And pensions exploding as there is nothing in the retirement vaults, and it only gets worse from here…

SRSrocco on the X22 Report Spotlight:

The pension plans are just taking in contributions from current employees and immediately paying that money out to current retirees. Last year, the deficit was to the tune of $123,000,0000,000 nationally.

It is not like a retiree contributes to retirement and that money is placed into holding, and when the markets drop 50-70 percent, people will soon find out that there is nothing there for their retirement.

 

 

Silver Price Charts

    • Those that promote metals all use fear porn to market them and it your typical pump and dump. Take Zang two videos ago she claimed she knows nothing about cryptos and now all of a sudden she claims she is an expert. Go to jnsyp4 4 on you tube who totally destroyed her insane argument. What does she do for a living? Head of marketing for a metals dealer. Look surprised everyone!

      Rocco is just as delusional. He claims pensions are in trouble because of the falling return on energy. Total absurdity. They are down not only because of mismanagement and unrealistic benefit amounts but also the FED’s policy of no yield. The major oil companies are still making billions even at today’s low prices. It the small independents that have some struggling. The fact is all these could go under and the majors would still be able to supply the US with plenty of energy. Congress allowed the majors to export energy out of the US and if there was such a shortage as he claims this would not be allowed. This shows how much energy the US actually has and it is more than most people think. What does this guy promote too? Metals! Enough said. I have been hearing about peak oil ever since the 1973 so called oil embargo which was all a scam.

      His statement that metals are being traded at cost is also delusional. Take Barrick’s latest Q2 filing. They state their overall cost to mine gold is $726. That’s from their own filing. Does that look anywhere close to today’s price? Take silver which is mostly mined as a by product. Miners looking for more valuable base metals have actually mining cost at a little over $2. Miners looking for less valuable base metals are from $6 to $7 and pure silver miners are over $7. Look at any investment firm analysis that follows metals and there cost are in line with the above and not by any means  close to those who market and promote metals claiming that we are at production costs so hurry up and buy now because the miners are going out of business. Total nonsense! The other miners cost are from $700 to $900 for gold depending on the mine.

      Armstrong Economics computer models forecast some years back that the Dow would hit 22,000 first, (which we did), and then on to 23,000 and possibly between 38,000 and 42,000 all due to international capital flows especially from Europe as the euro, the EU, most of its banks and countries are in collapse mode. The models are forecasting that the shit hits in the fan there in 2016 with both the Monetary Crisis and the Sovereign Debt Crisis hitting at the same time. Entities are moving billions out of Europe and moving into dollar based assets. Capital is simply being parked in markets with huge pools of liquidity and that has been the dollar and Dow. Armstrong Economics clients in the EU are all still moving capital to the US as nothing is fixed there and the ECB’s policies ave destroyed banks, businesses and most countries. The dominoes are falling and the whole thing is one giant house of cards. If you control large amounts of capital you are not going to  park it in a collapsing currency or banks with problems as you are going to move your capital out of Dodge and this is exactly what we have been seeing for over a year. This is why all those who have been forecasting a dollar and Dow collapse have been wrong. These people simply do not understand what causes price movement in markets and that are capital flows.

      The net has become full of people who do a real disservice to the novice investor and this has kept out most retail from realizing small fortunes. Instead many have fallen for the silver scam and all that bought over $21 are still underwater or sold for losses.

      Take the petrodollar. This died years ago as the goal was to flood the international financial system with dollars and treasuries and this was accomplished decades ago and is no longer needed. This is why Congress threw the Saudis under the bus. Canada exports over 3 times the amount of crude to the US as the Saudis. Now with US firms now exporting oil and natural gas too all of this is sold in dollars. Again these guys promote total fear porn and are clueless.

      Take Chevron as they earned $1.7 billion for the quarter with revenue up from $20 billion last year to over $34 billion this year. They are borrowing because capital is still very inexpensive and what international firm doesn’t take advantage of cheap capital. If he thinks any of the major are in trouble he is simply delusional.

      Take the headline, “gold backed currency coming”. This is also delusional. The total amount of liquidity in the US and also in foreign markets is over $52 trillion and all of this would have to be backed. The total amount of gold at today’s prices is less than $9 trillion. Seems we have a little math problem here. The US was forced off the standard because they could no longer afford to keep buying gold to back the new liquidity and economy needs to grow. They could even afford to restock what went out the gold window as the currency could be exchanged for physical gold and this was when price was fixed at $35. If thy couldn’t afford it then they certainly couldn’t afford it at today’s much higher prices? Many who promote this nonsense claim that the supply problem will be solved by “resetting” the price to some ridiculous number.  Now think about that for a minute. How could they afford it at much higher prices if they can’t afford at today’s prices? Seems these people haven’t given much thought to this absurdity!

  1. Sure there’s something in those Retirement Vaults… PROMISES!

    What more has there ever been?

    Just go to your local Retail Bankster Outlet and REDEEM your retirement prize!

    Just like a Fortune Cookie or Cracker Jack Prize and it’ll redeem for about the same as those cyber digits in that Crypto vault. It’s all Fantasyland​

    Got Phyz?

     

    • @Falco
      Atta boy, tangible prizes and you’re holding it. If they’re  Classic prises they may have collector interest.
      The point being Reality is going to engage and there will be a lot of gnashing of teeth misery.
      Take care and PRAY for Revelation

  2. @JohnLGalt

    I’ve been listening to the Mad Max and the voice of reason, Stacey for the last 5 years. I’m still not sure his elevator goes to all floors.

    Max is drunk on Cryptos and needs to sell his position soon 😋.

    He and Peter Schiff got into it in Las Vegas, Peter won  hands down.

    This ACC block-chain as Lynette has flushed out is troubling. I can see how the “Mark of the Beast” is fast becoming a terminal reality nightmare.

    Be good down under, mate!

     

     

     

  3. Steve is spot on about the JIT big box retailers. When this Ponzi Economy takes a 70% plunge your food, fuel and freedom will be under serious attack. Get out of your metro areas, there is no good defense possible there.

    American is on the road to Venezuel​a 2.0

    Off Grid Power is wealth!!

    • I pursued the off-grid power idea and found out that it is “bloody” expensive. I bought a couple of solar panels for my balcony ledge that puts out about 500 WH per day for a reasonable price (about US$160/panel each for 140W panels). I then purchased a 150AH deep discharge lead acid battery for US$444, but it croaked only after 2 years, 3 months. I then decided to purchase Nickel-Iron batteries directly from China as the lifetime of these batteries is 20 years or more. I spent a reasonable US$666 dollars for the 12V, 100AH battery (10, 1.2V batteries) which is reasonable. However, after shipping, customs, taxes (including a global tax!!), and commissions, handling fees, etctera, the total I spent came out to be a whopping US$2080. I can practically run only a load of 300W total off 12V, which is okay. Someday I might be glad I have the system, but it is definitely not cost-effective, nothing that electricity is only about US$0.18 per kw. I live in a very sunny area (Israel) with little worry about floods, typhoons, hurricanes, or tornadoes. However, there is an occasional quake, albeit less than 5 on the richter scale every few years.

  4. “Gold backed currency coming!”?  Uh-huh.  IMO, there will be multiple FAKE gold-backed things designed to sucker in the financial noobs and drain them of their money before there will ever be a REAL gold backed currency.  For ANY currency to really be “gold backed”, it also has to be CONVERTIBLE to gold ON DEMAND of the bearer.  If it is not, then they are just engaging in more circular fornication.

     

    • if you permit, there is a problem between wanting to be the queen of moneys and accounting unit at the same time. Gold wants a price. That is not what money does. It is okay to have your wealth in gold and only be concerned with paper receipts, but please don’t force those scarce by nature promises as obligating, exclusive medium of exchange, nor accounting unit onto RoW. This is not what gold can do for youz….

      cheers

       

      it should also be clear that keeping paper notes circulating in a decent condition is not necessarily cheaper than with coin. Paper currency is regularily shipped back to the central banks to be sorted out, take the worn ones out, check for counterfeits, maybe desinfected, and of course counted , maybe even traced. The morrons gave up on the seignorage, the difference between fabrication cost and face value, and calculated their benefit in not paying interest on a perpetual debt. With interest rates of late, ouch, that’s not what “sponsors” do, they can’t calculate a benefit. A catastrophe! They’ll go bonkers.

    • @Ed_B Agreed, the gold must be 100% physically gold-backed to be of any use. Perhaps the PTB will offer a 100% physically backed gold SDR crypto to gain the confidence of the masses, but you can almost bet that it is only a matter of time before they will switch to fractional backing. Think of the Roman silver denarius. At the end of the Roman Empire, there was virtually no silver in the denarius.

    • Already there is a real currency, which one may call “grams of gold”, and they are redeemable on Goldmoney dot com. I tested them and they passed the test. Customers have 100% allocated gold, and the company is independently audited — they are based in the UK so they are not accountable to the IRS.

       

    • maybe Doré Gold could fit your expert argument, now isn’t that a gem?

      otherwise, gold backed currencies boil down to someone elses liability. Good luck with that.

      Gold aint for whimps. If youz got more than you cashcarry, youz got too much. It will be (gladly) taken from you/ you?ll (gladly) hand it over for safekeeping…. and then…. you know what you deserve, you traded in your freedom for a … security… hahaha

       

      oh, and who gives value to all other currencies incl. those goldgrams? The dollar. Thus simply another dollar clone. sorry to tellya. But it is your choice. It’s been a long way down the rabbidhole, ya know?

    • @tailwag

       

      Gold only “wants a price” because it is not officially used AS money.  Consider the US in the 1920s.  Gold did not want a price them because it was money and the price was set by the US Gov at $20.67 per Troy oz.  A $20 US double eagle coin contained 0.9675 Troy oz. of gold, which means that it was a $20 coin AND it contained $20 worth of gold.  The biggest problem we have with a gold money standard is that the US $ has had MASSIVE inflation since the Fed came in 1913.  They say that there is not enough gold to be money but what they really mean is that there is not enough gold to cover all of the inflation created by fiat currency.  Without that inflation, there IS enough gold to serve as money.  Not that I am advocating that.  Just sayin’, as they say.  😉

       

      “oh, and who gives value to all other currencies incl. those goldgrams? The dollar.”

       

      That’s true, currently, but what happens if the US$ finally blows up, like all other fiat currencies have or are heading towards?  There is significant opposition to the US$ remaining the World Reserve Currency.  Other countries have had this monetary status over time and have always lost it.  Will the US be any different?  Probably not.  But the US dollar IS our official money and it will remain so until it is not.  When that will be is anyone’s guess.  But its days are numbered and they are numbered because other countries around the world do not like the way that the US Gov plays fast and loose with financial rules.  These rules generally help the US and are a detriment to those not in the US.  You can only pee on people so long and tell them that it is raining before they catch on and resent it.

       

      @Yohanan

       

      “Think of the Roman silver denarius. At the end of the Roman Empire, there was virtually no silver in the denarius.”

      While a good point, we don’t even have to go that far back in time to fine good examples.  When I was a kid in the 1950s and early 1960s, dime, quarter, half, and dollar coins all contained silver and could buy MUCH more than the cheap pot-metal coins we use today.  Since paper dollars were 100% equivalent to a fixed number of those coins, it too could buy quite a bit.  A big juicy hamburger cost a quarter back then.  So did a gallon of gasoline, when it was not even cheaper.  I remember gas being 18 cents a gallon way back when, so less than two 90% silver dimes per gallon.  A movie ticket?  Two-bits.  A newspaper or a phone call, a nickle and then a dime.  Prices today are 15-20 times higher for many common things; not that these things are now worth more but the money we use is now worth less so more of it is needed to buy goods and services.  This is the pattern of fiat currencies.  They simply become worth less and less until they become worthless.  The Zimbabwean dollar achieved this milestone, as did the old German mark in the 1920s, and the Venezuelan bolivar is now trying very hard to achieve the very same thing.  But when there is some gold or silver in a coin, that coin tends to hold its value for long periods of time.  It does not simply inflate away to nothing, as do the fiat currencies.  The best thing that gold and silver money does for us is limit the amount of money the government can squander.  If they don’t have it, they can’t pull it out of thin air or spend it.  In a fiat system, they can raise the debt “ceiling” anytime they want and can print away the happy hours as much as they want.  But there WILL be a price to be paid for doing that.

      I have not tried Gold Money.com but see no reason why that would not work as a unit of exchange and a store of value.  The problem with fiat currencies is that they are not a store of value and they have inflation built into them via being borrowed into existence AT INTEREST.  At least go to a national currency that is printed by the US Treasury with no interest attached and not at the demand of the Fed WITH interest attached to it.

    • thanks for your time and thoughts. I’ll try to give you some anecdotes that i use.

      In 1700 the bank of England was founded and around that time the immortal Isaac Newton in his function of exchequer for her majesty was asked to calculate the price of gold. The Spanish system which migrated to America consisted of silver reales and gold escudos which used the same weight. and it’s exchange rate might have fluctuated. Each had a distinct name.

      It is recorded history that in England after Newton (not Nixon) they used 1:16 while France used 1:15. That was an arbitrage oportunity with the result of gold accumulating in Britain. A question of time, and the pound sterling was a pure fiat unit with no more link to silver. In the U.S. as I imagine, it was the spanish pillar dollar or eight reales which was called ONE dollar (a lot of European countries had coins of similar size denominated as FIVE) and as someone thought it necessary or beneficial to make your own money, what was it, 1794? you minted dollars. And then in the 1820s after the french revolution and news spreading slower, the british goldstandard took hold and it wasn’t until maybe 1840 the U.S. switched to define the dollar in gold. Germany joined the goldstandard 1875 after looting france, and in 1853 a latin monetary union was formed which kept silver and gold coinage with a calculable denomination of 15.5 to one. Silver being the one with straight numbers  like one kilo silver makes 200francs and thus 20 goldfrancs consisted of 5.864397 grams of finegold. For small everyday transactions they used to supply debased silver coinage already back then.

       

      It is this annecdote of Isaak Newton being asked to calculate a price of gold which was then expressed in silver, and this role that silver played back then has been ursupated by con artists. And while one might argue there are beneficial aspects to enciting otherwise care-free people into financial productivity through taxes, the potential for enslavement is certainly not far away. And it is higher with gold than with silver, because you can corner the moneymarket and force people into debt by hoarding.

      cheers and thx anyways, we just take the money and we run

  5. “It is not like a retiree contributes to retirement and that money is placed into holding, and when the markets drop 50-70 percent, people will soon find out that there is nothing there for their retirement.”

     

    Uh, yeah, Steve, that is EXACTLY like what it is like in MANY pension plans.  The great majority of them have 2 components: 1) employee contributions; and 2) employer contributions.  My wife retired from the State of Washington after 30 years as a school teacher and administrator in 2001.  Her contributions and all earnings on them amounted to $195k.  This was money we could either leave in the pension system and be guaranteed a 5% annual return distribution OR we could take it out as a lump-sum distribution that could be rolled over into an IRA.  I suppose that it also could have been taken as a cash distribution but the taxes would have been outrageous on our combined income for that year.  Anyway, it was rolled into an IRA to preserve its tax status and earned a bit over 10% per year based on the mutual funds in which it was invested.  As time went on, it got more difficult to make decent money in the stock market, so we moved it to a money market account.  This did not pay a lot but then it also did not get screwed in the 2008 market collapse.  Let this be understood by one and all… there is considerable worth in keeping a substantial portion of one’s portfolio in readily accessed cash, whether that be in money market funds, local bank / CU / S&L certificates of deposit or savings accounts, or even put into a home safe.  A blend of these should work pretty well.

    The portion that the state had contributed to her retirement account remains there to this day and provides her with a $2700 a month check.  By state law, Washington is required to fund its pension plan, which they seem to be doing.  Maybe the question you pose is “OK, ARE they doing that?”.  I don’t know for sure but I do know that they are independently audited, which makes cooking the books really difficult.  After the Arthur Andersen accounting disaster of 2002, a lot more attention was paid to independent accounting.  So far so good and my wife’s pension is not our only source of income.  Washington State is not California or Illinois… thankfully.  But it IS run by Dimms, so bears watching as one would watch anyone who has their hands on privately owned money.

     

    • No one knows how much cash Buffett has on hand.  Financial info of that kind tends to be closely held and not distributed.  Buffett’s net worth has been reported in the area of $50B but one can safely bet that only a small fraction of that is in cash.

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