ChinaAs we know so well; over the last two weeks, the chaos in global markets finally reached the shores of Manhattan. Market chaos, that had previously been quite widespread and headlined by China, finally gripped U.S. markets. Now we find out China has exited over $100 billion of U.S. Treasury bonds in just the last two weeks and has indicated it is dumping more through Belgium and elsewhere.
China will clearly no longer fund U.S. budget deficits in the foreseeable future. This leaves us with the misunderstood truth “the Federal Reserve is THE Buyer of last resort.” Worse yet; the Emerging Markets have had to jump the gun and have already started to unload U.S. Treasury’s as their currency falls to reflect lower trade and China’s devaluation of the Yuan.
Apparently, the U.S. has now crossed the Rubicon of sorts and will be forced to “print” deficit spending as a last resort. It is called MONETIZATION and has ALWAYS led to hyperinflation.

plungeFrom Greg Hunter’s USAWatchdog.com
Legendary gold expert Jim Sinclair says what is going on right now in the stock market is just the warm-up act.
Sinclair contends, “This is a pre-crash, and we are not making it through September without the real thing.
The US Plunge Protection Team is losing control of the markets, and Sinclair warns, “They got the dickens scared out of them. They actually backed off providing the funds necessary. . . . That’s your warning. The warning is markets can overrun plunge protection teams. Markets can and will overrun the manipulation of metals and currencies.
The market will overrun the false strength in the US dollar…
Huge changes are coming
The two last men standing will be gold and gold on steroids-silver.”

imagesThe credit bubble has been identified, recognized and “pricked”, the equity markets are only a symptom. Do not be fooled by any strength this coming week, it should be used to raise cash.
As September moves in, the September-October timeframe looks like a disaster.
What may start out as circuit breakers being hit now, will ultimately be the plugs yanked out over the next couple of months. I believe a market closure is in our near term future.

Gold and silver will be your ONLY lifeboats…

vaultI was told years ago by a “famous” trader I was nuts regarding backwardation.  He told me it didn’t exist on COMEX and LBMA didn’t matter.  What possible explanation can be given for the current situation on COMEX (which supposedly “does matter”) where backwardation clearly exists from the August contract all the way out to December?
SOMETHING IS VERY WRONG…

end“It’s like if in a casino and everyone starts winning, mysteriously either the lights go out of someone pulls a fire alarm …no more gambling!  I think the PPT knew they were going to be overwhelmed, if this were the case and I was the chairman of the NYSE, I would run upstairs and pull the plug out of the wall.  …Problem solved …for now!

Play

collapse bail inBill Holter joins The Doc for an Exclusive Update on the Greek Crisis, and the Potential for a Full Derivatives CONTAGION, Discussing:

  • Greek problem is not $3 billion, its $3 TRILLION IN DERIVATIVES– Will ISDA Allow Default?
  • Greek default WAS NOT PRICED IN- Why a MASSIVE LIQUIDITY EVENT has been triggered!
  • End Game for Greek Depositors- Are the Depositor Haircuts and Bail-ins Imminent?
  • Bill Warns: Greece Is Going to Happen Here- The Credit System is Going to Collapse!
  • Gold Will Get Your Wealth into the Next System After a Reset Occurs
  • JPM Corners the Commodities Derivatives Market Adding $3 TRILLION 
  • COMEX Will Go Force Majeure Allowing JPM to Unwind Massive Short PositionBill Holter’s Full MUST LISTEN Greek Alert is Below:

holterMy fear is we are not in 2008 anymore, the coming collapse will change the world order to one unrecognizable to today. 
The U.S. is in fact “broke” as we spoke of at the beginning.  The “realization” of this not only can happen but WILL happen.  Sadly, because of how badly the U.S. has treated the world over these last years, we will be given no mercy when negotiating our bankruptcy. 
It will be a real live wolf at our door!

Bernanke-Dimon-Fed-TunnelI assume JP Morgan and the Fed are one and the same.  There have been stories JPM has amassed 350 or more ounces of silver.  We also know China/Russia/India have been huge buyers of gold.  We now know JPM has increased their derivatives by over $3 trillion in just one quarter.  It is obvious to me, they are the ones sitting on the paper prices of gold and silver.  This would make sense for the Fed to attack the metals and thus support the dollar.
In fact, standard procedure in any war is to strengthen your currency while weakening your opponents.  I believe the neocons know the bottom of our “gold barrel” is close at hand, they have decided to go ALL IN on price suppression.

chinaIn the past, total open interest always dropped going into FND, now it is not.  Not only are all July contracts closed out being rolled into September, the total is rising rather than declining sharply. 
I first wrote last August about the situation where huge open interest in the September contract dwarfed the available silver for delivery. 

My speculation then as it is now, I believe somehow the bulk of the open interest in the nearby month is of Chinese origin
Call it the Chinese “Kill Switch”:

collapseThe world is not going to end.
It ALREADY HAS, and you have not noticed.
They will cause a chain reaction financial dark energy that cannot be stopped by any central bank or all central banks together.

stormI cannot stress how important it is now for you to be on guard for anything at any time.
A market closure, though likely over a weekend, can occur during ANY WEEKDAY! 
Do not allow yourself to be lulled to sleep by any rallies from here or stories of how “the storm has passed”.
It is ONLY BEGINNING! 

panicEric Sprott, Bill Holter, and Greg Hunter join TruNews’ Rick Wiles for a MEGA PM Round-table interview breaking down the Greek End Game, and how the collapse is likely to play out.
Sprott explains why the US and EU cannot afford the fallout of a Greek collapse and the nation turning to Russia, and why the banking cartel must avoid a Lehman style liquidation by any means possible...
Is the biggest financial debacle in human history ALREADY UNRAVELING?
Full MUST WATCH 60 Minute MEGA Financial Roundtable With Sprott, Holter, & Hunter is below:

collapseFor CNBC or any media outlet to downplay a Greek default is plain evil deceit at its core. 
Greece owes close to 350 billion euros and when the amount of written derivatives are included we are probably talking well over 3 trillion euros!
Please remember when a “default” occurs, the “notional value” of derivatives positions becomes the true at risk amount.  This was the problem caused by Lehman Brothers in 2008, derivatives which had been supported by margin alone (and very thin at that) saw margin calls explode and the demands of 100% notional payments began
This is why no one, ever, can be allowed to fail.  Because then the triggers are pulled and notional settlements begin …with a minor problem

Derivatives simply cannot perform because they total more than the value of everything else added together on the planet.