For years we’ve preached the From the Outside In principle of markets: When trouble starts, it nearly always does so out in the weaker periphery before creeping towards the core.
We saw this in the run-up to the housing bubble collapse, as sub-prime mortgages gave way before prime loans, and in Europe, as smaller economies like Greece, Ireland, and Cyprus have fallen first and hardest (so far).  We see this today in accelerating food stamp use among poorer U.S. households.  In each case, the weaker economic parties give way first before being followed, over time, by the stronger ones.
Using this framework, we can often get several weeks to several months of advance notice before trouble erupts in the next ring closer to the center.
Which makes today notable, as we’re receiving a number of new warning signs.  The periphery is giving way.
The next big economic dislocation might be only weeks away.

When debt grows far more rapidly than GDP, the consequences will eventually be catastrophic. Yes, we have ignored the reality of excessive spending, unpayable debts, unsustainable monetary policies, and Ponzi-finance for several decades, but that does not mean we can delay the consequences forever.
Yes, the consequences of failed policies, expensive wars, massive debts, and bond monetization must eventually be faced and the price will be paid. Yes, the consequences might be delayed a few more years, or perhaps even a decade. But, considering the inevitable consequences from the actions of our financial and political status quo,
NOW would be a good time to transfer paper assets into real wealth – gold and silver – and store them outside the banking system.

Gold is set for its second consecutive higher monthly close which is bullish from a momentum and technical perspective. Gold is nearly 5% higher for the month in dollars and euros, 2.5% in pounds and 12% in rupees after the rupee collapsed in August.
This week will see the end of August trading and September is, along with November, one of the strongest months to own gold. This is seen in the charts showing gold’s monthly performance over different time frames – 1975 to 2011, 2000 to 2011.
Thackray’s 2011 Investor’s Guide notes that the optimal period to own gold bullion is from July 12 to October 9.   During the past 25 periods, gold bullion has outperformed the S&P 500 Index by 4.7%.

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Back in the not-so-good old days of the second Gulf War, U.K. Prime Minister Tony Blair was referred to as George Dubbya’s “poodle.”  With the rejection of military action against Syria, it appears the U.K. Parliament is confining Prime Minister David Cameron to the kennel.  But it was not for want of trying.
Parliament debated the issue for eight hours.  All the while, Cameron has been barking like a true dog of war.  According to the Washington Post, Cameron lost a Parliamentary vote (285 to 272) on “a symbolic motion setting up a final vote in the days ahead authorizing force against Syrian President Bashar al-Assad’s regime.”  Poor chap.  We feel for him.  Maybe he ought to be rethinking this U.S.-British “special relationship.”
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We are moving into a very dangerous time in American history.  You can now be considered a “potential terrorist” just because of your religious or political beliefs.  Free speech is becoming a thing of the past, and we are rapidly becoming an Orwellian society that is the exact opposite of what our founding fathers intended.
Are you a conservative, a libertarian, a Christian or a gun owner?  Are you opposed to abortion, globalism, Communism, illegal immigration, the United Nations or the New World Order?  Do you believe in conspiracy theories, do you believe that we are living in the “end times” or do you ever visit alternative news websites (such as this one)? 
If you answered yes to any of those questions, you are a “potential terrorist” according to official U.S. government documents.

BernankeIn what has become one of the most absurd rituals on Wall Street – and is really a sign of just how broken our system is – the entire financial media and all the Wall Street “Einsteins” are debating whether or not the Fed will begin to slow down its money printing when it announces its latest fatuously palaverous policy statement in September.
The golden truth is that gold doesn’t care.

silver break freeThe greatly under-reported repo market sits at the centre of the banking system and the securities markets.  It is a primary source of leverage and, therefore, risk. Time after time, the risks remain hidden until events cascade beyond the point of no return.  Stability in the repo market depends on confidence in repo-counterparties (which can evaporate at near light speed, e.g. Lehman, Bear Stearns, MF Global and LongTerm Capital Management), confidence in the valuation of collateral used in repo loans (remember sub-prime etc) and a sufficient pool of acceptable securities (e.g. Treasuries, MBS, etc) which can be pledged as collateral.
In stressed market conditions, liquidity crunches, declining collateral values and re-hypothecation (i.e. re-useof the same securities as collateral by more than one party) can undermine this market. This results in capital being wiped out, a run on collateral and the telltale sign of spikes in “fails-to-deliver”, when a scramble to post eligible securities ensues.
A surging gold price, backwardations and shortages of physical bullion are proverbial “canaries in the mine” regarding an overstretched system.

debtwb2The first signs of hyperinflation have arrived. 
There was one hugely notable development in the gold and silver markets last week. Normally anytime, Ben Bernanke whispered even a hint or suggestion of QE tapering, the gold and silver markets would crash on such an announcement. However, this time, gold price behavior reacted intelligently to the insanity of Central Banking monetary policy and it ignored the propaganda of Central Bankers and continued to riseWhy is this development so significant? It is massively significant because it signals a further breakdown of confidence in the monetary system.  Every other instance that Chairman Bernanke even hinted about tapering QE, it gave the Federal Reserve and their puppet bullion banks an opportunity to suppress the price of gold that they successfully relished. This time around, I don’t believe that their propaganda was any less effective than all the prior times Bernanke falsely warned about QE tapering. So what has changed? People no longer care what Bernanke and other bankers say about QE because their confidence in fiat currencies, as illustrated by the largest single day drop of the Indian rupee last week, is starting to finally, and justifiably crack. And the first sign of a loss of confidence in fiat currencies and a vote for the solid valuation of gold (and silver) money is the first sign of potential hyperinflation ahead.

Respected Citigroup strategist Tom Fitzpatrick said in a telephone interview from New York with Bloomberg that gold and silver should surge in the coming years as the precious metals continue to benefit from the easy monetary policies adopted by central banks.  Fitzpatrick, who has a good track record, said that gold has put in a low for the year and will rise to about $1,500-$1,525/oz this year, a gain of over 6.3% from today’s prices.
He said that silver is in a strong uptrend and will likely outperform gold as the gold silver ratio will drop from its current level at 58.1.
Separately, in an interview with King World News’ Eric King, Fitzpatrick elaborated on why he believes gold could reach $US3,500:
“So we believe we are back into that track where gold is the hard currency of choice, and we expect for this trend to accelerate going forward. We still believe that in the next couple of years we will be looking at a gold price of around $US3,500.  As the gold/silver ratio plummets near 30, this would also suggest a silver price above $US100.”

War mongers in the West want to further destabilize Syria and by all accounts from mainstream media mouthpieces, an attack is imminent.   History shows that when crisis is on the near-term horizon, so-called policy makers in the economic establishment attempt to keep gold (and now silver) under wrapsBut the physical markets are too tight to be able to orchestrate the level of short-term control seen previously. 
The latest attack on the mining shares today was a blatant attempt at damaging sector sentiment overall.
It will fail.

mcThe ultra-raunchy performance that Miley Cyrus put on at the 2013 MTV Video Music Awards the other night is a perfect example of how morally bankrupt our culture has become.  Certainly what Miley Cyrus did the other night was a new all-time low.
It is easy to denounce the garbage that we see at these award shows, but the cold, hard reality of the matter is that the behavior that we see on these shows is a reflection of who we are as a nation.
What in the world is happening to America?  Is there any hope for this country?

This country has allowed itself to be brought to the brink of catastrophe. There is no turning back time. The choices we’ve made and avoided making over the last one hundred years are going to come home to roost over the next fifteen years. We are in the midst of a great Crisis that will not be resolved until the mid-2020s. The propagandists supporting the vested interests continue to assure the voluntarily oblivious populace the economy is improving, jobs are plentiful, inflation is under control, and housing is recovering. Bernanke and his band of merry money manipulators, Obama and his gaggle of government apparatchiks, and their mendacious mainstream media mouthpieces have enacted radical measures in the last five years that reek of desperation in their effort to give the appearance of revival to a failing economic system. Stimulating the net worth of bankers and connected corporate cronies through engineered stock market gains has not trickled down to the peasants. Our owners try to convince us it’s raining, but we know they’re pissing down our backs. Our Crisis mood is congealing.

1H 2013 Canadian Maple Leaf Sales BAccording to the information just released by the Royal Canadian Mint, sales of Gold & Silver Maples are beating all records. 
Silver Maple sales have increased 60% y.o.y (year over year) while Gold Maples are up a staggering 144%!
Not only are Canadian Maple sales surpassing its own previous records, Gold Maple Leaf sales actually out performed U.S. Gold Eagles during the second quarter of 2013!
Even though sales of official gold and silver coins have picked up dramatically, this is only a preview of the huge demand to come in the future as the public wakes up to the GREAT PRECIOUS METAL TRANSFER OF WEALTH.

RogersAstute investor, Jim Rogers has warned overnight in an interview with Tara Joseph of Reuters that “oil and gold will go much, much higher” due to “market panic” regarding Syria and the coming end of free moneyWhen this artificial sea of liquidity ends we’re gonna see panic in a lot of markets, including in the US, including in West developed markets.  Have we seen panic, have we seen terror? Absolutely not. Not in any markets yet.  We haven’t seen much of anything yet.

Silver has continued its rally Wednesday, spiking over .50 through $25 during overnight Asian trading, and after an LBMA smackdown, is again spiking vertically and knocking on the door of $25 once again.
*Update: Waterfall decline back towards $24 in progress as the cartel raid Eric Dubin predicted yesterday has materialized

While most of the country is obsessing over Miley Cyrus, the Obama administration is preparing a military attack against Syria which has the potential of starting World War 3.  In fact, it is being reported that cruise missile strikes could begin “as early as Thursday“.  The Obama administration is pledging that the strikes will be “limited”, but what happens when the Syrians fight back?  What happens if they sink a U.S. naval vessel or they have agents start hitting targets inside the United States?  Then we would have a full-blown war on our hands.  And what happens if the Syrians decide to retaliate by hitting Israel?  If Syrian missiles start raining down on Tel Aviv, Israel will be extremely tempted to absolutely flatten Damascus, and they are more than capable of doing precisely that.  And of course Hezbollah and Iran are not likely to just sit idly by as their close ally Syria is battered into oblivion.  We are looking at a scenario where the entire Middle East could be set aflame, and that might only be just the beginning.  Russia and China are sternly warning the U.S. government not to get involved in Syria, and by starting a war with Syria we will do an extraordinary amount of damage to our relationships with those two global superpowers.  Could this be the beginning of a chain of events that could eventually lead to a massive global conflict with Russia and China on one side and the United States on the other? 
The following are 22 reasons why starting World War 3 in the Middle East is a really bad idea…

Stewart ThomsonCore gold positions should never be sold, regardless of your price targets or fundamental scenarios.
Gold is arguably the ultimate asset, so it probably can be viewed as wealth, rather than a tool to get wealth. Key core positions that are accumulated on severe price weakness should be held with an iron hand.
In contrast, trading positions could be “offloaded” at $1411, $1440, $1471, $1523, and $1577.
I have no idea if gold and silver have made an “ultimate bottom” or not, and I really don’t think any wealth is built by getting overly-obsessed with that question.
If gold has bottomed, that’s great news. If it hasn’t, investors can use profits booked now to buy lower prices, with some degree of comfort, rather than selling in terror.