Friday, November 17, 2017

Swiss bank to launch bitcoin futures to allow betting against cryptocurrency

In the be careful what you wish for category, Bitcoin enthusiasts have been cheering the fact that the cryptocurrency is now traded in futures exchanges, inviting institutional investors. The problem is these said institutions are the biggest price manipulators, and they will surely do so in such a small market cap space. Expect even more volatility and many being wiped out for being on the wrong side of the manipulation.

Monday, November 13, 2017

Pension Ponzi Bailout: Democrats Sponsor US Treasury Bailout Scheme

I don't know how this could not be bearish for the dollar and bullish for any tangible asset, including precious metals.  Sure, asset prices could be manipulated either up or down short-term, but eventually, the manipulation stops working longer-term.

Ray Dalio Goes On Gold Buying Spree, Adds 575% To GLD Holdings, Becomes 8th Largest Holder

This article does appear to be bullish for gold, and it is. However, read the comments as 95% of the commentators understand that Ray Dalio, founder of Bridgewater, the largest hedge fund in the world, did NOT buy physical gold, but instead, merely has exposure to the spot price of gold. He bought the GLD ETF, considered by many gold bugs in the know to be a ponzi scheme. As large as his GLD holdings are, he still won't be able to take delivery on physical gold, as he bought paper gold, a legal claim that will prove worthless when the $hit hits the fan.

Monday, November 6, 2017

Saudi Banks Begin Freezing Accounts Of Arrested Royals, Private Jets Grounded

This coup on the Saudi establishment indicates the anti-dollar movement pivoting away from the US and toward China, Russia and Iran is gaining momentum. The geopolitical, financial and social infrastructure of the US economy is about to become unhinged. Get ready for inflation. Government and media attempts to mask and suppress inflation will finally be exposed as fraudulent.  The decades-long era of the petrodollar is about to end.

Thursday, November 2, 2017

Peter Warburton: The debasement of world currency: It's inflation but not as we know it
What we see at present is a battle between the central banks and the collapse of the financial system fought on two fronts. On one front, the central banks preside over the creation of additional liquidity for the financial system in order to hold back the tide of debt defaults that would otherwise occur. On the other, they incite investment banks and other willing parties to bet against a rise in the prices of gold, oil, base metals, soft commodities or anything else that might be deemed an indicator of inherent value. Their objective is to deprive the independent observer of any reliable benchmark against which to measure the eroding value, not only of the US dollar, but of all fiat currencies. Equally, they seek to deny the investor the opportunity to hedge against the fragility of the financial system by switching into a freely traded market for non-financial assets.
It is important to recognize that the central banks have found the battle on the second front much easier to fight than the first. Last November I estimated the size of the gross stock of global debt instruments at $90 trillion for mid-2000. How much capital would it take to control the combined gold, oil, and commodity markets? Probably, no more than $200 billion, using derivatives. Moreover, it is not necessary for the central banks to fight the battle themselves, although central bank gold sales and gold leasing have certainly contributed to the cause. Most of the world's large investment banks have over-traded their capital so flagrantly that if the central banks were to lose the fight on the first front, then the stock of the investment banks would be worthless. Because their fate is intertwined with that of the central banks, investment banks are willing participants in the battle against rising gold, oil, and commodity prices.

Central banks, and particularly the US Federal Reserve, are deploying their heavy artillery in the battle against a systemic collapse. This has been their primary concern for at least seven years. Their immediate objectives are to prevent the private sector bond market from closing its doors to new or refinancing borrowers and to forestall a technical break in the Dow Jones Industrials. Keeping the bond markets open is absolutely vital at a time when corporate profitability is on the ropes. Keeping the equity index on an even keel is essential to protect the wealth of the household sector and to maintain the expectation of future gains. For as long as these objectives can be achieved, the value of the US dollar can also be stabilized in relation to other currencies, despite the extraordinary imbalances in external trade.

Will The New Bitcoin CME Futures Contract Benefit Gold?

Despite being a blessing short-term for Bitcoin, inclusion into the CME futures exchange opens the crypto-currency to price manipulation / suppression long-term.  Most Bitcoin aficionados don't know this yet, but will find out the hard way when Bitcoin gets monkey-hammered despite positive "fundamentals."

Friday, October 27, 2017

America’s stagflation

FLASH: Wall Street Journal acknowledges gold leasing and swaps question ...

Top Gold Forecasters Gone Bad

I must be sociopathic.  I enjoy "top forecasters" on gold being proven wrong.  Here are some examples.

At the absolute secular low in gold in December 2015, Fortune magazine publishes a bearish piece.

As soon as that article above goes to print, gold goes on a tear, prompting Forbes to flip six weeks later.  The tried and true axiom of being a contrarian against conventional wisdom absolutely applies with financial markets.

The Death of Money 2.0

We've often heard the quote attributed to Mark Twain, "History doesn't repeat itself, but it rhymes."  It applies to financial markets.

"Dying of Money: Lessons of the Great German and American Inflations", by Jens O. Parsson, chronicles Germany's Weimar Republic hyperinflation during the early 1920's.  I'm always looking at different angles, and one interesting tidbit is the timing of the original publishing in 1974.

During gold's historic run from $35/oz. in 1971 to its peak of $850/oz. in 1980, gold had a major correction from $200/oz. in--you guessed it--1974, down to $100 oz. in 1976.  After this painful correction, gold resumed its bull market run until 1980, culminating in its secular blow off top.

Flash forward to today, and superimposing gold's epic bull market from its lows (in 2001 or 2008, take your pick), we can see that gold had a major peak of $1923/oz. in 2011.  Another bottom appears in December, 2015.  A few precious metals pundits have noted the parallel cycles of the 1970's and today's millennial run.

One of these authors is James Rickards, who has written several best-sellers on financial markets, including and specifically about gold.  His first bestseller, "Currency Wars", was published in 2011, coinciding with gold's peak. Another book title is "The Death of Money", published in 2014.  Makes you want to go "hmmmm...."

Did gold start another massive run up in late 2015?  So far, it sure looks like it.

The coincident timelines are certainly intriguing, but digging deeper, are they merely coincidental, or conspiratorial?  Are the financial elites signalling a pending, if not imminent financial crises on the horizon?  Is Jim Rickards, a former insider at the Fed and US Treasury, a true champion of the people, advocating gold as a protector of purchasing power?  Or is he just a useful tool of the elite, espousing truth, but sucking in early adopters in 2011, so the weak hands could be wiped out before gold resumes its next historic bull run?

Was gold's peak in 2011 analogous to its peak in 1974?  Likewise, was gold's bottom in 1976 a similar precursor to gold's bottom in 2015?  More importantly, what happens next?  If history does rhyme, we can expect another epic run up in gold (and silver).

An astute, contrarian student of history can deduce outcomes, but timing it exactly is next to impossible.

My long-term outlook for gold remains $6300/oz. or higher, as long as fiscal conditions continue to deteriorate and monetary policies remain accommodative.

Ted Butler: JP Morgan Stockpiled 650 MOZ Of Silver At Rock Bottom Prices They Forced Lower

ScotiaMocatta Sale Is The MOST SIGNIFICANT Event To Happen In Silver Since 2008

JP Morgan Cornering Silver Bullion Market?

Thursday, October 26, 2017

Rand Paul Tweet on Warmonger Lindsey Graham

Paper Currencies vs. Gold During War Times

I just had a fascinating conversation with a 90 year old woman. Her memory isn't great on every day stuff, but her childhood memories are still sharp to the minute detail. Since Vietnam was colonized by the French at various times, they controlled the money supply (piasters). But when the Chinese and Japanese would invade, the paper money would expire worthless. Many upperclass members of society would perish, as rice was either confiscated or destroyed by the invaders.

Her mother would resort to hoarding rice, beans and grapefruit, as they were staples that wouldn't rot quickly. Some peasants survived because they had access to food (farmers), while those in the cities starved

Fortunately, her mother also hoarded gold, as her family had means. She would cut up the flattened gold with a knife, and use it to buy rice, vegetables, and fruit on the black market. One has to survive the Great Depression and world wars to recall this. Unfortunately, this is happening in real-time today in Venezuela, Argentina, and other hollowed out countries devastated by war and/or government financial mismanagement.

Lies And Distractions Surrounding The Diminishing Petrodollar

Tuesday, October 24, 2017

Gold, Bitcoin, And Metcalfe’s Law

In one such poll, attendees overwhelmingly said the gold price would skyrocket in the event of a conflict involving nuclear weapons. Bitcoin, meanwhile, would plummet, according to participants—which makes some sense. As I pointed out before, trading bitcoin and other cryptos is dependent on electricity and WiFi, both of which could easily be knocked out by a nuclear strike. Gold, however, would still be available to convert into cash.”

“Metcalfe’s law states that the bigger the network of users, the greater that network’s value becomes.

Robert Metcalfe, distinguished electrical engineer, was speaking specifically about Ethernet, but it also applies to cryptos. Bitcoin might look like a bubble on a simple price chart, but when we place it on a logarithmic scale, we see that a peak has not been reached yet.

Bitcoin adoption could multiply the more people become aware of how much of their wealth is controlled by governments and the big banks."