gold or fiatThe legal tender law targets the lender.   It grants to debtors a right to repay a debt in dollars.  In practice, this means that if you lend gold, the debtor gets a free put option at your expense.   If the gold price rises, he can repay in dollars. If it falls, of course he will be happy to repay in gold. It’s a rotten deal for the lender.
The relationship between lender and borrower is mutually beneficial, or else it would not exist.   The parties are exchanging wealth and income, creating new wealth and new income in the process. The government is displeased by this happy marriage, and busts it up by sticking a gun in the lender’s face.   His right to expect his partner to honor a signed agreement is violated.
Because no lender will lend gold under such circumstances, gold is relegated to hoarding and speculation only.
This strikes a blow to savers, because the best way to save is to lend and earn interest.
Savers are forced to choose between hoarding gold, getting no yield, or holding dollars and getting whatever yield crumbs are dropped by the Fed.

hyperinflationThe official policy of the Central Bank (Federal Reserve)/government is: inflation is necessary for “growth,” i.e. economic expansion. The unstated reason for this official support of inflation is that it’s easier for borrowers to service their debts as their income inflates.
Just as the Federal Reserve cannot directly force you to stick the needle of monetary heroin (debt) into your arm, it also can’t force employers to pay employees more.

macleodThe transformation of an economy from no monetary discipline into one based on sound-money principals is widely thought by central bankers to risk creating a major banking crisis.
The crisis will indeed come, but it will probably have its origins in the inability of individuals, robbed of the purchasing power of their fixed salaries and savings, to pay the prices demanded from them by businesses.
This is called a slump, an old-fashioned term for the simultaneous contraction of production and demand.
Not even zero or negative interest rates will save the banks from this increasingly certain event, for a very simple reason: by continuing the transfer of wealth from individuals through monetary inflation, the cure will finally kill the patient.

The 1987 stock slam that occurred was a wake-up call.   The response was the creation of a derivative banking foundation of vaporous substance.
Derivatives played a key role in the Lehman investment bank failure. In reality, it was more a planned financial murder event, orchestrated by JPMorgan and Goldman Sachs.   The Wall Street kings killed Lehman in order to pick its bones and to feed Goldman Sachs.
When big banks begin to fail, the belief has been, the risk of contagion will be the main focus. Since Lehman, the major Western banks have lashed themselves together for safety and security. They have done so with financial derivatives, the rope to connect them together.   So the next failures will put the entire system at risk of collapse.   This is the oft-described nuclear outcome, which has been brought upon by $1.4 quadrillion worth of derivatives. 
The world faces a guaranteed systemic implosion caused by derivatives.  Bank failures and contagion will lead to the widespread connected failures, and lost control by both governments and central banks to manage them. Gold will be the secure port during the stormy outcomes.
Gold will arrive on a white horse.  The return to the Gold Standard is the answer. The Gold Price will reach incredibly high levels when the derivative implosion occurs, when the East introduces a legitimate gold-backed new BRICS currency for trade settlement.  The fallout will be tremendous, as the USDollar is rejected on the global stage.

dynamiteThursday the gold price was hit at the start of Asian trading and an hour into New York trading a sell order of some 6,000 contracts was dumped on the market, driving the price down to $1288.
It was clumsy dealing, which appeared to be designed to drive the price lower, and the effect was magnified because of the quiet market conditions.

In essence, precious metals are in corrective mode with low volumes, and gold has already moved back to its 200 day moving average, where it could find some renewed buying support.

“The secret that hundreds of employees are now refining involves devices that automate and miniaturize more than 1,000 laboratory tests, from routine blood work to advanced genetic analyses. Theranos’s processes are faster, cheaper and more accurate than the conventional methods and require only microscopic blood volumes, not vial after vial of the stuff.”

Henry Kissinger leads a shady cast of all politicians and military men on Theranos’ board. 
Which is where this whole thing becomes very creepy, very quickly. 
You can accuse Henry Kissinger of many things, but being a humanitarian isn’t one of them.
Furthermore, you’d think there’d be more healthcare professionals or businesspeople on the board, but it’s almost all military men and politicians.

I have no idea what these military men and war criminals are up to, but it probably isn’t good.
When there’s smoke, there’s fire. And there’s a lot of smoke here.

Play

SilvaSprott’s Tekoa Da Silva joins The Doc & Eric Dubin on this week’s Metals & Markets from the Sprott Natural Resource Symposium in Vancouver discussing:

  • PM futures roller coaster: metals smashed under $1300 and $21 ahead of options expiration, but close week with a strong Friday afternoon rally- is the take-down over?
  • Tekoa discusses his journey from PM journalist and pod-caster to Investment Executive at Sprott Global– what he’s learned from the brilliant minds there including Sprott, Rick Rule, and John Embry, and how SD listeners can apply lessons he’s learned at Sprott to their investing
  • With the BRICS announcing the $100 billion central banking alternative to the West, Tekoa discusses the death of the US & the dollar as occurring gradually so as not to alarm the boiling lobster: “At some point the lobster will pass away, and be eaten by outside groups!
  • Tekoa reveals how he was able to get the  ECB’s Mario Draghi to admit central banks’ gold leasing has been unsuccessful 
  • From the stunning “Castle in the City” in Vancouver, Tekoa gives an inside update on the Sprott Natural Resource Symposium, and reveals how excited the Sprott team is about the next major bull upleg in the PM and natural resource sector. 

The SD Weekly Metals & Markets With Tekoa Da Silva from the Sprott Natural Resource Symposium in Vancouver is below: 

collapseEuro zone’s debt is rising.   Companies reporting in that sales and revenue are dropping.  China has made a deal with Venezuela for oil and agricultural production.   Portugal’s president says the bank is the tip of the iceberg, collapse is coming.
Obamacare loses subsidies in 36 states.   BRICS pumping in billions of non US dollars into Africa to build infrastructure.   Central banker/US government false flag story collapsing, no proof, just believe us, it was Russia.  
Russia moving military assets to protect the country from NATO. Leaked emails show Ukraine and US Government were planning a false flag.
The X22 Report covers the top stories of the week below: 

panic crashNever give a sucker an even break.  After two years without a meaningful correction and complacency at multi-year highs, how much profit is there left in pushing an increasingly heavy market up another few percentage points? The big money is in engineering a decline that catches the crowd by surprise and doesn’t allow the traders a chance to board the short-bus before it roars out of the station.
Many traders are confident the market will broadcast a technical signal that will give them a chance to get on the short bus with the insiders.   How likely is this? If we’re engineering a decline, why would we spoil the trade by letting a bunch of peasants get on board?   With every quant-bot programmed to recognize all the usual technical signals and systems, why telegraph the trade?
As legendary stock trader/manipulator Jesse Livermore observed, the market will take the fewest possible number of participants along for the ride, and expecting the market to issue a “go short now for easy profits” signal would violate this rule: if everybody shifts from the long side to the short side, the trade is no longer profitable.
The trade only works if everyone is lulled into staying on the long side until it’s too late.  

gun forcedSilver is not just any old commodity.  It is old money.  Despite massive efforts and price fixing, clipping and manipulation, it has remained central to monetary and political systems for centuries.
Today it is small and relatively dark in the context of modern investing.
Desperate times call for desperate measures. And the desperation to buy and hold metal should simply be proportional to the desperation of the will of the monetary powers to maintain the status quo.
The modern silver investor must be content with a world gone wild with information, yet a lack of understanding.
Silver is rigged – only more; more overtly ever day. Whether it goes up and down, those who are best positioned win.

Ten dark suited men entered the premises of FBME bank in Cyprus on Friday afternoon and took it hostage. 
The men were from the Central Bank of Cyprus (CBC).   And they commandeered FBME because an obscure agency within the US government recently issued a report accusing the bank of laundering money.   It just so happens that FBME… and Cyprus in general… is where a lot of wealthy Russians hold their vast fortunes.
Bear in mind, there has been no proof that any crime was committed.

There was no court hearing.  No charges were read.  It wasn’t even the government of Cyprus who accused them of anything.
When HSBC got caught red-handed laundering funds for a Mexican drug cartel last year, the US government gave them a slap on the wrist. HSBC got off with a fine.
Yet when the US government merely makes an accusation that FBME could be laundering money, the bank gets taken over at gunpoint.

Barclays, one of Britain’s largest banks, has been engulfed by financial scandals in recent years. Barlcays, London. Courtesy of Reuters / Stefan Wermuth

Barclays, RBS, HSBC and Lloyds may be forced to break up following a finance watchdog’s inquiry.  
The watchdog claims Britain’s banking sector is characterized by anti-competitiveness and a failure to meet ordinary citizens and small business’ needs.
Britain’s ‘big four’ – Lloyds Banking Group, Royal Bank of Scotland (RBS), HSBC and Barclays – dominate the UK’s £10bn-per-annum banking sector. All four banks have been engulfed by scandal in recent years, yet they collectively control 77 percent of UK citizen’s current accounts, 85 percent of UK small business’ current accounts, and an overwhelming 90 percent of UK business loans.

I’ve never seen the television show Scandal, but apparently its creator, Shonda Rhimes, is hosting a $32,000 dollar a plate fundraiser for Obama in Los Angeles.
What purpose this fundraiser serves, one cannot be sure. Perhaps his administration feels his oligarch consolidation program has yet to achieve its fullest realization, thus necessitating the extra funds.   It’s hard to say.

So in reaction, an LA artist has decided to take matters into his or her own hands, by welcoming Barry to town in a special way, with posters all over town: 

Bernanke-Dimon-Fed-TunnelCentral Bankers engage in “Price Stabilization”.  Their actions are supposedly private.  Professionalism demands secrecy but total secrecy is difficult to ensure.  At what level in the organization would you expect that information “leaks” begin to occur? At the bottom? In the middle? Not likely!
Are you still so sure you want to play those markets now?
Take delivery.
  Remember Jim Sinclair’s advice about GetOutOfTheSystem!
Expect these people in the global Central Banker-Government partnership to change the rules whenever they see fit to achieve their ends.

The belief that calling for and instituting sanctions against Russia is a sound policy, illustrates the economic disconnect of the Obama administration. With the fervor for starting a new cold war, the propaganda machine is working overtime to paint a picture that ignores real economic synergism.
Obama’s State Department bears a heavy responsibility for promoting a civil war in Ukraine.  Using sanctions to push Russia into accelerating a BRICS economic block will have far more adverse effects than can be envisioned by the lunatic proponents of “selective” Free Trade.  The moneychanger’s financial system is imploding and their rescue plan requires a massive global crisis to bail out their “To Big to Fail” model.
Mutually productive commerce will be among the first causalities of the prelude to World War III.
Soon clamors for sanctions against American companies will begin, as the blame game diverts the real cause of this fabricated debacle.

freefallI figured I might need to buy today.
I knew the month was running out and I knew “TPTB” in the paper markets were approaching something called an “options expiry.” 
This, I knew from repeated experience and observation,  is when prices must be driven down. 

JP MorganDespite the persistence of the recovery meme, financial markets are more fragile to risk than ever before. On top of this, witness the slow creep of policy disguised as regulation.
It comes for the low hanging fruits. The final labors of society. 

They are coming for your pensions and retirement accounts.
What lies ahead is a paper blood bath.

I watched Margin Call the other night.   As the film wound down to a close, Jeremy Iron’s character (not sure if he was Blankfein or Dimon) explained to Sam, who thought it was wrong of them to sell the toxic mortgages to their clients,  that crises like this were normal.
That particular scene has led me to conclude that Margin Call was allowed to be made to explain to all the sheep that 2008 was normal, we will recover—just another crisis like the ones we have always weathered.
Is that our take-away from a good movie—that financial crises are normal and we should expect them? That we will always recover? More propaganda!
What Hollywood failed to mention in Margin Call was that the FEDs actions to create a recovery didn’t work this time.

I have been saying for a while now that worldwide economic collapse is soon to come to a country near you, a state near you, a city near you, and right up to your doorstep.
In all the financial world, no other than one Martin Armstrong gets it right.  The same Armstrong who analyses all data everywhere, all sectors, all history, throws it all into a computer data model and out pops the date/timeframe of 2015.75 – end of the 3rd Quarter, 2015.
This is a planned crash, folks.  Not a mere accident waiting to happen but a planned crash.  It will be done to subjugate the entire world into one economic system with full power given out by a dictator who knows best how to rule (in his eyes) the people and make slaves the whole world over…
I highly recommend the liquidation of all paper investments and that includes stocks, mutual funds, all retirement vehicles, etc and hold your dry powder for when silver dips below $19 again this Fall/Winter.
It is going to happen and when it goes below $19 I say buy, buy, buy physical and hold it.

Source: Chip Somodevilla/Getty Images

Source: Chip Somodevilla/Getty Images

Some wise folks have repeatedly told us that regulatory enforcement at the highest levels is compromised because of the constant flow of high-ranking government officials from positions of governmental power into the lofty, highly-paid perches of private employers who were once the subjects of regulation by those same folks.  
Look at all the criminal actions brought by the SEC against all of the wrongdoers in the subprime mortgage fiasco?
Right, not a single case.  
Or wait, there are all those bankers who fraudulently issued fake paper, assignments, robosigned documents, all of it, to allow big banks to foreclose upon homeowners who defaulted upon their NINJA, option-arm, no doc loans, who are serving time after being prosecuted by the Department of Justice, right?  <sound of crickets . . .>

Well, there is MFing Global, and the Honorable Corzine, right, who stole a billion in customer accounts, and is rotting in jail?  Err, wait . . .

History tells us that large governments almost invariably lead to waste, corruption, and overextension of power.   It’s the large governments that rattle the sabers and constantly threaten warfare.
It’s large governments that maintain police states, that spy on their citizens, and commandeer nearly every personal choice imaginable with regulatory agencies that tell us how to educate our children and what we can/cannot put in our own bodies.
As Kohr theorized, bigness often leads to tyranny.
If you look at the more financially successful nations today, i.e. those with solvent governments who do not indebt future generations to drop bombs by remote control drones, they’re nearly all small.
Hong Kong has some of the lowest tax rates in the world. And yet the local government is awash with so much cash that they frequently send tax refunds back to local residents.
Singapore is in a similar position; the city-state has zero net debt, a strong defense force, incredibly low tax rates… yet they still manage to funnel excess tax revenues back into the economy, often as tax breaks or business incentives.
The future is smaller- that’s the only way this works. 

swingThe organization responsible for destroying the role of silver as money, is documented in this article.
This organization makes the Bilderbergs look like pikers.
If you think you know the true story of Silver, this article will surely DESTROY many myths and incorrect assumptions.