Gold and silver rallied through $1780 and $35 in Wednesday’s Asian session on news of Japan’s announcement to increase outright asset purchases to ¥80 trillion, and was then relentlessly hammered down on the London session, with silver smashed .80 to $34.20, and gold knocked down $20 to $1761.

Both metals are now again rising early in COMEX trading.

The most vocal critic of the ECB’s recent ultra loose monetary policy, Jens Weidmann, the influential head of the German Bundesbank, has again attacked current ECB monetary policy.

Weidmann has been trenchant in his criticism of EBC policy but has gone further by analogizing recent monetary stimulus to “the scene in Faust, when the devil Mephistopheles, ‘disguised as a fool,’ convinces an emperor to issue large amounts of paper money.”

His criticism has been picked up by media internationally (see news) and has been featured on the front page of the Financial Times (UK edition) today including an image of Mephistopheles and the caption ‘Mephistopheles: Persuaded the Emperor to Print Paper Money.’
History will not judge Draghi’s supporters and Draghi’s stewardship of the ECB kindly.
Weidmann is right to warn regarding the real and increasing dangers of inflation and “rapid currency depreciation”.

These days its tough keeping up with the Jones’s er…Bernanke’s.
In what is labelled a surprise move by the MSM but should come as no surprise to any SD reader who understands that Quantitative Easing is going to Infinity..AND BEYOND among all Western nations- the BOJ Wednesday expanded it’s QE asset purchase program to ¥80 trillion.
Yes, you read that correctly,  ¥80 trillion.

The rapidly escalating tensions between China and Japan over the disputed Senkaku islands has just gotten real, as the Telegraph’s Ambrose Evans-Pritchard reports that a Chinese advisor has publicly called for the nation to DUMP en-masse it’s entire holdings of Japanese bonds.  All $230 billion!

It appears the Fed’s QE∞ of $40 a month (+ PRN printing) may soon become $1.14 TRILLION a month should China decide to also dump it’s $1.1 Trillion in US treasury bond holdings, which appears like a likely progression considering the US announced Tuesday that it will back Japan should the nation be attacked over the disputed islands.

Beijing hints at bond attack on Japan

Much to the De Beer’s likely chagrin, Russia has announced the discovery of a truly gigantic diamond discovery at the site of a massive asteroid crater in eastern SiberiaThe find reportedly contains ‘TRILLIONS OF CARATS‘…enough to supply global markets for 3,000 years!

Too bad for Blythe and her monkeys that super-heated and compressed carbon turns into diamonds rather than silver or gold.  Good thing diamonds are forever because if this report is valid, their value won’t be.

 

‘Trillions of carats’ lie below a 35-million-year-old, 62-mile-diameter asteroid crater in eastern Siberia known as Popigai Astroblem.

Submitted by SD Contributor FW:

Some have compared the current path the US is headed down with the Soviet Bloc experience.  However, there are some differences. 

In the US, we’ve seen a multi-decade long process of gutting the middle class and propagandizing people to the point of turning much of the nation into a zombified state.  However, there are at least 20 million Ron Paul supporters in the US, and while not every person down to the man in that movement are entirely aware of what’s going on, compare those numbers to resistance pockets and periods of any resistance under Soviet rule you care to examine.

I contend there’s a deeper reservoir of latent resistance in the US.  It’s mostly dormant at the moment, because an insufficient number of people have yet to experience economic hardship and the destruction of the so-called “American Dream” for a long enough period of time to engender rapid social mobilization.
But that’s coming, and the powers that be damn well know it!

*BREAKING ALERT

US Appeals Judge Raymond Lohier has just bowed down to Der Führer, knocking down the temporary injuction against Obama’s indefinite military detention provision until the appeals court hears the case September 28th.  This comes after Obama’s legal team REFUSED TO ADMIT TO THE COURT WHETHER THE OBAMA ADMINISTRATION HAD BEEN ILLEGALLY BREAKING THE TEMPORARY INJUNCTION against indefinite detention set by Judge Forrest this spring!!

This means the Obama team can indefinitely imprison any American for any thought crime over the next 10 days until the appeals court rubber stamps permanent indefinite detention.

Fed Governor Charles Evans just re-emphasized the TO INFINITY….AND BEYOND!!! reality of QE∞, stating in a speech in Ann Arbor, MI this morning that the Fed will continue to purchase assets until there was significant improvement in the labor market.
Evans also stated that the Fed is not out of options and could do more asset purchases, and the Fed is willing to tolerate inflation above 2%!!
Gold and silver apparently received the message by spiking vertically, (although they have since been smashed down to pre-pop levels)
Got Phyzz?

For the past year and a half we have repeatedly stated that QE has continued unabated behind the scenes, because there is simply NO REMAINING END BUYERS OF US DEBT IN SIZE OUTSIDE OF THE FED.
Our friend ‘Turd’ from TFMetalsreport has released an excellent report documenting why QE∞ is a new paradigm for the markets, as it is all about DIRECT MONETIZATION BY THE FED OF THE US SPENDING DEFICIT OF $1.5 TRILLION ANNUALLY!!

‘Last week The U.S. Federal Reserve announced a plan whereby they will be almost completely and directly monetizing the deficit spending of the U.S. government. Though the illusion of legitimate borrowing will be maintained and politicians will continue to claim that “we’re borrowing all of this from China”, you should not be fooled. We have entered a new paradigm of direct debt monetization. By doing so, The Federal Reserve has begun the process of overt currency debasement and devaluation.

MUST READ!!

Chris Duane of Dont-Tread-On.me has decided to begin releasing the the entire Sons of Liberty Academy on to YouTube. Over 30,000 people joined the Sons of Liberty Academy on it’s private member site, but Duane is now releasing the entire Academy publicly.
Part 1 of the Sons of Liberty Academy:
My Awakening

*UPDATE:  Silver now has a $35 handle as the metal has just exploded again and is now up over $1 off it’s lows, shooting through $35 to $35.17

Gold and silver both exploded higher on today’s COMEX open after consolidating above $34 and $1750 overnight.

Silver made an .80 vertical move to $34.87, and gold moved over $15 to the upside to $1771, just above Sinclair’s $1764 angel.

Silver has now rallied off the $34 level at least 12 times in the last 24 hours, and with this morning’s move is now well off the support level.  Look for silver to challenge the important $35 next, and if it is successful taking out $35 to the upside, we should see silver run to the $37-$37.50 zone before testing it’s next significant resistance.

*Edit: Well, that sure didn’t take long!