Wednesday, May 24, 2017

Petrified: Is JPMorgan Preparing For A Massive Silver Spike?


Silver is up $1 and gold up $100 off recent lows. What’s going on behind the scenes? Bill Murphy joins Silver Doctors to reveal... Murphy says JPMorgan is manipulating the price of silver. The silver market could get "chaotic" if it breaks through $21/oz. JPMorgan is "petrified," Murphy says.




Monday, May 15, 2017

Rumors Swirl: Intelligence Sources Report That A Secret Indictment Has Been Issued Against President Donald Trump

A new report circulating on left-leaning internet channels says that a secret indictment has been issued against President Donald Trump. Details surrounding the indictment have yet to be released, but should it actually exist, would likely be related to alleged connections that President Donald Trump has ties to Russia.

The report originated on the Patribotics Blog from investigative journalists Louise Mensch and Claude Taylor, both of whom have previously disclosed accurate reports regarding FISA warrants and other information related to the Trump-Russia investigation, but have also been accused of filing numerous unsubstantiated reports and conspiracy theories.

According to Mensch and Taylor, intelligence and justice community sources say that a sealed indictment against the President exists, but because of the U.S. Constitution prosecution cannot move forward until the President is impeached by Congress:

Separate sources with links to the intelligence and justice communities have stated that a sealed indictment has been granted against Donald Trump.

While it is understood that the Supremacy Clause of the Constitution means that, until Mr. Trump is impeached, he cannot be prosecuted, sources say that the indictment is intended by the FBI and prosecutors in the Justice Department to form the basis of Mr. Trump’s impeachment. The indictment is, perhaps uniquely, not intended or expected to be used for prosecution, sources say, because of the constitutional position of the President.

In April the statistician who predicted President Trump’s November victory warned that not only would the President eventually impeached, but that his own party will turn on him.

The month before, Congresswoman Maxine Waters, whose bloviating often leaves people confused and unsure of what she actually said, tweeted that America should prepare for the impeachment of the President.

It’s no secret that the President’s enemies want him out of office, but actionable or prosecutable evidence has yet to be presented to the public.

This may explain why, rather than targeting trump, the Deep State has been taking out Trump’s lieutenants in an attempt to sabotage the new administration.

It is not clear whether reports of the secret indictment are real or fake, but we expect a follow-up Tweet from the President in due course as this story makes the rounds on social media.

- Source, Silver Doctors

Thursday, May 11, 2017

Will China and Russia Take Down the US Petrodollar?


Will China and Russia takedown the U.S. Petrodollar with a gold-backed digital currency?

Today on TRUNEWS, Rick Wiles speaks with financial analyst Jim Willie regarding the seemingly inevitable transition from an American dominated financial order to a system controlled by the East.

Jim also shares his theory that Prince Philip’s retirement is actually a smokescreen for the secret death of Queen Elizabeth.


Monday, May 8, 2017

Washout Next, Or Are the Hedge Funds Ready to Flip Long in Gold & Silver?


Is the Smash Over Or Is A Washout Waterfall Coming Next Week?
PM Fund Manager Dave Kranzler Joins Us To Break Down the Action in Gold and Silver.

Does the Data Reveal the Bullion Banks and Hedge Funds Are About to Flip Long in Silver?


Friday, May 5, 2017

Empty Gold Vaults and Fresh Out of Bombs

As the global economic and power shift continues to unfold if we look at history we will see that most, if not all, transfers of power happened after a major war. The odds of war being the catalyst for the coming change increases with each passing day. The endless saber rattling coming out of Washington DC is beginning to incite many of the world leaders who, over the past 15 years, have either kept quiet about the endless unConstitutional wars launched by the U.S. or have done their best to remain calm and collected as they attempt to negotiate with blood-thirsty warlords that occupy the Pentagon and State Department.

All the while China, Russia, India and most of the rest of Asia along with South Africa and Brazil, have all been working towards the next shift of power, economics and finance in a more realistic manner.

China sits at the head of several major economic partnerships including the Shanghai Cooperation Organization (SCO), BRICS and One Belt One Road (OBOR).

Russia is the driving force behind the Eurasian Economic Union (EEU) and is working closely with several of the former Soviet block nations in a way that lifts the entire region and ties it together with economical and financial incentives that help all the members and all the citizens. Russia is also a major player in the One Belt One Road project as well as a member of BRICS.

These massive partnerships have been built on a foundation of mutual cooperation, economic independence and growth. It almost appears as if China and Russia learned from what the U.S. did when NAFTA was signed by President Clinton and did the exact opposite in developing their plans for regional partnerships and economic unions.

As the U.S. continues to threaten, bomb and exploit nations and people around the world the Eastern economies continue to focus on business and being a good neighbor. I am not saying that Russia nor China are the “good guys” and the U.S. is the “bad guy”, I am simply reviewing what is on the table at this moment with these 3 superpowers. 


If I were the Prime Minister of one of the Baltic States or, any other South Pacific rim nation, the only question that would need addressing is – why would a nation do business with a country that has proven to ignore terms of treaties, invoke economic sanctions and financially attack a nation that hyper inflates their currency? These are the tactics the U.S. has used around the world. How could anyone see these tactics as anything less than barbaric and acts of war?

Since the derivatives implosion in 2008 the financial and economic world has changed. The global economy is saturated in debt. Nations, regions and citizens are all levered up as high as possible with un-payable debt. The primary reason for all this debt is bubble economics and abuse of the World Reserve Currency – Federal Reserve Note.

Paul Volker was the last central bankster to actually do the right thing and push interest rates to 21%. Can you imagine that happening today? The entire global financial system would blow apart before lunch.

As U.S. politicians are in a constant state of bickering and arguing, not only with the world, but within our borders, how are we to compete with an economic machine the size of China and Russia? The citizens of this country need to understand these projects are happening and will change the course of history. The economic and power shift is happening right now. The now unavoidable economic collapse coming to the shores of America is happening. The Western economies began unraveling in earnest in 2008 and, as we are seeing today, will continue to accelerate until its bitter end.

The pieces of the puzzle involving war have been shifting and being put into place since 2011 and will be completed by 2020 – 3 years from today. This assumes the warmongers at the CIA/State Dept/White House don’t develop an ichy trigger finger and begin firing long before 2020.


Jerry Robinson: The pivot to Asia that took place back in 2011, under then President Obama. Has now led, as you so cleverly show in the documentary (The Coming War on China) about 400 military bases that surround China. It’s very difficult to imagine a country not feeling threatened by that. You really draw that out in the film. It really forces the Westerner, as they’re watching the film, to think outside of their own skin, their own country, their own nationality and to realize that this military industrial complex that has been built is now, basically, noosing-up the second largest superpower in the world on our watch. It’s difficult for many Americans to imagine a hot war, a hot full scale war with China, but that is the thesis of your film….Does the Trump administration aggravate this, from your perspective, does he make things better?

John Pilger: Well. the theme of willful ignorance on the part of the United States and the American people, particular American elites has been the theme of most of my films. Several times in your question you said “we don’t really know about this.” I think the question your listeners should like to ask themselves is why they don’t know. Because the pivot to Asia announced by President Obama in 2011 was not a secret, but as you say, very few people know about it. It meant most of the U.S. naval and air forces to the Pacific – Asia Pacific region by the year 2020. Source

This is not news and it is not anything the American people have paid attention to for a second. I guarantee they could name the winner of the last Superbowl, but to even recognize the Asia Pivot would be a stretch for most Americans.

The Asia Pivot has hit a dump in the road with the Trump administration. According to The Diplomat the Asia Pivot is going to either be reworked or cast aside.
In a press conference on Monday [March 13, 2017] discussing U.S. Secretary of State Rex Tillerson’s inaugural trip to Asia, Susan Thornton, the assistant secretary of state for East Asian and Pacific Affairs, had this to say about the Obama administration’s “pivot” or “rebalance” to Asia:

On the issue of pivot, rebalance, et cetera, that was a word that was used to describe the Asia policy in the last administration. I think you can probably expect that this administration will have its own formulation and it hasn’t actually, we haven’t seen in detail what the formulation will be or if there even will be a formulation.

Those words aren’t necessarily surprising in the context of the Trump administration, but it’s quite something to hear from the top dedicated U.S. diplomat for East Asian policy that the “rebalance” is officially over. The Obama administration had staked out the policy late in its first term, seeking to launch a sustained adjustment of U.S. foreign policy attention away from the Middle East and Europe toward Asia. Source

In light of the events over the past several weeks I wonder how the Asia Pivot fits with the latest Trump agenda regarding foreign policy? Trump, it seems, has resigned himself to doing his masters bidding. Wether it be bombing innocent people or backing away from pursuing the Clinton crime machine and their treasonous acts or something as small as replacing Janet Yellen. Trump is no match for the power plays happening at this time in history. Our world is changing and the U.S. will awaken, in the not-too-distant future, to find the power has shifted from West to East and the warmongering will no longer pay the bills. Personally, I believe the only thing that will pay the bills will be gold.

When you are ask to pay your bill/debt with a credit card other than the one you are currently offering, it can be rather embarrassing to find the alternative payment is just as empty as the original. When the U.S. are ask to, by another nation, to conduct an audit and bring real, physical gold to the table as payment, we will learn, very quickly, how much gold is being held by the Federal Reserve. When that day happens, will we see what DARPA has up it’s sleeve and just how many nuclear bombs can be set off in one day?


- Source, Rory Hall via Sprott Money

Monday, May 1, 2017

Economic Reality: Bottom 50% Of Americans No Longer Matter

The Fed likes to brag about the “We saved the world” recovery.

However, the unfortunate truth of the matter is a record Half of American Families Live Paycheck to Paycheck.

Does it Matter? Let’s investigate.

Unprepared for Nearly Anything

  • 50% are woefully unprepared for a financial emergency
  • Nearly 1 in 5 (19%) Americans have nothing set aside to cover an unexpected emergency.
  • Nearly 1 in 3 (31%) Americans don’t have at least $500 set aside to cover an unexpected emergency expense, according to a survey released Tuesday by HomeServe USA, a home repair service.
  • A separate survey released Monday by insurance company MetLife found that 49% of employees are “concerned, anxious or fearful about their current financial well-being.”

A Fed study shows U.S. Households Will Soon Have as Much Debt as They had in 2008.

The Federal Reserve announced Friday that the U.S. has $1 trillion in credit-card debt. Consumers hit that number in the fourth quarter of 2016, but eased on revolving credit during January 2017. The Fed announcement showed revolving consumer credit hit more than $1 trillion once again in February 2017.


“Credit card debt is rising quickly, but delinquencies are still really low,” said Matt Schulz, a senior industry analyst at the credit cards site CreditCards.com. “Many Americans are doing a good job of controlling their debts, but eventually with big debts and rising interest rates, it’s likely that something will have to give.”

Paycheck to Paycheck “Good Job”

Excuse me for asking but if half the nation lives paycheck to paycheck, is that really indicative of doing a good job at managing debt.

And as for “low delinquencies”, I remind you of my April 26 article Subprime Credit Card Losses Bite Capital One: Income Down 20%, Charge-Offs Up 30%.

Nonetheless, I remind you of an important perception.

We Saved the World

Two Reasons Not to Worry

The stock market and housing are still going strong. We heard the same thing in 2007 but it’s different this time.

The bottom 50% of the economy simply do not matter.

The real crux of the matter is point number two.

The Fed does not give a damn about the bottom half of the economy even though it spouts continual lies about “income inequality.

The Bottom 50% Do Not Matter

As long as the Fed can keep stocks and home prices elevated, there is no concern about the food-stamp, rent-subsidized, Medicaid-supplement, disability-income, Obamacare-subsidized 50% of Americans struggling paycheck-to-paycheck.

That money rolls in guaranteed, month after month!

That 50% cannot afford a house is irrelevant as long as suckers keep paying $500,000 to two-bedroom shacks in LA.

The game is to keep asset prices up so that the top 50% keep spending. The bottom 50% are taken care of by government (taxpayer) subsidies noted above.

Here’s the real deal: Fed Expects a Second Quarter Rebound, Higher Equity Prices.

Repeat Performance
The Fed needs to keep asset prices elevated even though it’s pretty clear concerns are mounting over bubbles.

Can the Fed save the world again?

Previously, the bottom third did not matter. Then the bottom 40% did not matter. Now the bottom 50% do not matter.

That statement is a bit over the top. By how much I don’t know. But the trend is clear, as is the fly in the ointment.

Brexit was the first warning shot. Trump was the second.

As soon as the bottom 65% don’t matter, those 65% may vote to take matters into their own hands.

- Source, Mish Shedlock via Zero Hedge

Thursday, April 27, 2017

G. Edward Griffin: Exposing the Federal Reserve


G. Edward Griffin, the author of the seminal book on the formation of the Federal Reserve, The Creature of Jekyll Island, joins the podcast this week to add his perspective to our ongoing critical examination of the Fed and the impact its actions are having on society.

Meeting Ed and getting to spend time with him was a real honor for Chris and me. His breadth of knowledge of the central banking system as well as his engaging manner of storytelling are masterful. Plus, he's simply a wonderfully kind person.

Ed's decades of research and critique of the Federal Reserve, sadly, have left him with conclusions that corroborate our own. Despite its carefully-crafted image as an essential public servant, Griffin concludes it is anything but. It is a private cartel that has connived its way to tremendous advantage and power, secretly (and not-so-secretly) plundering the American people of their treasure and freedoms.


Monday, April 24, 2017

Is Maguire Right? Are the Bullion Banks On the Ropes?


Silver Prices Smashed While COMEX Open Interest Hits New Record. Just What’s Going On – Are the Bullion Banks On the Ropes?

Expert Analyst Craig Hemke Joins the Show to Help Us Break Down All the Action:

  • The Capitulation Is NOW 
  • Is Andrew Maguire Right? Are the Bullion Banks ON THE ROPES? 
  • Craig Explains We’re Seeing the CAPITULATION in Gold & Silver Sentiment NOW 
  • “It’s CRIMINAL” Hemke Is FIRED UP Over Silver Fraud 
  • US Retail Gold & Silver Demand Gives Up the Ghost – US Mint Silver Eagle Sales Only 600k For Entire Month of April!

- Source, Silver Doctors

Thursday, April 20, 2017

China Starting To Resemble Bernie Madoff

Audible.com just released a new show on Bernie Madoff (Ponzi Supernova, available for free to subscribers) that explains how the world’s biggest financial scam was enabled by banks and hedge funds who were making so much money that they chose to ignore obvious red flags.

Which sounds a lot like today’s China, Inc. Here, for instance, is a sequence of events involving China Huishan Dairy Holdings, an apparently too-big-to-fail chain of dairy farms:

March 21. Huishan Dairy misses payments on some of its loans. The wife of the chairman and largest shareholder (herself an executive in charge of relationships with the company’s bankers) goes missing.

March 23. The local provincial government holds a meeting with the company and its creditor banks to propose a plan to inject liquidity into the company. This is not announced publicly.

March 24. Huishan’s shares plunge 85% in an hour, wiping out more than $4 billion of market value and leading to an indefinite trading halt.

March 28. Huishan admits to missing loan payments and misplacing the Chairman’s wife, but denies reports of faked invoices and misappropriation of funds. The local government, it promises, will buy some of the company’s excess land to bolster its balance sheet and the Chairman will sell some of his shares and invest the proceeds in the company.

Somewhere along the way, the government “ordered financial institutions involved not to downgrade the company’s credit rating or file lawsuits against it.”

As Quartz.com noted at the time:
The Chinese government can’t afford to let Huishan fail. Credit markets already deeply distrust the rust-belt Liaoning province. Authorities there were revealed to be faking economic numbers, including the province’s GDP growth, from 2011 to 2014. The province was the only province that fell into recession last year. Meanwhile local firms Dongbei Special Steel and Dalian Machine Tool went into default last year.

If Huishan does go bust, the fallout could also be disastrous for some Chinese banks. At least one of them has already felt the chill: Jiutai Bank, which is the dairy maker’s second-biggest creditor, saw the biggest one-day drop in its shares this week. According to Caixin, the small bank’s loan to Huishan currently stands at around $266 million, bigger than its estimate of impairment losses on bad loans for the whole of 2016.

The situation is not much easier for the midsize Ping An Bank, which lent nearly $300 million to Yang’s offshore entity Champ Harvest, with a 25% stake in Huishan as collateral.

And now this, from today’s Wall Street Journal:

Chinese Aluminum Giant Faces Credit Crunch The world’s biggest aluminum producer is in trouble, locked in a feud with its accountant over fraud allegations that have forced it to suspend trading of its shares and seek help from the central government in Beijing. China Hongqiao Group Ltd., has drawn the attention of the global aluminum market and U.S. trade officials as it soared to the pinnacle of the industry in the past few years, leapfrogging the production of giant competitors like Alcoa in the U.S. and United Co. Rusal in Russia.

Its rise coincided with American allegations that Chinese companies—helped by government subsidies—flooded the world with cheap aluminum, coal and steel, depressed prices and decimated U.S. industries.

U.S.-Chinese trade issues were a focus of a two-day summit last week between President Donald Trump and President Xi Jinping of China.

Now China Hongqiao, a Hong Kong-listed company that employs nearly 60,000 people, is facing fraud allegations from two short sellers that the firm says threaten its financial stability.



In a March 4 letter reviewed by The Wall Street Journal, China Hongqiao sought assistance from a trade group, the Chinese Non-Ferrous Metals Industry Association, or CNIA, saying the short sellers’ claims of inflated profits were forcing the company’s accountant, Ernst & Young, “to adopt an extremely conservative and careful attitude.”

Then, on March 6, Ernst & Young notified the company it had suspended its audit of its 2016 financial results, according to a March 31 statement by China Hongqiao. Ernst & Young asked the company to commission an independent investigation into the short sellers’ claims, delaying the release of the company’s annual financial results, China Hongqiao said.

Without audited results, China Hongqiao said in its letter to CNIA, the company risks an investigation from Hong Kong securities regulators and a credit crunch. The company has about $10 billion in debt, according to securities filings. It could be in default on a $700 million loan unless it gets waivers from creditors, says Standard & Poor’s Global Ratings.

S&P, citing the move by Ernst & Young, has downgraded China Hongqiao’s bonds a notch deeper into junk territory to B-plus.

China Hongqiao asked the CNIA and the Chinese government to come to its aid, warning in its March 4 letter of “serious effects” if nothing is done, including “regional systemic financial risks” and “dramatic social unrest.”

The U.S. government in January launched a formal complaint against the Chinese government with the World Trade Organization, accusing China of funneling artificially cheap loans from state-run banks to aluminum producers including China Hongqiao. China provides China Hongqiao with access to cheap coal, aluminum and electricity, according to the WTO complaint.

There’s a pattern here that isn’t confined to just these two companies: Cheap financing either subsidized or provided directly by government enables Chinese companies to expand beyond the limits of the global marketplace, producing a glut which makes the previously-mentioned loans unmanageable.

The companies hide their failure for a while but eventually are exposed, leading local governments to step in with new money and the central government to change the rules to prevent market participants from warning others and/or moving their capital out of the way.

As with Madoff’s Ponzi scheme, the game goes on as long as new money continues to flow in and the major players continue to pretend (or are forced to pretend) that things are okay. It ends when either of those conditions changes.

Such scams don’t tend to peter out over time. Usually – like the above dairy and aluminum companies – they seem fine until one day they’re not.


- Source, Sprott Money

Friday, April 14, 2017

Air China Suspends Flights To North Korea As Kim Vows "Merciless Response To Any US Provocation"

In the latest escalation over what may be an imminent preemptive airstrike on North Korea by US warships now located just 300 miles away from the North Korean nuclear test site, moments ago China's national airline, Air China, announced it was suspending flights from Beijing to the North Korean capital, Pyongyang, from late on Friday, Chinese state broadcaster CCTV said. It did not say why the flights, which operate on Monday, Wednesday and Friday, were being suspended.

In the report published on its website, CCTV did not cite a source while according to Reuters, Air China could not immediately be reached for comment after business hours. The last flight between the two cities took place on Friday, with the return flight to Beijing arriving in the early evening, the broadcaster said. Air China began regular flights between the two countries in 2008 but the flights were frequently cancelled because of unspecified problems, the broadcaster said. China is North Korea's sole major ally but it disapproves of the North's weapons programs, and its confrontations with the United States and its Asian allies, and it has supported U.N. sanctions against it.

Following repeated missile tests that drew international criticism, China banned all imports of North Korean coal on Feb. 26, cutting off the country's most important export product. North Korea's army vowed a 'merciless' response to any US provocation, the official news agency reported Friday, as tensions soar over Pyongyang's rogue nuclear program.

Meanwhile, after warning that it was ready to "go to war", on Friday North Korea's army vowed a "merciless" response to any US provocation, the official news agency reported Friday. A statement of KCNA, which cited Washington's recent missile strike on Syria, said the administration of President Donald Trump had "entered the path of open threat and blackmail against the DPRK".


- Source, Zero Hedge

Monday, April 10, 2017

Precious Metals: Crisis Protection

Readers of these commentaries may have wondered if they were receiving mixed messages over these past many months. On the one hand, they have been told that converting our paper wealth into gold and silver is one of our most important wealth management strategies. Indeed, this has even been described as “the secret of wealth preservation” .

The strategy is a simple one (as opposed to simplistic). The banking crime syndicate is continually diluting our paper currencies as a covert means of stealing the wealth contained in those currencies. We know this, because we have a confession from one of the ringleaders of these financial criminals, before he became one of the ringleaders of these financial criminals.

In the absence of the gold standard, there is no way to protect savings from confiscation via inflation.

– Alan Greenspan , 1966

The word “confiscation” is just a polite term for theft. The excessive greed of whatever bankers are in control of the printing press inevitably results in the exchange rate of the paper currency being driven to zero. We know this, because in the 1,000 years since humanity first began using these un-backed “fiat” currencies they have always gone to zero – or been removed from circulation before that could happen.

The same fate which befalls these paper currencies – worthlessness – also affects any paper instruments directly attached to those currencies, with bonds being the notable example. Of course in the case of Western bonds, the debt instruments of hopelessly insolvent governments , they could plunge to worthlessness even before the paper currencies themselves. Just ask some of the bond-holders of Greece's debt.

Precious metals protect our wealth from theft-by-inflation while the bankers are perpetrating their crime. Gold and silver are also the ultimate insurance from the final death-spiral of these paper currencies which this excessive dilution always causes.

At the same time, readers have been frequently warned for the past two years that the bankers' current bubble-and-crash cycle in our markets is now ripe for detonation . U.S. markets, the apex of this fraud, have been at all-time highs for more than two years.

When these bubbles are detonated (including our real estate bubbles ) so that the bankers can also profit from the “crash”, readers were told that precious metals will not be spared. Indeed, this was the reason for the “fake rally” of 2016: to raise gold and silver prices off of multi-year lows so that they could be slammed lower along with virtually all other asset classes.

We know that the Next Crash is coming because there is little profit to be made by the banking crime syndicate in continuing to pump these bubbles higher. We merely await the bankers' timing.

If gold and silver will also see their nominal prices plummet in the Next Crash, where is the value/incentive for people to use these eternal metals to shield their own wealth? This is the crux of this article.

There are several reasons why people should be sheltering their wealth in gold and silver now, even knowing that the nominal price of those metals will drop over the short term.

1) When the paper goes to zero it never recovers.

This article will regularly refer to the “nominal price” for gold and silver. This is simply the number we attach to gold and silver, denominated in a particular form of the bankers' paper. Irrespective of how the bankers manipulate the paper price of gold and silver, that price can never and will never go to zero because gold and silver have intrinsic value.

These metals have aesthetic value, being greatly in demand as jewelry and in a near-infinite number of ornamental applications. Gold and silver are the world's best “money” – perfect instruments for that use. They are also incredibly useful in industrial applications.

Silver is the planet's most-versatile metal, incorporated into more new patents than any other metal. Gold is also extremely useful from a metallurgical standpoint, but it is deemed to be too important as a form of international money to be used in industrial applications.

The paper has no intrinsic value of any kind. When confidence fails in a paper currency it goes to zero. When a government reneges on its debts, its bonds go to zero.

When the bankers push gold or silver prices to particularly absurd lows, the price boomerangs higher because these are hard assets with real value. We saw this after the Crash of '08. We will see it again in the Crash of '17 ('18?).

The problem is that with these paper currencies already extremely debauched and with our governments already past the point of insolvency, the Next Crash could easily be the final death-spiral for all Western currencies and bonds .

The bankers have already hinted at this with respect to their paper currencies. For the past five years, these financial felons have been sounding a steadily louder drumbeat about “SDR's”. They want to use SDR's as our (next) currency.

What are SDR's? These are the Strategic Drawing Rights of the International Monetary Fund (IMF). They are nothing more than a line of credit. In no way at all does this line of credit resemble a currency.

Imagine going to the bank to make a “withdrawal” from your own account , and what the bank gives you is essentially a loan. Not only does it totally obscure the concept of “wealth”, it totally blurs the distinction of who owns that wealth.

You go to the bank to withdraw your SDR's, but your bank loans them to you? It's no more (or less) insane than so-called “negative interest rates”. You deposit your wealth into a bank, effectively loaning that wealth to the bank, and then the bank charges you interest?

This is the world of paper fraud in which the banking crime syndicate is immersing us. Perversity piled atop perversity. Crime piled atop crime.

Keeping one's wealth in paper because we are afraid that the (nominal) price of gold and silver will declinetemporarily keeps that wealth continually exposed to the ever-worsening frauds of the bankers, condoned by our puppet governments.

If your wealth is in paper, the bankers control it. This is the ever-louder message as the financial laws of these fascists grow ever more extreme. If your wealth is in gold and silver, you control it.

2) Gold and silver will recover stronger/faster than other asset classes

The Crash of '08 caught all precious metals investors by surprise. Not the Crash itself, most of us could see that coming. What surprised us was the plunge in gold and silver prices – knowing that these metals are humanity's oldest and surest Safe Havens. We were surprised that the bankers were capable of pushing price lower, while a financial panic was occurring.

What did not surprise us was what came after that Crash: the longest-and-strongest part of a ten-year bull run for gold and silver.



In 2009, 2010, and the first part of 2011, gold and silver led all asset classes – with silver leading gold by a healthy margin. The price of silver ran from $8/oz (USD) to $49/oz, a six-fold increase. The price of gold ran from below $700/oz to nearly $2,000/oz, close to tripling.

Even then, there was absolutely no fundamental reason for gold and silver prices to have reversed lower in 2011. Gold is a monetary metal. When B.S. Bernanke quintupled the U.S. monetary base after the Crash of '08, the price of gold had to perfectly reflect that quintupling.

The price of gold was at roughly $800/oz when Bernanke began the Bernanke Helicopter Drop. This meant that when Bernanke (officially) ended his money-printing binge in the end of 2013, the price of gold had to be at least $4,000/oz.

Silver, meanwhile, is grossly undervalued versus gold. For over 4,000 years; the gold/silver price ratio gravitated around 15:1. Over the past 100 years; silver has become more and more important in a wide array of industrial applications. In other words, it has gotten even more valuable. Yet instead of the price ratio shrinking below 15:1, it has expanded as high as 100:1.

Consequently, most of the world's stockpiles of silver have literally been consumed: strewn across landfills all over the world in tiny concentrations, in 10's of billions of consumer goods. Between 1990 and 2005 alone , global silver inventories plummeted by 90%.

The silver market has now been in a continuous supply deficit for at least 30 years. When default occurs in the silver market, the gold/silver price ratio will be restored.

The price of gold and silver was never allowed to come close to fair market value even by 2011. Since that time, prices have been pushed back down to utterly absurd levels – and will go lower still (for reasons already explained).

Only traders seek to profit on their buying and selling every week of every year, and most go broke in the attempt. Investors put their wealth into an asset class not based upon the short-term price of that asset tomorrow, but rather with their mind focused on the long-term value of that asset in the future.

We should be converting our paper wealth into gold and silver today because it provides us with the ultimate financial insurance:

1) before the Next Crash,

2) during the Next Crash,

3) and after the Next Crash.

Gold and silver protect us now by saving our wealth from the bankers' relentless theft-by-inflation (the same “inflation” that these lying criminals pretend does not exist).

Gold and silver will provide us with the ultimate financial insurance during the Next Crash. Precious metals do so by making all wealth sheltered in those metals immune to any calamities which occur to the bankers' paper (i.e. the inevitable death-spiral to zero).

Gold and silver will provide us with superior value after the Next Crash because (for many reasons) they will once again be the best-performing asset classes when we emerge from the financial rubble – in whatever troubled future the bankers have created for us.

- Source, Sprott Money

Wednesday, April 5, 2017

Hillary For 2020? Confidant Says Return To Clinton Foundation Unlikely

Since her awkward March speech in which Hillary vowed she was "ready to come out of the woods," the world has been anxiously waiting for the two time failed presidential candidate to announce her next move. In the absence of facts, rumors have swirled that she might consider a run for Mayor of New York, start working on a 2020 presidential bid or just return to the Clinton Foundation.

Now, courtesy of The Hill, it seems we can at least knock a return to the Clinton Foundation off the list of possible future careers.

“She’s taking a look at her life and wants to try some different things,” said one ally who has spoken to Clinton in recent weeks. “She’s not tying herself to something that’s always been an option. She wants to figure out what she wants to do.”

Still, those familiar with Clinton’s immediate future say that just because she won’t take an active role in the organization doesn’t mean she won’t give occasional foundation-related speeches or participate in its programs.

“Everyone knows they’ll have access to her whenever they need her,” the confidant said. “This has really become President Clinton and Chelsea’s thing.”

Perhaps the true catalyst is that with prospects for a "Clinton" being the next president no longer imminent - unless of course Hillary or Chelsea confirm their plans to run again - former donors such as Norway and Australia have quietly stopped handing over their cash?

Of course, with the various pay-to-play allegations surrounding the Clinton Foundation during her last presidential campaign, including that time she was offered $12 million for a "meeting" in Morocco, it's not terribly surprising that Hillary would look to distance herself from the organization if she's considering a return to public life.

Clinton took an active role in the family’s foundation after leaving the State Department in 2013, working on early childhood development and other issues involving women and girls.

“I am thrilled to fully join this remarkable organization that [former President] Bill [Clinton] started a dozen years ago, and to call it my home for the work I will be doing,” she said in remarks at the Clinton Global Initiative in 2013.

At the same time, in 2013, the foundation changed its name to the Bill, -Hillary and Chelsea Clinton Foundation, though it changed back to the Clinton Foundation in 2015.


And while we still don't know Hillary's ultimate ambitions, The Hill notes that she's hard at work making more money and playing with her grandchildren.

For now, Hillary Clinton is focused on her upcoming book, which she is writing with two campaign speechwriters: Dan Schwerin — who also helped write the former secretary of State’s 2014 book, “Hard Choices” — and Megan Rooney.

She is also scheduled for several speeches, including a commencement speech in May at her alma mater, Wellesley College.

In an interview Tuesday on “CBS This Morning,” Chelsea Clinton was asked what her mother’s plans might look like in the coming months.

“She’s focused, thankfully, on her grandchildren,” the former first daughter said. “She’s focused on what she can do to help support work that she’s been engaged in for longer than I’ve been alive, around children, around women, around families.”

Have we seen the end of Hillary's campaigning days or does she have one more tour of duty in her? A 2020 rematch could be good fun.

- Source, Zero Hedge

Friday, March 31, 2017

The Fed Is Almost Insolvent

September 10, 2008 was one of the last “normal” days in the world of banking and finance.

That afternoon, the US Federal Reserve published its routine, weekly balance sheet report, indicating that the central bank had total assets worth around $925 billion.

Just a few days later, Lehman Brothers filed for bankruptcy, kicking off the most severe economic crisis since the Great Depression.

And almost immediately the Fed launched a series of unprecedented measures in a desperate attempt to contain the damage.

They called it “Quantitative Easing”, which was a fancy way of saying the Federal Reserve was printing money and giving it to the banks and US government.

When the commercial banks needed to sell their non-performing toxic assets, the Fed printed money to buy that garbage.

When the US government needed to borrow trillions of dollars to bail out failing companies, the Fed printed money and loaned it to Uncle Sam.

By January 2015, the size of the Fed’s balance sheet had more than quadrupled to $4.5 trillion.

It was an astonishing increase; the Fed had essentially conjured more than 3.5 trillion dollars out of thin air.

In exchange for all at printed money, the Fed had purchased a bunch of assets, including about $2.4 trillion worth of US government bonds.

This ranks the Fed as one of the top owners of US government debt, just behind the Social Security trust funds.

In fact the US government owes more money to the Federal Reserve than to China, Japan, and Saudi Arabia combined.

Now, remember that interest rates were at historic lows during the time that the Fed was buying up all that US government debt.

From the start of the financial crisis in September 2008 until the day the Fed’s balance sheet peaked in January 2015, the average yield on the 10-year US Treasury was about 2.6%.

That’s close to where the 10-year yield is today; just last week it was 2.62%.

This is where things quickly get out of control.

If you don’t know anything about bonds, there’s just one important principle to understand: as interest rates go up, bond prices go down.

Just like shares of Apple or Exxon, bonds are financial securities.

Investors pay a certain price for bonds just like they pay a certain price for Apple stock. And just like stock prices, bond prices go up and down.

Think about it like this: let’s say you own a government bond that pays $25 per year in interest.

That $25 per year is set in stone. It’s a contract.

And today, the market price for that bond is $1,000.

So, in very simple terms, an investor is paying $1,000 for the bond’s $25 annual income stream.

That works out to be a 2.5% annual return (not including maturity).

At the moment, investors are happy to receive 2.5% because that’s the current rate across most of the market.

But let’s say tomorrow the Federal Reserve jacks up interest rates to 10%.

Everything changes. Investors can now make 10% just holding money in a bank account.

The bond you own, however, still pays $25 per year. That hasn’t changed.

So if you want to sell it, you’ll have to slash the price; no investor will pay $1,000 to earn just 2.5% from the $25/year income stream.

Investors can now get 10% elsewhere in the market.

So in order for your bond’s $25/year income stream to match the 10% return that a potential buyer can receive elsewhere, you’ll have to drop your price to just $250.

In other words, the price of your bond has dropped 75%, from $1,000 to $250.

This is an extreme and simplistic example, but it paints the picture: when interest rates rise, bond prices fall.

So let’s go back to the Federal Reserve and its $2.4 trillion government bond portfolio.

The Fed recently raised interest rates. And they claim they’ll continue to raise rates for the next 1-2 years.

But as we discovered earlier, as the Fed raises rates, the value of their bonds will fall… and the Fed will suffer “unrealized losses”.

This is a gigantic problem because the Fed can’t afford to suffer any losses.

Since the start of the financial crisis, the Fed has whittled down its capital buffer to almost nothing– right around $40 billion.

This means that the Fed can only afford to lose $40 billion before going bust.

$40 billion might sound like a lot.

But considering the Fed has $2.4 trillion in government bonds, and $4.5 trillion in total assets, $40 billion is nothing– just 0.9% of the Fed’s total asset portfolio.

So if bond prices fall by just 0.9%, i.e. interest rates go up just slightly, the Fed will be insolvent.

This is already happening: as interest rates have risen, bond prices are starting to fall.

And based on the Fed’s own data, they’re already sitting on $14.2 billion in net unrealized losses.

So a big chunk of their tiny $40 billion capital buffer has already been wiped out.

As interest rates continue to rise, the rest of that $40 billion will vanish, at which point the Fed will be completely bankrupt.

And the US government, which itself is totally insolvent, won’t be in a position to bail them out.

Look, I’m an optimist. I think these are exciting times and that there’s a ton of incredible opportunity around the world.

But it would be seriously foolish to ignore the looming insolvency of the world’s most systematically important central bank.

Two words: Own gold.

- Source, Simon Black

Monday, March 27, 2017

Is Demand For Physical Gold Really Collapsing?


Seriously? “Simon Black” (it’s a nom de plume) wrote an article titled “Demand For Physical Is Collapsing.” He focused on retail bullion demand numbers. The headline and the content is largely fake news as it focuses on the demand for minted coins vs the paper gold market. We’re not really sure about the intent of article, but the content was devoid of any relevance to the actual global demand for physical gold.

While the retail minted coin and small-size bar demand is down from last year’s levels, there’s two factors to explain this. First is price. The price of gold and silver was lower in early 2016 than it is now. The price of gold in February 2017 averaged $1230-$1240 while the price of gold a year ago February averaged $1175. Retail buyers of gold/silver coins are highly sensitive to price and tend to chase the price higher, up to a point. On this basis, it’s not surprising that more minted coins were sold a year ago compared to this year. This “price effect” on the demand for retail gold and silver coins likely explains about 25% of the demand comparison between 2016 and now.

The second factor is the economy. Remember, the end user of minted bullion products is largely the retail buyer. In the first two months of 2017, real wages have declined. Even more negative for retail sales of any sort is the fact that real disposable income has been declining on a year over basis since December 2015:


While we at the Shadow of Truth do not consider buying and owning bullion to be “discretionary,” retail sales, including sales of bullion coins, is highly dependent on the relative level of real disposable income. Thus once again it should not surprise, based on just looking at retail demand for physical bullion, that retail bullion sales are falling.

On the other hand, the Black article purports the idea that retail bullion sales represents global demand for gold and silver. Nothing could be further from the truth. Retail demand at the margin has no affect on price other than maybe the price premiums in the coin market based on mint supply and retail demand.

The majority of gold bullion demand comes from the jewelry industry, eastern hemisphere Central Banks and sophisticated wealthy and institutional investors. India and China alone import more gold than is produced from mines globally. This is why Black’s “paper gold” price is rising. It’s why the BIS and western Central Banks have failed to eliminate the significance of gold in the global monetary system.

Gold imports into India jumped 175% in February from February 2016 to 96.4 tonnes (LINK). In fact, official gold imports into India have been rising since December. And that does not include dore bars or smuggled gold. 179 tonnes of gold was withdrawn from the Shanghai Gold Exchange in February. This is 60% higher than February 2016. The Russian Central Bank gold reserves have been rising almost monthly since mid-2007.

To claim that the global demand for physical gold is collapsing is seeded in either ignorance or mal-intent.


- Source, Sprott Money

Friday, March 24, 2017

Russian Roulette, Central Banks, and Gold


Grab your ultra-reliable 357 magnum revolver and load the cylinder with six, not one, rounds of ammunition. Point the gun at your head if you are a member of the struggling middle-class. Imagine pulling the trigger and hoping

Do you feel lucky?

The Six Loads of Ammunition for your 357 revolver are:

#1: Central banks and commercial banks exert a huge influence over all aspects of our financial lives. Paper currencies issued by central banks, digital currency units, credit card debt, pension funds, retirement accounts, checking accounts, Quantitative Easing, bond monetization, congress, regulators, Presidents, and the list goes on. Their game, their rules, your losses, and more of the same.

#2: Derivatives are used to “manage” markets, exercise control via futures markets over prices for physical and paper assets, increase leverage and enhance profits for the banks. Each derivative includes a commission – it is not a “zero-sum” game. Banks and CEO bonuses win.

#3: Debt, debt, and much more debt. Deficit spending increases debt, and governments run deficits. Interest is paid by individuals, corporations, and governments. Global debt of $200 trillion will require inflation, hyper-inflation or default. How long can government expenditures increase much more rapidly than revenues? Answer: As long as our current “Ponzi” finance can continue. How long can a Ponzi scheme last? Answer: Not forever. A default or hyper-inflation will occur, sooner rather than later. Fiat currencies will devalue.

#4: Near zero interest rates, negative interest rates, and financial repression. If central banks lower the interest paid on bonds and investments, pension plans and savers are penalized. Debtors, including governments, banks, and large corporations benefit. Your government plan and corporate pension plan are increasingly insolvent. Interest earnings are nearly zero. “High yield” checking accounts pay 0.01% interest. Your savings are depleted, and you may outlive your retirement assets. Welcome to the world of NIRP, ZIRP and financial repression that transfers assets and revenue from you to the banks, courtesy of central bank policies.

#5: High Frequency Trading or HFT is legalized skimming. Ultra-fast computers, PhD mathematics and software have replaced human traders. The result is consistent and profitable trading for the big financial institutions. Per zerohedge JP Morgan’s in-house trading group has been unprofitable on only two days in the past four years. Average trading revenues were $80 million per day for 2016. Someone contributed heavily to the JP Morgan casino winnings.

#6: Too Big To Fail, Too Big To Jail. If central banks and the five largest commercial banks contribute to congressional elections, and Presidents fill their key positions with executives from the financial industries, and regulators work for them, what is the likely result? If a few large commercial banks are too big to fail, the government and taxpayers must and you know the drill. More debt, more influence, more derivatives, and a successful business model that benefits the wealthy far more than the middle class.


- Source, Sprott Money, Read the Full Article Here