With the financial MSM salivating over the fiscal cliff, today’s chart of the day brings a little perspective to the situation. 
Obama’s proposed tax hike solution, compared to a visual of the true severity of the problem facing our country via unfunded liabilities.


The legendary Jim Sinclair sent an email alert to subscribers this weekend, warning that dollar based entitlement payments will be reduced to nearly meaningless levels on a single day, and that the result will also solve the health care cost crisis in the US, by accelerating the attrition of pensioners and removing the most sick from the equation.

Sinclair seems to agree with our statement that Blythe Masters may be responsible for the greatest loss of human life in history when the derivatives collapse is complete.

Regarding the timing of the collapse of the dollar, Sinclair states: Timing is a question of when our masters via Goldman Sachs decide to pull the plug on confidence in the US dollar.

Sinclair’s full alert below:

Just when we were worried that the position of Fed Chairman would soon be held by someone that is not detested by precious metals investors, Bloomberg reports that Treasury Secretary Timothy Geithner is the leading candidate to replace Ben Bernanke as Federal Reserve Chairman when Bernanke steps down at the end of his current term. 

The 20 children killed in the Sandy Hook tragedy are not yet even buried, and the elitists are already moving to exploit the tragedy to implement the end game: a complete assault rifle ban throughout the US.

Long time gun-control proponent Senator Diane Feinstein (D-CA) announced Sunday that she will introduce legislation both in the House and the Senate on January 1st to completely ban the sale, transfer, importation, and possession of all assault weapons.

On NBC’s Meet the Press, Feinstein stated:  “I’m going to introduce in the Senate, and the same bill will be introduced in the House — a bill to ban assault weapons.  It will ban the sale, the transfer, the importation and the possession, not retroactively, but prospectively. The purpose of this bill is to get… weapons of war off the streets.”

In Japan, the Liberal Democratic Party won Sunday’s general election, gaining a so-called supermajority of two-thirds of the lower house of parliament, which will allow it to block decisions made by the upper house.  “The LDP’s landslide election victory gives it a virtually free hand in policy,” says Robert Feldman, head of Japan economic research at Morgan Stanley MUFG Securities.
The macro[economic] stance will shift to ‘print and spend.’”  During the election campaign LDP leader Shinzo Abe, who will now become Japan’s prime minister for the second time, called on the central bank to adopt an “unlimited” Yen policy to fight deflation.

ArabianMoney’s Peter Cooper goes down to the Sharjah Gold Souk with Sandra Mergulhao from MyDubaiMyCity to investigate the silver market and finds traders forecasting a 30 per cent price hike for 2013 after a disappointing 15 per cent over the past 12 months.

Is this the year silver will catch up with 32 years of price suppression and finally break through its 1980 all-time high of $50 an ounce? No other commodity trades for less than it did three decades ago.

Submitted by Morris Hubbartt:

Once the neckline on the dollar index chart breaks, a target of 73 will be activated, and gold should begin to rally aggressively.
The general attitude from Wall Street about the gold bull market is disbelief and denial. From the standpoint of contrary opinion,
this viewpoint is bullish for the precious metals.

The longer gold takes to break out of the current “power house” consolidation, the more explosive the move is likely to be.    
I believe that gold and silver are on the cusp of entering a “new price era”.

By SD Contributor Marshall Swing:

Gold & Silver COT Report 12/15/12

In silver, Commercials added 1,105 longs on the week and 514 shorts to end the week with 48.19% of all open interest, an increase of 0.45% in their share since last week, and now stand as a group at 289,615,000 ounces net short, which is a slight decrease of just under 3,000,000 net short ounces from the previous week. 

When the $1 QUADRILLION plus derivatives market fails, the inventor of the financial weapon of mass destruction known as the derivatives market- Blythe Masters could quite literally surpass Lenin and Mao Tse-tung as the person responsible for the greatest loss of human life in history.
The Columbia Business School recently conducted an interactive debate entitled “Financial Innovation: A Risky Business?with the aforementioned Blythe Masters of JPMorgan, along with Barny Frank, Gary Gensler, and a panel of experts debating the merits of financial innovation.

The one thing we can say with certainty after watching the 65 minute discussion/debate: (other than that there is a reason that Joe-6 Pack has no comprehension of what is facing the derivatives and entire financial market when the first domino fails) is don’t expect the CFTC led by Goldman alum Gensler to take ANY action against Blythe’s commodities division at JPM over alleged silver manipulation.

Full nausea inducing discussion on the merits of financial innovation below:


Secretary of State Hillary Clinton, scheduled to testify to Congress next Thursday on the Benghazi assassination and Libyan gun running scandal to Al-Qaeda in Syria, reportedly fainted this morning, suffered a concussion, and will be excused from next week’s scheduled Congressional testimony.

Paul Mylchreest has released the December Thunder Road Report, titled Inflationary Deflation: Creating a Bubble in New Money. The report is 75 MUST READ pages detailing the END GAME to the largest debt bubble in the history of the world: a massive cost-push hyperinflationary collapse of the US dollar.

This is the biggest debt bubble in history. Each time DEFLATIONARY forces re-assert themselves, offsetting INFLATIONARY forces (monetary stimulus in some form) have to be correspondingly more aggressive to keep systemic failure at bay. The avoidance of a typical deflationary resolution of this Long Wave is incubating a coming wave of inflation.   This will not be the conventional demand pull inflation understood by most economists.
The end game is an inflationary/currency crisis, dislocation across credit and derivatives markets, and the transition to a new monetary system, with a new reserve currency replacing the dollarThis makes gold and silver the go-to assets for capital preservation

Full 75 page December Thunder Road Report below:

Submitted by Deepcaster:

So long as The Cartel is in a very active interventional mode (e.g. as in taking down the price of Gold and Silver periodically) one should not be lured into thinking that the periodic up spikes in the prices of Gold and Silver necessarily present a “breakout” or a buying opportunity.  As a practical matter, technical breakouts are sometimes a lure designed to suck in more “longs” prior to a subsequent deeper Takedown. Consider the parabolic spike up in both Gold and Silver prices in the hours before the December 13, 2012 Takedown began.

However, the Cartel’s ability to sustain Takedowns has been considerably weakened recently largely because of increasing demand for delivery of Physical Metal.

We recommend that Investors allocate a significant portion of the funds to Precious Metals purchases committed to purchasing, and taking Personal Delivery of (no Bank Vaults, please), Physical Gold and Silver.

Apparently it’s not enough to merely hammer the metals with MOPE raids, the bullion banks are also trotting out the propaganda shills in order to properly manage the public’s perception of gold and silver in the wake of QE4.

Our favorite cartel shill Jeffrey Christian of the CPM Group is back on BNN, spewing more of his classic BS rhetoric regarding the metals.
Christian told the BNN viewers he expects gold to trade in a range from $1450 to $1750 in 2013, and that silver will trade in a sustained downtrend, claiming that silver demand is weak both from an industrial and an investment standpoint
While silver is in fact up approximately 18% year to date, Christian chose to compare silver’s average price in 2012 with the average price of 2011, and claimed that the metal is down 15% year to date.

Christian capped off his outlook by claiming that he expects silver to outperform gold to the downside in 2013, due to enormous surpluses of the metal.