China is now overtly pushing for the US dollar to be replaced as the world’s reserve currency.
While the West’s financial system has been bad-mouthing gold, all the members of the SCO, including most of its prospective members, have been accumulating it. The result is a strong vein of gold throughout Asia while the West has left itself dangerously exposed.
The West selling its stocks of gold has become the biggest strategic gamble in financial history. We are committing ourselves entirely to fiat currencies, which our central banks are now having to issue in accelerating quantities. In the process China and Russia have been handed ultimate economic power on a plate.

jim willieThe number one American export is U.S. dollars.  It is paper currency that is backed up by absolutely nothing, but the rest of the world has been using it to trade with one another and so there is tremendous global demand for our dollars.  The linchpin of this system is the petrodollar.  For decades, if you have wanted to buy oil virtually anywhere in the world you have had to do so with U.S. dollars.  But if one of the biggest oil exporters on the planet, such as Saudi Arabia, decided to start accepting other currencies as payment for oil, the petrodollar monopoly would disintegrate very rapidly.  For years, everyone assumed that nothing like that would happen any time soon, but now Saudi officials are warning of a “major shift” in relations with the United States.  In fact, the Saudis are so upset at the Obama administration that “all options” are reportedly “on the table”.  If it gets to the point where the Saudis decide to make a major move away from the petrodollar monopoly, it will be absolutely catastrophic for the U.S. economy.

In the 3Q, Switzerland has imported 808 tons of gold in 2013, and exported 680 tons.  Year to date the country has imported 2,420 tons and exported 2,184 tons.
In Gold We Trust’s Koos Jansen notes that this is a new record for exports for the small country with a yearly estimate of 2,912 tons for exports.  It is surmised that 1,100 tons of the gold bullion is set to flow East to China or Hong Kong.
In 2013 from January to August published figures list Hong Kong as having imported 598 tons from Switzerland. Jansen writes that although most of this is sent forward to Shanghai, however the Chinese are also importing directly from the Swiss.
This is verified from Shanghai Gold Exchange (SGE) physical deliveries and from Alex Stanzcyk, Chief Market Strategist at Anglo Far-East Bullion, who Jansen spoke with directly. Stanzcyk said, “China imports a lot that’s not going through Hong Kong (or through the SGE!)“.
In the interview Stanczyk explained how one of their partners had lunch recently with the head of the largest global operations company in security transport. He said there is a lot of gold that they’re moving into China that’s not going through exchanges. If the gold is for the government they don’t have to declare where it’s going.

For those of you trading this bounce out of the daily cycle low in gold I would suggest continuing to hold positions for now, but I would sell ahead of next week’s FOMC meeting. Any large heavy volume sell off at this point, especially in miners, I would immediately take as a sign that the manipulation is ready to resume and the dollar ready to rally.  Any kind of reversal similar to what happened on August 27 would be a strong signal to exit immediately.
For those of you sitting on the sidelines, and I am one of them, there’s no need to fret about missing this particular daily cycle rally. If the bubble phase in gold has begun and June 28 does turn out to be the final bottom, there will be months and months of time to make money. Missing one small little chunk at the beginning while we wait for confirmation that the decline is indeed over will be meaningless in the long run.

 

24 karat gold bars are seen at the United States West Point Mint facility in West Point, New York June 5, 2013. (Reuters/Shannon Stapleton)

There are grave doubts whether the Federal Reserve actually holds the 8,044 tons of gold it claims it does. The former International Monetary Fund director, France’s Dominique Straus-Kahn, demanded an independent audit of the Federal Reserve gold after the US refused to deliver to the IMF 191 tons of gold agreed to under the IMF Articles of Agreement signed by the Executive Board in April 1978 to back Special Drawing Rights issuance. Immediately before he could rush back to Paris, he was hit by a bizarre hotel sex scandal and abruptly forced to resign. Straus-Kahn had been shown a secret Russian intelligence report prepared for President Vladimir Putin in which ‘rogue’ CIA agents revealed that the US Federal Reserve had no gold reserves and only lied that it did.
The stakes for Washington and Wall Street in depressing the gold price are staggering. Were gold to soar to $10,000 or more, where many believe current demand-supply pressures would find it, there would be a panic selloff of the dollar and of US Treasury bonds. China now holds a record $3.7 trillion of foreign currency reserves and the US Treasury bonds and bills are about half that.
That sell-off would send US interest rates sky-high, forcing a chain-reaction of corporate & banking bankruptcies that have been avoided since the financial crisis broke in 2007 only owing to record near-zero Federal Reserve interest rates. That sell-off, in turn, would be the end of the US as the world’s sole superpower Little wonder the Obama Administration is manipulating gold.
It cannot last very long at this pace, however.

The map below comes from the Nuclear Emergency Tracking Center It shows that radiation levels at radiation monitoring stations all over the country are elevated.  As you will notice, this is particularly true along the west coast of the United States.  Every single day, 300 tons of radioactive water from Fukushima enters the Pacific Ocean.  That means that the total amount of radioactive material released from Fukushima is constantly increasing, and it is steadily building up in our food chain.  Ultimately, all of this nuclear radiation will outlive all of us by a very wide margin.  They are saying that it could take up to 40 years to clean up the Fukushima disaster, and meanwhile countless innocent people will develop cancer and other health problems as a result of exposure to high levels of nuclear radiation.  We are talking about a nuclear disaster that is absolutely unprecedented, and it is constantly getting worse.
The following are 28 signs that the west coast of North America is being absolutely fried with nuclear radiation from Fukushima…

Foodstamp shutdown47.6 million Americans are about to have their food stamp benefits cut, and most of them have absolutely no idea that it is about to happen.  Needless to say, a lot of them are going to be very angry when they discover that they cannot buy as much “food” for their families anymore.  The reason that this is happening is because a temporary boost to food stamp benefits that was put in during the last recession expires November 1st.  But most of the people that are having their benefits cut will not understand this.  Most of them will just be very upset that the government is “taking money away” from them.  And considering the “mini-riots” that we witnessed earlier this month when the system that processes food stamp payments went down for a few hours, it is obvious that a lot of food stamp recipients can very easily be pushed over the edge.  So what would happen if we have another “debt ceiling crisis” in Washington D.C. early next year and food stamp benefits are temporarily cut off completely?

“No taper for you, one year!!!”Ben “QE Nazi” Bernanke

This farce will continue for eternity. The propaganda used to rationalize QEternity is nothing but drivel, lies and misinformation. There are a few simple facts which tell the true story:

gold manipulationIn this excellent interview with Elijah Johnson, gold experts Alasdair Macleod and Bill Murphy discuss the de-Americanization of the world, and how the Fed and US gov’t has facilitated the demise of the dollar, and handed the ultimate economic power on a “golden” platter to China and Russia.
Macleod digs deep into official Chinese gold statistics, pointing out that at 2,600 tons, China is now absorbing more than the whole world’s annual gold production.  Add Russia, India, Turkey, and the Middle East, and the only way the price of gold remains at current levels is by massive quantities of Western central bank gold being supplied to the market. 
Bill Murphy & Alasdair Macleod’s MUST LISTEN interview is below:

silver dollarThe ultimate lynch pin for the silver market is the flow of physical metal to support ongoing price suppression. The flow of physical metal is mostly an illusion nearly equal to (and in some ways parallel with) the perceived strength of the paper currencies used to measure its value. Actual or threat of default in physical silver delivery to the COMEX could very likely lead to default across the asset spectrum.

On October 16, 2013 EST, the U.S. Congress approve(d) the resolution to end the partial government shutdown and raise the debt ceiling. By such means the U.S. Federal Government can avoid the default crisis for the moment. However the fundamental situation that the debt growth rate significantly outpaces that of fiscal income and GDP remains unchanged. For a long time the U.S. government maintains its solvency by repaying its old debts through raising new debts, which constantly aggravates the vulnerability of the federal government’s solvency. Hence the government is still approaching the verge of default crisis, a situation that cannot be substantially alleviated in the foreseeable future. In light of these facts, Dagong Global Credit Rating Co., Ltd. (hereinafter referred to as “Dagong”) decides to downgrade the local and foreign currency credit ratings of the U. S., which has already been on the negative watch list, to A- from A, maintaining a negative outlook. The rationale that supports the conclusion is as follows:
1. The partial U.S. federal government shutdown apparently highlights the deterioration of the government’s solvency, pushing the sovereign debts into a crisis status. The U.S. federal government announced its shutdown on Oct. 1, 2013, a radical event that reflects the liquidity shortage aroused by depleting stock of debts without the increase of new debts, directly resulting in the federal government lack of the funds for its normal function. The partial U.S. government shutdown is an inevitable outcome of its long-term failure to pay its excessive debts.

Physical demand in China and India remains robust – particularly in India ahead of the festival season.
Indian gold premiums remain near record levels due to rising domestic demand and scant supplies as exporters get priority over shipments. The government’s misguided attempt to correct the current account balance by attacking gold buying and ownership has completely distorted the market leading to a lack of gold coins and bars which is creating panic gold buying of any gold available.
Finance Minister, Chidambaram today ruled out the possibility of lifting a ban on import of gold coins and asked banks to strictly follow guidelines restricting inward shipments of gold.
Import of gold coins and gold medallions is prohibited. Nobody can import gold coins and medallions.

The percentage of Americans that are participating in the labor force is the lowest that it has been in 35 years.  During the 70s, 80s and 90s, the labor force participation rate consistently rose as large numbers of women entered the workforce.  It peaked at 67.3 percent in early 2000, and just before the last recession it was sitting at about 66 percent.  Since the start of the last recession, the labor force participation rate has not stopped falling and it is now at a 35 year low.  In September, 11,255,000 Americans were considered to be “unemployed”, and an astounding 90,609,000 Americans were considered to be “not in the labor force”.  The number of Americans “not in the labor force” has increased by more than 10 million since Barack Obama entered the White House.  When you add the number of unemployed Americans to the number of Americans “not in the labor force”, you come up with a grand total of more than 101 million working age Americans that do not have a job.

silver pricesThe big “V” correction in the precious metals back in 2008-2009 did not persuade investors from buying gold and silver at severe lows.  Matter-a-fact, it actually motivated huge retail buying of physical bullion.
This time around the monetary authorities got smarter.  They engaged a new “SLASH & BURN” tactic by bleeding the gold and silver investors dry by slowly crushing the price of gold and silver over a two-year period.  To complete their masterpiece, they initiated two huge take-downs in April & June to make sure even the most hardcore precious metal investors would question their holdings.
The price of silver will hit new highs as an explosion of investment demand will overwhelm supply in the future.  This once in a lifetime event will occur not because of bullish rhetoric, technical analysis or brokerage recommendations, but because the fundamentals will finally kick in a major way.

sprottWhile demand for physical gold remains extremely strong, prices on the COMEX have fallen precipitously. This contradictory situation is the single most important obstacle to a healthy gold mining industry.
In my opinion,
the massive imbalance between supply and demand is not reflected in prices because available statistics are misleading. It is not the first time that GFMS (and World Gold Council) statistics come under pressure from the investment community. In his now celebrated “The 1998 Gold Book Annual”, Frank Veneroso demonstrated the inconsistencies in GFMS gold demand data and proceeded to show how they grossly underestimated demand. The tremendous increase in the price of gold over the following years vindicated his conclusions.
I urge the leaders of the World Gold Council, for the benefit of their own members, to improve the quality of their data and find alternative sources than the GFMS, which paints a misleading picture of the real demand for gold.
This lack of quality information has certainly been one of the driving factors behind the lack of investors’ confidence towards gold as an investment. Gold has been one of the best performing asset classes since 2000, and the World Gold Council should be promoting it accordingly.

In a bank run, what people are panicked about isn’t quite that they may lose their money. At the core of it all, what they are really terrified of is that they might lose the value they have stored in the bank, in the form of money.
At this moment in time China has $1.2 trillion of stored value, on-deposit with “The Bank of the Dollar” in the form of Treasury bonds. Japan also $1.1 trillion of their hard-earned wealth on deposit in the same bank. The rest of the world has an additional $3.3 trillion combined on deposit with “The Bank of the Dollar”, as the total US Treasury debt outstanding that is held by foreign entities is a whopping $5.6 trillion.
I hate to break the news to you, but there is a run on this bank going on right now. Oh, it’s still quiet and there is nothing approaching panic just yet, but make no mistake- these countries are all attempting to get their stored value out of that bank before everyone else tries to do the same thing.

finished end overFormer World Bank lawyer Karen Hudes says the global opinion of America is tarnished. Hudes contends, “Is the United States a credible super power? The answer to that is ‘we are neither.’ We’re not a super power and we are not credible.” Hudes goes on to warn, “The biggest game changer is something that people are just ignoring, and they ignore it at their peril, and that is the creation of a fourth credit rating agency. . . . If they do not get our act together, they will have no choice . . . We are losing our credit rating.” Hudes, who is also a whistleblower, charges, “There is fraud and corruption from top to bottom in the financial system.” As far as global central banks are concerned (including the Fed), Hudes claims, “The central bankers have a scam going on. It’s a Ponzi scheme. The citizens of the world are paying interest on their currencies. These currencies are not being issued by the governments; they are being issued by private bankers.” Don’t give up hope because Hudes says, “The U.S. has to come around to the rule of law. . . . and we are on track with a 95% likelihood, and that is why I think the dollar is not going to tank.” Join Greg Hunter as he goes One-on-One with whistleblower and former Senior Counsel for the World Bank, Karen Hudes.

The one day explosion of $328 billion to the U.S. debt load smashed the previous record of $238 billion in one day, set two years ago. These are figures that would normally be seen in banana republics
The most interesting data point of the last week was the one-day jump in the United States’ Treasury debt outstanding, which soared by $328 billion the day after the debt ceiling agreement was reached.  Hell, the ink wasn’t even dry on the deal and the total amount of Treasury debt increased overnight by 2%.

imagesOn the surface, the mechanism by which the bullion banks accumulate metal appears to be hatched by geniuses — if it were not so completely illegal and immoral. Just because is it not “prosecutable” does not make it right.
Using their concentrated short position or corner on the short side of the market, the 4 biggest bullion banks in the commercial category of COMEX traders use essentially two methods to manipulate prices:

beach ballAfter consolidating overnight around $22 and $1300, gold and silver have gapped up on this morning’s NFP which massively disappointed printing at +148k on expectations of +180, with the unemployment rate dropping to 7.2%.
The miss resulted in silver exploding nearly $1 higher from $22.00 to $22.90, and gold bursting over $20 higher from $1314 to $1337.

Did you know that the U.S. national debt has increased by more than a trillion dollars in just over 12 months?  On September 30th, 2012 the U.S. national debt was sitting at $16,066,241,407,385.89.  Today, it is up to $17,075,590,107,963.57.  These numbers come directly from official U.S. government websites and can easily be verified.  For a long time the national debt was stuck at just less than 16.7 trillion dollars because of the debt ceiling fight, but now that the debt ceiling crisis has been delayed for a few months the national debt is soaring once again.  In fact, just one day after the deal in Congress was reached, the U.S. national debt rose by an astounding 328 billion dollarsIn the blink of an eye we shattered the 17 trillion dollar mark with no end in sight.  We are stealing about $100,000,000 from our children and our grandchildren every single hour of every single day.  This goes on 24 hours a day, month after month, year after year without any interruption.
Over the past five years, the U.S. government has been on the greatest debt binge in history.
The U.S. national debt is now 37 times larger than it was 40 years ago, and we are on pace to accumulate more new debt under the 8 years of the Obama administration than we did under all of the other presidents in U.S. history combined.