Time is Running Out for Banking Cartel

cartelThe central banks KNOW and have KNOWN that the only way out is through confiscating assets.  Either by stealing directly through bank accounts, pensions and the like OR through inflation and devaluing currencies…which is WHY they are shaking the Golden trees so hard right now.
They know “what” is coming because THEY are going (and have been doing) to do it.  They know that they must clean as many Gold and Silver assets up and off of the streets as they can…NOW and get them out of the hands of the people.  “Time” is running out!

 

They’ve bought some time…

…but that’s about all and probably not much.  Stock markets at highs, precious metals under pressure and bond yields down, what more could you want to “show” that all is well across the land?  Well, a couple of “humorous” pieces of news have surfaced beyond what we knew yesterday as to upcoming events that will best be viewed with a bowl of popcorn by your side.  It turns out that Spain funded their own debt market the second half of last year by stuffing their equivalent of Social Security with their own sovereign debt.  The pension now consists 97% of Spanish sovereign debt.  SHOCKING until you look at our own plan which is basically 100% US Treasuries and Agencies…what could possibly go wrong here?

Then we heard from Japan last night, that little island that’s just “glowing” with economic activity, they announced a $1.4 trillion “printing/stimulus” package over the next two years.   $1.4 TRILLION!  Let me put this in perspective for you, this amount will first of all literally double their money supply in 2 years.  It is not one $700 billion U.S. TARP plan, no, it’s TWO back to back from an island the size of New Jersey!  But wait, let me REALLY put it into perspective for you.  Do you Know how much $1.4 trillion really is?  At today’s price of Gold, it is equal to 7 YEARS of GLOBAL PRODUCTION (what is it about this 7 years stuff?  First Germany waits 7 years for their Gold, now Japan does a print job equal to 7 years of global production?).
Where oh where will the Bank of Japan eventually sell these radioactive securities in the marketplace?  Especially with the whopping 1/2 of 1% interest that they are paying.  …AND after telling the world that their currency will be worth almost exactly 1/2 of what it’s “worth” now after doubling the money supply?  Let me do a little crude math for you here. In 2 years the buyer of a ten year Samurai bond will earn a cumulative 1% in interest…the Yen will theoretically be worth 50% of what it is today if the money supply doubles as they promise, leaving the buyer with a 49% loss.  In the words of “Ronco”, but wait there’s more!  What happens if interest rates double to a whopping 1% in 2 years?  Another 50% haircut leaving you with 24% of your original investment?  Or what if the unthinkable happens and rates go to sky high levels like 2%?  Another 50% haircut?  I have to stop here because the math is getting just too hard for me…and you get the point anyway, they are announcing a devaluation of the Yen in massive terms.
So what to do?  Well first off you should sell all of your Gold because “it’s going down” and no one wants to lose money right?  Which is exactly “why” it has been “going down”.  (first a little sarcasm…Gold has been going down in anticipation of this Japanese freak show?  Maybe the news leaked out and someone wanted to front run getting out of Gold first?  …Sarcasm now off)  The central banks KNOW and have KNOWN that the only way out is through confiscating assets.  Either by stealing directly through bank accounts, pensions and the like OR through inflation and devaluing currencies…which is WHY they are shaking the Golden trees so hard right now.  They know “what” is coming because THEY are going (and have been doing) to do it.  They know that they must clean as many Gold and Silver assets up and off of the streets as they can…NOW and get them out of the hands of the people.  “Time” is running out!
As to physical supply of metal. junk Silver is very scarce with up to 5 weeks before delivery and the premium is approaching 10%.  The U.S. Mint ALONE sold more Silver Eagles in the last 3 months than all of the Silver produced in the United States over that time!  Southern India is experiencing Gold shortages even after huge imports and I now have heard a story (I will try to verify) where Bangkok Thailand is actually out of Gold with at least 5 day wait lists and very small amounts allowed to even be ordered.  The more they shake the tree apparently the less “fruit” is becoming available because buyers of the real thing are doing what buyers always do.  They are BUYING when their desired product goes on sale…ah the unintended consequences of a “centrally planned” global economy!  As the saying goes, “they are of their own undoing”.
Regards,  Bill H.

Comments

  1. Heh. I just took 5 more oz ag off the casino table this week. 4 oz 999 and 1oz uk junk. 

  2. Good piece Doc!
    Oh what a tangled web we weave
    When first we practice to deceive. – Sir Walter Scott (Marmion, 1808) – Performed Live by The Banksters (2013)

  3. This weekend in calgary is the cambridge house energy and resource investment conference. I’ll be there and will be leaving a little heavier in the pants.
     
    Someone unplug the record player so we can get this musical chairs game done with.

    • I don’t think we will have to wait too long for the music to stop … maybe then my head will stop hurting.

      And, good luck with the surgery … oh sorry, you meant you were buying silver :)

    • “And, good luck with the surgery … oh sorry, you meant you were buying silver ”
       
      LOL!!!
       

  4. Well? This pretty much explains the massive take down this week. They knew the jobs report was going to be weak. Therefore take silver and gold down. Now it only goes up 40 cents and gold up $15.00. 
    Nice work Doc! Very informative article. Now lets concentrate on N. Korea and talk about missiles so we can take away from the economy and all the corruption.

    • NK has been resting all day after ‘loading missiles onto launchers’ and ‘warning foreign embassy staff’!! Strangely they don’t have the energy for it, until the dollar falls. WTF type of war is this anyway?

    • “WTF type of war is this anyway?”
       
      Hmmm… a BS war?
       

  5. When, in God’s name, are they going to indict and put these criminal Banksters in jail?  They did it in Iceland.   We can do it here.

    • They (the bought and paid for Govmint) can’t put their partners in crime (Bankster) bosses into jail, who would control the Puppet strings of Govmint then?

    • Not only that but partners in crime HAVE to protect each other.  They ALL know too much!
       

    • When Joe citizen manages to get past bank security and arrest them at gunpoint, or save a trial and just execute them on the spot

  6. Ok, so every time there’s a small crisis in the world silver gets smashed and the USD goes up? And the crisis coming is a lot worse correct? So, wouldn’t it be better to wait for the final crisis to hit before buying silver? I mean, what if the EU goes insolvent and default on their debts? Wont silver plummet? Wouldn’t that be a better buying opportunity than now?

    • @illuminatedmind – Yeah, obviously that would be the ideal situation.  However, no one knows exactly when the SHTF.  That’s like timing the markets – it’s almost impossible to get in at the absolute basement.  So, it’s way better to get what you can, when you can.  And I think you have to do it now.  We didn’t invent the rainy day, but silver is the best umbrella.  Get it while you still can, and you’ll always be thankful you did.

  7. @stillstackin Gotcha. I figured its best to keep stacking at 30 or lower… The value is there no matter how low they push the paper price. Makes sense.

  8. awwwwwh….I’ve lost my football helmet……can’t think straight…whats it mean to stack??

  9. The US Mint is breaking sales records.  I don’t buy anything from the mint.  I wonder how many ounces of Silver are being purchased by Americans outside of the US mint.  Probably moar.  I think that there is a trade imbalance in Silver.  I think we’re buying most of it. Too bad for the rest of the world.  Who is going to mess with US?  Nobody.  That’s who.  

    • @andrew james Lol your wrong buddy. There are many large overseas buyers in China, India, Russia among many over governments and central banks. There are citizens overseas purchasing millions of ounces we aren’t the only ones. If China wanted to dump their 3 trillion or so US bonds and purchase gold and silver, the USD would probably drop by over 50% and we would no longer be able to afford precious metals…

    • “ If China wanted to dump their 3 trillion or so US bonds and purchase gold and silver, the USD would probably drop by over 50% and we would no longer be able to afford precious metals…”
       
      Of course, the odds of that happening are about nil.  Yes, China wants to divest itself of US dollar denominated assets but they do not want to trash the market value of those assets any sooner than necessary.  They will sell them off at a slow but steady rate and convert them into REAL assets:  mines, oil fields, farms, ranches, businesses, and, of course, all the gold and silver they can get their hands on.  It is interesting to note that the Chinese are not merely buying oil and other commodities but the means of producing them.  THAT is where the future lies and they know it.  The 21st century will become known in history as “the time of the resource wars”.
       

  10. 4OZ  I know that silver under $30 gives us dain bramage but put your helmet back on.  We don’t know who you are.
    As for the mint, with silver supplies puckering up tighter than a pederast in Super Max, when will the mint declare another Farce Majeur?   Sorry, the sequester jester sez ‘no mas silver’
    Buying and crying or selling and yelling.  There’s the choice

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