In this excellent interview with Finance and Liberty’s Elijah Johnson, Chris Duane discusses the likelihood that the CIA is involved with Bitcoin as a method to funnel wealth away from gold and silver into an electronic currency and as a method to preserve their power during and after the coming collapse of the US dollar.
Duane contends that the next move in silver will break the financial system as the debt Ponzi ultimately implodes and the current decline below $20 will soon be a distant memory to precious metals investors.
Full MUST LISTEN interview is below:
The reality is relatively simple even though the appearance is complicated and confusing.
- Wars that are hugely profitable for a few individuals and businesses
- Unauditable Pentagon accounting
- Government debt that will never be repaid
- Levitation of S&P and bond markets
- Gold price suppression
We all know “something is wrong” but we keep riding the same corrupt “gravy train” because it works for many powerful people. Consider the interlocking complicity involved in the following: [Read more...]
A common misconception in markets about the price of gold is that rising interest rates for a currency will always drive the price of gold down against it.
Today the market can best be described as confused. Prospects for economic growth and price inflation are far from clear to the market consensus, so talk of tapering by the Fed is seen as injecting a deflationary bias. For this reason, when bond yields rise, gold weakens.
Traders in paper markets are only interested in short-term relationships, and therefore pay little or no attention to long-term fundamentals. If we consider the relative increases in the quantity of gold and a fiat currency such as the dollar, gold today is demonstrably undervalued compared with where it was before the Lehman crisis. This is confirmed by physical metal being driven out of market circulation.
Sooner or later, those traders ignorant of Gresham’s Law and believing that interest rates are the sole determinant of the direction of prices will get an interesting wake-up call. [Read more...]
Slowly, the status of the dollar as reserve currency is slipping away, threatening hyperinflation.
The recent rise in interest rates, in response to the threat of Fed tapering, foreshadows the unavoidable demise for the dollar. Not only did the rise in rates have an immediate effect on the housing recovery, it also indirectly exposed the system to another vulnerability, that is, the Fed is not only the lender of last resort but will be the lender to the spender of last resort – the US Treasury.
That all fiat currencies end the same is no secret.
Reserve currencies are not immune. Slowly, the status of the dollar as reserve currency is slipping away.
Rumblings of a re-arranging of trade status are approaching a feverish pitch.
Preparations have been or are being put in place by the international monetary and financial authorities for bail-ins of both banks but also other financial institutions. The majority of the public are unaware of these developments, the risks and the ramifications.
The important shift from bail-out to bail-in had not been signalled in a very public way prior to Cyprus. The market’s expectation was therefore confounded when Eurozone finance ministers imposed bail-ins on Cyprus. This forced bondholders to convert into shareholders, and critically, imposed an element of bank deposit confiscation and the forced conversion of these deposits into bank equity.
Never before in the public’s perception had bank deposits been countenanced as potential financing sources for the rescue of insolvent banks. The public was shocked by the freezing and confiscation of deposits and the use of them in a desperate attempt to prevent banks from failing.
The coming bail-ins regimes will pose real challenges and risks to investors and of course depositors – both household and corporate. Return of capital, rather than return on capital will assume far greater importance.
Evaluating counter-party risk and only using the safest banks, investment providers and financial institutions will become essential in order to protect and grow capital and wealth.
It is important that one owns physical gold and not paper or electronic gold which could be subject to bail-ins. [Read more...]
As the world continues down the road of self-destruction via its highly leveraged paper financial markets, there’s a much more fascinating story worth looking at.
Hidden from the majority of the public and misunderstood by the so-called professional metal analysts, is the Real Story Behind Silver. [Read more...]
By keeping precious metals in performance control, the general population fails to see outward signs of inflation – at least for a while. [Read more...]
The too big to fail banks were in the headlines every single day and our politicians promised to fix the problem. But instead of fixing it, the too big to fail banks are now 37 percent larger and our economy is more dependent on them than ever before. And in their endless greed for even larger paychecks, they have become insanely reckless with all of our money.
Mark my words – there is going to be a derivatives crisis. When it happens, we are going to see some of these too big to fail banks actually fail.
At that point, there will be absolutely no hope for the U.S. economy.
We willingly allowed the too big to fail banks to become the core of our economic system, and now we are all going to pay the price. [Read more...]
Bill Gross: “Investors Are All Playing The Same Dangerous Game—That Depends On Perpetual Cheap Financing”
Investors are all playing the same dangerous game that depends on a near perpetual policy of cheap financing and artificially low interest rates in a desperate gamble to promote growth. The Fed, the BOJ (certainly), the ECB and the BOE are setting the example for global markets, basically telling investors that they have no alternative than to invest in riskier assets or to lever high quality assets. [Read more...]
I hereby make a prediction: Bitcoins will go down in history as the most spectacular private Ponzi scheme in history. It will dwarf anything dreamed of by Bernard Madoff. (It will never rival Social Security, however.)
The fundamental characteristic of money is its relatively stable purchasing power.
Bitcoins will never achieve this. It is a mania going up. It will be a mania coming down. It will not increase the division of labor, because people will recognize it as having been a Ponzi scheme, and they will not again buy it. They will not use it in exchange. Companies will not sell goods and services based on Bitcoins. Bitcoins have to have stable purchasing power if they are to serve as money, and they will never, ever achieve stable purchasing power.
There has to be an economic justification for a capital investment, and there is no economic justification of buying Bitcoins as an alternative currency. The Austrian theory of money shows why.
I do not invest in capital that has no economic justification other than the greater fool theory. There are too few fools to keep the scheme going.
Bitcoins are the 2nd biggest Ponzi scheme in history. You can’t say you weren’t warned!
Only Indians can fix what is broken in the gold market, and they are working maniacally to do it. Give India’s gold buyer class the time they need to really fix what is really broken in the gold market, and they will get the job done. [Read more...]