"Of What Use Is A Gun With No Bullets?", BIS Says Central Banks Defenseless Against Coming Crisis

Most people in the know, know that the BIS is the central bank of central banks, including the Fed, Bank of England, Bank of Japan, European Central Bank, etc.  So when they push the panic button, it's time to sit up and notice.

http://www.zerohedge.com/news/2015-06-29/what-use-gun-no-bullets-bis-says-central-banks-defenseless-against-coming-crisis

Greek Contagion

Speaking of contagion:

In Italy,
http://www.zerohedge.com/news/2015-06-29/greek-contagion-spreads-several-italian-bank-failed-open

In Puerto Rico,
http://www.zerohedge.com/news/2015-06-29/puerto-rico-bonds-are-collapsing

In Portugal,
http://www.zerohedge.com/news/2015-06-29/greek-contagion-uncontained-portugal-bond-risk-spikes-most-over-7-years

Gold Tumbles Despite UK Mint Seeing Europeans Rush To Buy Bullion

You want to know why gold bug conspiracy theorists are accurate in alleging the precious metals complex are manipulated (like most markets today)?  Because the basic economic law of supply and demand is violated repeatedly.  When a shortage in a commodity occurs, prices should rise, not plummet.

But another law mandates that price manipulations are never sustainable, and eventually, the rubber band effect will cause prices of gold and silver to skyrocket some time in the future.

http://www.zerohedge.com/news/2015-06-29/gold-tumbles-despite-uk-mint-seeing-europeans-rush-buy-bullion

Selling a 10 oz Silver Bar for $10 (When It's Worth $160) - EXPERIMENT -

This never gets old, as it depicts how dumbed-down most Americans are regarding monetary history and currency.  But put it into context.  Encinitas is a beach town north of San Diego.  According to Zillow, average home prices are $848,300.  So the knee-jerk assumption is that residents are fairly affluent and intelligent.

Apparently not.


https://youtu.be/RJm3cRRvPoM

For The First Time Ever, QE Has Officially Failed

This is the other side of unintended consequences.  The QE mechanism is rather esoteric, so to put it in layman's terms:  what goes up, must come down.  With rising yields, bond prices drop, which will tank the equities and real estate markets.

Another way to put it is:  there is no free lunch.  Running the money printing press doesn't build long-term wealth.  It enables capital misallocation and increases the debt burden.

http://www.zerohedge.com/news/2015-06-25/first-time-ever-qe-has-officially-failed

Crying Wolf?

Dear CIGAs,

We have all from time to time tried to help others, friends and family, by pointing them toward reality. For our troubles and efforts we have been viewed as the "squirrely" guy/gal with a tinfoil hat who see’s everything as a conspiracy. We have lost friends and even had family cringe when holiday get togethers were planned because no one wants to be exposed to our "craziness". Worse than any disease or even leprosy, anyone spouting Austrian economics or even "common sense" (almost extinct today) has been shoved into the outcast corner by the mass delusional majority. Over the last few years, "theory after theory" has become fact after FACT after FACT! There can no longer be any question, conspiracy to delude and defraud has run rampant and is a day to day operation in the Western world.

Originally my thought was to write this piece about and around the perfect response, "but you do agree the government is bankrupt, right?". I say this because almost anyone (in the U.S.), no matter what age, sex, religion, race or financial status will generally agree with this. For those who don’t agree, it is better to leave well enough alone, this is a subset living in their own delusional world.
For those who do agree "the government is broke", they are broken down into basic subsets. There are those who "get it" fully. There are those who know the government is broke but don’t really understand what it means or the ramifications (they can’t connect the dots). Another group are those who agree and know in the back of their mind this is true …but they don’t REALLY believe it because they simply cannot …"it’s too awful to comprehend". Then, we have another group, probably the largest of all, those who agree but think it really doesn’t matter. They may also believe no financial crisis will ever occur because "the government will never let it happen". Let’s talk about this group next.

The "can’t happen here" crowd only need the dots connected for them. I believe it is best to ask them questions in an effort to lead them to their own answer and understanding. This is much better than lecturing or "telling" them because they will actually have to think to answer your questions. 

Questions such as:

1.  if the government is broke, how will they make good on their obligations such as payrolls, Social Security, food stamps, paying the military and most importantly paying on their debt?  Forget the first four, "do you realize Treasury securities are what funds Social Security, your pension, the bank’s balance sheet which holds your money …AND what underlies the dollar itself?"! 
2.  If the above doesn’t work, you might ask if the economy currently "feels good"?  Then ask, do you realize the federal government spends almost 20% of GDP (and their spending is "counted" as part of GDP).  If they are broke and have to drastically cut back on spending, will the economy not shrink by the amount the government can no longer spend?  Do you see without government spending, under any definition we would be in a depression greater than the 1930′s?
I don’t want to go through the entire exercise but please understand, "guiding" someone to their own conclusion which happens to be correct is best done with questions, MANY OF THEM.  If you can, take two, three or even more philosophical roads to help them reach the same conclusion each time …the understanding will be that much more cemented in their mind when they finally do(hopefully) arrive!

Switching gears just a bit, we have seen the "mentality" change somewhat over the last year or so.  Even the mainstream is showing some signs of a shift.  This "shift" has even become evident amongst and within the "old boys club".  For example, who would have imagined Germany, Netherlands, Belgium and Austria would ever ask for their gold back?  Or Texas building its own depository and using the words "not" and "confiscate" in the legislation for proposed repatriation? 
Several very well known and at one time mainstream money managers have publicly told of the dangerous situation.  The latest is a bond manager who has gone entirely to cash, how’s this for putting a crash helmet on?

http://www.bloomberg.com/news/articles/2015-06-22/tcw-braces-for-bond-market-collapse-by-piling-the-cash-up-high Just a few weeks ago, Bloomberg put out an article asking if China could gold back the yuan.  This was significant because no news source (other than maybe Kitco) has been as bearish and slandering regarding gold than Bloomberg.  http://www.bloomberg.com/news/articles/2015-05-20/chinese-gold-standard-would-need-a-rate-50-times-bullion-s-price

Going to the beginning and back to the top, who exactly was correct in 1999-2000? Who was correct from 2005-2008 about an impending crisis? The answer of course is the very same people screaming bloody murder today "the financial system will come apart from the seams". Are those who were correct before, now "crying wolf"? Or are they saying the same things for the same reason and forecasting the same results as before? "They" (we) were not crazy then and are not crazy now. In fact, it is even much easier to see now than previous. As a side note if you recall, we heard in late 2008 and 2009, "who could have seen it coming"? Or, "no one could have seen it coming". This is dead wrong! In fact, even within the mainstream press there was a concerted effort to silence the truth. For example, Greg Hunter while at CNN tried to warn of the banking collapse. He was told "don’t go there" and was rewarded by having his contract not renewed!

"Some" saw the dotcom bubble coming, more saw and warned of the 2008 crisis coming …and even more see this one coming. Not only are there more and louder voices today, the numbers are growing slowly but surely and even engulfing some mainstreamers who used to laugh at "us tinfoilers"!
I know how difficult it is and has been. The financial landscape is perverted beyond recognition and any time you open your mouth, you are proven wrong. Gold goes down the following day along with a new high in stocks so you look "stupid". You are not. "We" cannot make price, we can only tell the truth as we see it and suggest via common sense and logic the need to prepare for the worst. As I see it, the outcome is not in any doubt and becomes clearer each day. My fear is we are not in 2008 anymore, the coming collapse will change the world order to one unrecognizable to today. The U.S. is in fact "broke" as we spoke of at the beginning. The "realization" of this not only can happen but WILL happen. Sadly, because of how badly the U.S. has treated the world over these last years, we will be given no mercy when negotiating our bankruptcy. It will be a real live wolf at our door!

Regards, Bill Holter
Holter-Sinclair collaboration
Comments welcome!  bholter@hotmail.com

Will Seizure of Russian Assets Hasten Dollar Decline?

The answer is "yes."

http://www.ronpaulinstitute.org/archives/featured-articles/2015/june/21/will-seizure-of-russian-assets-hasten-dollar-decline/

ABBOTT & COSTELLO EXPLAIN THE UNEMPLOYMENT SITUATION

http://www.theburningplatform.com/2015/06/23/abbott-costello-explain-the-unemployment-situation/

The Mystery Of The "Missing" Inflation Solved: Record Number Of US Renters Can't Afford Housing

http://www.zerohedge.com/news/2015-06-24/mystery-missing-inflation-solved-record-number-us-renters-cant-afford-housing

Richard Russell – The Greatest And Most Destructive Of All Bear Markets Is Coming, Gold, The Great Unwind And A Critical Lesson

http://kingworldnews.com/richard-russell-the-greatest-and-most-destructive-of-all-bear-markets-is-coming-gold-the-great-unwind-and-an-important-lesson-from-genesis/

"Twelve-term congressman Ron Paul tells this story: "I once rode alongside President Reagan on his helicopter, and the subject of what was happening to our money came up. 'Ron,' the president told me, 'No great nation that abandoned the gold standard has remained a great nation.'" 

Ron Paul also talked about a conversation with Alan Greenspan. "He told me he still stands by his original thesis, which was published decades ago. He wrote, 'In the absence of the gold standard, there is no way to protect savings, and confiscation through inflation. There is no safe store of value.'"

Americans Have Lost Confidence ... in Everything

This is not a surprise.

http://www.usnews.com/news/blogs/ken-walshs-washington/2015/06/17/americans-have-lost-confidence-in-everything

All Their Eggs in Janet's Basket

http://www.hussman.net/wmc/wmc150622.htm

'It's time to hold physical cash,' says one of Britain's most senior fund managers

http://www.telegraph.co.uk/finance/personalfinance/investing/11686199/Its-time-to-hold-physical-cash-says-one-of-Britains-most-senior-fund-managers.html

The manager of one of Britain’s biggest bond funds has urged investors to keep cash under the mattress.

Ian Spreadbury, who invests more than £4bn of investors’ money across a handful of bond funds for Fidelity, including the flagship Moneybuilder Income fund, is concerned that a “systemic event” could rock markets, possibly similar in magnitude to the financial crisis of 2008, which began in Britain with a run on Northern Rock.

“Systemic risk is in the system and as an investor you have to be aware of that,” he told Telegraph Money.

The best strategy to deal with this, he said, was for investors to spread their money widely into different assets, including gold and silver, as well as cash in savings accounts. But he went further, suggesting it was wise to hold some “physical cash”, an unusual suggestion from a mainstream fund manager.

His concern is that global debt – particularly mortgage debt – has been pumped up to record levels, made possible by exceptionally low interest rates that could soon end, and he is unsure how well banks could cope with the shocks that may await.

Paul Craig Roberts’ Address to the International Conference on the European/Russian Crisis Created by Washington

http://www.paulcraigroberts.org/2015/06/19/paul-craig-roberts-address-international-conference-europeanrussian-crisis-created-washington/

The Truth About The Ban On Cash, Big Brother And What Has Western Central Planners So Terrified

http://kingworldnews.com/the-truth-about-the-ban-on-cash-big-brother-and-what-has-western-central-planners-terrified/

Is This Shocking Move By A Texas A Sign That They Think We’re Headed

Don't let the right-wing leaning--or the poor grammar, detract from the message.  The repatriation of Texas gold has many ramifications.

http://rightwingnews.com/economy/is-this-shocking-move-by-a-texas-a-sign-that-they-think-were-headed/

A prophetic interview with Sir James Goldsmith in 1994 Pt1

https://www.youtube.com/watch?v=4PQrz8F0dBI

Texas Gold Repatriation Bill Has One Message To Feds: "Come And Take It"

http://www.zerohedge.com/news/2015-06-17/texas-gold-repatriation-bill-has-one-message-feds-come-and-take-it

Today Financial Journalism Suffered An Epic Failure

http://www.zerohedge.com/news/2015-06-17/today-financial-journalism-suffered-epic-failure

PetroYuan Proliferation: Russia, China To Settle "Holy Grail" Pipeline Sales In Renminbi

http://www.zerohedge.com/news/2015-06-17/petroyuan-proliferation-russia-china-settle-holy-grail-pipeline-sales-renminbi

Did Yellen Just Throw Greenspan/Bernanke Under The Bubble-Blowing Bus?

A central banker's hypocrisy knows no bounds.

http://www.zerohedge.com/news/2015-06-17/did-yellen-just-throw-greenspanbernanke-under-bubble-blowing-bus

War on Retirees

Let's say a retiree has been blessed, disciplined, and prudent enough to save $1 million for their retirement.  In a savings account earning 0.1%, the retiree's annual income is $1,000.  So the solution is to put it in the safety of bonds, right?  Wrong.  If yields rise, bond prices drop.  So the bond holder not only doesn't make much, he/she will actually lose some of the principal.  Besides, at nearly zero percent, rates can only go up.

How about stocks?  It's been soaring to record highs, right?  Well, what if they flatten, or God forbid, equities drop?  10%?  60% (like the S&P500 did from 2007-2009), or 80% (like the NASDAQ did from 2000-2003)?  What then?  And oh, by the way, if interest rates rise materially, bond prices will drop, but equities will plummet.  The Fed knows this.  That's why they pin down yields on the short end of the curve.   But the bond vigilantes will eventually demand higher yields at the long end, because frankly, the US Treasury is insolvent and will NEVER be able to pay off its obligations.

Banks Fund Wars

All wars are funded by banks. The playbook is to induce deflation, so the government can grab bag assets at discounted prices. Then induce inflation by ginning up the printing press and create paper currencies to fund the war. Wash, rinse, repeat.

The Hidden Messaging Behind FOMC Announcements

The FOMC announcements from Fed Chair Janet Yellen are like Jerry Seinfeld episodes. It's a show about nothing. Her long-winded transparencies could be summed up by, "we're not raising interest rates until further notice."

The underlying message should be "We want to hike rates, but we can't because the debt servicing costs would be out of control. But we can't tell you that because markets would collapse. So, QE to infinity, bitchez!"

The “Dry Bubble” We’re In. What That Means.

http://www.saastr.com/the-dry-bubble-we-may-be-in-what-that-means/