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He told Silver Doctors what happens to that barrel…

The current set of fiscal and monetary policies pursued by central banks and states are all based on lessons drawn from the Great Depression of the 1930s. The successful (if slow and uneven) “recovery” since the 2008-09 global financial meltdown is being touted as evidence that the key determinants of success drawn from the Great Depression are still valid: the Keynesian (or neo-Keynesian) policies of massive deficit spending by central states and extreme monetary easing policies by central banks.
Are the present-day conditions identical to those of the Great Depression?  If not, then how can anyone conclude that the lessons drawn from that era will be valid in an entirely different set of conditions?
We need only consider Japan’s remarkably unsuccessful 25-year pursuit of these policies to wonder if the outcomes of these sacrosanct monetary and fiscal policies are truly predictable, or whether the key determinants of macro-economic success and failure have yet to be identified.

In a taxation regime, the banks are one powerful interest group among many. In a money printing regime in a debt money system, the banks rule supreme.
To question money-printing as the one-size-fits-all solution to every economic problem is to question the power structure of the status quo.

Something nasty is going on behind the scenes in the financial system that is not yet apparent.
Treasury futures opened in the early evening and the 10-yr traded down to 2.25%
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Something has the market incredibly spooked and I find it interesting that the U.S. Treasury Secretary and the UK’s equivalent will be running a big bank fail simulation test next week.
The movement in 10-yr Treasury yields AND the blatant smashing of the gold price since mid-July is exactly what occurred in 2008 before Lehman collapsed.

Is another TBTF mega bank on the brink of insolvency??

Jim GrantIn this MUST WATCH interview with CNBC, the Interest Rate Observer’s Jim Grant explains why the 2 greatest opportunities for investors right now are Russia & gold. 
Gold, to me is 
a very sound inoculation against the harebrained doctrine of modern central bankers.  If you harbor doubts about the efficacy as do I of five years of monetary printing via quantitative easing & suppressed interest rates, and wonder how this unprecedented experiment is going to pan out, you can do worse for yourself than to hedge (with gold) from an unscripted monetary outcome.”  

Grant concludes that investors should own gold because:  “
It stands to benefit from the demonstrated, as opposed the theoretically likely, crack up of the current monetary arrangements.”
Grant’s full interview on opportunities in Russia & Gold is below: 

binford xlWhile everyone focuses on the breakneck money creation by the Fed and the BOJ, what happened in the past month is that China quietly created some 20% more money. Perhaps most impotantly, between these three entities, nearly $400 billion in liquidity was created de novo in one month! Because when the entire world is a credit-fueled ponzi scheme, these are the kind of numbers that matter.

Industrial & Transportation Energy ConsumptionAfter watching the schizophrenic market reaction to St. Louis Fed Bullard’s remarks Friday, I am amazed that the world doesn’t think we have gone completely insane.  I don’t know how long this sort of Fed induced lunacy can continue, but real signs are pointing to an economy that is still stagnating even with the trillions of dollars of money printing.
Unfortunately, many gold and silver investors are increasingly frustrated and seem to be losing patience.  My response to that is…. the frustration and fear in holding precious metals is exactly the reaction the Fiat Monetary Authorities where shooting for.
If you own the physical and look at your wealth in ounces of gold and silver… it doesn’t really matter what happens along the way.

Bernanke helicopterBob Wiedemer, author of “The Aftershock Investor,” says, “People are defiantly in denial about what we’re doing. . . . Nobody mentions the $85 billion a month we’re printing now. . . . We’ve only printed about $800 billion in the last 100 years. We’re going to print more than that next year. So, literally 100 years of printing next year.” Wiedemer says you think of your mortgage as rent because you will never get it back. Wiedemer contends, “When interest rates rise, the value of homes drop. We’re assuming interest rates will never rise. Well, when you print as much money as were talking about, it’s inevitable. Interest rates will absolutely rise one way or another.” In his latest book, Wiedemer says to get out of stocks and bonds. He predicts, “Between now and 2014, I think you’re going to fall out of bed. . . . Stock investors could take a very big hit—well over 50%.” Wiedemer calls gold “the once and future king” and goes on to predict “gold will go to $6,000 to $7,000 per ounce.” Join Greg Hunter as he goes One-on-One with Bob Wiedemer.

BernankeThe US economy would have to undergo a major readjustment if QE ceased. Quantitative easing could even be replaced with outright money printing.  One prominent hedge fund manager is already calling for it!
Regardless of day to day moves in the dollar, the US currency has to decline in the long term.
The long term dollar chart looks terrible!

velocity of moneyNot all prices rise at the same time, nor do they rise evenly. Furthermore, the equation of exchange cannot differentiate between price changes that emanate from demand for goods and those that emanate from changes in preference for money – two effects that can produce very different results.
These unknowns are effectively wrapped up in that catch-all, velocity of circulation.

binford xlCiti’s Steven Englander gifted us with 2 classic bankster quotes for the ages in his latest note regarding Monday’s Italian elections, in which alas, the bankster candidate(s) did not prevail.  

Englander began his note by stating that This is the first European election in which voters didn’t do the right thing, and stated that he is surprised that Italians supported politicians who reject austerity, and that this could be a major problem if it proves contagious.
Yes, the rejection of austerity measures could prove a major problem for the banksters if it spreads throughout the Euro-zone, just ask Iceland’s creditors.
Englader wasn’t finished there, as he went on to claim Elections are more problematic than market scares or sentiment shifts as they can’t be undone by printing money.