gold vault

On November 30th, voters in Switzerland will head to the polls to vote in a referendum on gold.
On the ballot is a measure to prohibit the Swiss National Bank (SNB) from further gold sales, to repatriate Swiss-owned gold to Switzerland, and to mandate that gold make up at least 20 percent of the SNB’s assets.
Arising from popular sentiment similar to movements in the United States, Germany, and the Netherlands, this referendum is an attempt to bring more oversight and accountability to the SNB, Switzerland’s central bank.
Will the Swiss throw a wrench into Western Central Banks’ plans by voting to get their gold back??

gold bull

The average gold bear already looks a bit like the wolf character from the fairy tale, “The Three Little Pigs”.
The wolf repeatedly blows hot bearish analysis air at the gold brick house, and the house just stands there, immovable.

I’ve predicted that Queen Bankster Janet” will begin raising rates by mid-year of 2015, and that’s bullish for gold.
Here’s why: 

panic crash

The Federal Reserve’s third quantitative-easing campaign is on track to wind down in late October.  At that point the Fed will likely stop printing new money to buy bonds, a sea-change shift with ominous implications for the stock markets.  Their entire surreal levitation during QE3 mirrored the huge growth in the Fed’s balance sheet from QE3’s bond monetizations.  When they cease, another major selloff is likely.
Prudent investors and speculators today don’t have to guess about what the end of QE3 means for the lofty Fed-inflated US stock markets.  We have the precedent of the ends of QE1 and QE2.  This next chart looks at the flagship S&P 500 stock index superimposed over the Fed’s balance sheet.
And out of all the many thousands of charts I’ve created over the years, this probably tops the heap as the scariest.

Fed

The CEO of RBC Wealth Management – the biggest financial institution in Canada recently stated on Bloomberg that “Canada is what Switzerland was 20 years ago, and the banks in Canada are what Swiss banks were 20 years ago.”. Now, anytime we see central bankers slapping each other on the back, we’re going to be skeptical.  As it turns out, Banque du Canada is actually the most pitifully capitalized central bank in the western world.  They’re in such bad shape they actually make the Fed look healthy.
Hong Kong’s Monetary Authority Exchange Fund is a good example of a strong balance sheet; their latest figures as of 30 June show a whopping capital reserve equal to nearly 22% of total assets. This is a massive margin of safety for the central bank. The US Federal Reserve, on the other hand, shows a capital reserve of just 1.27%.
And Canada?  A tiny 0.47%… as in less than one half of one percent.  This isn’t safety and stability. It’s a rounding error.

gold market tipping

The United States, and every country, is subject to a monetary authority and legal tender laws. Here in the U.S. we have the Federal Reserve, a central bank that plans money and credit. The Fed thought they had perfected their planning (but of course it cannot be perfected). They thought they had ended the boom and bust cycle, and brought us into a brave new era, their so-called great moderation that ended in 2008.   All they really did was manage the banking system to the brink of insolvency.
Although there are other factors that contribute to this dismal reality including minimum wage and labor law, taxes, environmentalism, subsidies for crony companies, and regulations, the artificially enhanced credit gradient deserves the lion’s share of the blame:

fed

The current bubbles in financial assets — in equities and bonds of all grades and quality — raging in every major market across the globe are no accident.   They are a deliberate creation. The intentional results of policy.
Therefore, when they burst, we shouldn’t regard the resulting damage as some freak act of nature or other such outcome outside of our control. To reiterate, the carnage will be the very predictable result of some terribly shortsighted decision-making and defective logic.
Blame can and should be laid where it belongs: with the central banks.

Cameron Diaz

On this MUST WATCH interview of Sprott’s Ask the Expert, The Dollar Vigilante’s Jeff Berwick discusses Japan’s plans to double the Yen’s money supply in the next two years- a plan Berwick describes as “textbook hyperinflation“,  and how the Fed will OUTPRINT the Japanese, meaning nothing but inflation and hyperinflation is on the horizon for the US.
With half of the US population dependent on the US gov’t, Berwick states the coming collapse of the dollar will be unlike anything the world has ever seen as the US gov’t hyperinflates the dollar to unimaginable levels. 

Full interview is below: 

gold bull
Play

Jay Taylor joins Eric Dubin & The Doc this week for a power-packed show discussing: 

  • Jay compares where the current gold & silver bull market is at, and advised investors that: In 1980 we had a massive stampede- a mania in gold.  We haven’t seen anything like that yet!
  • Endless happy days, a deflationary Greatest Depression, or a hyperinflationary collapse- whats coming for the US in the next 3 years? 
  • With gold crushed yet again on the Fed minutes’ release, Jay explains why the Fed’s con artistry is to keep people disinterested in gold with routine horrendous smackdowns 
  • Why Taylor believes the next leg up will be bigger than the 1970′s bull market, and will be the biggest percentage move in gold EVER!
  • Jay digs into Austrian economics discussing exactly how we’ve left the gold standard for a PhD standard, and explains why fiat money allows those who control the system to steal from those who create the wealth

The SD Weekly Metals & Markets With The Doc, Eric Dubin, & Jay Taylor is below: 

drift

Gold drifted lower this week, with the price undermined by lack of interest on low volume and a slightly more hawkish tone in the FOMC minutes released on Wednesday.
The chart below, of gold and open interest on Comex, shows how the price has declined while open interest has hardly budged from its historically low level.

Ron PaulA run on gold from foreign countries repatriating their dollars made it clear that there was a lack of faith in Nixon’s Keynesian policies.
To stop this, Nixon refused to allow these transactions by closing the gold window, ushering in 43 years of a fiat Dollar standard. The world has suffered the consequences ever since.
Do you think we would be better off if Nixon hadn’t nixed the convertibility of the U.S. dollar into gold?
In the MUST WATCH video below, Ron Paul dissects Nixon closing the gold window: A Day That Lives in Infamy: 

DimonThe foundation of the Federal Reserve was necessary for the Anglo-American power led by the Rothschilds and Rockefellers to not only consolidate power over the growing United States, but also for the eventual domination of the world.  
Without the power of this privately owned central-bank that was slipped through Congress just before Christmas in 1913, so much of the evil we see in the world today simply would not exist.  
Now we will see the summer of the Bankster, as they manipulate humanity into global war and slavery
Spreading Debt & Death- the Rise & Fall of the Bankster mini-doc is below: 

Size comparison:  silver pyramid and the great pyramid of EgyptGlobal annual silver production is approximately 820,000,000 ounces or a bit more than 25,000 metric tons.  What does that mean in terms that we can more easily understand?
If the global annual mine production of silver were cast into one large silver pyramid, it would be approximately – wait for it – only 65 feet high on a base of only 65 feet square.  Rather tiny!  For future reference, this is one “silver pyramid.”
The Federal Reserve was conjuring up enough dollars for QE to buy the equivalent of one silver pyramid every 6 days in the Bernanke era.
In that context silver seems inexpensive and dollars seem overvalued.
The US military spends the equivalent of one silver pyramid about every 8 days and the official US national debt increases by one silver pyramid every 7 days.  Borrowing and “printing” this many dollars cannot continue forever.  Silver and gold will remain valuable long after the dollar has been inflated to near worthlessness.

The stage is set for what should be an interesting match-up to follow here in coming months and years.
Jim Rickards predicts an eventual systemic crisis that will be worse the the 2008 systemic crisis.
The US Fed projects that we are coming into a recovery (even if a slow one) and that they see stability and continued improvement ahead.  
Someone has to be wrong.  We will watch it here.  
In his latest interview, Jim Rickards takes dead aim at the Fed.
Get your popcorn.

The EndIn this MUST WATCH interview with Alex Jones, former Presidential candidate Ron Paul warns that  “The Federal Reserve’s global hegemony is crumbling.  The lines are being drawn by the new BRICS banks, and we as a people need to prepare for the coming banking collapse.”
We’re closer to that point where there may be a precipitous fall (in the dollar).  The dollar has already lost 99% of its value, what if you lose the rest of it or 100%- that’s a big deal.  If you look at all the currency destructions around the world, the end stages go rapidly.” 

Paul’s full interview is below: