“The Fed can cause massive inflation in 15 minutes.  They can call a board meeting, vote on a new policy, walk outside, and announce to the world that effective immediately, the price of gold is $5,000 per ounce…
Click here for full coverage from GATA’s Chris Powell:

The 2008 crisis saw the Fed use some of its tools, but not all of them.
The Fed’s most powerful tools, gold revaluation and money printing, were never employed in that crisis.
QE4, if used to fund government infrastructure spending, can be inflationary, but if the next crisis is severe, only gold revaluation will work to end it.

empire revolt

In the wake of the Swiss National Bank shocking the market this week de-pegging the CHF from the Euro, the Golden Jackass Jim Willie joined us over the weekend for an Exclusive Interview discussing: 

  • Willie explains why the Swiss are dumping the Euro in favor of GOLD, and that multi-hundred billion trading losses will result in MASSIVE DERIVATIVE LOSSES & CONTAGION!
  • Swiss actions have brought a HUGE ACCELERATION of end game eventsWe’re looking at the potential END of the EURO!
  • Swiss have front run the Global Currency Reset & GOLD REVALUATION!
  • $2 TRILLION IN SUB-PRIME OIL BONDS ARE ABOUT TO EXPLODE!  Contagion will be bigger than sub-prime housing crash!
  • Dollar Death-Spike: Fed has LOST CONTROL of the dollar!
  • Coming European bank failures will result in a STAMPEDE INTO GOLD!
  • 2015 Will be a repeat of Lehman- Several Western banks will go down, This is GAME OVER!
  • When Putin flips his switch, the DOLLAR IS DEAD, and Gold Will DOUBLE!
  • GREXIT will blow up the EU!

One of Jim Willie’s Most Dynamic & STUNNING Interviews EVER is below: 

China dragon

America is in no condition to endure an economic downturn, yet a downturn is coming, almost as surely as night follows day.
When the next crisis unfolds, I expect the Fed to quietly ask the Chinese central bank to revalue gold, by announcing a major gold buy program.
This would allow China’s currency to become a competitor with the dollar.

Equally importantly, it would allow the Fed to hide the key role that a higher gold price would play, in managing US government debt that is clearly out of control.

Jim SinclairThe US Federal Reserve has been printing money since 2011 to cover USGovt debt securities in a frenetic manner. They have lost control. They call it stimulus, when it is actually the opposite. It does assist the speculators with nearly zero cost money to borrow, but one must be a club member to win loan grants. The Quantitative Easing programs are deceptive. When the program was initially announced, the Jackass claimed it would be part of an endless sequence. With QE1 and QE2 and Operation Twist and QE3, following the failed trial balloon called Taper Talk, it is quite clear to anyone with an active brain stem and absent rose colored glasses that the USFed is caught in a trap called QE to Infinity. It is not stimulative. Instead, the uncontrollable bond monetization causes capital destruction. It causes economic degradation. It causes lost jobs and vanished income. It is a gigantic wet blanket to smother and destroy the USEconomy slowly, amidst unending propaganda. QE is the device that will result in Systemic Failure, which is already flashing signals of its arrival.

gold eagleLinking gold to a currency is always doomed to fail. The expansion of the money supply through bank lending and government deficit spending puts pressure on a fixed gold price, a pressure which can only be released by either revaluing gold at a higher price (from $20,67 to $35 per troy ounce in 1934) or by selling gold (London Gold Pool during the sixties). There is no discipline in a gold standard which links gold to the currency, it is just a matter of time before we can all agree it has failed. How long such a gold standard can live depends on the price at which the gold is fixed, how much gold there is in the vault to back up the currency and how fast the supply of currency expands. The only certainty is that it will fail sooner of later.

it begins collapseThe entire global financial system hurtles toward failure, which has been the quintessential Hat Trick Letter forecast since the year 2007, when numerous failure signals flashed red. The QE bond monetization by the USFed, joined by the other major central banks, has been adopted as permanent, just as forecasted in 2010. The ZIRP zero bound rate has been adopted as permanent also, just as forecasted in 2009. The consensus continues the totally incorrect viewpoint of monetary accommodation being stimulus, when it instead is killing capital and destroying the economy.
The systemic breakdown has become widely recognized.
Systemic failure and widespread sovereign bond default is no longer avoidable, nor is big bank failures. The breakdown failure will begin to occur in earnest, with acceleration, in year 2014.
The Global Currency Reset is a euphemism for the Return of the Gold Standard, which will seethe Gold Price will rise to $3000/oz.

Dr. Jim Willie, financial writer and Editor of the Hat Trick Letter, says, “I’ve been getting overwhelmed in the last month or two at the plethora, the litany of signals the financial system is imploding.  U.S. dollar is in a sell-off.  Treasury bonds are rapidly losing their integrity . . . and both banking and military sectors losing their global leadership.”   Dr. Willie goes on to says,The U.S. dollar and its trading vehicle, the Treasury bond, are dead . . . we have extraordinary tactics in place to keep the system going because they don’t want all the big U.S. banks to die.”  Dr. Willie goes on to warn,Banks, bonds and currencies are all on the edge of collapse.”  Dr. Willie contends a global currency reset is coming.  What happens to the U.S. dollar and gold?  Dr. Willie predicts, 50% dollar devaluation . . . we’re going to see a doubling of the gold price overnight.”  Dr. Willie contends, The Treasury bond will be phased out and gold will be phased in.”  Join Greg Hunter as he goes One-on-One with Jim Willie:

gold kissThe citizens of a dying empire may need to ask themselves some key questions.
What happens if the death of the American empire is not that important to the price of gold anymore?
What happens if the death of the American empire is becoming… irrelevant?

jones gold 2The central bank concept is the Matrix in embodiment, but the Eastern nations led by BRICS and G-20 have a key to unlock the USDollar prison. A quick look at the Australian banking system reveals four global banks who own outsized portions, their reach extending to the largest gold producer in Oz as well. Incest is best. The fast decline in Money Velocity is the most convincing proof of the failure of monetary policy. It does not provide stimulus, but rather capital destruction. The foreign dumping of USTreasury Bonds actually accelerated this past summer, amidst the Taper Talk trial balloon offered by the hapless desperate Bernanke Fed. His legacy will be one of disproving his own PhD Thesis, since liquidity in torrents does not repair insolvency, and no traction comes to soaked ground.
A grand game of shuffling gold bars has begun, actually accelerated in a final phase. The big bullion banks wish to obscure that they are almost bone dry of gold in inventory. The COMEX will shut down from no gold, rather than criminal prosecution in a land where crime rules and treason is the syndicate bylaw.
The climax event will be the return of the Gold Trade Standard, discarding the USTreasury Bonds, converting them to Gold bullion. The early adopters and those who follow the viable solution will be the winners. Those who cling to their USTBonds and their other paper securities in indentured servitude will be the losers.

bill holterWe will go to bed with Gold at $1,500 and wake up with it $4,000 bid…and nothing offered“- Reg Howe
This quote by Mr. Howe sounds crazy.  It sounds impossible and sounds like the rantings of a raving lunatic right?  Well, no it doesn’t.  Actually, I believe that something resembling this will not only happen but has to happen.  Logically, mathematically and just pure structurally an event very similar is locked, loaded ready for the trigger to be pulled.

Jim RickardsTangent Capital’s Jim Rickards was on CNBC’s Fast Money today, discussing gold in the wake of the recent smash to $1320.
Rickards called the smash a transition from weak hands at the COMEX to strong hands in China and Russia (& physical buyers across the world).
Rickards stated that the trend is up from here, although gold is likely to trade sideways for a majority of the year before climbing in Q4.
Rickards informed the CNBC shills that gold does well in periods of either inflation or deflation, and that The Fed will do everything they can. When they can’t win the battle against deflation, they devalue the currency against gold ’cause gold’s the only thing that can’t fight back.
The Currency Wars author states that If the Fed wins we’ll get inflation and gold will go up.  If deflation prevails, we’ll wake up one morning and gold will be (revalued to) $4,000/oz.
Rickards’  MUST WATCH thoughts on gold are below:

redesigned $100 gold noteThe Fed announced today that the long awaited and much anticipated redesigned $100 Federal Reserve note, which contains strong overtures to gold including a golden ink well, will be released on October 8th, 2013.   The golden hued C-notes, which have been delayed since 2010 due to “production issues” have been speculated by many in the precious metals community to signify a move by the Fed back towards a gold backing for the US dollar.

Is the dollar end game and a gold revaluation less than 6 months away?

currency devaluationIn light of the recent events in Cyprus, where the banks will reportedly remain closed at least through March 26th and the likelihood that Cyprus will exit the Eurozone, re-institute the Cypriot pound and devalue the currency is growing by the minute, we thought it apropos to republish LRS’ first hand account and experiences recognizing, surviving, and even profiting from the devaluation of the Mexican Peso in the late 1970’s.

For those unfamiliar with the account of the 1976 Mexican Peso devaluation (and anyone who has not experienced a currency devaluation first-hand), this is an ABSOLUTE MUST READ as while the Cypriots may be the first, they will undoubtedly not be the last to devalue their currency before the global financial debt crisis is over.

LRS, who successfully saw the Peso devaluation coming and side-stepped loss of wealth by converting his funds into US dollars, states that Americans must:
Read the writing on the wall, and extricate yourselves from your US dollar positions. 
Physical gold and silver bullion and coins will be the ultimate protection and wealth preservation assets during the coming devaluation of the US dollar.
My experience with the peso devaluation makes it necessary for me to move my investments away from paper into physical gold and silver.
  It is going to be a very tough time for the US and I anticipate the Mexican devaluation will pale in comparison to our dollar devaluation.

LRS’ full first-hand account of the Mexican Peso devaluation is below:

gold vaultA rightwing group has submitted more than 106,000 signatures to the federal authorities, seeking a vote on stopping the sale of gold reserves held by the Swiss National Bank (SNB). It also wants gold bars stored in the US to be returned.

The group, led by members of the Swiss People’s Party, the far-right Swiss Democrats and the Lega dei Ticinesi movement, is confident a nationwide vote will be called on the issue once the signatures are verified. A date still has to be set by the government. The collection of the necessary 100,000 signatures over 18 months was hard going but a last-minute effort ensured they reached the goal in time, activists said on Wednesday. People’s Party parliamentarian Luzi Stamm criticised the sale of gold reserves which started 13 years ago following a decision to abandon the gold standard.

The initiative also seeks to enshrine in the constitution a clause obliging the central bank to keep a minimum of 20 per cent of its assets in gold, twice the current level.

bank panicSubmitted by Bill Holter

They can’t undo this one!
Yesterday we heard that the amounts of “theft” from Cypriot depositors may be different than originally announced.  It now appears that the Cypriot Parliament will not approve the wealth confiscation of their citizens.   What a strange thought, can you imagine if this bank heist doesn’t go through?  If they said “aw shucks, we were just kidding”?  Can you imagine the bank runs?  Would you suppose that some 90++% of deposits might be withdrawn by Friday’s close? 
No, this puppy (bank run panic) is pregnant, not just “a little bit” mind you but ready to deliver pregnant.

One thing that I know for a fact that this will do is increase demand for Gold and Silver.
It will be very difficult to keep the lid on contagion and panic spreading from this incident.  It will be difficult because when a fire breaks out within a theater, people don’t stop to go to the restroom, people will want OUT…ALL THE WAY OUT!
“Out” as in physical, non tungstened, real physical Gold IN their hands and out of the system which is now known to even the most blind, mentally deficient, head in the sand “ignorant” as a fraud! 

jim willieThe Golden Jackass Jim Willie sat down with The Doc this weekend for an extraordinary interview regarding gold, silver, and what Willie believes will soon be a massive European banking collapse. 

Willie states that a Big European Bust is Coming- evidenced by the fact that European banks received $1.2 trillion from the NY Fed in January alone!
Willie states that the coming European bust will ignite a global Gold rush, a massive short covering rally, and will result in a powerful 30% to 50% rise in the gold price!

Willie also discusses gold and silver backwardation, the recent paper raids, and whether or not the metals face the risk of a 2008 type collapse as the Western financial markets go down in flames!

Jim Willie’s first of an explosive, 2-part interview with The Doc is below:

5000 goldLegendary gold trader Jim Sinclair released a truly EPIC alert to subscribers Sunday night, in which Sinclair states that gold will trade to $4,990 in the coming bull run prior to settling into a role as currency for the beginning of the greatest economic expansion in history.
Sinclair states that the coming volatility in gold (& silver) will be unprecedented, with $1500 swings in the price of gold prior to full valuation being achieved, and gold’s new status as global currency beginning.

For the first time, Sinclair gives his target for full valuation of gold of $4990/oz, and states that the return of gold to a global monetary role will usher in the greatest economic expansion the world has ever seen.

Jim Sinclair’s ultimate economic and gold prediction is below:

300px-Fort_Knox_tankSubmitted by Bill Holter

We “purport” to have just over 8.000 tons of Gold.  For round numbers this is valued between $400 billion and $500 billion.  The Fed has in place (probably clandestinely much more) a plan to purchase $85 billion per month of Treasury bonds that the Treasury must issue but nobody else wants to buy.  $85 billion times 12 equals $1 trillion two hundred 60 billion.  Numerically it is $1,260,000,000,000.  The Gold “reserves” (probably close to mere fumes by now) represented the wealth accumulated by the greatest industrial nation on Earth.  It took roughly 170 years to accumulate some 20,000 tons after WWII which was “officially” sold down to just over 8,000 tons by 1971. 

Fast forward to present day and what are we doing?  We are spending ALL of our Gold every 6 months!  And this assumes that we have the Gold!   The real number is probably 500 times over if you use actual debt.  The number is an “infinite” amount of times over if (it is) the Gold is gone.

Ben Davies Hinde CapitalIn this MUST LISTEN interview, GoldMoney’s Alasdair Macleod talks to Ben Davies, co-founder and CEO of Hinde Capital. They talk about the recent weakness in the gold price and factors that will propel gold higher.

Ben Davies states that revaluing gold and backing the monetary system with it could be one of the least disruptive ways out of the credit mess. The continuance of debt monetisation on the other hand has the potential to cause a hyperinflationary collapse. Davies is especially pessimistic about Japan, and sees a lot of trouble ahead and talks about Fukushima as a turning point for the country. He also talks about the dire straits the British pound is in.

Davies discusses the recent disappointing performance of gold bullion in light of all the monetary inflation around the globe. However, he points out that the physical market is fairly tight which usually occurs around a price bottom. They also talk about the pressure on the gold mining industry, China’s accumulation of gold, Comex gold data and the possibility of another banking crisis.

Davies’ full interview is below:

nuclearSubmitted by Stewart Thomson:

Gold revaluation and money printing are the nuclear weapons arsenal held by government treasury departments.

Gold is going higher, much higher.  It’s going higher because government treasury departments are moving away from quantitative easing involving bonds, and towards QE involving gold.  The gold bears will be destroyed, and everything they made you afraid of will seem ridiculous, in hindsight.  There will be no currency war, but there will be co-ordinated devaluation of all G20 currencies against gold, just like there was in the 1930s.

I consider the idea that the gold bull market is over to be “beyond ridiculous”.  I would argue that for all practical government intents and purposes, it’s barely startedBen Bernanke will soon have a hard decision to make.  He can either accelerate QE, or he can pout in a corner, while President Obama dons a gold revaluation mask.