Jamie DimonMyself and a few others – primarily GATA – have been suggesting for quite some time that
While certain newsletter peddlers adamantly maintain the reports are accurate and honest in order to preserve their franchise, there’s nothing like the CFTC imposing a fine on JP Morgan for fraudulently reporting “large trader” data: CFTC Charges JP Morgan With Reporting Fraud.
JP Morgan has finally been caught and sanctioned for playing games with its position reporting in gold and silver in order to hide the true magnitude of its unhedged short positions on the Comex.

silver barsOne of the first things you learn when studying economics is the law of supply and demand, defined as follows: “In a competitive market, prices are determined by the interaction of supply and demand: an increase in supply will lower prices if not accompanied by increased demand, and an increase in demand will raise prices unless accompanied by increased supply.”  This is ECON 101 and it’s a fairly simply concept to grasp.

Now let’s take a look at the silver market with this concept in mind.  With regard to physical demand, we see that silver has been incredibly strong both on an absolute and relative basis.
Over the past 12-18 months we’ve witnessed the following:

The International Swaps and Derivative Association (ISDA) published their position on the changing of the “SILVER-FIX” with the new “LONDON SILVER PRICE” and the ramifications are earth shattering for silver derivative holders:
WHAT WAS ANNOUNCED WAS A SHOCKING “GET OUT OF JAIL FREE” CARD FOR THE SILVER DERIVATIVE SHORTS AND GUARANTEED TO THROW THE SILVER DERIVATIVE MARKET INTO CHAOS as none of the silver derivative contracts are legally binding after the London Fix ends August 14th!!

The EndIn this MUST WATCH interview with Alex Jones, former Presidential candidate Ron Paul warns that  “The Federal Reserve’s global hegemony is crumbling.  The lines are being drawn by the new BRICS banks, and we as a people need to prepare for the coming banking collapse.”
We’re closer to that point where there may be a precipitous fall (in the dollar).  The dollar has already lost 99% of its value, what if you lose the rest of it or 100%- that’s a big deal.  If you look at all the currency destructions around the world, the end stages go rapidly.” 

Paul’s full interview is below: 

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The current economic malaise is the result of the Federal Reserve and the US Treasury Department weakening the dollar in the early part of the last decade.   Every major economic crisis–including the Great Depression–is the result of catastrophic government errors.   Contrary to Keynesian myth, free markets are not inherently unstable.
The dollar was destroyed by ignorance.  The Bretton Woods system created in 1944 was what was called a gold exchange standard: the dollar was fixed to gold and other currencies were fixed to the dollar. Central banks could turn in dollars to the US for gold at $35 an ounce.
American authorities could have preserved the system very simply: the Federal Reserve would sell Treasury securities from its portfolio if gold began to move above $35 an ounce in the global markets and buy Treasuries if gold went below $35.
Instead the US and many other countries wanted to use monetary policy to try to stimulate their economies with easy money.
But you can’t print money like that and maintain a gold standard.   – Steve Forbes

The global economy is structured to systematically funnel wealth to the very top of the pyramid, and this centralization of global wealth is accelerating with each passing year.
According to the United Nations, 85 super wealthy people have more money than the poorest 3.5 billion people on the planet combined.  And 1.2 billion of those poor people live on less than $1.25 a day.  There is something deeply, deeply broken about a system that produces these kinds of results.  Seven out of every ten people on the planet live in countries where the gap between the wealthy and the poor has increased in the last 30 years.  Despite our technological advances, somewhere around a billion people go to bed hungry every single night.
It has been estimated that the wealthiest one percent currently have 110 trillion dollars.
That is 65 times more wealth than the bottom half of the global population combined.
They are hoarding wealth as we approach some of the most unstable days in all of human history.
And when our fundamentally flawed financial system finally does collapse, it will be the poor that will suffer the worst.

Like so many other things in popular American culture, this quaint notion of a “middle class” in the U.S. is at this point nothing more than a myth; a rapidly fading fantasy leftover from a bygone era.
As myself and many others have noted for quite some time, the decimation of the middle class began long ago.
It really got started in the early 1970′s after Nixon defaulted on the gold standard and financialization began to take over the American economy.   Median real wages haven’t increased since that time and the rest is history.

AFP Photo / John D. Mchugh

The EU plans to widen economic sanctions against Russia, but London, already on rocky ground with the EU, would be hit the hardest if tougher restrictions are slapped on Russia’s big state banks.
If agreed, EU sanctions would apply to all Russian banks that are more than 50 percent state-owned. Sberbank, VTB, the country’s two largest lenders, are both listed on the London Stock Exchange and have offices there.
If Russian banks get hit the ripples will be felt across the English Channel and in the heart of the world’s financial center- the City of London.

In the US, tax revenue as a percentage of GDP has been almost exactly 17.7% of GDP since the end of World War II.
It hasn’t mattered how much they’ve raised tax rates; when tax rates go up, overall tax revenue, i.e. the government’s slice of the GDP pie, stays about the same.
For years they’ve been bleeding cash.
Yet rather than say “How can we support abundance?   How can we help set the right conditions to make the PIE bigger,” they punish and intimidate everyone.
The Land of the Free is one of the only supposedly civilized nations in the world where you can be criminally convicted and thrown in jail over tax discrepancies.
Thousands of miles away, Estonia is one of the few countries that gets it.

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The world’s leading silver expert David Morgan joins The Doc & Eric Dubin this week to discuss: 

  • The Fed tapers official QE another $10 billion- gold & silver whacked the day after the FOMC statement yet again
  • David breaks down gold and silver trading over the first half of 2014:  Gold & Silver still base building a Major Bottom
  • Is the next banking crisis beginning? Banco Espírito Santo’s share price halved on  Thursday
  • Be right and sit tight?  David explains why the PM markets will scare you out or wear you out
  • We ask David how he sees the end-game for the dollar playing out- will we see a deflationary crash, or a hyper-inflation monetary collapse,  and how will PMs protect wealth against both?
  • On the Brink?  Washington driving West towards direct conflict with Russia

The SD Weekly Metals & Markets With The Doc, Eric Dubin, and David Morgan is below:

 

Source: WPTV/NBC

Source: WPTV/NBC

Things have changed quite a bit in the “Land of the Free: .  
In modern America, if you are an average citizen you more or less do not have any rights at all, particularly if you are one of those domestic terrorists we calls parents.
Take the recent absurd example of Nicole Gainey, a Florida mom who was arrested for allowing her 7-year-old son walk to a park by himself.
No, this is not from The Onion. 

Gold has been banished from everyday use, and can only be hoarded unproductively.   Gold is going into hiding. 
This is not the first time gold has gone into hiding; gold went into hiding in the days of the collapse of the Roman Empire of the West.
It is going into hiding again, in the present slow-motion financial collapse of the world.
The price of gold will enter a rising trend, no matter how violent the official interventions to control its price, because at the present low prices it will be impossible for the gold market to satisfy demand for gold from a largely silent minority of mankind that wants to own gold.   When this happens, we can expect the criminalization of gold ownership, at least in some quarters of the world.
Gold today has really only one enemy: the Federal Reserve of the US.
I bid you welcome to The New Dark Age.

paintThat was how it felt watching all markets this week until Thursday when they sprang into life.
Gold fell from $1304 at the London opening last Monday to a low point of $1281 yesterday, down 1.8% on the week, while silver fell from $20.60 to $20.35, down only 1.2%.
These moves were relatively small compared with action elsewhere.
Here are the charts showing price and open interest for gold and silver on Comex.

 

fedPeople who were sitting on the board of the NY Fed, were directing some of these bailout funds directly to their own banks in a blatant, absolutely undeniable conflict of interest that again represent the very heart of this system: it is a system run and operated by bankers, for bankers, and in which bankers tend to do very well, while the rest of the country MELTS DOWN.

Screen Shot 2014-07-29 at 1.57.58 PMLast week, I highlighted a series of billboards and painted benches that sprung up overnight in Hollywood as Obama prepared to host a $32,000 a plate fundraiser at the home of Scandal creator Shonda Rhimes.  Naturally, this was merely stop number one on Obama’s oligarch groveling traveling circus.
The next stop on the crony train is another $32,400 a plate fundraiser. This time with none other than Nancy Pelosi.

Fortunately for us, California’s ever creative street artists were right there waiting for him.
This is what they delivered:

Certain places in Europe are definitely worth looking into at the moment. Because aside from attractive prices, there are several good reasons to own foreign real estate.
Owning property is a great way to trade paper currency for something that has real value and can generate long-term income streams. It’s also a great inflation hedge.
More importantly, ownership of foreign property held personally is not a reportable asset for US taxpayers.
This makes property a great way to move and hold savings overseas.
And in many cases (like Spain, Portugal, Latvia, Greece, etc.) purchasing property is rewarded with residency, giving you more freedom and more options in case you decide it’s ever time to get out of dodge.
It’s hard to imagine that someone would be worse off trading paper currency for a beautiful property acquired at less than the cost of construction that is generating significant cash flow and providing an option for tax-free residency in a sunny country overseas.

Less than four weeks after starting his new job, Panama’s President Juan Carlos Varela already has a serious challenge to deal with: empty grocery shelves.
This is largely a self-inflicted wound that was bound to happen.
Fresh on the heels of his victory in May, the then President-elect announced that one of his first orders would be to regulate prices for staple food products.
He followed through on his promise, establishing price controls on certain brands of roughly two dozen items like chicken, rice, eggs, and bread.   And within a matter of weeks, many grocery store shelves are already empty, at least for the regulated items.
It’s not quite Venezuela or Cuba where it can be downright impossible to buy a roll of toilet paper. But it’s more proof that price controls almost always backfire.
The larger issue here is why the Panamanian government is controlling prices to begin with.
The answer is simple: inflation.
So to get a true sense of US dollar inflation… and where it’s headed in the Land of the Free… one only need look at dollarized countries like Panama.

PART 3 pic 1Nothing is as great a danger to gold and silver investors as The Pilgrims Society.
Across the years, not only has The Pilgrims Society, with its twin branches in the world‟s top two international banking districts—London and New York, featured as members, unknown to the gold and silver long community, major price antagonists and opponents of the private ownership thereof, these price suppressors and opposers of monetary metals as money have been in the leadership of The Pilgrims Society.

With great persistence and a little encouragement from GATA our friend R.B. in Britain has more or less solved the mystery of the Financial Times’ quick deletion from its Internet site of its February 24 report about gold market manipulation, “Fears Over Gold Price Rigging Put Investors on Alert; German and UK Regulators Investigate.”
The explanation is pretty much what one might expect: For the Financial Times, one of the many news organizations to which GATA repeatedly has provided its full documentation of gold price suppression by Western central banks – the issue is simply too “sensitive.”

For reasons that have no rational explanations at this time, the US and Europe have embarked on a concerted program to demonize Putin, ostracize Russia, and bring the world as close to a major conflict as it’s been since the Cold War, a time hardly memorable to many in the current crop of our elected officials.   A dangerous dynamic is brewing between the West and Russia/Putin. We are seeing a rush to war very similar to the one that led up to Saddam’s ouster, but this time, we have much less justification (hard to believe) and the opponent is tremendously more capable.
There is little sense in the course the West is currently pursuing, little to gain, and much to lose.
The main conclusion here is that not only is the US poking the bear, but it is doing so with increasing frequency and upping the ante dangerously with each step.

goldThe contributors are many as actors in the American Tragedy, to cause the systemic breakdown failed state.  Faulty monetary policy, economic policy, and political policy have caused the resulting failure.  The primary perpetrators are the central bankers, led by Greenspan and Bernanke.
Refusal to Repatriate German gold was a crime out of the gate. The motive was to conceal the appropriation (re-hypothecation) of German official gold accounts.   The Germans are on notice of gold thefts by their own allies. Germany will work with the Eastern superpowers to develop a USDollar alternative and a Gold Trade Standard.
The United States has given the world two choices: war to defend the USDollar, versus work with Eastern Alliance toward the Gold Standard.
The motive for actions taken are clearly in defense of the King Dollar Regime.   The responses taken are clearly to reinstate the Gold Trade Standard and no longer deal with a toxic USDollar for trade and banking. The unintended consequences are uniform if not universal.
The outcome will be to develop the Eastern Gold Trade Standard while the entire Western system crumbles, deteriorates, sinks, and implodes