When scientists start using phrases such as “the worst drought” and “as bad as you can imagine” to describe what is going on in the western half of the country, you know that things are bad.  Thanks to an epic drought that never seems to end, we are witnessing the beginning of a water crisis that most people never even dreamed was possible in this day and age.  The state of California is getting ready to ban people from watering their lawns and washing their cars, but if this drought persists we will eventually see far more extreme water conservation measures than that.  And the fact that nearly half of all of the produce in America comes out of the state of California means that ultimately this drought is going to deeply affect all of us.  Food prices have already been rising at an alarming rate, and the longer this drought goes on the higher they will go.
Let us hope and pray that this drought is permanently broken at some point, because otherwise we could very well be entering an era of extreme water rationing, gigantic dust storms and crippling food prices.
The following are 20 signs that the epic drought in the western half of the United States is starting to become apocalyptic…

cliff fall coyotePM Fund Manager Dave Kranzler joins the SGTReport to discuss the details of the collapse, which is in already progress — as Jim Willie says, it started in 2008 — however the sad reality for most Americans is that they won’t wake up until it’s too late.
Dave says, “The majority of people won’t pick up their pitchforks until something really bad and painful happens.  It might actually not happen until the Dollar collapses and people see that our country is essentially a third world country masquerading behind debt, printed money and FRAUD.”
Kranzler’s full MUST LISTEN interview is below:

As the Obama administration continues to alienate almost everyone else around the entire planet, an increasing number of prominent international voices are starting to question why the U.S. dollar should be so overwhelmingly dominant in global trade.  Gazprom is now asking their large customers to start paying in currencies other than the dollar But this is not just a story about Russia any longer.  As you will read about below, China and South Korea have just signed a major agreement to facilitate trade with one another using their own national currencies, and even prominent French officials are now talking about the need to use the dollar less and the euro more.  John Williams of shadowstats.com recently said that things have never “been more negative” for the U.S. dollar, and he was right on the mark.  The power of the almighty dollar has allowed all of us living in the United States to enjoy an extremely high standard of living for decades, but as that power now fades it is going to have profound implications for the U.S. economy. 

panicGET OUT OF YOUR BOND FUNDS NOW!
The day of reckoning is coming.
 I had a “eureka” moment last night when I read the comments by the chief economist of the Bank of England who, presumably unwittingly, warned that the aggregation of derivatives in the derivatives clearing system (primarily a subsidiary of The Depository Trust and Clearing Corporation – aka DTCC) could be “a problem from hell.”
The nexus of the problem is that fact that interest rate derivatives contracts make up the majority of the OTC derivatives.  
JP Morgan and Citibank alone have $97 trillion in notional amount of OTC interest rate derivatives exposure.
To put that in perspective, the total size of the U.S. stock market is around $22 trillion.  And $97 trillion doesn’t include the leverage that is embedded in these contracts.
Pimco, Black Rock and Fidelity have by far the largest concentration of exposure to this.   That’s why the Vice Chairman of Black Rock is going around promoting the idea of a mechanism to bail-out DTCC when the derivatives bombs start to fly. 
I was told this morning by someone in a position to know that the regulators are absolutely terrified of this problem and of a total bond market collapse.

panic crashWhen is the system going to break down?  The answer is 2008. 
The tipping point was the Lehman kill in Sept 2008, following the subprime mortgage collapse.
It was a death event for the US banking structure, which should have forced liquidation of all Wall Street firms.
Then came the Financial Accounting Standards Board relaxation of rules in April 2009, which still permits the big US banks to declare their assets at any value they wish.  They hide grotesque insolvency.  Their liquidation would not happen, instead zombies walked.
The next tipping point was the Federal Reserve announcing a move toward the Zero Percent Interest Rate (ZIRP) in early 2009, followed by the bond monetization initiative (QE) in early 2012.
The most recent tipping points are the Syria War and the Ukraine War to obstruct the Russian Energy Monopoly in the European energy market.  The defense of the USDollar has taken historically unprecedented turns.
These cited extreme events are all serious tipping points
. Since 2009, the vastly depleted, exhausted, and wrecked body economic of Uncle Sam has been kept going with life support, electric shock treatment, and the formaldehyde elixir.
No recovery comes. Systemic failure and total breakdown are assured.
The only protection is Gold & Silver coins and bars. The hyper monetary inflation has met the asset destruction. 

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empire revoltMarshall Swing joins The Doc & Eric Dubin this week for a MUST LISTEN Metals & Markets.
Our guest this week sees more downside straight ahead before the precious metals position for a rip-roaring rise as the final & greatest economic crash in human history takes place in 2015!
We also discuss: 

  • NFP: Only Wall Street and MSM could look at today’s lousy employment report and cheer
  • Cartel unable to keep silver under $21:  Eric sees precious metals resuming an uptrend next week; Marshall Swing sees another major cartel hit soon
  • 2015:  Marshall expects major financial asset downturn and complete derivatives bubble implosion- Is the coming derivatives collapse prophesied in Revelation?
    Marshall makes the case why Gold & silver (paper) will crash, followed by super-spike to unimaginable levels as entire world’s financial wealth simultaneously rushes into Phyzz
  • Jamie Dimon diagnosed with throat cancer- will derivative mastermind Blythe Masters take over for Dimon at The Morgue? 

The SD Weekly Metals & Markets With The Doc, Eric Dubin, & Guest Host Marshall Swing is below:

willieWhat I see coming in 2015 is the final and greatest economic crash in human history which will devastate all the world economies and brings in a sort of one world government that rules with an iron fist.  
The Western public will likely cheer it on because after a few weeks and months of nearly devastating consequences, the world’s economies will be restored to a solid operating basis with hard assets as the underlying “good faith” once again just like various countries throughout history have had and used successfully.
This time however, it will be all the countries of the world who will participate in the new monetary system based on their possession of hard assets.   A world wide governing board of “economic kings” will be set up to rule and make decisions for all of us and their decisions will be final for international trade. 
Will some countries rebel?   Those who have little hard assets will be hard pressed into a slave mentality to those countries with the hard assets AND MILITARY POWER to both back up their dictatorial ways and force the poorer countries of  the world to do as they say and also make them believe it is for their own good.
The Greatest Economic Crash & financial system upheaval in human history looms.  
Got PHYZZ??

Gold VaultGold has been a store of value for 5,000 years.   It has protected people from inflation, wars, and irresponsible governments during the last several thousand years. Gold has not always and forever been a good investment – the price of gold declined between 1980 and 2000.
But gold is currently excellent insurance against counter-party risk, consumer price inflation, central bank “money printing” and the consequences of the economic sins committed by irresponsible governments and central banks.
Gold (and silver) prices have bottomed and will move up substantially for several years.

betBetting on investments is not that different than betting on football games.   You identify one or two “keys to the game.”
Long bets vs. short bets …
For three years now I’ve been betting on silver as a smart investment.
My “key to the game” – and the reason I’ve made these bets – is simple enough: America, I’m betting, is effectively broke and must print money to stay in business. This assessment tells me that, at some point, the purchasing power of the dollar will decline precipitously and that demand for gold and silver will become much greater.

Have you noticed that prices are going up rapidly?  If so, you are certainly not alone.  But Federal Reserve chair Janet Yellen, the Obama administration and the mainstream media would have us believe that inflation is completely under control and exactly where it should be.  Perhaps if the highly manipulated numbers that they quote us were real, everything would be fine.  But of course the way that the inflation rate is calculated has been changed more than 20 times since the 1970s, and at this point it bears so little relation to reality that it is essentially meaningless.  Anyone that has to regularly pay for food, water, gas, electricity or anything else knows that inflation is too high.  In fact, if inflation was calculated the same way that it was back in 1980, the inflation rate would be close to 10 percent right now.

Let’s pull back for a moment and look at the Really Big Picture:
We’re facing a future in which the economic growth the world has enjoyed over the past century can no longer continue.
Massive changes to our way of life are in store. No matter where each of us lives.

As the MUCH WATCH video update to the original Crash Course (viewed by over 15 million people) from our friends at Peak Prosperity shows, 
The Next 20 Years Will Be Completely Unlike the Last 20:

muppetsThings couldn’t be better in our blissful economic utopia. I mean, for crying out loud, look at the stock market! It goes UP every day!! Things must be better than they’ve ever been.
The reason why the rich and get richer and everyone else is stuck in neutral and getting squeezed more every day is Fed policy.
Since direct debt monetization began five years ago, the “stock market” has soared and nearly tripled.   IF you had wealth and were able to participate, you’re pretty happy and you can at least still afford to drive and eat.  IF, on the other hand, you’re just a regular guy or gal with a spouse and a family, struggling to make ends meet, here’s what you’ve had to endure, instead:

my-shorts-on-fireDuring this past COT period we see in silver that price flat lined during the first part of the period then on Thursday evening after hours there was an explosion upwards. 
This is what I call a speculator short shakeout on the part of the commercials because price had been deteriorating more than they desired.   Thus, we see in the COT the large speculators covered 4,526 shorts.
Simple, dear Watson…
Both the producer merchant and the swap dealers picked up similar amounts of shorts at higher prices after the short shakeout. 

In gold, we see a very similar short shakeout...

Jim Rickards“Oil is stable.  What you’re seeing is the collapse of the dollar!  As oil goes from $100 to $200 a barrel, I don’t think that oil doubled, what I think is that the dollar collapses by half….The Fed wants a little inflation- they’re going to find they get alot more than a little.  This looks like the 70′s”  -Jim Rickards, on CNBC.
Full MUST WATCH interview is below: