Friday, July 28, 2017

The Globalist One World Currency Will Look A Lot Like Bitcoin

If I appeared to be ambivalent about crypto-currencies like Bitcoin, it's because I was.  I penned a blog on why Bitcoin was a legitimate currency back in 2013 <click here>, and its mainstream acceptance since then has proven that point beyond doubt.

But I also later wrote other blog entries around my concerns about crypto-currencies <click here>, namely how a backdoor in the encryption allowed access which isn't necessarily desirable <click here>.  Could the trapdoor loophole be a creation of the NSA, Secret Service or US Treasury?  Perhaps.  Edward Snowden believed so.  And if Bitcoin has an upper limit of 21 million units, what's to prevent other crypto-currencies from emerging?

For true Bitcoin nerds, here are two insightful articles about crypto-currency encryption algorithms:  <click here> and <click here>.

The first concern is playing out as law enforcement authorities are capturing criminals conducting business and stealing crypto-curriences.  Pseudo-anonymity is not anonymous, frankly.  And the second  concern is materializing as thousands of other crypto-currencies have been created via ICO's (Initial Coin Offerings)--most of which have been funded by Bitcoin or Ethereum, thereby driving up demand for both.  It's analogous to calculus gone bad, as first-order and second-order derivatives are spiraling out of control in an endless positive feedback loop.

At the end of the day, these and other reasons I've mentioned previously are why I remain skeptical about the long-term prospects of crypto-currencies as safe haven assets.  Bitcoin may be a currency, but it is not sound money, in my opinion.

This article by Brandon Smith sums up the future role of the IMF's Special Drawing Rights and crypto-currencies well.

Thursday, July 27, 2017

PBoC Gold Purchases: Secretive Accumulation on the International Market

It's pretty well known amongst gold bugs that official Chinese gold reserves are spectacularly understated and under-reported.  By extension, it's logical to deduce that they are manipulating prices lower as they continue their accumulation of gold--for different reasons than western central banks.

The latter suppress gold prices to mask fiscal insolvency and financial mismanagement of their respective country's treasuries.  The Chinese hold down gold prices to buy low.

At some point, they will have enough and the springboard in gold prices will be released.

Greece Arrests Russian "Mastermind" Behind $4 Billion Bitcoin Laundering Scheme

Despite it's alleged pseudo-anonymity and scarcity, THIS is why crypto currencies aren't quite the safe haven its most ardent supporters claim it to be. Yes, crypto-currencies are indeed currencies, but its inherent "virtual" nature makes it unsound money. Only tangible assets are real. Got gold?

Despite The Euphoria, A Major Warning Flag Is Now Waving

Margin debt is at record highs, signalling extreme euphoria among (retail) investors. A market crash is pending, if not imminent.

Tuesday, July 25, 2017

How Big Of A Deleveraging Are We Talking About?

“If the economy is doing as well as Central Banks suggest, then why, after 9-years, are the ’emergency measures’ being applied to global economies still in place?” 
More importantly, what happens when they are forced to stop.
Of course, this is why Central Banks globally are terrified of such an outcome.

Wednesday, July 19, 2017

Here’s Why I Know Bitcoin and Ethereum Are In a Bubble, Built On Top of Outright Scams

Don't Be Fooled - The Federal Reserve Will Continue Rate Hikes Despite Crisis

The Federal Reserve Is A Saboteur - And The "Experts" Are Oblivious

The Golden Conspiracy

A Tale of Two Gold Markets

How Governments Can Kill Cash

ALERT: 44-Year Market Veteran Says Retail Panic Selling Now Taking Place In Gold & Silver Markets!

Paul Craig Roberts – David Stockman Did Not Listen And Propaganda Has Prevailed

Monday, July 17, 2017

Gold Performs Well Even When Interest Rates Rise

Many pundits believe rising interest rates are bearish for precious metals, since rising bond yields provide more effective competition against gold and silver, which pay no dividends.  By extension, the conventional wisdom is investors would then gravitate toward fixed-income investments (which pay a coupon) over physical gold or silver.  It's intuitively correct, but history shows it is mostly inaccurate.

Gold made its historic run up in the 1970's when inflation was rearing its ugly head.  More recently, the Fed raised interest rates a tick (reversing policy for the first time since 2008) in December 2015, which coincided with the bottom in gold.  The reason is because not only is gold a good hedge against inflation, but it performs even better when there is distress in financial markets and doubts about the soundness of currencies.

Sunday, July 16, 2017

Gold shops: coming to a high street near you?

THIS IS TERRIFYING: Will All Of Your Money Be Wiped Out In The Blink Of An Eye?
1.  Take $18 trillion of debt printed by insolvent central banks, up 300% since 2006.
2.  Add other public debt as well as private debt to reach $230 trillion, up 60% since 2006.
3.  Add unfunded global liabilities and other commitments of $270 trillion making a total of $500 trillion at a minimum. 
4.  Just one small bit to add, which is derivatives of $1.5 quadrillion taking us to a total of $2 quadrillion or more. 
5.  Run budget deficits for over 50 years like the US.
6.  Always buy more than you sell, creating trade deficits for over 40 years, again like the US or the UK.
7.  Print money to pay for all your government expenses like Japan.
8.  Buy your own debt like Japan, USA, the EU, UK, etc. 
9.  Mismanage your country and currency until the money reaches its intrinsic value of Zero. So far, all major currencies are down 97-99% since 1913.
10.  Allow the financial system unlimited leverage to benefit a miniscule minority and burden the masses with debt.
11.  Manipulate all markets to totally obscure price discovery. 
12.  Set interest rates at zero or negative so that governments can borrow unlimited amounts. 
13.  Suppress the value of gold in order to hide the mismanagement of money and the economy. 
14.  Set up a system of misinformation and Fake news to mislead the people.
15.  Once 1 to 14 has been achieved, start at 1 again and do more of the same.

Thursday, July 13, 2017

CME Chairman Terry Duffy

Fast forward to the 5 minute mark to see CME Chairman Terry Duffy's comments on the price of gold. It is interesting because gold bugs believe his organization is partly responsible for surreptitiously capping gold's price.

"with all that's going on in the world, it (gold) should probably be at $5,000 to $6,000 per ounce."

Thursday, June 29, 2017

Treasury Will Run Out Of Cash In Mid-October, CBO Warns

The US government is Illinois 2.0 on steroids.  The key difference being, of course, the US Treasury and Fed will just create more dollars out of thin air, and Congress will just raise the debt limit, kicking the can down the road further.  The problem is one day, that can will be a boulder.

Wednesday, June 28, 2017

The End of the (Petro)Dollar: What the Federal Reserve Doesn’t Want You to Know

Sovereign nations looking to de-dollarize (for good reason) may want to reconsider (for good reason).  The US military industrial complex and the banking cartels which fund the perpetual wars don't look kindly on those attempting to abandon the petrodollar's reserve currency status.

Tuesday, June 27, 2017

Jim Grant Explains the Gold Standard

A return to a gold standard may not happen by design, but it will inevitably happen again--as it always has throughout history. Paper money experiments always eventually fail.

How Will Gold Perform During The Next Global Financial Crisis?
A possible explanation for the negative correlation between gold and the dollar may be found in the attribute as a safe asset in crisis situations. Although the dollar and gold may superficially be considered substitutable, a closer examination reveals a different picture. In local crises, the US dollar is seen as a desirable asset by many market participants because the survival of the fiat money system as such is not questioned.

It is different in the case of systemic crises. In these situations, confidence in fiat currencies and the banking system is shaken and many market participants pay heed to gold’s historical function as money. Particularly in systemic crises, gold is perceived to maintain its value, while paper money is in danger of becoming completely worthless.

Sunday, June 25, 2017

Get Ready for ‘QT1’: A First Look at the Federal Reserve’s Hidden Policy

Jim Rickards is a stud--let's just get that out of the way.  He has the academic and government pedigree, but he is also street smart and clever to boot, as a hedge fund manager and former Wall Street attorney.  He's not a feckless bureaucrat by any stretch, often formulating a contrarian opinion divergent from Wall Street's echo chamber of group think.

The result is a straightforward, but insightful assessment of potential black swans, often combining theories of complexity and game theory.

Thursday, June 22, 2017

Wednesday, June 21, 2017

Anti-Gold Propaganda Flares Up

Shanghai Gold Exchange to offer yuan-back futures contract in Budapest

Another brick in the petrodollar hegemony wall falls down.

Fed Trying to Cripple Trump Economy-Danielle DiMartino Booth

Danielle DiMartino Booth sounds like a lunatic fringe blogger. The only problem with that labeling is she is a former Fed insider.

Owning Gold Is the First Step to “Freedom Insurance”

Ron Paul Interviews Snowden On The "Rise Of The Deep State"

Gold Is ‘Managed’ by Wall Street and The Fed - Frank Giustra

I agree with Frank Giustra that gold is being "managed by central banks," but I fail to see the difference between the term "managed" and "manipulated".

Saturday, June 17, 2017

Bitcoin: Pros and Cons

My view on Bitcoin is somewhat ambivalent. As I blogged 4 years ago, it is a legitimate currency, as it is being used by many and is now being endorsed by financial institutions, even if reluctantly. It made sense as a hedge earlier when prices were much lower, as the fiat currencies are being systematically debased globally (central banks are creating their sovereign currencies with reckless abandon).

But are crypto-currencies sound money? I contend they are not, because while Bitcoin has an upper quantity limit of 21 million, that doesn't preclude others from creating alternative blockchain crypto-currencies (including the institutional favorite, Ethereum). Indeed, there are thousands of cryto-currencies in existence today already. In other words, while Bitcoin is limited to an eventual quantity of 21 million (a good thing for maintaining purchasing power), there is no shortage of competing crypto-currencies (which is a bad thing).

There are other real risks of possessing crypto-currencies (the biggest being forgetting your password, rendering permanent loss of access). Owners have been hacked, exchanges have been hacked, despite 256-bit encryption and peer-to-peer infrastructure), or the grid could go down.
In a mad world of fiat currencies where the financial elite can steal wealth from the masses via the printing press, Bitcoin is a viable hedge option. But is it the ultimate safe haven asset? No.

Central Banks Are Driving Many to Cryptocurrencies

And here is the opposing view, one which is pro-Bitcoin:

This Insubstantial Pageant Faded...

It's usually prudent to consider all sides of a concept or debate. Hugo Salinas Price is a Bitcoin skeptic--no, check that--he's a Bitcoin cynic, and makes some valid points. Granted, he's a big advocate of silver, so he is essentially "talking his book". But he ponders some questions which any wise person should consider.

The Pin To Pop This Mother Of All Bubbles?

This is a must-read for those who don't understand why the media broadcasts positive economic numbers when Main Street reality is completely opposite.  Residents are being squeezed by our corrupt banking system and thus, can't make ends meet.  Yet, the presstitutes keep cheerleading that everything is awesome.

Hillary Emails Reveal NATO Killed Gaddafi to Stop Libyan Creation of Gold-Backed Currency

This is old news for readers of this blog, but it's a good summary of the Gaddaffi murder for the sleepy-eyed.  Foreign policy of "king dollar" is everything, and top US officials know once the dollar loses its global reserve currency status, it's lights out for American hegemony.

Thursday, June 15, 2017

Texas taps private vendor to manage first state-run gold depository in U.S.

I didn't predict this, but I highly suggested this back in 2011 <click here> and 2013 <click here>.  That's probably understating it:  I pounded the table.  Texas is finally creating their own gold depository in Austin.

Here is an excerpt from my January 8, 2013 blog entry:

While I agree with him in principle, I don't believe UTIMCO went far enough.  Their gold bars do exist, but they are stored in HSBC's vaults, the custodian for the GLD ETF.  There have been some grumblings of HSBC manipulating GLD shares and physical inventory, as well as accusations of JPMorgan manipulating the SLV ETF for silver.  It's the ol' fox guarding the hen house syndrome.  If I were UTIMCO, I would go even further, and send a team of Texas Rangers to HSBC's vaults in New York, repatriate and transport those gold bars back to Austin, Texas.  After all, if/when the $hit does hit the fan, possession is 100% ownership--irrespective of legal paper claims.

Celente – This Trigger For A Global Stock Market Crash Will Devastate The World

You won’t believe this stupid new law against Cash and Bitcoin

Peak Economic Delusion Signals Coming Crisis

Saturday, June 10, 2017

The Secret World of Gold

Meet The 22 Economists That Want To Kill Your Purchasing Power

This is why Bitcoin is soaring, while gold and silver will. The Fed will raise their inflation target to 2%, benignly in their opinion. Keynesian economists will be the downfall of US citizens.

Paul Craig Roberts – This Will Complete The Economic Destruction Of America And The World

Clinton's repeal of Glass-Steagall has been catastrophic for the US economy and workers.

It's Official, Obamacare Collapse Is Trump's Fault - Just Ask The WA Insurance Commissioner

Killing the Pigeons

This is a very accurate accounting on the consequences of the left's ideology.

The Three Headed Debt Monster That’s Going to Ravage the Economy

Why The Markets Are Overdue For A Gigantic Bust

Martenson applies common sense in a monetary world gone mad.

Tuesday, June 6, 2017


This guy gets it.  Record-high markets can surge ever higher, in a so-called crack up boom.  A bull market climbs a wall of worry, with prognosticators anticipating a collapse which ultimately occurs later rather than sooner.

The author acknowledges a stock market crash will occur, but it will occur only after the bond market collapses, which is the bigger bubble.  And the collapse will be inflationary in nature, not deflationary, as most pundits predict.  In other words, the smart money will eventually be proven right--but they will also be early and probably lose a lot of money before they will eventually be proven right.

It's difficult to be a contrarian when the majority of people agree with you.

Similar to generals fighting previous wars, investors are fighting yesterday's crises.  NO ONE is expecting inflation to be an issue--deflation is the boogeyman declared by everyone in the financial services industry.  In fact, the global monetary authorities (including the Fed, the Treasury, and other central banks) have stated a "desirable" inflation goal of 2% (the way inflation is calculated is understated, which deems these inflation targets meaningless anyway).

My forecast is that they will reach their inflation goals, and even exceed them, at which point, the Fed will lose control of the long end of the bond curve, resulting in runaway inflation.  It will be hard to put the inflation genie back into the bottle.  The end game is a collapsing bond market and soaring interest rates, as confidence in the purchasing power of the dollar will dissipate.  Be careful what you wish for:  you may get it--and some.

Another truism:  QE to infinity.  Central banks know they must inflate or die.

Friday, June 2, 2017

What Will The Global Economy Look Like After The “Great Reset”?

An Insight, An Idea With Christine Lagarde

In rare moments of candor, the IMF and BIS does have a history of sharing concerns.  IMF Managing Director Legarde blurts out 200 million workers are unemployed in the western world.  She also keeps mentioning the word "reset", more specifically "global monetary reset."

That is globalist code speak for the USDollar losing its petrodollar status as the global reserve currency.  In its place will be the Special Drawing Right, an IMF currency consisting of a basket of dollars, euros, sterling, yen, and now Chinese yuan.

BIS warns of Great Depression dangers from credit spree

Some global elites DID give advanced warning prior to the 2008 financial crisis.

Tim Harford's Gold Investment Folly
" Sell economic ignorance; buy gold."

Sunday, May 28, 2017

We’ve Uncovered Patterns of Gold Price Manipulation: Rosa Abrantes-Metz

I agree with this interviewee that gold and silver markets are being illegally manipulated, like FOREX and the LIBOR, and that the precious metals sector is easier to manipulate as they are less liquid and smaller relative to other financial markets.

But what is disappointing is that she presumes regulators could somehow monitor and enforce markets better.  Yes, they can certainly improve in those areas, but what she doesn't account for is that the government regulators are captured by the very banks they are supposed to regulate.  In other words, instead of enforcing securities laws, the regulators are enabling the miscreant bankers.

Like the credit ratings agencies who were coerced by the banks into giving toxic securities a safe AAA rating, the regulators are not only complicit in the surreptitious capping of precious metals futures prices, they are part of the fraud.

You Can Look Stupid Now or Look Stupid Later-Chris Martenson

Friday, May 26, 2017

The Golden Conspiracy

Shari’ah-Compliant Crypto Gold: Could Islam Be Preparing for a New World Reserve Currency?

The world of fiat, crypto- and hard currencies is becoming increasingly surreal.  What is money?  And what is sound money?  The answers to these fundamental questions are becoming esoteric.

There is also an underlying sinister theme to these questions.  Hussein was reportedly killed due to his preference for receiving oil payments in Euros in lieu of the dollar.  Gaddaffi met the safe fate because he wanted to create a gold-backed dinar for African countries.  In other words, sovereign leaders were being eliminated for suggesting an alternative to the petrodollar, the global reserve currency.

This inevitable shift away from dollar hegemony appears to be accelerating, with China and Russia leading from the front.

Spot What’s Missing – Investing Wisdoms

Saturday, May 20, 2017

HKEX Announces Plan for Physically Settled CNH and US$ Gold Futures

This is a game-changer.  Similar to the Shanghai Gold Exchange, HKEX is creating a platform for which physical gold can be traded in CNH (offshore Chinese Renminbi) and US$ (US Dollar).  This will create an arbitrage opportunity for the lower-priced paper gold COMEX futures contracts and the higher premiums for physical gold in the Far East.  This will eventually doom the COMEX and the London gold cartel, which deals mostly with virtual (i.e. fake), paper gold.

And unlike the SGE, which can only be traded in mainland China, the HKEX exchange will enable global investors to participate.

The Fallacy of Demonizing Russia

Silver Price…Expecting The Unexpected

Silver: Train Leaving Station Soon!

New York Fed Buys Building Housing Plunge Protection Team

An oldie but goodie on the Plunge Protection Team.

Saturday, May 13, 2017

ALERT: Commercials Cover All-Time Record Number Of Silver Short Positions! Also Covering Gold Shorts!

Gold, and especially silver (since the silver market is much smaller, and therefore more easily manipulated surreptitiously by the miscreant bullion banks) have been hammered for the last 3 weeks.  This has been obviously explained with the record number of (synthetic) short positions by the "commercials" created out of thin air (see fractional reserve banking, and paper vs. physical leverage or rehypothecation), thereby spooking the speculative longs (hedge funds) out of their money-losing positions.  The so-called "smart money" ("hedgies") are being consistently stopped out of their trades, and certainly aren't living up to their namesake.

In any case, those massive short positions have now been covered by the commercials in another episode of a "wash and rinse" cycle.  This bodes well for a recovery in silver (and gold) prices, even if the speculative longs are being carried out in a body bag.  I apologize for the many parenthetical sentences, but I put the burden on the readers to perform their own due diligence.  If you don't understand something which may be important, take ownership and research it.

In a nutshell, ignore the noise of the constantly fluctuating published (paper) prices of gold and silver.  They are being driven by an artificially suppressed market of non-existent (virtual) inventory.  Just buy physical precious metals when price dips present themselves and consider them gifts at firesale liquidation prices.  Stop trying to trade (and time the markets).  Trying to outsmart manipulated markets is a futile exercise.  You're overthinking it.  Buy the f***ing dips (BTFD) and forget about it.  You will thank yourself later if (and when) the $hit hits the fan.  Because the world is one big unicorn, right?

It’s time to become your own banker. Here’s how–

Wednesday, May 10, 2017

Connecticut State Capital Prepares For Bankruptcy Amid Collapse In Hedge Fund Revenue

It's not just the manufacturing rust belt states (e.g., Michigan, Illinois) which are being hollowed  out by a collapse in the economy.  Apparently the monied class in hedge fund hypocenters such as Connecticut are also struggling with bankruptcy.

Friday, May 5, 2017

The Horror! The Horror! (Part 2)

The masses have been played once again, irrespective of party affiliation.  We are all chumps.
Empires always decline and fall due to military overreach and economic bankruptcy. The American empire will be no different.

ALERT: Commercials Just Covered Massive Number Of Silver Short Positions!

With the record amount of silver short positions in the COMEX 3 weeks ago, silver was due for a waterfall decline, which materialized.  It looks like many of those shorts covered, which means the bottom is probably in.

Note:  one of these days, those huge short positions will be caught in the wrong direction, and a massive short squeeze will take these shorts out on a stretcher.  Until that day, the miscreants will continue to manipulate the silver pits.

Thursday, May 4, 2017


Catching a falling knife is sometimes a dangerous game.  But sometimes it's the only play.

"The time to buy is when there's blood in the streets." - Baron Rothschild

I'm seeing the white in people's eyes.

Trump is exactly where the elites want him

The real reasons why Trump has flipped on his campaign promises

ALERT: 44-Year Market Veteran Says Panic Selling Now Taking Place In Gold & Silver Markets!
Using all of this panic selling as a contrary indicator, the reality is that we are putting in a major bottom in gold and silver.  This does not mean that prices can’t drift lower from here, but it does mean that a significant bottom is close at hand.  Investors who are buying physical gold and silver at these levels will be incredibly well rewarded over the long-term.  When you can buy gold and silver at the same prices that a dealer would normally pay, that’s when you should buy and hold.  Who was it that said, ‘You should be buying when there is blood in the streets?’  Isn’t this bloody enough?  We haven’t seen this type of pain in decades.

Saturday, April 22, 2017

Who do you believe America?

Thursday, April 20, 2017

Tesla Tumbles After Recalling Over 50,000 Vehicles; Faces "Demonstrably Dangerous" Autopilot Lawsuit

Remember when Elon Musk was gloating as Tesla shares were soaring, while at the same time mocking the shorts betting against Tesla?  <click here>

Well, maybe those investors shorting Tesla shares knew something ahead of the crowd.  To Musk:  don't stir the hornet's nest.

The Anything President And The Everything Bubble

During and after the 2016 elections, Democrats blindly labeled David Stockman a Russian stooge.  Now that he's criticizing Trump, I'm guessing the left will start advocating his views.

The sad takeaway message is every president since the millennium has navigated the US down the debt toilet.

Doug Casey Says the EU’s Collapse Is Now “Imminent”

Nobody Cares

Thursday, April 6, 2017

The Buying Power of the U.S. Dollar Over the Last Century

At the turn of the 20th century, the money supply was just $7 billion. Today there are literally 1,900X more dollars in existence.
While economic growth has meant we all make many more dollars today, it is still phenomenal to think that during past moments in the 20th century, a dollar could buy a pair of leather shoes or a women’s house dress.

Monday, April 3, 2017

James Turk – A Massive Short Squeeze Is About To Send Gold Skyrocketing

I learned a new acronym today:  EFP, Exchange of Futures for Physicals.  This is why gold and silver shorts are scrambling for inventory.

The American Empire and Economic Collapse

Trump has surrounded himself with bankers and war hawks. This will be his undoing. US infrastructure is crumbling and we continue to "intervene" in wars overseas, costing taxpayers trillions of dollars.

Sunday, April 2, 2017

Reagan Adviser: Why Trump Won’t Cut Taxes

Moscow And Beijing Join Forces To Bypass US Dollar In Global Markets, Shift To Gold Trade

The idiot resistance sycophants, intellectuals, and shills focusing on the non-existent Russian intervention of the 2016 US elections are missing the boat, as usual.  Russia and China are enemies of the US because of their nuclear warheads--that's a given.  But the overarching reason is because they are de-dollarizing.

Friday, March 31, 2017

Here’s Why Italy’s Banking Crisis Has Gone Off the Radar

Italy's banking sector is circling the drain, so the EU authorities are keeping things mum until upcoming elections are over.  They know bad news from bankrupt banks will collapse the EU.

Friday, March 24, 2017

Dead Men Walking?

There is a game of Russian roulette going on in the silver pits of the COMEX futures exchange.  Silver guru Ted Butler posits seven bullion banks will blow up due to a short squeeze.  JPMorgan, the big whale on the short side, will either implode with the rest of the big shorts or they will survive.  Either way, expect silver prices to soar when the emperors are revealed to have no clothes.

The FBI’s Conspiracy Theory of a Trump/Putin Collusion Has No Clothes — Paul Craig Roberts

Friday, March 17, 2017

Demand for physical gold is collapsing

It is instructive to know the difference between the price of physical gold vs. the price of paper gold, the latter being a highly leveraged financial asset.

Sunday, February 26, 2017

DNC Chair Candidate Tom Perez’s Bank-Friendly Record Could Kneecap the Democratic Party

 The mainstream media is painting the GOP as divided. usual, they aren't looking at the right party. Bernie followers are in an uproar with the Democratic party's status quo.

Where did Steve Bannon get his worldview? From my book.

Gold Performance During Inflation and Deflation

Many observers acknowledge that gold is a good hedge against inflation, as currencies are debased by central bankers. What they don't understand is that gold performs even better with deflation, which accompanies monetary disorder. They don't realize that gold is a safe haven asset when confidence in other asset classes dissipate, as they eventually do with government over-indebtedness and reckless currency and credit creation.

In other words, in a time of crisis, gold isn't just a commodity. It's a sound currency which will maintain its value, unlike fiat currency backed by nothing tangible.

Look at the chart of equities (S&P 500) vs. gold. Since 2001, the global economy has experienced two deflationary (or at least disinflationary) wipe outs. Inflation has been dormant--at least according to official CPI statistics (which is another boondoggle). Gold should have underperformed in that type of environment, according to conventional wisdom. Yet, during this time period of deflation, stocks have doubled, while gold has surged 3 1/2 fold. So the answer to the question: "when should one hold gold: to hedge against inflation or deflation?", is simple. It's both.

Jay Sekulow: Obama Should Be "Held Accountable" For The "Soft Coup" Against Trump

Saturday, February 25, 2017

Alan Greenspan in Testimony with Ron Paul about Gold

Ron Paul: Gold essentially has been demonetized and it’s proceeding—even the Swiss now are talking about selling half of their gold. And if this is the case, would you advise that we should seriously think now about getting rid of our gold, getting rid of it out of the IMF, get rid of it out of our Treasury?  Why hold it if we demonetized it? Milton Friedman would agree with this, and he’s pretty good at monetary policy.

Alan Greenspan: I agree with virtually everything Milton Friedman usually says. This is one of the few times I don’t.

Ron Paul:Why do we need it?

Alan Greenspan: Well, it’s a very interesting issue. This issue, incidentally, was debated in the United States in 1976, and the conclusion was that we should hold our gold. And the reason is that gold still represents the ultimate form of payment in the world. It’s interesting that Germany in 1944 could buy materials during the war only with gold. Fiat money paper in extremis is accepted by nobody, and gold is always accepted and is the ultimate means of payment and is perceived to be an element of stability in the currency and in the ultimate value of the currency.
And that historically has always been the reason why governments hold gold.

The How's and Why's of Gold Manipulation

We looked into the abyss if the gold price rose further. A further rise would have taken down one or several trading houses, which might have taken down all the rest in their wake. Therefore at any price, at any cost, the central banks had to quell the gold price, manage it. It was very difficult to get the gold price under control but we have now succeeded. The US Fed was very active in getting the gold price down. So was the U.K.  - Eddie George, then Governor of the Bank of England, 1999

Monday, February 20, 2017

The World Now Faces A Devastating Endgame And How “They All Sold At The Absolute Bottom”

If the smartest guys in the room (sovereign finance ministers, central bankers, and prime ministers) are so smart, why are their actions so stupid?  Google Brown's bottom.

Even though the Swiss have a centuries-old tradition with gold, their finance ministers made untimely gold sales.   And the staid Norwegian finance authorities are making mistakes in real-time.  The Saudis?  Their budget deficits are soaring, unleashing social unrest in the House of Saud.

Why is this important?  Because it signals the end of the petrodollar, as the Saudis no longer receive payment in USDollars from China, Russia, Turkey and other oil customers.  That eliminates the demand for USDollars in global trade, thus reducing the dollar's value.

Import prices will rise for ordinary Americans, as the purchasing power of the dollar decreases.  Our standard of living will decline.

Tulsi Gabbard vs. ‘Regime Change’ Wars

Wednesday, February 15, 2017

World’s 2nd largest stockpile of gold leaves the United States

Anybody who has a bank account, a brokerage account, or insurance policy should read this article and understand what counterparty risk is. The Bundesbank, Germany's central bank does. So does UTIMCO, the University of Texas endowment fund, which manages over $37 billion in assets.

Coming Soon to a City Near You: The U.S. Military’s Plan to Take Over America

Tuesday, February 7, 2017

‘Trump makes sense to a grocery store owner

As usual, Taleb is spot on.   His contrarian track record of making accurate predictions is remarkable.  His Ivy League pedigree is impressive--even if he is derisive toward his elitist peers.  He has a foot in the Establishment door (as a trader and academic), but he is decidedly and independently anti-Establishment.

Another anti-globalist example he could have used is the elimination of mom-and-pop shops due to the parabolic growth of hegemonic WalMart stores.

Wednesday, February 1, 2017

The US dollar is now overvalued against almost every currency in the world

I've been referencing the Big Mac Index for many years, mostly as a fun fact, but with high impact on citizens' standard of living.  Today, it's as relevant as ever.

My interpretation of the data is slightly different. A high dollar cost could also indicate relative weakness of the local currency, and rising inflation. In other words, it takes more dollars to buy said Big Mac. But I do agree with the author's conclusion that the dollar is overvalued RELATIVE to other foreign currencies. In other words, ALL fiat currencies are destined to drop in value, some faster than others. That's why it requires more fiat currencies to buy tangible, real assets. It's called a currency war--a race to the bottom. It often leads to trade wars (see Trump's rhetoric) and military conflict.

Tuesday, January 24, 2017

Paul Craig Roberts’ Terrifying Warning And A Very Timely Message

Clearly, the pathetic remnant of the American left has more hate for those who stand up for the working class than they have for those oppressing the working class and those fomenting war. Why did the women so quick to march against Trump not march against the Clinton, Bush/Cheney, and Obama regimes for killing, maiming, orphaning, widowing, and dislocating millions of peoples in Afghanistan, Iraq, Somalia, Pakistan, Yemen, Libya, and Syria?

That we see the left aligned with the ruling elites against Trump is proof that the left has abandoned the working class.

Man Who Predicted Collapse Of Euro Against Swiss Franc Now Warns Huge Shock Will Bring The World To Its Knees
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Saturday, January 21, 2017

Friday, January 20, 2017

Is The U.S. Government Insolvent? Sorry, But Its Accountant Can't Tell You

Got gold?

The Further Decline in International Reserves

Look at what happened when Nixon closed the window of gold redeemability in 1971, effectively ending the Bretton-Woods Agreement.  Central bank reserves surged exponentially, as central bankers printed endless currencies without the constraint of gold backing.  This only increased the magnitude of booms and busts of credit and liquidity.  This is why we have soaring price inflation, and reduced purchasing power--despite government CPI data suggesting otherwise.  With stagnant wages and sagging economies, coupled with rising cost of living expenses, the average citizen suffers from a reduced standard of living.  This is what causes social unrest.

Obama Makes Incredible Admission About WikiLeaks in Final Press Conference

Julian Assange has repeatedly confirmed that Russia did not hack the DNC emails, despite what the intelligence community alleges.  Experts have hinted that it was a leak, probably from an NSA insider.  Despite the narrative, there has been NO credible evidence that Russia hacked Podesta's emails.

Trump and a New Gold-Backed Dollar

I honestly don't think a gold-backed dollar will occur any time soon.  The elites will do everything possible to prevent it.  But the Chinese are working towards a gold-backed yuan.  That will probably happen before 2020.

25 Years of Neocon-Neoliberalism: Great for the Top 5%, A Disaster for Everyone Else

Wednesday, January 18, 2017

State Dept. cable confirms gold futures market was created for price suppression

It's not a conspiracy theory.  It's a conspiracy fact.

The U.S. gold futures market was created in December 1974 as a result of collusion between the U.S. government and gold dealers in London to facilitate volatility in gold prices and thereby discourage gold ownership by U.S. citizens, according to a State Department cable written that month, obtained by Wikileaks, and disclosed today by the TF Metals Report:

Obama’s Chelsea Manning “pardon” proves that “Russian election hack” story was one big lie

Friday, January 13, 2017

John Hathaway – China Is Preparing To Radically Reprice Gold Higher As Demise Of The COMEX & LBMA Accelerates

Hathaway has again provided brilliant analysis of the physical gold market vs. the synthetic, paper trades.

Multi-Billionaire Hugo Salinas Price Just Issued A Dire Warning To The World

Jim Rickards and Salinas-Price are one of the few people who understand the Triffin paradox.  Trump's protectionist trade policies will destroy the global economy, much like the Smoot-Hawley tariffs extended the Great Depression.  The road to hell is paved with good intentions.

Cash-Banning Harvard Professor Slams "Ignorant" Negative-Rate-Naysayers

Why Are Wal-Mart And Boeing Laying Off Workers If The U.S. Economy Is In Good Shape?