nuclear dollarIf the Bank of England is looking at ways to overcome the zero bound on a permanent basis, it is a fair bet that it is being looked at by other central banks in private as well.
And if NIRP gains traction at the Top Table, the life-expectancy of all fiat currencies could become dramatically shortened.

JPM gold vaultNegative interbank rates would obviously be good for precious metal prices, because the bullion houses will find it more costly to hold dollars than gold and silver, reversing the standard position in paper markets.
Unfortunately for them,
physical liquidity of all precious metals is probably too low for such a switch to take place with major market disruption.

falling-bearSince the Lehman crisis, investors have bought into this bullish argument to the exclusion of any likely risk that a bear market will happen.
Consequently, considerable amounts of speculative money are committed to the concept of a perpetual state-guaranteed bull market; so if the destructive forces of reality do intervene, the potential for a severe fall in equity prices will be much greater than before.

collapseThe remarkable statistic in an unremarkable week was that the ratio of deliverable gold to outstanding Comex gold contracts fell to less than one in two hundred.
So long as the holder of an expiring contract has the right to insist on delivery, this could become a problem…

gold leasingThe underlying bullion position however remains very tight. The Financial Times reported that the cost of borrowing physical gold has risen sharply in recent weeks, reflecting refining demand from the big Swiss refiners. We know from our own contacts that for the last three years the Swiss refiners have been fully occupied in refining 400 ounce LBMA bars into the one kilo .9999 Chinese standard, so the drain on western vaulted stocks would eventually produce an acute shortage.
If the FT report is right about the gold being borrowed, this stores up more trouble for the future, because borrowed gold has to be returned.


dynamiteIn the Wake of “Black Monday” and the Past Week’s Crash of Historic Proportions, Alasdair Macleod Joins the Show to Break Down All the Market Action and What’s Coming This Fall, Discussing: 

  • After a Brief Rally, Bear Market Likely to Resume With a Vengeance- the END GAME IS APPROACHING!
  • Run On Silver Developing As Physical Demand Goes THROUGH THE ROOF
  • Is the Bond Market About to Find Religion? 
  • Alasdair Explains Why the Next Crisis (Which He Believes is Likely to Begin in About a Month) Will Spread From A Banking Crisis to a CURRENCY CRISIS 
  • In the Words of Eric Dubin: Its Going to Get REALLY UGLY 

    The SD Weekly Metals & Markets With The Doc, Eric Dubin, & Alasdair Macleod is Below:

Alasdair MacleodIn this final episode of the summer solutions series on the Keiser Report, Max Keiser and Stacy Herbert are joined by Alasdair Macleod and Ben Dyson to propose solutions to the problems presented by private banks creating money by issuing loans.
Macleod suggests how BitGold could be a possible solution to not only our current monetary woes, but as a solution to gold’s Gresham problem.

hyperinflationAnyone with a nose for markets will tell you that the Chinese government’s attempt to rescue the country’s stock markets from collapse is far from succeeding.
Bubbles collapse, period; and government interventions don’t stop them.
Furthermore, we are beginning to see a crack widen in the foundations of China’s capital markets that could end up undermining the whole economy.


collapseWith Greece on the Brink, Alasdair Macleod Joined the Show to Provide an Inside Look at the Crisis, Discussing:

  • What is the Greek Referendum REALLY ABOUT? Will the Greek debt be written down?
  • The Contagion Will Happen– Expect Banks to Remain Closed on a No Vote!
  • There Will Be a NEW WORLD Come Monday Morning! 
  • Is Gold Still in a Bear Market, or Has a New Bull Leg Begun With a Massive Consolidation?
  • Retail Physical Shortage Developing in the US- Market Changing Flow of Demand Has Hit the Market
  • The Lid is Going to Come Off the Gold Market!

The SD Weekly Metals & Markets Breaks Down The Greek & Chinese Crisis Below: