inflation

Thanks to the Federal Reserve, the middle class is slowly being suffocated by rising food prices.
Perhaps you have also noticed that food prices have gotten pretty crazy lately.  In particular, meat prices have become absolutely obscene.  For example, the average price of ground beef has risen to a new record high of over $4.09 a poundOver the past twelve months, that works out to a whopping 17 percent increase…

freefall

Spoiler alert: I think interest rates will keep falling to zero, though of course there can be corrections.
The interest rate is pathological. It’s like an object that gets too close to a black hole.
Once it falls below the event horizon, then a crash into the singularity of zero is inevitable.

Singapore

This morning some of the biggest financial news of the year made huge waves all over Asia.
Yet in the Western press, this hugely important information has barely even been mentioned. (CNBC.com, for example, has yet to report on this story as of 11:45am Eastern…)

police confiscation

When it comes to how the U.S. economy of fraud functions in 2014, the following article has it all.
A government official, a global investment bank and a businessman/politician, all working together to enrich themselves at the public’s expense.
It demonstrates how big bucks are really earned by insiders in the new American Dream, characterized by extreme cronyism and corruption.

debt

German astronomer and mathematician Friedrich Bessel managed to successfully measure the distance from Earth to a star other than our sun in the 19th century. But he realized that his measurements meant nothing to people as they were. They were too abstract.
So he came up with the idea of a “light-year” to help people get a better understanding of just how far it really is.
And rather than using a measurement of distance, he chose to use one of time.  The idea was that since we—or at least scientists—know what the speed of light is, by representing the distance in terms of how long it would take for light to travel that distance, we might be able to comprehend that distance.

Ultimately using a metric we are familiar with to understand one with which we aren’t.
Why don’t we try to do the same with another thing in the universe that’s incomprehensibly large today—the debt of the US government?

Anyone who has been following Edward Snowden’s heroic whistle-blowing, and the reporting of Glenn Greenwald on the classified documents that prove egregious violations of the United States Constitution by the NSA, will also be aware of speculation that a “second leaker” had emerged earlier this year.
It appears this person may have been identified by the FBI.

Swiss-Gold-650x360

In what was an extraordinary first salvo in the head-to-head gold referendum battle that will take place in Switzerland over the next five weeks, yesterday witnessed the launch of both the “Save our Swiss Gold” (Gold Initiative)” campaign and the opposing “Cross-party Committee against the Gold Initiative” campaign in Switzerland’s political capital, Bern
With both the ‘Yes’ and ‘No’ gold initiative campaigns only now officially beginning, the field is wide open, and the success of each side’s campaigning over the next five weeks will be crucial.
With the only opinion poll so far, earlier this week, showing the Swiss electorate swaying towards a ‘Yes’  vote, Luzi Stamm’s Gold Action Committee appears to have gained the strongest initial momentum:

Liberty Blitzkrieg

 “The California Highway Patrol officer accused of stealing nude photos from a DUI suspect’s phone told investigators that he and his fellow officers have been trading such images for years, in a practice that stretches from its Los Angeles office to his own Dublin station.”
On Harrington’s phone, Holcombe located two photos of that DUI suspect in a bikini accompanied by a text message from the day of the arrest from Harrington to Hazelwood: “Enjoy buddy!!!”
Hazelwood replies: “No f—— nudes?”

HarveyOrgan1

Tomorrow is options expiry on the comex and on Friday we have options on the OTC contracts for both silver and gold.  Thus expect both of our precious metals to be under the fire as the crooks use non backed paper and gold paper contracts to suppress the price.
Let’s head immediately to see the major data points for today:

Russia

BRICS Rising
There can be no doubt that an alliance, called the BRICS, is positioning itself to be the new anti-globalist, anti-Western central banking force in the world.
In fact, there are well-respected voices within the Kremlin, who’ve now called upon the leaders of the East to step up the game-plan of the BRICS, and turn it from a mere trade and economic union, to an overtly, D.C.-blocking, anti-dollar alliance.

Rest assured that with each passing day, every new brain-dead sanction that D.C. and Brussels hurl at Russia, is actually just another fresh log on the fire, incinerating their own power.
The West is descending into tyranny and poverty, while the East is making strides toward financial and economic liberality, and at “double time”.
It’s self evident that these preparations are being enacted, in order to live as best they can, in a post-dollar world.

Gold-Loan-2-1

We can’t speak about the manipulation of the gold price today without understanding the derivatives market.
These products have never been tested in the real world and especially in adverse conditions as a major crash.  
I have concluded that the next financial crisis will have derivatives at its core.
The 2008 crisis confirmed it to some extent.   The next crisis will be much worse and it will also have derivatives at its core.
In the gold market derivatives are presently dictating to the physical market what the price should be whereas by definition, as derivatives, they should be derived from prices set in the physical market.

1222591

Battered silver remains deeply out of favor, recently plumbing miserable new lows after drifting sideways for most of 2014. This metal’s relentless and oppressive weakness continues to break the wills of long-suffering contrarians.  But professional investors are taking advantage of the epically-bearish psychology plaguing silver.  They’ve been steadily accumulating positions all year long in massive stealth buying.
Silver certainly wasn’t always a loathed market pariah.  Back in early 2011, silver blasted up above $48 on widespread enthusiasm from investors and speculators.  It was one of the 2000s’ greatest bull markets, up an astounding 1105% during a 9.4-year span where the benchmark S&P 500 limped to a 20% gain.  The brave contrarians fighting the herd to buy silver low in the early 2000s greatly multiplied their wealth.
So with silver now super-low and despised, it seems like no one wants anything to do with it.
There is a widespread belief that silver is no longer cyclical, that it is doomed to spiral lower forever.
Now, not even the majority of contrarian investors, who claim they like buying out-of-favor assets cheap, will touch silver with a ten-foot pole.   It has been left for dead, starved for capital in a parched wasteland of hyper-bearish sentiment.

But provocatively, such extremes are exactly what major bottoms are made of. 

police state

The sickening transformation of these United States into an authoritarian police state with an incarceration rate that would make Joseph Stalin blush, has long been a key theme here.
As a result of our insane societal obsession with authority and disproportionate punishment, the WSJ reports that “nearly one out of every three American adults are on file in the FBI’s master criminal database.”
USA! USA!

SPrott

 Could an infectious disease kill the monster that has been choking gold and silver prices for more than a year?
On the heels of a lively Sprott Precious Metals Roundtable discussion, The Gold Report caught up with investor Eric Sprott to ask how a tragedy in Africa could impact the price of precious metals and mining stocks.
We also spoke to his Executive Vice President of Corporate Development John Ciampaglia about a new way to gain exposure to gold.

the end

The black swan that sends the world’s financial, currency systems into a black hole will be the shot heard round the world. But the timing and the path toward that end is unknown.  In the end, silver is a physical reality.
Price is openly manipulated by the banks that make a profit while fulfilling the unspeakable mission to suppress the most obvious inflation indicator or gauge of value behind the currency it needs to perpetuate the Ponzi.
And keep the government alive.