By Jim WillieGoldenJackass.com

The global financial crisis is better described as a global monetary war to defend the toxic USDollar, whose sunset can be seen.In the last 12 to 18 months, the monetary war has again morphed, this time into a far more serious and financially violent global Gold War. Nations are fast realizing that their only true liquid assets of value are their gold reserves, and even they have been tampered with or stolen in a vast re-hypothecation scheme.

The Gold War is on, having moved to a higher gear, but nowhere near a climax gear. The true value of gold is being realized. The strength of gold during insolvency crisis is being observed. The resistance and rescue from the plague of insolvency is being made clear on a global stage. The new important part of the Gold War comes with the Allocated Gold Account scandal which will dwarf the LIBOR and MFGlobal scandals. The demands for repatriated gold accounts, primarily from the criminal bank sectors in London and New York, have amplified. Germany has finally joined with demands for gold repatriation. The demands will continue to grow even as tampered gold bars add to the motivation to repatriate. If only Chavez of Venezuela knew that he was to start a global trend to call gold home, in a Gran Aletazo de Mariposas. The grand butterfly flapping has caused a whirlwind that will turn into a tornado to wreck the central banks in a final death blow.

 

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Several immutable Gold Rules appear to be self-evident and powerfully manifested in the modern world of banker corruption, financial market intervention, currency debasement, phony accounting, and economic deterioration, all amidst powerful incessant media propaganda, against a backdrop of endless war. The global fascism movement has taken deepest root in what during the 1960 through 1980 decade was the capitalism regions steeped in democracy. Since the Lehman Brother scuttle and the Fannie Mae adoption and the AIG black hole admission, the financial crisis that began with the housing bubble and subprime mortgage bust has turned virulent. The global financial crisis is better described as a global monetary war to defend the toxic USDollar, whose sunset can be seen. In the last 12 to 18 months, the monetary war has again morphed, this time into a far more serious and financially violent global Gold War. Nations are fast realizing that their only true liquid assets of value are their gold reserves, and even they have been tampered with or stolen in a vast re-hypothecation scheme.

 

The Gold War is on, having moved to a higher gear, but nowhere near a climax gear. The true value of gold is being realized. The strength of gold during insolvency crisis is being observed. The resistance and rescue from the plague of insolvency is being made clear on a global stage. The new important part of the Gold War comes with the Allocated Gold Account scandal which will dwarf the LIBOR and MFGlobal scandals. The demands for repatriated gold accounts, primarily from the criminal bank sectors in London and New York, have amplified. Germany has finally joined with demands for gold repatriation. The demands will continue to grow even as tampered gold bars add to the motivation to repatriate. If only Chavez of Venezuela knew that he was to start a global trend to call gold home, in a Gran Aletazo de Mariposas. The grand butterfly flapping has caused a whirlwind that will turn into a tornado to wreck the central banks in a final death blow.

 

GOLD STANDARD RECALL

The law can be stated: The Gold Standard will return from a sheer standpoint of value, stability, and resistance to storms based in failed bond auctions, debt writedowns, and insolvency consequences. Only a hard asset backed new currency can replace a fiat paper currency reserve.

 

The law is self-evident and being manifested, with alarm if not deep trepidation by the financial leadership among the Western nations. While the central banks and the finance ministers stumble around seeking solutions, applying patches, making money free, redeeming toxic bonds, and otherwise bumbling in the midst of their own balance sheet and fiscal ruin, the emergence of Gold has become clear. It is the only asset rising of recognized value during the grand debasement of money committed by the central banks. It is the only asset whose value is being demonstrated as strong during the fiscal cliffs that so many major industrial nations have already gone over. They are not approaching fiscal cliffs. Four consecutive years of USGovt deficits over $1.3 trillion amply demonstrate to anyone with an uncorrupted view and unaltered pulse that the crash into the canyon floor is next, not the plunge over the cliff. Downward acceleration and speed have already been achieved.

 

As nations and continents come to realize their new debt compositions are nothing more than a series of shots of tequila for the patient suffering delirious tremens from alcohol poisoning, they are coming to the painful conclusion (for them) that a Gold Standard is the only solution. Applications of more paper mache accomplish nothing when the base of paper is rotten. The Gold Standard will be imposed upon them by the global rebellion against the USDollar, which will emanate from the trade sector. The Gold Standard will return, in the form of trade settlement as its payment core, as in the short-term trade notes. The bank cartel will be brought into the standard from which they broke away in 1971 with the abandoned Bretton Woods Accord. They will be brought in kicking and screaming, since only Gold can and will properly bring the nations out of the wilderness from the chaos. Once more, the banking systems will follow the trade system, rather than the corrupt banks dictating terms on reserves management in fiat paper currencies which disseminate toxic bonds. It has been backwards for 30 years.

 

CENTRAL BANK EXTREMES

The law can be stated: The Gold Bull continues unbounded with the Zero Percent Interest Policy (ZIRP) as its primary cylinder, while the artificial 0% distorts all financial markets, all assets, and all value. The Gold Bull will continue until the USGovt debt default, and until the USDollar retirement.

 

The 0% official rate has been declared as permanent, if the words of USFed Chairman Bernanke are properly interpreted. A sliding forward promise, first told as end 2013, later revised to end 2014, later to be end 2015, is a clear signal to those with an active brain stem. It is permanent. The 0% rate, however maintained like with Interest Rate Swap contracts, renders all financial markets as grossly distorted, since most assets have a value that extends from the cost of money. But practically, the USGovt debt cannot manage a rate hike, or else the borrowing costs approach the size of major social programs, even approach the size of the USMilitary offense budget. A rate hike would break the entire debt structure and result in a quick default and wreckage of the entire USTreasury Bond complex. Worse, a rate hike would cause a sudden collapse of the support structures bound within the vast derivative complex. This complex has enabled the US financial structure from a collapse that should have occurred around the 1998 to 2001 timeframe. Also, a rate hike would bring ruin to the big US banks heavily committed to the USTBond carry trade, for easy risk-free profits. Recall the Jackass forecast of a USGovt debt default, the position stated in the last months of 2008. The event is coming true.

 

The Gold Bull is powered by the negative real rate of interest. Its calculation is made simple by the 0% official rate. But take the prevailing consumer price inflation rate of about 8% to 10%, subtract it from the rate earned, tied to long-term USTBonds. The result is a negative real rate at minus 6% or minus 7%, sufficient to power the Gold Bull Market. Given the permanent ZIRP policy, the Gold Bull is in permanent mode. All talk about the Gold Bull Market having run its course is based on vacant arguments and nonexistent logic. It is the propaganda of fools, even desperate people. Calls that the bull in gold has run its course since it hit the $1000 level were laughed at by the Jackass a few years ago. Calls from the same scummy deceptive corners that the bull in gold has run its course since it almost reached the $2000 level are also ridiculed. No solutions have been installed, and the grand debasement of money persists without end. Many doubters and critics of the Gold Bull Market will be humbled when it vaults past that level. The justification, numerous as they are, are gaining attention. The Jackass is glad to help the process along, and to silence the corrupt corners.

 

The law can be stated: The bond monetization known as Quantitative Easing (QE) powers the upward move in the cost structure for the global economy. The result is a shrinking profit margins imposed on the entire economies, felt in job cuts and reduced budgets for expansion, even maintenance.

 

The expanded bond monetization has been declared as permanent, if the words of USFed Chairman Bernanke are properly interpreted. A sequence of bond purchase commitments, including both USTBonds and Mortgage Bonds, to meet urgent calls to address the quagmire, is a clear signal to those with an active brain stem. It is permanent. In fact, the QE3 has some rather obvious motive to cover the multi-$trillion mortgage bond fraud, thus permitting a possible housing market recovery. Not gonna happen. The foreign bond creditors have vanished, with only a scattering of Japanese and Chinese investors serving as the bulk of foreign demand. In order to prevent the short-term USTBill yields from shooting up to 5% suddenly, in order to prevent the long-term USTBond yields from shooting up to 10% suddenly, the USFed has made a series of commitments to buy the USGovt debt. Nobody seems to want it, nobody seems to afford it (savings vanishing act), nobody seems to find it as holding value anymore. Besides, deep criminal banker fraud is becoming recognized in story after story. Without the vast QE, despite all its deception and chicanery like Operation Twist, and without the vast apparatus of interest rate derivatives to maintain the 0% artificial rate, the USTBond structure would collapse. If these words seems absurd, then the reader is probably ignorant, uneducated, or wearing red white & blue jockey shorts.

 

The law can be stated, as a profound consequence: The combination of ZIRP & QE lead to capital destruction and systemic breakdown. Observe the fast falling Money Velocity while money supply grows at a staggering pace.

 

The telltale signals are the capital destruction, the retirement of equipment, the shutdown of unprofitable businesses and business segments. The USEconomy is not in recovery, but rather in a grand deterioration process. The evidence is overwhelming, shown on a regular basis within the Hat Trick Letter reports. Whether reduced rail shipments, or fast rising Food Stamp participation, or significant declines in payroll tax withholdings, or still growing state budget deficits, or the stunning fall in Money Velocity, those among the aware crowd can see the pathogenesis. The principal cause is the Zero Percent Interest Rate matched by Quantitative Easing, which kill capital as they lift costs. This is the glaring shocking blind spot among hack US economists, most of whom are compromised by either Wall Street or university grants. Hardly any have my respect, since abject apologists for the failed system with few if any valued lucid perceptions. They are the corrupt harlots of Wall Street. They are the vapid academic talking heads. The path paved by fiat paper currency has led to insolvent systems.

 

The current monetary policy coordinated by the major central banks of the United States, Europe, United Kingdom, Switzerland, and Japan assure no deviation from the path driven by momentum of the grand sovereign debt defaults and ultimate systemic breakdown. In fact, no solution is even attempted, a consistent Jackass point, since the policies and actions are directed toward preservation of power and away from big bank liquidation. The commitment to the failed system increases every year, assuring the impact of the systemic breakdown to be greater as well.

ENTRENCHED DISORDER

The law can be stated: The anti-Gold system continues to attempt to reinforce itself until its final implosion. Criminal means and false accounting backed by media propaganda are their tools that reinforce the current power structure. It will yield to foreign designed trade settlement systems, to the forced Gold Standard return, and to vast liquidation.

 

For the US and UK and Europe and Japan, the 0% official rate will continue until the debt defaults occur, which are in progress. The government deficits will not come down. They will instead escalate, as the economies produce fewer tax receipts and the calls for socialist relief programs expand. The political apparatus is being recognized as broken, a travesty in full view. The economies are experiencing a permanence in the shock from the ZIRP & QE in tandem. Households feel the higher cost of food, energy, utilities, town services, and even property taxes. Businesses feel the higher costs of everything from energy to materials to shipping. Lately they will react to the Obama Care as the health care tax is imposed, against their will. The financial firms have been guilty of doctored gimmicked financial statements ever since April 2009, when the USCongress blessed the decision by the Financial Accounting Standards Board. The FASB decided to permit the financial firms to declare any value they wish for rotten assets, the collection of impaired assets not to face the grim reaper of reality. The parade of Zombie Banks has reeked havoc ever since upon the economies.

 

Criminal deeds have become the norm. The established norm has been for outsized naked short positions for the Big Four US Banks. They are an everyday fixture. No laws are enforced for selling enormous supply without metal. Why on November 15th, my colleague Turd Ferguson reported the following gold ambush. In the TFMetals Report, he summarized the ambush as he wrote, “Over the course of about 5 minutes, one single order was filled. This massive dump of about 25,000 gold contracts managed to move the price of gold down by nearly $20. To give you an appreciation of the size and scale of this deliberately criminal act, 25,000 contracts is the paper equivalent of 2.5 million ounces of gold, or roughly 77 metric tonnes, the paper equivalent to the alleged physical holdings of Australia or Indonesia.” No end to the naked shorting. The financial press reported not a peep on order by the Syndicate, who act as advertisers on the network channels.

 

On November 2nd, the Silver Doctor reported a similar silver ambush. NetDania provides a service, to estimate volume from five separate market sources. It is not an exact indicator of volume data, but does shed much accurate light on the deeply corrupted market. According to NetDania, a total volume of 38,400 contracts, equal to 191.99 million ounces of paper silver were dumped on the market in only ten minutes between 8:30am and 8:40am EST. The Boyz chose to execute the raid precisely on the day of the gimmicked Non-Farm Payroll data release. They smelled a potential for a precious metals price uprising, and snuffed it. The volume for those ten minutes corresponds to nearly one quarter of annual global silver production! Not the US output, but global output. No response by market regulators, business as usual.

 

Criminal deeds have become the norm. Money laundering has kept the entire major US banks afloat, the money laced with narcotics. Overnight satisfaction of loans is sometimes done with heroin paper packets the size of bricks. For the last 20 years, the New York and London bankers have illicitly (nicer word than illegally) leased official gold accounts. Those nations are one by one demanding their gold repatriation. Hot war has been justified in order to win the release of official gold held in accounts. Plenty of Arab despots sit in power, but the Libyan seat was targeted as special for its 144 tons of gold. The London bankers pilfered the Libyan gold account in the Qaddafi name, offering flimsy requirements for its return to their people, demands which will never be met. The stolen private accounts at MFGlobal waiting for silver delivery served as another criminal deed. The crime scene was protected by the US regulators and the courts. Apparently, the wrong interpretation of bankruptcy law matters little. MFGlobal was a brokerage firm, not a financial firm. Therefore, the private accounts should have been held first in line for redemption, not last.

 

The criminal appellate court upheld the wrong decision. The newest criminal streak involves tungsten lacing in fake gold bars. The story was cited here in early 2010, with Rob Kirby taking the lead. My source informs that two important characteristics are noteworthy. The Hong Kong banks are the biggest among the victims. The distribution routes run through a crucial Central American nation, just like the narcotics. Fort Knox was systematically gutted as its content bars were swapped, whose extent has yet to be determined. Expect some deep consequences for the counterfeit in Tungsten bars. Refer to TRIAD for old fashioned justice, and the Intl Court of the Hague for justice with more procedure involved. Perhaps the unusual story of bankers simply vanishing will be the case.

 

ALLOCATED GOLD ACCOUNT SCANDAL

The most prominent criminal practice has been challenged, the illicit usage for leasing of official gold accounts in the name of sovereign governments. The challenge will make for the grandest banker scandal in modern history. My source estimates that over 40 thousand metric tons have been vacated from the official accounts over the last two decades. Clearly, the volume indicates a lot of unofficial unaccounted gold, which nonetheless exists. The pressure has finally come to the London bankers largely responsible for the happy fingers. The New York and Swiss banks have been working overtime, often in midnight emergency shipments, to avoid a direct default. That would be both embarrassing and an invitation for prosecution which would be difficult to prevent, given the public outcry. As the London bankers struggle to meet the repatriation demands, the pressure will not relent. They must replace the leased gold or see their crime scene exposed.

 

Only when the vast Swiss repository is denied to the London banksters, the drain will erupt into a major gold default event with glaring publicity. It is when they are exposed, when the urgent need to replace the improperly leased (stolen) gold is realized, when the public and financial community is made aware of the altered Supply & Demand dynamics, that the Gold Price will shoot upward fast hard and without stopping. Far less gold is held in supply than recognized, while tremendous gold demand occurs. The Allocated Gold Account scandal will force the Gold price to $5000 per ounce, at a minimum. The agreed upon trade settlement gold core will probably permit the gold price to be fixed on a temporary basis. Gold is in increasingly short supply, given the labor problems in both South Africa and South America. Expect important gaping shortages and deficits. So the $5000/oz price is only a target, easily surpassed.

 

METALS PULLED APART

The law can be stated: Gold Bullion diverges into official voided supply, matched by huge syndicate supply. The visible vault storage with public accounting will eventually show nothing present, while the private syndicate vault storage will be hidden from view.

 

One private important location is the Carlyle Group, which holds significant counter-party positions to the vast short positions that Wall Street banks are responsible for. The biggest hidden gold hoards, truly magnificent in size, are located in Basel Switzerland, the Roman Catacombs, under the Kremlin, and by the ancient Chinese families, along with Wilbur & Mack who buried a hoard in their Arkansas backyard ready with buddies Smith & Wesson. The divergence will continue until the official gold supply is demonstrated, with shock & awe, to be near zero.

 

Another important divergence will occur. The official price discovery markets such as the COMEX and LBMA will be exposed as having near zero Gold & Silver in inventory. The prices posted for Gold & Silver will remain artificially low, held down by corrupt methods such as widespread naked shorting (permitted by the US regulators and USDept Justice). The physical price paid for Gold & Silver will continue to rise without bound. Already, no more large gold purchases can be satisfied, since supply is for the most part gone. Premiums for coins are on the fast rise, if coin supply exists at all. The unfortunate aspect of Supply & Demand dynamics is that when price is forced down by intervention and other illegal pressures, the result is vanished supply. That is precisely what is happening. Expect a tremendous divergence to occur, as the COMEX and LBMA tagteam of corruption experience a total depletion, but report some asinine moderate price. Nobody will be able to purchase at their posted price, since they will not have any Gold or Silver metal in inventory. It will be gone. Extraordinary methods are being used right here, right now, to prevent the default. See vast exports of gold from the US to London. See the vast shipments of silver from the US to London. See the rapid decline in the GLD & SLV inventory, which the Wall Street firms have access to. See the MFGlobal and PFG-Best private account thefts.

 

Coins exhibit the inflation in a highly visible manner. The coins in the Untied States & Canada are going away for 1-cent and 5-cent pieces. A friend in Toronto reports that recent modifications to the looney and tooney (C$1 and C$2 coins) have not only altered their appearance, but have altered their perception. They seem like play money to the public, which has shown derision. The US merchants will soon be permitted to round the transaction costs to the nearest 10 cents. The visible inflation has resulted in the cost of making small denomination coins too expensive, and thus impractical. ZIRP & QE will do that. The cost to make a 1-cent US penny is now 4.8 cents and the cost to make a 5-cent US nickel is now 16.2 cents. How embarrassing, even adding to the USGovt deficit. Due to high zinc and other cheap contents, the 10-cent US dime and 25-cent US quarter are still inexpensive to make. Why not use wooden nickels? Unless subjected to another fabricated hurricane, they will hold a stable appearance, if not value. A quick review of the National Atmospheric Release Advisory Center website will demonstrate easily the evidence of South Atlantic heavy microwave activity during the entire month of September. Angels don’t play this haarp.

 

GOLD MIGRATION

The law can be stated: With Gold goes the geopolitical power. As huge amounts of Gold are shipped Eastward, with huge tonnage leaving London for points East like China, so goes the important shift in geopolitical power. A Paradigm Shift is in progress, at work.

 

Since March 2012, a whopping 6000 metric tons of gold bullion has been shipped from London to the East, primarily China. The circumstances behind the shipments are murky, but they indicate private off-market transactions that are intended to avoid publicity. My suspicion is that old wealthy Chinese families had their Allocated Gold Accounts improperly used in leasing practices by London bankers, associated with posted margin on a gaggle of leveraged contracts spanning from sovereign debt to currencies. The trades went sour. Margin calls were enforced with lost gold in a grand forfeit, the London bankers feet put to the fire reportedly. Publicity was avoided, but in the process a tremendous amount of gold was forfeited. With the gold went a transfer of power, to the East. They will dictate terms of the new trade settlement system. They will become the world’s more prominent lenders. They will control the next geopolitical chapter.

 

ADVENT OF THE GOLD WARS

Since the Lehman bust in September 2008, the global financial crisis has been a fixture, without solution. My preference is to call it the Global Monetary War, whose unspoken main objective by the powers in control is to maintain power, to preserve the big banks as fortresses of power, and to protect the USTBond & USDollar in their primary perches. Two important events have altered the crisis. The first was the breakdown of the Southern European sovereign debt structure. The Greek Govt Bond went into crisis mode in late 2009, which spread to Ireland, Portugal, and lately to Spain, Italy, and France. It will consume the Euro currency, despite all their best efforts NOT to fix anything, despite their best efforts to alter the bond subordination in new bond issuance. The Europeans are guilty of kicking the debt can down the road, just like the Americans. The victims that topple the system will be the big national banks in the affected nations of Europe, even the German banks. Their flagship Deutsche Bank has been dead for years, full of hollowed corridors.

 

The second important event was the widening demands for repatriation of official gold accounts. It might have begun with Chavez in Venezuela, but it has continued. The Ghana Govt made their gold account repatriation demand, but a mysterious death of their leader halted the process. The Germans are spearheading this revolt. The Dutch will follow. The Austrians are next. Even little Ecuador wants one third of their gold account returned. Others will join.

 

An extreme wild card has surfaced. It began to be in play when Saudi Prince Bandar was assassinated a couple months ago, at the hands of HezBollah. Of course, the event was kept secret, but the Saudi Minister of Security was killed as revenge for the Saudi role in the high level Syrian assassinations. Phony photographs and other doctored official accounts have been produced by the Riyadh crowd to conceal the damage. The House of Saud, so the Jackass has claimed for two months, is in danger of falling, along with the Petro-Dollar. Well this week, reports have come out that King Abdullah faces death. He underwent a mid-November back surgery but has not recovered, or even come into consciousness. His entire set of organs has shut down, no longer functioning. The risk to the Petro-Dollar was high with the Bandar killing. The risk just went double acute with a succession to the throne imminent. Domestic challenges by an increasingly aware population, beset by higher cost of living, will come. The great Saudi oil surplus is slowly dwindling, what with higher domestic usage in a higher standard of living. The foreign challenge will remain from HezBollah, with roots from the radical and very powerful Shiite sect. Expect the Petro-Dollar defacto standard to fall in the coming months, as only weak successors remain in the line of surviving brothers. Think bottom of the family barrel (of oil). The teetering USTBond and confronted USDollar make for a poor foundation on which to keep the Petro-Dollar in place. Imagine the impact if the Saudis announce that Euros, Pounds, Swiss Francs, and Yen, even Gold are accepted for crude oil transactions. The Petro-Dollar is walking dead.

 

GOLD BREAKOUT IN ALL CURRENCIES

The process began with a Gold Price breakout in Euro terms. The continent is the site of the most visible systemic bust that has engulfed the sovereign bonds, the big banks, and the economies, even public trust. Soon to follow suit will be the Gold Price breakout in US$ terms, in British Pound terms, and in Japanese Yen terms, an event to occur simultaneously. The central banks from Europe, the US, the UK, and Japan are coordinated and aligned. They are all putting into practice the monetary lethal policies of unlimited hyper monetary inflation with a 0% rate attached. Witness Weimar gone global in a grand currency debasement. The Gold price will surpass the US$2000 mark easily. When it does, the Gold Price breakout will be recognized in all major currencies.

 

The central bank franchise system is broken. The global monetary system is broken. The big Western banks are broken. The financial markets are broken. The safe savings vehicles are broken. The all-important confidence factor to support fiat paper currencies is fast vanishing. The arrival of the Gold Standard as the solution is being slowly manifested in the form of a gold-core trade settlement system, which will drive a global Gold Standard. The new system will dictate bank reserves practices, and render the USTBond as a rejected toxic paper relic. It should arrive early in 2013. In the process, the Western nations will become impoverished, as they desperately cling to the failed system. Anger will rise. Disorder will prevail. The USDollars inside the United States will be trapped, then devalued as the public watches in shock. The power will shift East inevitably, with the shipment of Gold. A new era will begin.

 

THE HAT TRICK LETTER PROFITS IN THE CURRENT CRISIS.

From subscribers and readers:

At least 30 recently on correct forecasts regarding the bailout parade, numerous nationalization deals such as for Fannie Mae and the grand Mortgage Rescue.

 

“A Paradigm change is occurring for sure. Your reports and analysis are historic documents, allowing future generations to have an accurate account of what and why things went wrong so badly. There is no other written account that strings things along on the timeline, as your writings do. I share them with a handful of incredibly influential people whose decisions are greatly impacted by having the information in the Jackass format. The system is coming apart on such a mega scale that it is difficult to wrap one’s head around where all this will end. But then, the universe strives for equilibrium and all will eventually balance out.”

(The Voice, a European gold trader source)

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but I feel your information is vital to know.”

(KathyN from Arizona)

 

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

    • More like, “Jim is ALWAYS a good fiction read.” Have you ever noticed how he loves to qualify statements with the preface, “I have a source…” or, “My source informs me that…” and then makes some absurd, grand conspiracy related comment that only a tin-foil-hat-wearing-SD-reader could buy into? 

      In this article alone he mentions two sources that go unnamed. Jim Willie, you might be able to sell more paid subscriptions if you actually stated facts versus just making them up as you go along. But then again, without the conspiracy theories, your articles would have nothing of interest to anyone at all. 

    • Idaho,

      As long as people and I am saying the majority who work each day to make ends meet and not the people on government
      entitled free everything, but the if the majority believe that the dollar is safe regardless of QE whatever and the upcoming
      fiscal cliff, they really don’t care and are ignorant of what the dollar may or may not eventually buy to sustain their well being.
      The Criminal Bankers can play their Banjos for a long, long time, evading economic truths and printing as much Fiat as they want. The Congress can raise the debt ceiling as high as they want collaborating with ALL world bankers doing exactly the same thing and it will absolutely make no difference to the majority that is spoken of here. Repatriation of Gold means nothing insofar as future backing of currency in any country. No country has the exacly same amount of Gold as any other country. So ask yourself, “How would that work?”

      Smaller global trading countries that need more Gold would make viable demand products more expensive to gain more Gold. This means that Gold will never be a common trading currency as the playing field would not be a level one for countries that held less Gold. Would the International or National Gold Council establish a value of Gold?
      The banks are buying Gold and Silver in greater amounts than any groups of wealthy investors or individuals and they will control the
      price regardless, we cannot compete as long as FIAT money is being printed to buy, sell short over and over again.

      I hold physical Silver and Gold and yes I think it will go up in price as a commodity that it exists as any other commodity, but it will
      never be used to back any paper currency. Possibly Gold could back some Fiat Currencies, but not all.

    • I don’t think the BRICS would do it as a group.  Part of being a reserve currency is having a military.  That is why the Euro will never make it.  My pick would be Russia.  They are beefing up both their gold holdings and their military muscle.  In fact I think the first country that gets smart and goes to a gold backed currency is going to win.  Sure hope it’s the U.S.

  1. Yeah, right Jim. A new gold backed currency. And what gold would THAT be? The paper gold claims jammed into the vaults of the issuers? OR … the gold electro-plated tungsten bars those issuers would pose for photo-ops with (grinning from ear to ear, shaking each other’s hands)?

    Mr. Willie, YOU may be willing to give ‘them’ another shot at screwing us all, but I DAMN-SURE am NOT!

    If It Ain’t Real, There Ain’t No Deal. Paper Rots, Coin Does Not.   

  2. I’m not concerned about the Gold but more of the Currency (Yuan)? Very interesting article. The Chinese are rubbing their hands together. Maybe I’ll learn Chinese as it looks like the rest of the world s falling apart.

    • Learning Mandarin Chinese could be of significant benefit.  They would kill us LAST, as we would have some utility as sheeple overseers.

    • That’s DARK. But I thought that would be pretty muchw hy the Chinese are earning English. To report to the world in case their favorite customer would decide to go beyond not paying their bills.
      The Chinese are awesome at making plans come together. They make communism work. And it may just be a precursor to something better. But, they do envy western innovation. That’s where speaking their language would come in handy, getting a well-paid job working for them. Innovating, or teaching them how to.

    • Depends… if you’d rather live in a democratic Westernized chinese city that sticks its nose at the commies, learn Cantonese and live in Hong Kong. It’s prettier than other chinese cities, it’s a hub of Eastern finance, and they’re fiercely anti-commie.
      Enjoy the Dim Sum!

  3. Gold is a the 2nd best insurance in the world. But where would it be if it were not for it’s silver legs. Again today we watched Ag keep Au from falling through the floor. Ag is in very very strong hands and are holding up all the other PMs as these relentless attacks continue. National treasuries and central banks still have Au in their vaults and on their books. Not as much as they want us to belieive but there is some there. BUT NOT Ag, none,zilch & nada! The Ag manipulation is all games with paper and futures and it is what is going to bring them down! They may need to sell every ounce of their Au just to pay off their Ag debts (bets)!!! Wouldn’t that be ducky. :-)

    • Gold is the second best insurance in the world? If that’s the case, then what’s the number one best insurance in the world? Gold was never a disappointing insurance in general. 

  4. Jim Willie:  “A quick review of the National Atmospheric Release Advisory Center website will demonstrate easily the evidence of South Atlantic heavy microwave activity during the entire month of September. Angels don’t play this haarp.”  He is referring to the H.A.A.R.P thing in Alaska.

    • Yes, and several countries have HAARP-like systems strategically placed around the globe.  They play weather wars.  Don’t like our politics then how about a drought or would you prefer a hurricane.  MSM never reports on it.  Alternative media has it well documented. 
       

    • Look up Scalar Waves and related topics. There was a group of experimenters called the Weather Rangers, but have not been heard of for quite some time before Hurricane Sandy hit… I wonder what happened to them?

  5. WOW! Mission statement of National Atmospheric Release Advisory Center. NARAC, provides tools and services to the Federal Government, that map the probable spread of  HAZARDOUS MATERIALS accidentally OR INTENIONALLY released into the atmosphere. WHAT THE *^$# DO THEY MEAN INTENTIONALLY RELEASED? CHEM TRAILS OR WHAT? WHAT ELSE MIGHT THEY BE DUMPING ON US? I tried to navigate this sight and couldnt.

  6. My thought is that when the US dollar collapses, TPTB will try VERY hard to sell us another paper Ponzi scheme instead of being forced to use real money.  I’m sure that they will make it look really good and some folks just might go for it.  It’s still not the real deal, though, so do not convert ANY of your stash into this drek unless it is for immediate spending.  It’s life-time will likely be short.  Once it is dead and buried we can expect a real currency to come along and it will be backed by something real… not necessarily PMs but perhaps a basket of commodities that includes PMs.  Thanks to all the fooling around that has been done with the national gold and silver hoards, we cannot expect any help from that direction.  Remember… these will be most of the same clowns who sold off the gold and silver, replaced gold with tungsten, engaged in those moronic hypothecation schemes as well as swaps, leasing, etc. ad nauseum.  Tread carefully, brothers and sisters, for traps will be laid for the unwary.

    • My own feelings are that government and government issued money will lose face all around the developed world.  Chances are it will never recover again in our lifetime.  Also, highly probable that those who were seen as proponents and benefactors of this current system will be reviled in the new paradigm.

    • “Also, highly probable that those who were seen as proponents and benefactors of this current system will be reviled in the new paradigm.”

      One can only hope that this occurs shortly before they are hung for treason. 

    • Maybe. I’ve heard that the next currency in North America will be the Amero. It will become Canada, Mexico and the USA’s new currency. The question is, will people fall again for the same tricks after the collapse?

  7. Too funny “socialist assistance programs” and “US offense budget”.  Calling it how it is; just make sure you are wide and clear of this vessel when it’s list becomes a total plunge to the bottom of the ocean Mr. Willie. 

    He is right too about us in Canada and the new loonies and toonies.  They feel like cheap plastic, like the new polymer bank notes.  Most people are still too caught up in the cloud of credit cards and flat screen televisions to notice though, bouyed by our own housing bubble and troubles elsewhere.

    • Exactly! That’s also how I thought about the new loonies and the toonies. They sound like poker chips. I also hate the new polymer banknotes because they can stick together. It also sucks that the penny is going to be removed from circulation which means that I won’t be able to do coin roll hunting again with pennies.

  8. No fixed rate on the Gold Standard, Thank you, otherwise it will be a failure too. Gold and Silver free floating is the ticket just as free markets will out. How do you think we get rises in Gold and Silver? -because it’s free floating currency and not fixed! Sometimes you just have to leave things alone, and appreciate it’s function and purpose.
    Like a child made to sit still (they won’t) they’ll fight you tooth and nail but play nice and engage them and they usually will behave without a big fuss. A fixed rate Gold Standard would be folly but a free floating one would or could endure. Just don’t try to capture and submit it to your will. You’d destroy it’s role as a gage against other commodities and currencies. Keep it free and we can grow, improve and survive..

    • If all of the fiat currencies die, how could gold “float”?  Against what?  All prices would be in grains or mg of gold or silver, so no national currencies would be involved.  I suppose that they could come up with a trans-national currency of some kind but it too would be based on something real and not on anything of fiat origin.

    • @silly4silver I’m with you. Fixing the trade ‘value’ of coin is like fixing the trade ‘value’ of oil or wheat. The only thing that ‘fixes’ the value of anything at any moment in time are the relative supply-demand characteristics of any to things exchanged. My highest hope is that we finally  fix the weights and fineness of coinage. Under that condition, all goods-at-market can rationally optimize against each other according to locale and supply-demand conditions of the moment.

  9. I don’t think that the gold standard would return again with today’s fiat currencies because they all have way too much currency supplies. For example, if the US dollar returns to the gold standard, then gold’s price will become 7000$ per ounce!

  10. Merry Christmas to everyone.

    The world is very aware of the USG insolvency. Whether it’s a person, company or goverment, funding present expenditures with more debt is, by all measure, insolvency.
    We are not just funding $1.3 trillion in deficits.  We are also acquiring anywhere from $5 to $10 trillion in accumulating debt, depending on which form of GAAP accounting you might use. 
    But then all the other major world governments are doing the same thing and calling it by any name but it’s real name.
    Complete and total sovereign involvency.
    It’s distressing and I hate to contemplate what will come of this but these ghouls operating the levers of the printing machines will be personally responsible for the deaths of millions.

  11. @SD Readers: Merry Christmas to you and a happy New Year.  My new years resolution is to make it my mission in life to see 2013 as the year the banksters and all their minions reap the whirlwind they so richly deserve! May every totalitarian dream they try to institute turn into their own nightmare! May this be the year of the greatest awakening in human history and be remembered forever as the year these devils were finally exposed and cast out.

    • RGR  Your message is sent loud and clear—and received. 
      There was a post on another channel about Ron Paul’s message
      early this year one person noticed a bumper sticker referencing Ron Paul.  That person decided to look up everything he could about Ron Paul, make a bumper sticker and distribute it.  By the time he and like minded people completed distribution of the message, 3,500,000 people had this auto adornment.  This phenomenon is called SPONTANEOUS ORDER.  The internet is our best tool to make sure the message gets out.
      We can never be sure who gets our messages and how they react but you can be assured that your message, along with those of many other Silver Doctor readers and essayists are getting out to millions of people. 

  12. Merry Christmas to all the silver dudes and dudettes out there. Hope you have a wonderful and blessed day and many more to come. Remember the meaning of Christmas, give thanks and enjoy the company of your families and friends. Eyes wide open all.
     
    P.S. Happy New Year.
     

  13. Time for states to secede and let the federal government rot. Form a new states alliance without all the Washington BS. Make federal employees criminals who participated in the destruction of the USA.

  14. I had intended to post this under the Alasdair Macleod article however the days festivities got in the way. Best wishes for the festive season all, if I don’t get the chance, have a good new year, I hope your preps become more focused and the stack grows. The full Alasdair Macleod interview is definitely worth a look -

    http://goldswitzerland.com/a-failure-on-comex-silver-alasdair-macleod/

    There is much more to survival into the future than buying Silver however Silver will be an integral part of your and your family and friends wealth survival to come. How that will work for you is the question, just look forward.
    The “service providers” of Silver, MRE’s, guns & ammo, water filters and specific environment modifiers, safety equipment, seed banks etc will be or are clamouring for the ever dwindling resource of the consumer dollar.
    I agree with a few comments in the previous AM article and other occasional remarks that the “music” is starting to get a bit stale and repetitive but that is the perception only because I’ve been with SD’s for so long, since the blog days, and I gotta say Doc more power to you for keeping it going, there is always gonna be a newbie who is coming on board eyes open.
    Newbies just have to be wise with their resources and sort out for themselves the priority of their requirements depending on their and their families needs, their location, education, age, health etc etc.. It’s called homework.
    The “Western World” for centuries has been living in a bubble of proportions above the existence of other cultures around the world, mostly to the degree that these other cultures could be exploited by slavery, deception or conquest. It’s time for a leveling of the ground.
    What the World’s economy is going through now is the final throws of having wrung the utmost out of this exploitation by the “Ruling Families” and their bastards using the mechanisms they wrought through credit, with nowhere else to grab an ever increasing PROFIT from, now . . . . .
    . . . . . now the mega bubble of all time (possibly even surpassing the Roman economic bubble in its envelopment of the World population and in a much shorter time frame) is about to burst.
    That so many people are aware of this is evidence that it must be part of the unconscious human condition whether it’s a left over from our evolution or whether it’s a part of our survival awareness of resources and survival conditions or whether there is now enough clues that hiding it is no longer possible – viva le internet, hurrar – who knows but people are waking up to it in varying degrees.
    Those of us who are ahead of the game have a responsibility to “do our duty”, it is no longer any good fence sitting with the excuse it’s nothing to do with me, good must stand with good as the more base instincts or the characteristics of the 7 deadly sins stand together. Seriously.
    I have a question I ask people every now and then and I lobbed it on the guys on site at one of our jobs the other day sitting in the crib room. If someone was broken down on the road side who would stop ?
    I’ve asked this question quite a few times to groups, at work, socially, whenever the opportunity arises or the fancy takes me and every time there’s about a 2 way split in responses. The first group is the honest ones. It’s the “wasn’t my fault”, “who gives a toss” or “it’s their karma” people; then there are the ones who say they would stop but it’s funny, I do stop and in the city or on a country road I don’t see, coming up to a car on the side of the road one half of folks on the road stopping in front of me to help some poor blighter out. Try this question yourselves.
    I stopped to help a car a couple of Fridays ago and changed a flat, we talked, the woman insisted I drop in to there place but it was way out of my way so she got my business card, you know, she sent me 4 presents for under the tree – not marked so we opened one each yesterday (We’re in Australia) and behold 2 sets of sterling earings a sterling bracelet and a sterling business card holder. SILVER, you gotta love how this universe works !
    That aside this is the mechanism which has got us here, the good at heart taking no responsibility for what is going on, it’s no longer any good to say “well it’s nothing to do with me” or even convincing yourself that you’d do something but actually not acting when the time comes. This kind of think allows the bullies to band together and pick us off one at a time.
    If there’s a bully, point them out and say knock it off; if the person next door is yelling at the top of their voice at the kids they will say to you “mind your own business” but it is your business because if they can’t contain themselves to that degree and if how they act cannot stay within personal boundaries and spills out on to me then it is my business and I act.
    I’m reading David McCullough’s “John Adams” at the moment it is a great eye opener on the birth of a nation and an example of exactly how the good at heart need to behave.
    Sorry, I’ve gone way off topic. We’re coming to a point where the good at heart have had enough and the next step to becoming aware that “The Times They Are A Changing” is that those of good heart need to step up and join together so that the void is not filled with another bully.
    Join a volunteer group, this movement will stem from the grass roots – “The meek shall inherit the Earth”, you will be surrounded by the good at heart, like minded folks will surface – volunteers already want to help, they need an eye opener to the days ahead, some direction or an example to follow and will be the easiest to enlighten to the mechanics of what is going on, I had a win on this during the past week or so. Our local volunteer bush fire brigade usually takes Santa down to the local hall, lights flashing and sirens going, the kids love it (I was asked to drive this year).
    Anyhow the fellow who was Santa this year opened up about “the world economy” so I gave him a quick rundown on the fullness of the situation and told him to go do some homework on Silver, I told him I was all in with our savings, on Silver. He’s a retired bloke who bought a farm down the road from us, he said he’s looking for the next good investment, he wants to get out of the stock market, he reckons it’s about run it’s race. I have another new friend and we have a topic to open with upon on our next engagement.
    I want to give something practical too, at least for those of you who are secure in staying put for an extended period and for those who wish to start somewhere, plant onions and plant herbs, store bullion (it has salts and some have calories – it’s a comfort food).
    French Onion Soup
    3                                         large onions
    2 tbls                                   butter (any edible fat/oil will do)
    2 ½ pints                              beef stock (use any bullion booster)
    1 tbls                                   plain flour
    ¼ tsp                                   pepper
    Handful of                            parsley (or other herbs to taste)
    Halve then slice thinly and fry onions in the butter using a large pot and stirring with a wooden spoon till the onions are browning, add the flour and stir in, add the beef stock and bring to the boil, serve and add herbs.
    In a non-TEOTWAWKI situation it goes good with cheese toasties  : )
    Thanks for the site Doc and thank you all for your insights. Keep stacking the good stuff.

    • If you understand that, sorry, I haven’t heard about Australia’s “alignment” with any asian countries above the usual trade ties. You sound wounded, sarcastic.
      As you well know Idaho, I’m assuming from the USA, our illustrious leaders are well aligned with the rest of the “Western Countries” regardless of my wishes.
      You should know this after the well publicised attack on Afghanistan where Australians stood shoulder to shoulder with the UK, France and the USA but you already know this and as I understand from recent talk between the US and Australia, the US military presence is to be boosted over the next 5 years.
      You do not seek confirmation really do you. Your comment is retoric. Why do you pursue such a course ?

    • Hey @clambake:

      No sarcasm here, but I’d like to know too!
      If you get any advance information, please notify. I believe you when you say they are not aligned any more than the usual trade ties. But those are strong, with any country-to-country arrangement. Presumably you may have info a bit sooner than we might, as I understand it, China is Oz’s largest trading partner?  

    • Mornin @undeRGRound : )
      Well it’s mornin here anyway. We’re a long way from the action where we are so most any national news is what comes up on the MSM but there are a couple of things going on that I know about. I’ve been interested in the Chinese investment of commodities world wide and I see they’ve been busy all round the world in mining and farming. A Chinese fund has purchased Cubbie Station – Australias largest cotton producer. I see they are buying up Californian wine makers now too !
      The Chinese have taken advantage of a clause to remove themselves from a deal to upgrade rail and opt out of a partnership which was involved in construction of a deep water port facility on our mid west coast.
      I think it’s the slow death of the iron ore industry and other industries besides, they’ve been using up those US Treasuries for the past few years to build stockpiles of all sorts of basic commodities or buy them on the ground around the world, building ghost cities and forward investing to be in a position to stop imports, drive down prices and then pick the eye teeth out of the gems of production and manufacturing in the western world, how many car manufacturers do they have now (shakes head).
      They’ll have technology by buying shelf companies who have the Rights to patents etc. or by industrial espionage when western companies set up on China to reduce overheads or by buying companies on the ground and ensuring in the deals they have their own executives run the companies in other countries. We are looking at the final stages of Chinification of the western world in a manufaturing and resources front.
      Locally, our resource sector has taken a bit of a hit but the fullness of it has not sunk home to your average garden variety human being yet. BHP has stopped work on an expansion to a local alumina refinery, they spent around $8.5B and 3 yrs to increase capacity and replace some older infrustructure then about 15% from completion pulled the plug, I’ve heard rumours from insiders (2 different sources) that the option to mothball the plant is being touted which will be a massive blow to local business as it’ll also mean the discontinuance of the mining operation.
      Alcoa has 3 refineries down here, they seem to be better placed to weather the coming crisis for now, even though the math of this coming financial disaster is irrefutable the reality is vague, not ever having experienced anything like it, so I believe they also will have to consider their options but only a bit later down the track. There is one bright light, the bauxite they mine here is of a very high quality so Alcoa being multinational and so long as we can keep our economy to the upside of the other western producers we may have production costs on our side but it is a slim hope.
      With the US now gone through the drought it had, our beef sales are up, I hear locals talking happily about it in that respect however long term our biggest market Indonesia intends to increase it’s own stocks. We had a live export problem earlier in the year, a knee jerk reaction to animal cruelty issues overseas and it threatened the Indonesians supply of meat.
      On PM’s, Australia doesn’t have the history and population for the demand of Silver that the US does, I envy you guys to be able to stroll down the street and pick up bullion at spot. During the year Silver saw a sustained period of below $30 action but any of the suppliers of bullion available to me locally were dealing well above $30, Perth Mint is still $10 above spot. eBay has been my best option and I  picked up 20 Morgans for $600 in early November but that was a lucky score someone didn’t know what they had.
      Cheers, all the best.
       

    • I hope those were very nice Morgans, I typically get them for under 30 even when Silver is 32 and up. But I mostly buy the lower grades, I had an LCS when I lived about 60 miles east of here, and their “culls” were very nice! Still paid like 26-28 when Silver was running 32-34 SPOT. But if your local Perth Mint pricing is that high, $30 for a Morgan is a good deal still. I’m soon to sell my 40% Kennedy halves and 35% (war nickels) but I’m waiting for the prices to go up. I hope to replace it with 90% :D 
      Keep Stacking, and Prepping! God Bless… 

    • Very Nice, ClamBake! 
      Those are pretty much worth it, especially since you have to pay such high premiums. 
      The LCS I referred to had really good deals, their “culls” were nearly numismatic quality. 
      I am just very fortunate to have so many good shops around, with fair prices. But “they”
      closed my closest one, an antique shop that dabbled in coins. Apparently, some stolen goods, too. :(
      So Sad…

  15. clambake  Ijust read your two posts above and they are anything but ‘off topic’  They are very topical because being a good neighbor and good samariten is vital to a well oiled neighborhood and even a country.  England and America are not unique in our generosity but we have more than most people even in these tough economic times. Just a small helping hand can mean the world to a person who is in a bit of a rough patch.  My prepper guide in the ‘best of’ speaks to forming a like minded group of people who can rally together in tough times, whether they are natural, like disasters, or unnatural, like the TEOWACKI or WORL we talk about.
    In my opinion all things we do and all things we are involved in relate to precious metals. Few things happen without the monetary funds to grease the wheels and get us to the site of the problem, even if it’s the road side assistance you rendered to the person with a flat.  She rewarded you and very nicely even though you expected nothing in return.  And in silver is the telling thing. Of all the gifts she could have sent you, something of silver speaks volume to the karmic content of your good deed.  That is one of the things that really made me stand up and take notice of good deeds.
    Thanks for posting with a warm message for the holiday season

  16. Merry Christmas to all as well.
    I’ll second 2oz’ motion: Jesus is the reason for the season. Think about it, Jesus is so awsome, that the WISE MEN FROM THE EAST (ahem…!!) thought He was worth giving Him their gold. God created gold in the first place, so made sense to offer it to Him.
    Got Jesus?
     

  17. Ugly Dog  I was reading Willie’s Hat Letter.  Interestingly enough, he chose China as the country who would be willing to take on the task of the military strong arm action.  For some reason, I forgot, he did not think russia would  They have enough on their hands dealing with their ‘sort of’ allies like the ‘stans’  and Ukraine.  China is developing a substantial blue water navy that should be fully operational within 5 years or less, just enough time, IMO, to put some teeth into the gold backed currency Co Prosperity zone.   that would include the south china sea, sea lanes well into the pacific and around the corner to india.
    They seem to mean business and we are target number one,  Europe is their next best friend with much more community trading relations than they have with the US.  Our exports only increased 15% in the last decade.  Europes is up 55% in the same time period
    Apple Core,
    Baltimore, 
    Who’s your friend?  
    Merkel Monti Draghi von Schtupplemeister

    • “Apple Core,
      Baltimore, 
      Who’s your friend?  
      Merkel Monti Draghi von Schtupplemeister”

      Is that the point when the apple core is bounced off of someone’s head?  Ah, the good old days!  ;-)
       

  18. im still unsure how a gold standard will ever become a reality and how that will manifest in terms of comparative value … if it was set tomorrow would it be set at current market rate … would it be set at real market value … what is real market value … read the articles and it varies from $800 – $10,000 … so confusing

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