Friday, October 25, 2013
Thursday, October 24, 2013
“Well, I think the Fed needs to do whatever is necessary to help meet our dual mandate objections. I don’t really think about it as far as limits are concerned because I think there is a tremendous amount of capacity. We can go as long as necessary.”
...the West is literally running out of physical gold.
The reality here is that once a nation or nations go past a certain point, there is no turning back. You have to either destroy the debt structure, which is a hard-debt deflation, or you destroy the currency by printing more and more until you see a hyperinflationary collapse. There will be no other possible outcome to this scenario other than the horror of what I just described to you. Regardless, one way or another we are looking at a frightening end to all of this.”
Fed will delaying tapering of QE. Really? I'm shocked. (sarcasm intended)
Even Australia is joining the debt party.
Tuesday, October 22, 2013
I like the tone of this article, but disagree with the overall premise. I do believe Bitcoin is a legitimate currency--even if it brings high volatility to the table. See my take on Bitcoin here.
Monday, October 21, 2013
Sunday, October 20, 2013
If you can't gain access to the gold, buy the vault.
Saturday, October 19, 2013
This is as must-read by Andrew Maguire, London gold trader and whistleblower. Keep stacking.
Friday, October 18, 2013
Thursday, October 17, 2013
I told you so--Indian wedding season.
Tuesday, October 15, 2013
Monday, October 14, 2013
Notice how the US government owes money to many different US Treasury bond holders? Including itself? That folks, is why this is nothing else but a Ponzi scheme.
The answer to this question will be the single most important determinant on investor outcomes over the next decade.
Sunday, October 13, 2013
Friday, October 11, 2013
Russia is following in the steps of China in setting up exchanges for delivery of physical precious metals. This is one more arrow in the USDollar as the global reserve currency, as Russia and China aim to back their respective currencies with gold.
Those who fail to anticipate this eventuality will experience cataclysmic losses.
Those who fail to anticipate this eventuality will experience cataclysmic losses.
Libor and ISDAfix are part of a suite of financial benchmarks that underpin about $1 quadrillion of assets and trades, almost 14 times global economic output in 2012.I wasn't kidding when I pointed out that the notional value of financial derivatives was over $1.2 quadrillion. ISDA represents $400 trillion of interest rate swaps. If bond yields rise appreciably, those derivatives would blow up the global financial system.
Thursday, October 10, 2013
Wednesday, October 9, 2013
Monday, October 7, 2013
“I don’t think the Fed is going to taper its bond buying. I believe they are going to double it. The Fed will say let’s continue QE, and instead of suffocation from rising rates, we’ll have drowning from rising costs. . . . They are going for drowning because it’s slower.” - Dr. Jim Willie
I agree with Pento that the Fed will be "forced" to increase QE. The only question is "when?" Will the Fed increase QE after dramatic losses in capital markets, in another desperate attempt to prop up equities? Or will they just increase QE to preempt distorted markets from a corrective recalibration?
Eric King: “How bad will this be when the West finally hits the wall?”
Rule: “I don’t know, and I don’t know when it will come. The US can renege on a whole bunch of social promises. What scares me is that the dialogue isn’t even dealing with the harsh reality the US faces in the future if radical changes are not made immediately."
All I hear is from the US officials is, ‘We can’t taper, the economy is too weak,’ and, ‘We can’t shut down the government because government provides all of these essential services.’ But the coming austerity will be very unpleasant to go through, and people are going to eventually recognize QE for what it is, which is counterfeiting.
The problem with all of the promises the politicians have made is that they are all lies. I have advocated that people own gold and silver because at the fulcrum point of this deception on the part of the government is the currency. You can’t have unsecured obligations on top of unsecured obligations. And the medium for exchange of lies is fiat currency.
The idea that the gradual unraveling of these lies will result in the depreciation of fiat currencies, and the dramatic revaluation of precious metals to the upside, seems to me to be an extremely likely outcome. I am a terrified observer as I watch the end game drawing to a close. But I will tell you that I feel more comfortable and sleep better owning gold and silver, rather than having all of my savings in fiat currencies, which are the unsecured obligations of bankrupt, or soon to be bankrupt borrowers."
Eric King: “How frightening will that period of chaos you just described be for investors?”Stockman: “There is every reason to believe that it will be outside the range of prior experience. Once it is clear that the Fed is out of ammunition, I think it’s going to cause an even greater wave of panic than we had last time (in 2008). I think it’s a ship of fools (the Fed). They have enormous power over the entire financial system, not only domestically, but over the entire global system. It tells you why this doctrine of monetary central planning is so destructive and dangerous. No twelve people should be in a position to unleash this kind of turmoil.”Eric King: “In the 1970s we saw the 25-fold move in gold, before you guys (Stockman, Volcker & Dr. Roberts) rescued the system. But this time around we’ve already seen gold up almost 800% (at the peak in 2011). It almost sounds like gold could repeat or even outperform what we saw in the 1970s as this chaos really starts to unfold.”Stockman: “The upside for gold is unfathomable. If the monetary system really unwinds because the central banks take it to the edge, and over, there’s no telling how far gold could rise.”
Sunday, October 6, 2013
Saturday, October 5, 2013
Friday, October 4, 2013
Thursday, October 3, 2013
Wow, a central banker dispensing some truth serum while still in office.
In a keynote address to the London Bullion Market Association's annual conference, Salvatore Rossi, director general of the Italian central bank, told delegates that gold plays a special role in central banks' official reserves.
"Not only does it have the vital characteristic of allowing diversification, in particular when financial markets are highly integrated, in addition it is unique among assets in that it is not issued by any government or central bank, so its value cannot be influenced by political decisions or by the solvency of any institution," he said.
"These features, coupled with historic ... and psychological reasons, stand in favour of gold's importance as a component of central bank reserves," he said. "Gold underpins the independence of central banks in their ability to (act) as the ultimate bearer of domestic financial stability."
This is a must-view video on the surreptitious price suppression of precious metals. Notice the interview with GATA's Chris Powell was done on CNBC Hong Kong and not on CNBC Europe or CNBC in the United States. That is not coincidental.
Wednesday, October 2, 2013
I presented the bank bail-in concept several months ago, and again last week to several business groups. It is coming. The Cyprus bail-in was not an anomaly--it was a blueprint.
When you combine this with extremely robust and sustained demand from China, India and other places, it will soon halt this effort to push the phony paper price lower. At that point investors will need to go to full allocations in physical metal.I think people like us, Eric, who are already pretty fully invested in physical gold should just relax. Understand that what’s going on here is orchestrated and that it can’t be sustained. KWN readers have to understand that when the US Dollar Index briefly broke below the critical psychological level of 80 on Tuesday, that is precisely when the massive intervention in the gold market began. But, again, this type of intervention cannot be sustained for very long.So as long as you’re not invested on leverage, and I’ve never encouraged your readers or listeners to use any leverage in their positioning in gold, you will be fine. As long as this is money that investors have put aside for long-term investment purposes, which is what I’ve always encouraged, they are going to be well positioned. The sociopaths that are gaming these markets are rapidly running out of ammunition. As gold eventually bottoms and finally begins to turn, you are going to see one of the most spectacular rises in the history of any market.