associate with a trade say land for silver?  At today’s fiat value, that would be a lot of silver.  It is not until normal trading patterns emerge that one will be able to place a value on the commodity.  As you know, that price will not remain static but will fluctuate based upon availability, portability, etc. 
       
      For now, being able to place a fiat value is just a substitute for estimating the “worth” of the commodity. 

    • @Ordinary Joe

      Hi Joe
      For expedience I have some comments I have saved from sites & You Tube, like Greg’s channel. I started saving them because there is so many newbies asking the same questions. lol Im not calling you a newbie! But you will start to see were Im coming from. First let me say Labor=Value this is the main factor and the only factor one mans labor in exchange for another mans labor.

      1) The thing I notice most do not know the “Value” in gold & silver. Looking at weighing it’s “Value” in paper fiat dollars or re-exchanging back to paper for a dollar profet. There unaware of how the wealth transfer will take place. How we have been living in an inflated world of Goods & Services, it’s not going to happen it already has and just getting worse. How all Goods & Services will need to readjust in a new economy. Labor = Value one mans labor in exchange for another mans labor

      2) Hi I will say the market will not be like 2008, everything coming down the pike is much much worse.
      Total Collapse of the derivative and bond market = total collapse of the western banking system. This includes the Fed & US Treasury printing USD/ World Resevev and all other fiat currencies world wide will collapse. There will be no stock market! to set any price for PM’s
       
      That said everybody looks at the value of the metals all wrong. They try to peg it to an ever devaluing fiat currency and a highly manipulated stock market. The western banking system with fiat currency introduced us to a word “inflation” This word really means that the medium that is being used in exchange for Goods & services is devaluing. Dose it take anymore Labor to build a house today than it did a hundred years ago?

      So now look at Labor as Value, this is what a monetary system is for anyway. One mans labor in exchange for another mans labor. If your not exchanging labor between both parties in trade there needs to be a medium for trade. Historically for thousands of years Gold & Silver fit the bill as money. It is independent of all governments and valued world wide on it’s own merits. For thousand of years, a mans one day of labor was valued at 1/10oz of silver.

      So looking at 1/10oz of silver to pay the labor of a man per day prior to the introduction of the western banking systems currencies. We now can start to see were the wealth transfer will take place. A world fiat collapse will reset all value of goods & services. All the built up inflation over the past 130 years will go down with it. It has to or there will be no labor or buyers of the labor.

      Wealth transfer! Wealth Storage! In todays economy of highly inflated labor cost, the rapid devaluation of the fiat dollar. The heavily manipulated PM’s within stock market done to make the dollar look better. This all allows us to buy PM’s at a severely reduced value. I know if one man is getting paid 10oz of silver per day in todays money. That same amount of silver when we reset and inflation is gone. Will be worth 100 days of labor at 1/10oz per day per man.

    • @Ordinary Joe

      Here is another one Joe, This one started with a agitator Saying there was not enough gold to cover the worlds Trillion’s of dollar assets. So I presented a question and someone else busted in and wanted a debat, I obliged 

      Person #1

       To implement Gold as real money in this entire world is an absurd and nutty notion that would have no benefit and which would be absolutely impossible to even do. There are over $800 trillion in assets in the world with around $200 trillion in the US and the global economy now transacts more than $60 trillion a year. By contrast gold is but a little grain of sand in the midst of all of that real money and the total value of all gold – 75% of which is in privately held jewelry —-
      —–is worth less than $12 trillion even at today’s absurdly inflated prices for gold. The maximum value of all gold in bullion form is around $3 trillion, but a lot of that is privately held. The US money supply alone is around $10 trillion and there isn’t even a total of $2 trillion in gold worldwide that could be used in any monetary form. Hellllooooo?

      I quoted them

      “To implement Gold as real money in this entire world is an absurd and nutty notion that would have no benefit and which would be absolutely impossible to even do.”

      ME 
      Take you perceived ” Dollar Value” off the gold and there is more than plenty of gold and silver to cover the entier monetary system. What you are saying is the more fiat that gets printed we have more Value to show for it
      I presented this question to him>>> Can an oz of Gold buy 40,000 sq. ft. home?

      This is the second Person jumping in and commenting back to me.

       my short term goal for asset allocation:
      10% precious metals -(gold/silver)
      10% survival/self sufficiency items (food, water, protection, camping gear, solar panels, water storage, generator, and other off grid stuff)
      40% Real estate (investment properties, land)
      40% Stocks/Bonds/paper assets (401k, roth iras, etc…)

      p.s. my explaination is amatuerish as well, but I hope you get the point… invest in stuff that generates you the most money.

      “Can an oz of Gold buy 40,000 sq. ft. home?”
      My guess is no. Homes and property are real assets, they would appreciate like gold during times of inflation.
      The difference between the 40,000 sqft home is you will be taxed, and you have maintenance costs that go with it, meaning it can actually cost you money to own if you live in it. However if you rent it out, you have the potential to also make money, and your asset could actually make you money unlike Gold.
      in short, i doubt an ounce of gold will ever buy a 40k sqft house.

      ha ha ha Then he comments to the first person I presented the question to! and contradict himself.

      You’re confused, you don’t need enough gold for each $1 of assets. Gold would basically make up the differences between a trade. China/Inda trading with Iran is doing just that.
      Plus, the price of gold could increased (if not by market forces but by mandate) to compensate for the shortfall of gold prices.
      So that argument is bunk.

      ME to Person 2
      This is the point I was making with this comment…
      “Can an oz of Gold buy 40,000 sq. ft. home?”

      ME to person 2 comment to me

       You do not have to look vary far back to see that your statement is incorrect.
      In just 6 years the value of real estate has dropped all the while silver and gold value has increased. These two real assets are moving in opposite directions not to mention the over head cost to keep and maintain Property and Structure increased. Then the third party risk has to play in, you do not own the property the structure is built on.

      Person 2 back to me 

       I’m going to have to disagree with you. you can use any type of data to prove or disprove an argument, but I’m speaking from experience.
      I purchased a property 2 years ago for $350k, I still have the property, however it has generated $30-35k a year in rents for me, and it’s still worth $350 – $380k. In time of hyperinflation, It’ll appreciate upwards like gold, maybe at a different velocity, but it’ll go up. In periods of deflation, I still will be making $30-35k a year, and maybe more.

      ME back to him 

       Randall You missed the point. The question was presented to a agitator who stated that there is not enough gold. To cover the trillions and trillions of $ and other fiat in the system to be used monetarily. This is after the dollar and the worlds fiat system collapse. I was trying to see if they could view value in real money historically Gold & Silver. They are wealth storage unlike any other tangible real asset. Real estate is not wealth storage or money.

       Your last statement shows you how hard it is to change ones thought on money value. The value of tangibles changes when you remove fiat currency or remove the mindset of fiat as value. We have all been brain washed to think a certain piece of printed paper has value. This value is based souly on someone saying it has value. Thats why you just equated all the value of your real property into a fiat currency. After the housing bubble your real property changed value because of this.

       This view of mine is nothing against investing in real estate. So as this may generate fiat now thats fine. But further down the road? When nobody has real money to rent & buy? When labor cost plumet back to before we were born to 1/10oz of silver for one mans labor per day. All real property and goods will readjust, they have to or no exchange will take place.( Labor = Value) Labor is what a monetary system is based on thats the value. The fruits of a mans labor !

       So Labor = Value, This is were the wealth transfer will take place. One mans labor in exchange for another mans labor. You go to work make fiat spend it on another mans goods and labor. I will not be buying your property now because if I invest it in the severely manipulated under valued metals now. My stored wealth will have the purchasing power to pay the labor & goods on ten new structures at the cost of yours today. I hope you will look at Labor as value and not fiat. Metal stores wealth!

      So Joe it’s a lot easier to be constant when your mind is not all twisted in todays fiat inflated economy. My true thoughts are a total collapse of the worlds fiat system. 

    • @427
       
      Thanks for taking the time to educate.  Yes, I am a newbie.  Only about 1.5 years awake.  I do not make much and do not have a lot of PMs.  However, I understand the storage of wealth aspect, or as you say storage of labor. To me, wealth is generated by labor so I see them both as the same.  Maybe that is too simplistic, but I think that is what you are saying.  So in essence I agree with you.
       
      Can an oz of gold by a 40,000 sq ft home?  My answer is no, not now.  The person that builds/owns the house would value their labor based upon the value they place on an oz of gold.  In today’s market that would be only about $1700.  The fact that we are still using fiat to value the worth of the exchange is, unfortunately, the paradigm we are working under.
       
      If the current monetary system would collapse, then a different paradigm would emerge.  I understand the historic value of labor based upon silver.  It is that paradigm that I am preparing for.  So until it arrives, I want a method to value what I am stacking, but I do not necessarily need to place that value on the commodity.  It only serves as a benchmark to judge my acquisition.
       
      I hope that makes sense. 

    • @Ordinary Joe

      Yes were on the same page. When I look at the metals the thoughts and talk around them here is my view in terminology.

      (1) Storage of Wealth
      This is a stackers savings account to protect them from inflation,banking theft and a collapse of fiat currencies. We convert our fiat and take in hand physical metals. This is long term storage so days to years events including spot prices do not matter. We are buying Physical not to earn fiat although it will increase in value and that is the reason we converted fiat to physical in the first place. In the end holding physical will keep your wealth the same or higher.

      (2) Investment & Investors
      This is a vehicle to gain capital or at least the hopes of gain. I do not feel physical metals is the best vehicle for this do to the buying and selling aspect. You need to be able to buy & sell on a moments notice. Stick to paper if this is your motive of buying metals. 

      I am a stacker in hopes to preserve my wealth for future use. I see what is going on and only follow the markets/banking news to be alerted to calamity. I do not hold my breath on all the Hype BS because Im not trying to chase fiat with my silver.

      Those that are waiting for silver to pop to $1000.00 and say there rich and sell back into fiat. How rich will you be if the fiat system crashes the next day?

      Gold to $100.000 Silver to $20,000 HYPE who cares? Will I be able to eat the day after a collapse is what I care about..       

    • Because in my opinion, hyperinflation with the dollar will happen after a long time so most people are focusing on the short term of gold and silver so that they can encourage themselves at buying more precious metals. Right now, we should focus first on 50$ per ounce for silver and 2000$ per ounce for gold.

  8. Survival Not Wealth If Wealth Comes Great But Keep Stacking,

  9. Lol Don’t let it get to you. Lol

    • How the hell is one to communicate and express them self in debate or not, if everything they say no matter how mundane is censored   

  10.  
    Wow…………………

  11. Merkel had a little gold
    We fleeced, quite a show
    Con Ed blew the mother up
    She has a  lot less now

    • I wonder if there going to have a bunch of rusty gold under the streets of New York. They may need time to make more fakes

  12. Another great, thought provoking article by Willie. 

  13. Ed B  Here are two more people who ran afoul of TPTB.  Gerald Ford.  Nelson Rockefeller was his VP. Not someone I would want in my foxhole.  Two women tried to take out Ford.  Sarah Jane Moore and Lynette Squeaky Fromm.  Fromm was a Manson follower and out on parole.  Both know how to use pistols and within a few months of each other both tried to wack ford.  Both failed to use their customary pistol and so they both ended up with malfunctions. Ford got very lucky.
    Reagan.  His VP was the uber CIA spook man George Bush.  This is one sinister dude.  So here comes Hinckley, all heated up over Jodie Foster.  Now when I think Jodie Foster I always think of some devious deed against POTUS.   Hinkley is now embedded in the funny farm, no doubt full of nice psychotropic meds.   Reagan almost didn’t make it.  GB would have become president.   Nice thought if you are into NWO and the elite having cmoplete control over the gummint.   Anyways, so much for my tin foil hat theories  But you have to admit that all three attempts have some very strange vibes.

    • The average person would be shocked if all the behind the scenes crap ever came to light and they found out who the controllers of government actually were.

  14. Ed B my bad math   3,000 tons, not ounces.  Ooops.   I may be off even on that  but I think you know that I mean

  15. Ag is coming back STRONG and dragging all the other metals with it! I see the cartel is attempting to smash Au but the Ag is supporting it. The strong hands have the upper hand today!

  16. Here’s the only reason you need to know to buy gold and silver from one of our founding fathers,

     “If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them (around the banks), will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered.” —Thomas Jefferson

    Precious metals are a perfect way to protect yourselfs from the credit cycles the Fed manufactures to steal your money. You don’t need another reason. 

    • That is one of my favorite famous quote and I know it by heart! It’s sad that many Americans still save up the fiat dollars even if the founding fathers warned the American citizens from that danger.

  17. at some time all this will be out in the pubklic eye… but for the moment this is a secret war… when it becomes public the whole system will have crashed … keep stacking time is running out

    • The evidence of gold rehypothication all came out in 2001.  The people in the know i.e. the actual players and traders have been fully aware for over a decade and they are OK with it.  What will be the game changer is public pressure on their gov’ts to vault their own gold. 
      In the U.S. the cry is always “Audit the Fed” or “End the Fed” like that is going to happen.  All we really need to do is “Audit Fort Knox”.  This makes perfect sense to the common man and it is impossible for the gov’t to come up with a plausible reason why we haven’t done this since the Eisenhower administration.  Auditing Fort Knox will get the ball rolling and then the dominoes will fall and get us to sound money.

  18. (Singing to the tune of the Who’s ‘My Generation’)
     
    People try to put it down,
    Talking about rehypothecation.
    Just because Gold Gets around.
     
    Central banks, they just don’t know,
    Talking about rehypothecation
    How big this all is gonna blow…

  19. Guys,

    All I want to know is “When” is “When” gonna happen? I am not a Gold or Silver basher as I own
    both in physical. All the hype of Willie, Turk and other article gurus reminds me of the guy sitting on the
    side of the bed and telling his new girl friend “How Good it is going to be”!

    ANY IDEA OF “WHEN’ IS?

    Ranger from Texas

    • Fed is using QE3 to buy up the mortgaged real estate in the U.S. at the rate of $40B per month.  When they have their fill the green light will be on for the collapse.  Considering there is appx $13T in mortgages it could be awhile. Also considering  the greed of your average bankster, I think they will hang on as long as possible.  So, Max Kaiser’s call for an April collapse may be a bit premature.

      I think that the Fed can keep monetizing the debt longer than most people think.  It’s all a confidence game and they are experts at MOPE.  

      It seems to me the trigger for an increase in interest rates which will be the signal of looming U.S. default will be the petro-dollar.  If that falls apart for whatever reason it’s game over in short order.

      Hard to set a date.  Looking for events is probably better. 

    • Ranger watch this video put out by the founder of Shadowstats.  He gives some timelines:
       
      https://www.youtube.com/watch?v=btiApeHpBWg

  20. Jim, (Jackass) LOL

    Thank you so much!

    What and excellent article!

    It was very enlightening and enriching. You have so much insight.

    I have one question.

    I’m afraid TPTB will create a HUGE/MEGA distraction. Like War, Civil War Domestic Violence and (so called Fake, War on Terrorism / Domestic)

    What will happen, when you factor in WW3 With Syria & Iran & Russia & China? That they will attempt to start AFTER Obama-Rama is re-elected. I’m told WW3 will be delayed to Spring of 2013. And that the U.S.S. Carrier Enterprise on it’s last deployment, because it’s due to be de-commissioned, will be sunk and blamed on Iranians.
    Really Moussad will sink. And that last time U.S.S. Enterprise was in port in SD CA, it was be setup to be scuttled. This will martyr those U.S. sailors on board, and drag U.S. into that war. Israel sub will sink it and blame it on Iranian sub.

    Thanks

  21. Hi  JIM (jackass)
    Don´t expect Kremlim to comply with the request from Bucharest.
    Quoting from Mic Maloney Wealth Cycles blog,
    https://wealthcycles.com/blog/2012/10/23/romania-wants-return-of-934-tons-as-gold-repatriation-ratchets-up
     “the “Romanian gold” is not even owned by Romania, it is owned by a private bank acting as the central bank of Romania. Sounds familiar as Americans handed their gold over to the Federal Reserve in 1934, not their state or federal Treasuries.”
    Wonder if same logic applies for the Bundesbank “private” gold, or any other of the “Central” Banks.
    Also a very interesting dose of reality (2007) about “Romania gold” could be found here, http://www.cadranpolitic.ro/?p=1299 , Who doesn’t want our Treasure back from Russia?
    Good reading.

  22. If gold goes to 5000$ per ounce, then silver will also go to about 90.91$ per ounce with the ratio 55 ounces of silver for one ounce of gold. I think the silver to gold’s ratio will drop because as gold goes higher, silver will attract more gold buyers.

  23. The fiscal and monetary powers that be may currently be King of the Mountain . . . but, they will be toppled in due time. . . . by the natural laws enforced by the economic Gods.

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