economic collapseInstability starts on the periphery and moves into the core.
While it is clear that the instability in periphery nations is arising from dynamics unique to each nation, there is one unifying causal factor: the spoils system in each nation is breaking down.
In the U.S., the spoils system is almost unlimited.  The spoils system is not only the foundation of every Elites’ political legitimacy, it is the thin layer of plaster that covers all the longstanding ethnic, regional, linguistic, religious and political fault lines that run beneath current nation-state arrangements.
This erosion of the spoils system has a peculiar characteristic: once the old spoils system cracks and collapses, it cannot be put back together.   A new arrangement arises, despite the best self-serving efforts of the current Elites. 

 silverIndian premiums on gold, currently 15 % above international prices, pushed massive amounts of Indian savers into silver in 2013. Indian silver imports in 2013 were 6125 tons, an all-time record, up 189 % from 2115 tons in 2012.
In December, silver imports accounted for 825 tons, up 108 % month over month, and up an astonishing 6560 % year over year!

The rally is on. The onlookers now agree that it is on. Buy orders are flowing into gold. For myself, having done a lot of buying in April, July and Dec 2013, I must say that am getting nervous. I don’t want to be in a company of late bulls!
But nervous is OK. “Climbing a wall of worry” has always been a good phrase to describe a rally which may continue still more.

While gold is the king monetary metal, silver will turn out to be the king precious metal performer.  Currently, gold is stealing the show as the East (China) continues to consume more than total world gold production.
However, silver will surprise the markets in the future as overwhelming demand will outstrip supply in a big way.
The key factor that will drive up the price (value) of silver much higher than gold in percentage terms, will be its affordability.  As the price of gold heads back above $1,500 and silver to $30, an individual can buy a heck of a lot more silver than gold.
As the public and market are lulled back to sleep (presently) on the value of silver, there will come a time in the future when it will be impossible to acquire a single ounceonly at much higher prices.
Silver Will Be The King Precious Metal Performer.

saudi goldNow that we have seen how spot gold is priced “loco London,” we can examine how other local markets, and other types of gold contracts, are priced in reference to the London spot market.
This includes other spot delivery locations, gold forward and futures contracts — such as the gold futures contract at the NYMEX in New York — and gold swaps, forward rate agreements, and options. 

The West is still a mover of the gold price, but no longer the prime mover.  While interest rates and inflation numbers are still very important drivers of the gold price, the world has essentially entered a “gold bull era”.
This era is themed around gold jewellery demand that should grow relentlessly for decades.  It could soon totally overwhelm mine and scrap supply.
Gold jewellery plays a highly significant role in Eastern culture and religion, and bank economists continue to underestimate the enormous monthly tonnage imports of Chindian (Chinese and Indian) gold dealers. One upside surprise seems to follow another.
Demand grows relentlessly, because Chindian industrialization grows relentlessly. It’s an enormous multi-decade process that involves more than two billion citizens, who are all potential gold buyers.

panic crashEconomist John Williams says if Russia sells its U.S. dollar holdings it could trigger hyperinflation.  Could it collapse the financial system?  Williams contends, “Yes, it certainly has a potential to do that.  Looking outside the United States, there is something over $16 trillion dollars in cash or near cash.  That’s about the same size as our GDP.  If the rest of the world believes this is what’s going to happen, people who have been wanting to get out of the dollar for some time very easily could front-run the Russians.  The scare is onPeople will try to get out of it as rapidly as they can.  We have not seen an economic recovery.  We have not seen a return of health to the banking systemSo the system is very vulnerable and if the Russians carry through with their threat, you have indeed the risk of it collapsing the system.”
On the overall economy Williams says, “It is rolling over and the numbers are starting to show we are starting into a new recession.  Join Greg Hunter as he goes One-on-One with John Williams of Shadowstats.com.

Palladium has climbed for a fifth day and jumped to an 11 month high. Palladium for June delivery rose  0.7% to $769/oz, the highest for the most active contract since August 15. Palladium has gained 5.5% during the last five days of the Ukranian crisis and is up 7.4% year to date.
According to Bloomberg Industries analysts Kenneth Hoffman & Oliver Nugent,“any sanctions imposed by the EU and the U.S. on the export of Russian palladium group metals would create a serious supply shortage that may be difficult for industries to replace.”
This year will show the third consecutive deficit year in global palladium supply, according to a BI survey of analysts.
Russia provided 44% of global palladium supply and 13.6% of platinum last year, according to Johnson Matthey.

Caption Contest 1The Shanghai Gold Exchange (SGE) is back on schedule publishing their trade reports on that cover the previous trading week. Last Friday’s report covered the trading week February 17 – 21. For me the most important numbers is always the amount of physical gold withdrawn from the vaults as this equals Chinese wholesale demandWithdrawals in week 8 (February 17 – 21) accounted for 49 tonnes, year to date there have already been 369 tonnes withdrawn from the vaults. If we divide the later by the number of days of the corresponding period (52) we come up with an average demand of 7.09 tonnes per day – this includes weekends and the one week holiday at Lunar year when the SGE was closed.
One would think that in coming months the price of gold and Chinese demand will get in conflict; the situation simply can’t go on like this forever.

silver precipiceThe situation in the Ukraine is potentially one of the greatest geopolitical risks since the end of the Cold War.
A senior adviser to Putin said this morning that if the United States were to impose sanctions on Russia over Ukraine, Moscow might be forced to drop the dollar as a reserve currency and refuse to pay off loans to U.S. banks.

Sprott$8 billion fund manager Eric Sprott says there is a big opportunity surfacing in precious metals. Sprott contends, “I’ve always believed there is more demand than supply for the last 14 years. I’ve documented it.  I am suggesting the western central banks have very little gold left. I think the whole decline in the gold price is the liquidation in the ETFs to supply some of that shortfall. I think manipulation and relief from the manipulation and the ongoing demand, well in excess of supply, is going to power gold higher.”
On precious metal price manipulation, Sprott charges, “We seem to get more and more evidence of it all the time. The German equivalent to the SEC saying the possible manipulation to gold would be worse than LIBOR, and I think worse is a very important word here because there can’t be more money involved because LIBOR is way bigger than gold, but worse means the egregiousness of the price decline. Furthermore, we had another group come out and say the LBMA fixed the price . . . the price was manipulated 50% of the time.”

5000 goldIn his latest public update, SmartKnowledgeU’s JSKim discusses how studying the history of gold and silver clearly tells us where it is heading in the future.
Kim also explains how examining the historical anti-gold, anti-silver banker propaganda campaigns should prevent us from falling for the same dirty bag of tricks they are playing today.

Difference between gold forecast and the actual gold priceBased on a short analysis of bank forecasts, we can conclude they are clueless about the direction of the gold price.
This year, the difference between the average gold price and the predicted gold price for 2014 is already $75 per troy ounce
, as you can see from the chart below. It seems like bank analysts tend to extrapolate past returns. They were too optimistic in early 2013 and they seem to be too pessimistic on gold right now.

Bernanke-Dimon-Fed-TunnelCircumstances are at such a point that one no longer needs a justifiable reason for being long PHYSICAL gold and/or silver.  Does it matter that the 50 day moving average is going to cross the 200 day moving average, now being bandied about as though there were a degree of magic  associated with the event?  Does it matter any more that China remains a record buyer of physical gold for over a year?  Did it ever matter that coin sales to the public have been setting records for well over a year?
Those who already own gold and silver will be protected, to a larger degree than otherwise, against the certain-to-come devaluation[s].  We have been advocating the buy and hold strategy for over a year, specifically for physical gold and silver and personally holding the PMs, as well.  One of the provisions of the Patriot Act, forced through at the direction of the elites to gain further control over unaware citizens, allows the government to raid anyone’s safe deposit box that may hold either gold or silverStill trust the banks?
Some own gold and silver from much higher prices.  That is okay and not a cause for concernWhen the fiat Ponzi scheme fails, the unnaturally suppressed prices for both PMs will make $50 silver and $1800 gold look like an incredible bargain. 
The takeaway from all of this is the more than ever pressing need to keep on buying as much gold and silver as one can afford.  Forget price.  Ownership is all that matters.  

ABACAUSA.COM

ABACAUSA.COM

The speculative excesses and political power of Wall Street pose a strategic threat to the Deep State, and as a result a showdown between the Deep State and the surface machinery of governance that has been captured by Wall Street is looming.
The basic idea of the Deep State is that the visible machinery of governance–electoral politics and the Federal Reserve–doesn’t set strategic policy, it ratifies and implements decisions made behind closed doors.
It’s widely assumed that Wall Street rules the roost in both the mainstream financial media and in the alternative financial media. In my view, the speculative excesses and political power of Wall Street pose a strategic threat to the Deep State, and as a result a showdown between the Deep State and the surface machinery of governance that has been captured by Wall Street is looming.
Though everyone who is convinced the U.S. dollar will go to zero is confident that Wall Street will emerge victorious from the next financial crisis, I am convinced of the opposite: the Deep State will do whatever it takes to eliminate strategic threats to the integrity of the Deep State and the nation it depends on for its power and survival. In a financial crisis that threatens the dollar and the Deep State, the phantom claims of Wall Street’s financier skimmers, scammers and swindlers will be tossed under the bus with few qualms. The triage might even be performed with a certain relish.
Put another way: we’ve reached Peak Wall Street and it’s all downhill from here. 

Russian troopsThe Ukranian crisis has gone from bad to worse this morning as Russian troops have fired warning shots at Ukraine soldiers in the Crimea as the Ukranian troops marched towards them. 
As the unbelievable video footage below depicts, we are a hairsbreadth away from escalation to all-out war.  

dollar collapse panicWill The Cartel price suppressors win out when it comes to Precious Metals and other Tangible Assets prices, or will increasingly Bullish fundamentals propel them further up?
Whatever the answer, the mounting evidence is that the Fed-led Cartel is knowingly creating conditions designed to force the U.S (and, indeed, the entire industrialized world), to eventually choose between a Hyperinflationary Depression and the Cartel‘s ominous “End Game.”
As Jim Rogers and David Stockman have recently pointed out, Fed Policy is impelling us to such a Climax.

silver smashThe real story is in gold this past reporting period as the commercials added a MAMMOTH 21,432 short contracts to their overwhelming “ILLEGAL CORRUPT” short position and are now positioned to smash this market to oblivion.
In silver, we see the combined commercials approaching 200 MILLION short ounces now.  It would be nothing for them to start the high frequency trading casino wheels rolling and pound silver to below $18.
Again, in silver, we see an almost perfectly even distribution in the dis-aggregated numbers.  COLLUSION my friends, COLLUSION at its finest. 

Russian troops and pro-Russian militia forces now have full military control of Crimea without a shot being fired, and Russian troops and helicopters continue to pour into the region.  Not that there really was ever any doubt about what was going to happen in Crimea.  As I wrote about yesterday, Russia will never, ever let Crimea go without a fight.  The Russian Black Sea fleet’s base at Sevastopol is simply way too strategically important.  But it is still shocking to see video of dozens of Russian attack helicopters and dozens of Russian armored personnel carriers heading toward Sevastopol.  The acting president of Ukraine says that Russia “has invaded Ukraine” and is attempting to “annex Crimea”.  The former president, Viktor Yanukovych, insists that he is still the rightful democratically-elected president of Ukraine and Yanukovych is calling on Russia to intervene militarily in his nation.  Meanwhile, Russia is calling on the new government in Kiev to honor “the peace deal signed last Friday, Feb. 21, by Yanukovych and the opposition, notarized by the Foreign Ministers of France, Germany and Poland and approved by the US.
But Russia is not just sitting around and waiting for the new government in Kiev to honor the peace agreement that was made.
Rather, Russia has been very busy moving their chess pieces around the board.
The following are some shocking videos of Russian troops and helicopters moving through Crimea…

ChinaZhou Ming’s goals are clear and simple: to continue to build the precious metals “battleship”, heading towards international markets. “In 2013 China became the world ‘s largest gold producer and consumer, there is no reason for it not to have any voice in international price fluctuations.” Zhou Ming said, “This must be the aim of ICBC, to service the market and our customers competitively.”