Glenn Beck reviews Germany’s early 2013 request to repatriate 300 tonnes of gold held by the Federal Reserve Bank of New York and then asks why the Fed responded with a pledge to return the gold in 7 years. If the gold exists, it should be a simple matter of shipping logistics. But 7 years? Beck goes on to logically speculate that the gold doesn’t, in fact, exist. The gold that the Fed has so far returned, is not the original bars first delivered to the US from Germany some 70 years ago. They are newly recast bars. Could it be that the original gold was long ago rehypothecated, in order to maintain the illusion of a strong dollar? Beck believes it’s even worse – that the Fed and other western central banks of the world have not only rehypothecated each other’s gold, but have even sold or transferred the physical gold to new owners.
Over at ZeroHedge, Jim Kunstler’s latest post on his forecast for 2014 is a MUST READ!! Readers should greatly benefit from his astonishingly honest take on everything from the shale oil sham to last year’s gold slam. He even gets into Obamacare, Bitcoin the Euro crisis and the middle east.
Excerpt: Paper and digital markets levitate, central banks pull out all the stops of their magical reality-tweaking machine to manipulate everything, accounting fraud pervades public and private enterprise, everything is mis-priced, all official statistics are lies of one kind or another, the regulating authorities sit on their hands, lost in raptures of online pornography (or dreams of future employment at Goldman Sachs), the news media sprinkles wishful-thinking propaganda about a mythical “recovery” and the “shale gas miracle” on a credulous public desperate to believe, the routine swindles of medicine get more cruel and blatant each month, a tiny cohort of financial vampire squids suck in all the nominal wealth of society, and everybody else is left whirling down the drain of posterity in a vortex of diminishing returns and scuttled expectations.
Here’s Peter Schiff of Euro Pacific Capital pointing out that the recent positive GDP numbers indicate that America is spending money – money that is just created by the Fed. The GDP “is goosed.” If the Fed decides to take all that easy money away, the propped up markets – stocks, housing, etc. – will collapse. This, combined with the fact that most people don’t see the value of gold in this environment, makes Schiff even more bullish on the metal.
Here are a few interesting videos by YouTube’s belangp. The first one shows how the US economy is not getting better as the government’s massaged statistics try to portray. Instead, it’s so bad that only the Fed is left to buy up US debt as other nations are backing away. Are the elite preparing for a global reset?
And this third video explains further how gold flows between oil producers, bullion banks and miners. It also gives a great discussion regarding GOFO (Gold-Forward) rates and what they mean to the gold investor.
In this audio clip from Physical Gold Fund, James Rickards of Tangent Capital talks about the Fed’s alternatives in 2014 and how they may carry out their tapering plans. Rickards reviews the Fed’s actions, and how they’ve been unable to attain their specific goals, the forces of deflation versus inflation, as well as affects of nominal GDP growth in lieu of real GDP growth. He also discusses gold and gives some interesting comments regarding why he holds it, how much of it should be a part of any investment portfolio, and its current trading environment (specifically, that the current set-up could yield a major short-squeeze opportunity). Listen to mp3 audio.
And in the following Bloomberg interview, Rickards talks more about gold and how even though 2013 has seen a bad year for the metal in paper terms, there is still major demand for obtaining gold in physical form. Physical gold has been leaving the GLD ETF and going straight to China. That the central banks have to drain the ETF in order to get the physical metal shows that there is very little of the stuff available elsewhere. This is a must watch interview with James Rickards.
100 years ago today, President Woodrow Wilson signed the Federal Reserve Act into law. (How the institution’s framework was actually put together is revealed in Griffin’s Creature from Jekyll Island and is a must read.) In the previous post, James Rickards gave his critique of the Fed’s recent performance, but in the following video, Consuelo Mack gives a brief history of the Federal Reserve’s ascension to power and interviews James Grant and Richard Sylla to get their views on what ‘the Creature’ has accomplished over the past century.
James Rickards of Tangent Capital gives his critique of Ben Bernanke’s performance during his tenure as Chairman of the Federal Reserve. While some in the main-stream want to give Bernanke credit for ‘saving’ the global economy during the crisis of 2008, Rickards points out that Bernanke’s Fed helped create the crisis in the first place!
“So dictatorship didn’t happen overnight. It took 5 years, gradually, little by little to escalate to a dictatorship,” Katie Worthman, a survivor of the Natzi regime stated about the coming to power of Adolf Hitler. She explains how people became so desperate for change, that they elected and then turned over all control to the man who spoke so eloquently and promised a better life for those who had been oppressed. But the state would eventually take complete control via centralization. The political, economic, religious, education, healthcare, agricultural and communication systems became state-controlled bureaucracies. There are so many parallels between what happened in Germany in the 1930’s and what has been happening in America over the past decade – even the purpose and installation of Germany’s Gestapo can be lined up with The U.S. Homeland Security initiatives.
Take a few steps back and look objectively at the situation!
The following video from peakresources.org explains how the gold price suppression schemes executed by the Gold Cartel (central banks) have succeeded in destroying the profitability of the miners, which means they will soon be closing down their projects and future gold supplies are at risk. This is a catch-22 situation that can only mean much higher gold prices as remaining supplies are diminished.
Mike Maloney reviews chart data from the St. Louis Fed and shows the great currency expansion that has ensued since Richard Nixon took the dollar off the international gold standard in 1971. The data also shows how the velocity of money has not increased, which is why we are not getting much inflation yet (as Jim Rickards has pointed out numerous times on this site already). Instead, this money expansion has only benefited the banks and the elite, who are buying up real assets with all this printed money, leaving the rest of us with pure debt.
CNBC’s Rick Santelli and former director of the US Office of Management & Budget, David Stockman discuss the latest budget deal and how it’s beyond any sense of fiscal responsibility.
- Eliminates caps – No ceilings to contend with for at least 2 years
- Adds $70 billion in spending for 2013 and another $70 billion for 2014
- Avoids most of the sequestered military & discretionary spending
Talk about kicking the can!
Mike Maloney reviews the 2013 Annual Report – Economic Freedom of the World (available here) and shows how collectivism is destroying our economic freedoms. Unlike the past, however, this is now happening globally.
Grant Williams, author of the newsletter, Things That Make You Go Hmmm, reviews the results of the last decade of Central Bank activity – namely: Bubbles. Bubbles are everywhere…. stocks, bonds, commodities, real estate. But Williams goes on to explain how the central bankers are stuck. There is no way out of this mess without severe pain. They (the central bankers) have found themselves in a position where they can only talk about halting the easy money policies, but cannot actually do it without completely crashing the system. He notes that Janet Yellen may indeed try to taper from $85 to $65 billion per month, but soon would have to re-engage more QE because the US economy is not strong enough on its own.
So what to do? Williams recommends holding a lot of cash right now in order to take advantage of the situation coming after the crash.
|Over at Scottsdale Bullion and Coin, they’ve put together an info-graphic describing the importance of silver in technology, healthcare and medicine.
This impressive pictorial reveals how silver is needed in a wide array of applications – from its use in the world’s strongest alloy and superconductors to purification and even nano-technologies.
What is it about a comedian that gives him that uncanny ability to put the shocking and sad truths right in front of our eyes, and yet make us laugh at them? First up is Jon Stewart showing how the main-stream media has wavered on its reporting stance of JP Morgan’s takeover of Bear Stearns in 2008 and its recent $13 billion settlement with the Justice Department over ‘alleged’ financial misdeeds.
And then there’s the slightly more serious delivery of the reality of our socioeconomic conditions in the western world by Russell Brand in this BBC interview by Jeremy Paxman.
While the comedian usually does a good job of showing us the issues, their ideas on how to solve society’s problems can be questionable. Peter Schiff takes up the opposition to Brand’s socialist remedy in the following video.
Speaking from the center of control over world policies, the Council on Foreign Relations, the CEO of one of the most powerful banks in the world, Jamie Dimon of JP Morgan, admits, “It’s virtually assured, the question is when and how.” That was his immediate response to the question put to him regarding the possibility of the international bond market moving against the US because of its inability to get its fiscal house in order.
What the crazy conspiracy theorists have been saying for years, the conspirators are now admitting openly. Does this mean the end-game is fast approaching? Maybe. According to CNN, the Treasury Department has said the U.S. government must raise the amount of money it can borrow or else it would be unable to pay its bills. When you get into a situation where you need to perpetually borrow in order to pay off the debt and keep the game running, you’re following in the footsteps of Charles Ponzi. And as ZeroHedge has noted, Ponzi Finance is the policy being followed at this point, which is likely a precursor to the end-game.
James Rickards, author of Currency Wars, gave the following presentation at The Future of Money 2.0 in Bratislava, Slovakia on September 26, 2013. A week later, Rickards gave the same presentation, though significantly abbreviated, at the Casey Research Summit in Tucson, Arizona. In the presentation, he covers:
- US Defense Department’s exercises in financial warfare.
- Historical currency devaluations by countries to gain trade advantages.
- Historical examples of re-establishing a gold standard after a currency collapse.
- The current situation of Inflationary and Deflationary forces working against each other – an unstable situation.
- Irving Fisher’s (and later Milton Friedman) theory of economics (Quantity Theory of Money … M x V = P x Q).
- QE, Operation Twist, etc. have had no affect because money velocity is not responding. 2014 may bring efforts to put money directly into the hands of the people (e.i. Tax Cuts).
- Complexity Theory may provide a better model for the Fed, as it shows that the economic system has become increasingly more interconnected across sectors. It actually predicted the 2008 collapse and, unfortunately the model is even more densely integrated today, indicating a worse crash ahead.
- The potential remedies the Fed or the IMF might enforce in response to the next collapse.
Please read the CFTC’s release carefully!!! Too many articles on the web are incorrectly stating what was found or not found by the CFTC during its investigations. But the release doesn’t report any findings other than stating “Based upon the law and evidence as they exist at this time, there is not a viable basis to bring an enforcement action with respect to any firm or its employees related to our investigation of silver markets.” While it does not say that it found evidence of manipulation, it also does not say that it did not find any evidence. It only states that they investigated the situation, by numerous means and with over 7,000 staff hours.
This is important and very revealing. If there were laws in place that allowed certain entities to manipulate the market, the CFTC would not be able to bring legal charges against those entities even if it found the allegations of manipulation to be true. And, as Chris Powell of GATA has demonstrated, this is exactly the situation: The authority [of the government to interfere in any market] was given in the Gold Reserve Act of 1934, which established the Exchange Stabilization Fund in the Treasury Department.
If you’re going to invest in precious metals, you need to be consciously aware that you are betting against the solvency of the United States. The US government will indeed do all it can to defend its currency. But they are cornered. The western social-welfare/political-warfare state makes it necessary to debase the currency to keep everyone fat, dumb and happy. Currency debasement techniques have been tried repeatedly throughout history, yet have always failed. However, if the government can cast an illusion of prosperity, they’ll stay in power long enough to squeeze every last drop of real wealth from citizens. That illusion remains in place today as all markets are either propped up or capped in order to keep everyone thinking everything’s fine.
The ongoing saga of precious metals market rigging is documented here.