If the economy is hunky dory, then why is the money supply going parabolic?
It became evident to me early on that the large financial institutions and the statists they are in bed with would ultimately panic if Bitcoin ever took off. In early 2013 I wrote:
Just think about how ridiculous the government will look if they attack Bitcoin. I mean, these guys can’t put a single banker in jail, but when citizens decide to freely exchange goods using a currency of their choice that is where they draw the line!
Every attempt to by the mainstream media to demonize Bitcoin has demonstrated an increased level of desperation and ridiculousness.
However, the most recent example is the most absurd yet. According to Sky News, an “ISIS-linked blog” has posted about how Bitcoin can be used to “fund global jihad.”
The global oligarchy is clearly terrified of Bitcoin.
Precious metals investors have endured much hardship during the recent bear market but David H. Smith, senior analyst with David Morgan’s The Morgan Report, believes that another secular bull market in precious metals is already underway. In this interview with The Gold Report, Smith says that platinum group metals will lead the resurgence and have a favorable long-term risk/reward ratio.
He outlines some PGM, gold and silver companies that can grab the bull by its horns.
While the short and intermediate trends for gold are greatly influenced by Fed policy, events in China and India are now the key drivers of gold’s primary trend.
As important as today’s FOMC minutes are, on Thursday the Modi government releases its first budget. The most powerful gold dealers in the world are intensely focused on this budget.
Gold’s next primary trend move could be determined by what happens in India on July 10.
The government itself is extremely tight-lipped about what will happen, and that’s creating the potential for a violent gold price move to the upside or downside, as the budget is released.
It’s possible that the FOMC minutes create strong selling, but a gold-bullish budget from India quickly reverses that, and sends gold surging towards my target of $1432.
You are literally going to see gold and silver skyrocket well past the Moon and other planets and could go as high as some nearby galaxies next year in 2015 as the “crash of biblical proportions” comes to pass.
All the trillions of dollars in fake fiat paper money around the world will rush to buy the physical metal and ALL of it will be GONE in gone single hour, all around the world.
The worldwide physical silver and gold market is very very VERY TINY. Once the signs of worldwide economic collapse become apparent, just hours before the crash that devastates ALL the economies of the world IN ONE SINGLE HOUR as the derivatives domino game comes crashing to a halt and massive fear instantly spreads around the world, all the fiat paper money will seek hard assets as a safe haven for maintaining their value.
The precious metals dealers will literally shut down their phone lines, and trillions of dollars in paper fiat capital is going to roar into the precious metals paper fiat fiasco better known as the New York Commodities Exchange and other fiat futures casinos around the world.
It will be an explosion or SHOT heard round the world as everybody throws whatever cash they have into this completely imagined safe haven, which is not a safe haven at all but a casino of order of magnitude in the hundreds of paper futures above a tiny amount of real metal in COMEX warehouses.
What levels could gold & silver achieve in a derivatives contagion? Valuations so shocking Jim Sinclair’s price forecasts are bearish!
In just a little over a week the BRIC summit will take place in Brazil. A couple of key topics at the summit will be the promotion of two major projects, the BRIC Development Bank and the establisment of an emergency reserve fund for the BRIC nations. While these events are US dollar negative, we can expect not much will be said at the summit about the dollar. In fact, the talk leading into the summit is that the BRIC bank is still 1-2 years from lending money.
But if you look elsewhere, a direct attack on the US Dollar appears to be underway right now.
It appears Orwell’s feared “memory hole” has begun to emerge in Europe. This shouldn’t be seen as a surprise considering the region’s devastating youth unemployment rate and angst throughout society. The way censorship is gaining a foothold in the region is through something known as a “right to be forgotten” ruling issued by the European Court of Justice. This ruling states that Google must essentially delete “inadequate, irrelevant or no longer relevant” data from its results when a member of the public requests it.
Of course this is incredibly vague, and who is to decide what it “no longer relevant” anyway? Seems quite subjective.
This is clearly an attempt to take a tool designed to decentralize information flow (the internet) and centralize and censor it.
As such, it must be resisted at all costs.
It may be just coincidence, but stories about multiple rehypothecations of physical metal in China’s warehouses have emanated from sources involved with trading in these metals.
These traders have had to take significant losses on the chin on a failed strategy, and may now be moving towards a more bullish stance, because China’s warehouse scandal has not played out as they expected.
So two certainties, the collapse of both the yen and of Chinese economic demand don’t seem to be happening, or at least not happening quickly enough. The pressure is building for a change of investment strategies which is likely to drive markets in new directions in the coming months.
In the latest episode of the Keiser Report, Max Keiser delivers an epic rant on banksters, gold, & China’s commodities rehypothecation scandal.
Max delves into the tangled web of debt and deception that led to the bond market selloff in 2013, the ongoing crisis of fraud and dark pools in London and falsified gold contracts in China.
A recent Chairman of that private corporation in control of the finances – perhaps even, the destiny – of the USA for the past 100 years, famously referred to the yellow metal as “a barbarous relic”.
Although this Ph’d prophet of policy-managed markets has hardly been a fount of wisdom in the course of his career… in this case he stumbled upon a truth.
Yes. Bernanke got it right!
Gold has all the attributes of a primitive thing – and as such belongs in essence to a different cycle in humankind’s journey.
In fact, it’s the very primitive nature of gold [& silver] which renders it a potentially deadly kryptonite to the modern financialized world.
On April 1, 2013 ABN AMRO sent a letter to its gold account clients that stated ABN AMRO would no longer offer physical delivery of precious metals.
After the letter was published the entire gold space exploded and the default of ABN AMRO on its gold obligations was taken for granted by many.
In recent months I stumbled on some sources saying that was not exactly what happened.
Why not? I asked myself, it said so in the letter. No physical delivery is no physical delivery.
Just be sure I decided to give ABN AMRO’s press division a call yesterday for more information.
This is the official story:
A lot of people that I talk to these days want to know “when things are going to start happening”.
Well, there are certainly some perilous times on the horizon, but all you have to do is open up your eyes and look to see the global economic crisis unfolding. As you will see below, even central bankers are issuing frightening warnings about “dangerous new asset bubbles” and even the World Bank is declaring that “now is the time to prepare” for the next crisis.
Most Americans tend to only care about what is happening in the United States, but the truth is that serious economic trouble is erupting in South America, all across Europe and in Asian powerhouses such as China and Japan.
And the endless conflicts in the Middle East could erupt into a major regional war at just about any time. We live in a world that is becoming increasingly unstable, and people need to understand that the period of relative stability that we are enjoying right now is extremely vulnerable and will not last long.
The following are 18 signs that the global economic crisis is accelerating as we enter the last half of 2014…
Once you can understand the mindset from which the average Wall Streeter is coming from, it can give you an incredible trading advantage that’s almost the equivalent of spotting your opponent’s “tell” at the poker table.
Once I started talking about gold or silver to anyone who would listen back in 2009, it was as if somewhere inside you could tell that they realized that it was all coming to an end, but that they just preferred to not ask any questions and hope it would go on long enough for them to be ok.
In its just released annual report, the Bank for International Settlements has issued a strong warning that “dangerous new asset bubbles are forming“, & warned that: “the world could be hurtling toward a new crisis.”
Though we’re constantly reassured by financial pundits and the Federal Reserve that the stock market is not a bubble and that valuations are fair, there is substantial evidence that suggests the contrary.
The Approaching Inevitable Market Reversal…comes closer every day.
The Timmins gold district is by far the most productive within Canada’s prolific Abitibi greenstone belt.
It has produced in the neighborhood of 70m ounces of gold, and operations are still going strong.
Namesake mining company Timmins Gold is forecasting 2014 output of 120k ounces, making it one of North America’s top junior gold producers.
But provocatively not one of Timmins’ ounces is coming from within the Timmins district.
“I am not a destroyer of companies. I am a liberator of them,” declared Gordon Gekko in the film Wall Street 20 years ago.
The same response to the charge of asset-stripping can be heard today from private equity firms, and it is only convincing in part.
Gold and silver spent most of last week consolidating recent gains by moving broadly sideways, but their underlying strength was a notable feature.
The increase in open interest tells us that the rise in price was on the back of buying rather than a bear squeeze, which would have seen rising prices on steady-to-declining OI.
This is an important development, because it indicates that speculators are beginning to think the downtrend of the last 30 months might be over.
When is the system going to break down? The answer is 2008.
The tipping point was the Lehman kill in Sept 2008, following the subprime mortgage collapse.
It was a death event for the US banking structure, which should have forced liquidation of all Wall Street firms.
Then came the Financial Accounting Standards Board relaxation of rules in April 2009, which still permits the big US banks to declare their assets at any value they wish. They hide grotesque insolvency. Their liquidation would not happen, instead zombies walked.
The next tipping point was the Federal Reserve announcing a move toward the Zero Percent Interest Rate (ZIRP) in early 2009, followed by the bond monetization initiative (QE) in early 2012.
The most recent tipping points are the Syria War and the Ukraine War to obstruct the Russian Energy Monopoly in the European energy market. The defense of the USDollar has taken historically unprecedented turns.
These cited extreme events are all serious tipping points. Since 2009, the vastly depleted, exhausted, and wrecked body economic of Uncle Sam has been kept going with life support, electric shock treatment, and the formaldehyde elixir.
No recovery comes. Systemic failure and total breakdown are assured.
The only protection is Gold & Silver coins and bars. The hyper monetary inflation has met the asset destruction.
“But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.”
On September 14th, 2008, Hurricane Ike had moved inland across the US, bringing heavy rain and 70 mph winds to our home in Ohio. How ironic that the hurricane ripped across the nation as Lehman was imploding? The power went out for a week. That night we lit candles, got out the Coleman stove and heated up canned food for dinner.
What if, instead of that hurricane, the Lehman collapse and a lack of TARP would have “cut the liquidity power” to the world financial system? A fictional, “what if” retelling of that week provides me with a bit of perspective.
In recent weeks monetary speculators have been waging an all out war on the American dollar. The strength of a nation’s currency is based on the strength of that nation’s economy, and the American economy is by far the strongest economy in the world. Accordingly, I have directed the secretary of the treasury to take the action necessary to defend the dollar against the speculators.
The president continued…
“The dedicated leaders of the department of the Treasury, at the FED and on Wall Street are working furiously on your behalf to counter the actions of rogue governments and speculations against our currency. We will weather this storm and have our banking system back to normal shortly. Until that time, I have temporarily asked the director of Homeland Security to deploy peace officers as needed to maintain order in our cities…