When Asked if the U.S. is a Capitalist Democracy or Oligarchy, Janet Yellen Can’t Answer…

yellenJanet Yellen inherently understands that the U.S. is a corrupt, shameful oligarchy, but as head of the institution most responsible for this transformation, she simply cannot tell the truth.
It is incredible that things have fallen so far that a U.S. Senator felt compelled to ask such a question, and even worse that such a powerful official couldn’t vehemently and decisively deny the claim.
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Jim Grant: Fed’s Doctrines Are Heresies!

20121003_grant_0The Interest Rate Observer’s Jim Grant, one of our personal favorite critics of the Fed, was back at it this week on CNBC, blasting Janet Yellen and the Fed’s long-held doctrines as “Heresies!“. 
Regarding Yellen’s claims that the US economy is improving, Grant eloquently pointed out that she “did not touch on the moral quandary that low interest rates introduce into our country - grandmothers, grandfathers, savers are figuratively on their hand and knees and rooting around in bushes and between sofa seats for lose change on which to sustain themselves.”
Well said Jim, will said.  
Grant’s full MUST WATCH interview is below:  [Read more...]

Jim Rickards: Fed Will Increase Asset Purchases by 2015!

fiscal cliffJim Rickards joined FoxBusiness for an excellent interview regarding Janet Yellen’s first months as Fed Chairwoman. Rickards informed the MSM viewers that The Fed has tapered into weakness, and explains why counter to what the BL(B)S report would have one believe, the labor force is falling off a cliff. 
Perhaps Rickards tunes into the SD Metals & Markets, as he informs Diedra that he expects the Fed to end the taper by July, and increase asset purchases by 2014- something we have been predicting for over 6 months. 
Rickards full interview is below:
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Banca d’Italia Comes Clean: Half of Italy’s Gold is Held in New York Fed Vault

Bernanke-Dimon-Fed-TunnelItaly’s central bank, the Banca d’Italia, has recently published an important document detailing the storage locations and composition of the country’s gold reserves. The document confirms that Italy’s gold is held across four vault locations, three of which are outside Italy.
This is a significant announcement given that the Banca d’Italia is the world’s third largest official holder of gold after the U.S. and Germany. Italy officially holds 2,451.8 tonnes of gold, worth more than €72 billion (US$ 100 billion) at current market prices [1].
In the detailed three page report focusing exclusively on its gold reserves (and only published in Italian), the Banca d’Italia reveals that 1,199.4 tonnes, or nearly half the total, is held in the Bank’s own vaults under its Palazzo Koch headquarters on Via Nazionale in Rome, while most of the other half is stored in the Federal Reserve Bank gold vault in New York. [Read more...]

Fed Tapers Another $10 Billion to $45 Billion/Month

  • Bernanke taperFed meets expectations, Tapers another $10 billion, down to $45 billion in asset purchases/ month
  • Beginning in May, the Committee will add to its holdings of agency mortgage-backed securities at a pace of $20 billion per month rather than $25 billion per month, and will add to its holdings of longer-term Treasury securities at a pace of $25 billion per month rather than $30 billion per month

Gold & silver spiking on the release…we suspect the smash is imminent

Full April FOMC Statement is below: [Read more...]

The Blueprint to Ending the Fed!

Play

Congressional candidate Dennis Linthicum joins Metals & Markets to discuss the blueprint to ending the Fed, as well as:

The SD Weekly Metals & Markets With special guest Dennis Linthicum is below: [Read more...]

Jim Rickards: The Fed Built a 5 ft Sea Wall, & Here Comes a 40 ft Tsunami!

Image: Jonny O'Callaghan

Image: Jonny O’Callaghan

The next crisis is going to be bigger than the Fed.   It is like they build a five foot sea wall and here comes a forty foot tsunami. There is only one clean balance sheet left in the world and that is the IMF. So the only way you are only going to reliquify the world in the next liquidity crisis is by the IMF printing their world money, these Special Drawing Rights or SDRs, and that is going to be the end of the dollar as a global reserve currency. 
The problem with the US is that the Treasury and the White House want a weak dollar.
I mean, what good does it do you when your own country wants to trash the currency? What happened to the strong dollar policy? It’s over now and we’re in the currency wars. That is going to lead to a collapse and ultimately we are going to see either gold or the SDRs the new store of value on a worldwide basis. 

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Gold And Silver – Be Prepared For A Weekend Surprise!

bank-holidayThe catalyst will not be how much gold China owns.  The catalyst will be the fall of the petrodollar Once that happens, checkmate elites.  Game over US.  Gold and silver, rise to your natural relationship between supply and demand, no longer being
artificially suppressed.
Watch out for weekend surprises.  When people least expect, and/or are in a position to least react, some kind of announcement could be made that devalues the fiat Federal Reserve Note
These are the reasons why we keep exhorting everyone to buy gold and silver.  Price is immaterial, having it is all that mattersHaving gold and/or silver is what will keep you financially viable when this country falls apart, and fall apart it will.  
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Fed to the Sharks, Part 1: The Fed Takes Our Money, Gives It to Banks Who Loan It Back to Us at 16%

If the Fed is so powerful, why is it so cowardly and fearful that it has to cloak its theft of our money and its transfer of the wealth to the banks?
What’s it so afraid of?  That we might wake up to the fact that we’re being fed to the sharks, every day, one morsel at a time? [Read more...]

Prepare For Dollar Collapse With Physical Assets – Rickards

Jim Rickards ChinaIn an excellent interview with Bloomberg, Jim Rickards correctly states that the Fed is completely insolvent on a mark to market basis, that the stock market is up over gold since 2010 because The Fed is manipulating stocks up and gold down, and urges investors to prepare for a dollar collapse by rotating OUT of stocks, and into PHYSICAL assets.  [Read more...]

Alasdair Macleod: China’s Demand For Gold Has Trapped The West’s Central Banks

china bank runIn the rest of the world and particularly Asia, people do not think like we do. As far as they’re concerned, gold is the only long term asset worth holdingIt is the family pension fund… the financial press in the West, the mainstream media, basically rely for their information on analysts in the bullion banks. And the bullion banks are always short… Now whether the West is right or wrong is not the point. The point is there are 4 billion people in Asia who have got a very old-fashioned view of gold, and they have become wealthy over the last twenty years. And their view is likely to prevail against the <1 billion of us in North America and Western Europe. I mean it really is as simple as that. It’s not a question of Austrian economics, or Keynesian, or whatever. We’re outnumbered. [Read more...]

Former Treasury Official: Gold & the Dollar Are in a Fight to the Death!

cartel raidFormer Assistant Treasury Secretary, Dr. Paul Craig Roberts says, Gold and the dollar are in a fight to the death.”  Dr. Roberts explains, “The Fed, in order to save a handful of banks too big to fail that are the mindless deregulation of the 21st century, the Fed has had to create a tremendous number of new dollars.  Despite the fact the price of gold has been pushed down since 2011, it still has about the highest rate of return of just about anything in the 21st century.   The Federal Reserve, in order to protect quantitative easing, which is necessary to save the banks, began manipulating the gold price in a new and more intense way.  They used their bullion banks to short the gold in the COMEX futures market.  The trouble with this policy is that it’s been going on long enough that it’s being recognized by people who formerly thought ‘the Federal Reserve would never do anything like that.’  Of course they would and people are catching on.”
Dr. Roberts goes on to say, “This is why the Federal Reserve is so irresponsible.”  So are the Fed and Obama Administration trying to crash the dollar on purpose?  Dr. Roberts says, “No, they are just stupid and arrogant. . . .  If you add up the IQ of the White House and you add up the IQ of the Fed and multiply it by a thousand trillion it might equal 50.  These are stupid policies designed to completely destroy the U.S. dollar. . . . I don’t think the United States can win the war against gold.” Join Greg Hunter as he goes One-on-One with Dr. Paul Craig Roberts.

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Elite Manipulation, Not Chinese Demand Remain in Control of PM Prices

Jamie DimonFor the past several weeks, we have shifted focus on what we see as the truer “story” of the PMs market, [Precious Metals].  Some may think we have gone off on an unrelated tangent talking about the elites and fiat currency.  The PM community has maintained a relentless focus on how much gold is being imported by China, the diminishing supply of physical gold at COMEX and LBMA, and a host of other popular statistics that support what seems to be important for gold and silver adherents in their beliefs that should ultimately lead to higher prices. 
The Law of Supply and Demand is what determines price.  Not enough are looking at how the elites are able to distort that Natural Law and bend it to their will.  It is the power they can exert, and distort, on any aspect of human life, at least in the Western world, that keeps gold and silver at unnaturally low prices.  The more cogent issue is, for how much longer can elites keep their unnatural control over the natural forces of Supply/Demand?

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Federal Reserve Gold Market Intervention And Government Corruption

Source: Banzai7

Source: Banzai7

Remember, the purpose of Quantitative Easing is to support the balance sheets of a few over-sized banks and to finance the federal budget deficit at an artificially low rate of interest. In other words, QE supports failed banks and federal fiscal irresponsibility. In order to successfully carry off this blatant misuse of public policy, the price of gold, a measure of the dollar’s value, must be suppressed. The Federal Reserve’s lack of integrity speaks volumes about the corruption of the US government (source link is below). [Read more...]

The Federal Reserve: Masters of the Universe or Trapped Incompetents?

Fed monkeyFor a variety of reasons, the Federal Reserve is viewed by many as the financial Master of the Universe. Given how the media hangs on every pronouncement and the visible power of the Fed’s policies to move markets, this view is understandable.
But suppose rather than being masters of all things financial, the Fed was actually little more than a collection of incompetents trapped in a broken system that is beyond repair.

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