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Lets say we gave the following lesson to a group of children:

There are two metals of the same category (precious). The only outward physical difference is color; one is
white and one yellow. They felt and weighed the same. They had each been used for the same purposes for
thousands of years, but in the last hundred years or so, the white one was discovered to have many unique
properties, better than any other material, that made possible many of the modern devices and inventions
that made life better. Because of all the necessary uses on this white metal, all the accumulated amount
produced over 5000 years was almost completely depleted because we couldnt produce it as fast as we
consumed it. The yellow metal was basically used as it always had been and all of it was still around in a
form that could be retrieved. Because the white one was used up so much, there was a lot less of it left in
the world than the yellow one. And even though the world produced more of the white one than the yellow
one, it used up even more. This means the white metal is RARER than the yellow one !!!
Additionally, the governments of many countries in the world own a lot of the yellow metal, which they
keep selling, while very little of the white metal is still owned by governments, meaning not much can be
sold. If the yellow one disappeared completely from the face of the earth overnight, it would have little or
no impact on the life of the average world inhabitant. But if the white metal disappeared, modern life as we
know it would be disrupted beyond belief. Now, the children are told that one metal COST 70 times as
much as the other, and are asked to guess which metal is the most expensive...
How do you think they would answer?
Its that answer that permits me to be a gold agnostic. I did not mention that most newly mined silver
comes as a by-product to the mining of other metals, so I did not discuss the differences of cost of
production between the yellow and white. Nor did I point out that the white metal had a much larger short
position than the yellow one. And I did not raise the issue that if all investors in silver switched and put
their entire proceeds in gold, it would hardly cause a ripple in the price of gold. While if 1% of the amount
invested in gold were to migrate to silver, the silver price would immediately explode by many times the
current price. It is when you step back and try to keep things simple that the basic merits of silver clearly
emerge, especially in a comparison with gold. This is what creates the lifetime investment
opportunity in SILVER. Its not intended as a knock on gold, but as a valid comparison, which just
happens to reflect very favorably on silver. Im amazed more gold investors (and there are many, many
times the number of investors in gold than silver) havent made the silver connection yet. I think more will,
if they study the merits objectively. Perhaps the biggest merit emerging is that when you invest in the good
news metal, you dont have to root for bad things to happen, you just root for more world citizens to lead
better lives... "

La bourse ou les mtaux prcieux ?


Posted on avril 22, 2011 by 47carat
Pour ceux qui ne sont pas familiers avec la Bourse, le domaine peut sembler extrmement difficile comprendre, surtout avec la
multiplicit des options offertes et des produits drivs. Il existe cependant un moyen sr de jouer la Bourse : les mtaux
prcieux. Mme les supposs experts de la Bourse, ceux qui sont habitus jouer avec toutes sortes de concepts boursiers et
investir dans des produits inconcevables pour le commun des mortels, investissent dans les mtaux prcieux parce que les mtaux
prcieux offrent de la scurit.
Mme si vous navez jamais investi la Bourse, vous avez quand mme certainement entendu parler de lor comme valeur-refuge,
lexpression tant maintes fois entendue dans les mdias. En effet, quand il y a des questionnements sur le march, beaucoup
dinvestisseurs ont tendance se tourner vers lor, par exemple, pour se protger. On dit de lor quil est une valeur-refuge parce
que, quoi quil arrive sur les marchs, lor ne perd jamais de sa valeur; sa valeur a mme tendance augmenter en temps de crise
conomique.
Mais pourquoi lor ne perd-il pas de valeur ?
Lor a toujours fascin, depuis des temps immmoriaux. Par sa brillance, sa beaut, sa raret, il est un symbole de richesse.
Longtemps avant lavnement des devises diverses, lor tait la seule monnaie pour les changes. Qui possdait de lor pouvait
lchanger contre des services de toutes sortes. Cest pourquoi, lors des voyages exploratoires financs par les divers royaumes, il y
a quelques sicles, un des buts prioritaires de ces expditions tait de trouver de lor, qui allait garantir plus de richesse. Si,
aujourdhui, vous trouviez de lor, vous pourriez le vendre et en obtenir le prix du march immdiatement, car tout le monde
cherche de lor. Cest pourquoi, encore de nos jours, lor est une valeur-refuge. Ceux qui ont t patients avec leur or, qui lont gard
quand sa valeur a fluctu, ne le regrettent srement pas. On dit mme, aujourdhui , que lor est sous-valu par rapport aux
monnaies en circulation dans le monde, que sa valeur relle devrait se situer aux alentours de 5,000$ lonce.
Quest-ce que cela signifie pour le nophyte ?
Il est donc tabli que lor constitue un investissement sr. Cependant, il existe plusieurs faons dacheter de lor ou dautres mtaux
prcieux comme largent, par exemple. Les grandes compagnies dinvestissements offrent toutes sortes de produits drivs, et cest
l que a devient intressant, dans le sens o la plupart des investisseurs aguerris essaient, par toutes sortes de moyens, de faire
fructifier leurs investissements et se lancent dans des schmas complexes de spculation. Mais, avec toutes les manipulations qui
ont eu lieu sur le march de lor, plusieurs craignent, et avec raison, que beaucoup dinvestisseurs vont finir avec des certificats qui
ne vaudront que le papier sur lequel ils sont crits. La seule faon dinvestir de faon sre est de se procurer de lor physique,
acheter des lingots. Votre once dor vaut son pesant dor sans jeu de mots. Il est facile de revendre de lor tout moment, mais il
deviendra de plus en plus difficile de revendre des certificats donnant supposment droit de lor. Aujourdhui, le nophyte peut
profiter des expriences des investisseurs pour entrer dans le march des mtaux prcieux par la grande porte, en tant assur
de prendre des dcisions rflchies, cest--dire en achetant des lingots physiques, et non des certificats. Il existe, bien sr, des
vhicules dinvestissement relativement srs avec certains de ces certificats, mais le plus sr demeurera toujours le lingot rel. En se
dotant de lingots, il ny a que la valeur-mme du mtal qui influera sur votre investissement.
Il ny a pas que lor qui puisse savrer un bon investissement. Plusieurs mtaux prcieux peuvent constituer la base dun bon
portefeuille, dont largent, en particulier. Il y a plusieurs raisons qui nous font affirmer que largent est grandement sous-valu et
quil se dirige vers des hausses astronomiques de prix. Une de ces raisons en est la manipulation des marchs, encore une fois, mais
nous y reviendrons plus loin. Revenons plutt sur une des raisons qui font que lor demeure une valeur-refuge : son recyclage. En
effet, presque tout lor utilis peut tre recycl, on le voit de ce temps-ci, beaucoup dannonceurs la tl nous demandent de leur
envoyer nos vieux bijoux et autres objets en or. Ils le font fondre et le remettent sur le march. Mais, surtout, cest sa valeur qui fait
que tout le monde recycle lor.
Dans le cas de largent, cela cause problme, pour plusieurs raisons. Son faible cot, dune part, nincite pas la rcupration et,
dautre part, le recyclage en est compliqu du fait que largent est utilis en quantits infimes dans ses applications, souvent en tant
que sous-produit. Et, toujours pour des raisons de cot, lexploitation des mines dor est encourage, mais pas celle de largent. La
majeure partie de largent neuf est constitue des sous-produits dexploitation dautres mines, ce qui est une bonne indication
de la sous-valuation de largent.

Largent
Largent est un mtal trs versatile. Certaines de ses proprits sont uniques, il nexiste pas de substituts comparables en
qualit et en cot. Ses applications sont nombreuses, dans plusieurs domaines, dont la mdecine, cause de ses proprits
anti-bactriennes, dans la fabrication des panneaux solaires,et en toutes sortes dapplications en haute technologie.
Ses proprits anti-bactriennes
Largent a des proprits anti-bactriennes uniques. Les bactries ne peuvent survivre dans son environnement. Les
applications de ces proprits en sont leurs balbutiements. Une application dj utilise sert neutraliser les odeurs
corporelles. Les fabricants de polyester lutilisent dans leur vtements pour neutraliser lodeur, et a fonctionne. Les
implications sont immenses plus les gens bnfieront des avantages de ces vtements, plus de gens en voudront et plus les
fabricants de vtements voudront incorporer largent dans leurs tissus.
Pour le moment, largent utilis dans la fabrication du polyester reprsente environ 1/40,000ime des cots des entrants.
Cela peut sembler peu, mais il se fabrique dans le monde plus de 200,000 tonnes de polyester par an. Une augmentation du
prix de largent, mme norme, ne ferait gimper les cots de production que de quelque peu.
Ce quil faut considrer, cest loffre et la demande. Loffre reste stable, car il se produit peu de nouvel argent. Et il sen
produit peu, parce que son prix nest pas encore assez allchant pour forcer les producteurs en extraire. Mais il est prvoir
que son prix augmentera considrablement, parce que la demande va forcment augmenter. Si largent qui est utilis pouvait
tre recycl facilement, cela prendrait plus de temps avant dinciter les producteurs sy mettre, mais ce nest pas le cas,
cause du type dusage qui est fait de largent. En effet, dans la plupart des cas, largent est utilis en quantits infimes, et
souvent en tant que sous-produit, donc il est trs difficile de le rcuprer.
Un petit retour en arrire va nous aider mieux comprendre ce qui va se passer avec largent. Comme avec lor, il y a eu
manipulation sur les marchs de largent. Brivement, ce qui est arriv est la chose suivante : entre 1990 et 2005, les stocks
dargent ont diminu considrablement mais, de 2005 2008, ils ont apparemment augment de faon importante. Sans
entrer dans les dtails, car cette manipulation des stocks mrite une analyse approfondie, les stocks rels nont pas
augment. Ce qui fait que plus de gens dtiennent des certificats donnant droit de largent quil y a dargent disponible.
Quoique ces manipulations datent dj, cela prend du temps avant que tout le monde ne le sache de faon non quivoque.
Plus la panique sinstallera, ce qui nest quune question de temps, plus la pression de produire de largent neuf se fera sentir,
ce qui entranera le prix de largent la hausse. Dailleurs, cest dj commenc. En effet, en quelques semaines peine, le
prix de largent est pass de 25$ 35$ une forte augmentation. Mais ce nest rien ct de ce qui sen vient
Si largent ntait quun mtal parmi tant dautres, ce ne serait pas le cas, car on trouve aujourdhui beaucoup de produits de
remplacement sur le march. Mais certaines proprits de largent sont uniques, et il nexiste aucun substitut sur le march.
Cest ce qui en fait une commodit unique.
Nous reviendrons plus tard sur les proprits uniques de largent et toutes ses applications possibles venir. Mais il faut
insister sur ce point : il ny a rien pour remplacer largent, l o largent est utilis pour ses proprits uniques, ce qui en fait le
mtal de lavenir.
Pour finir, un mot sur les bijoux en argent.
Depuis que lor est le mtal par excellence utilis en joaillerie, largent a toujours t considr comme infrieur. Mais il ne
lest pas, en ralit. La seule raison en est sa valeur montaire. Avec la monte du prix de largent, il va devenir de plus en plus
prcieux et la demande va augmenter en ce domaine aussi. Jusqu date, il a t possible de recycler cet argent, jusqu un
certain point, mais il viendra manquer, cela est une certitude.
Alors, intressez-vous largent rel et vous y verrez une occasion en or (!) de faire vos premiers pas dans le monde de la
Bourse, sans crainte de faire fausse route.

Pourquoi l ARGENT est-il un mtal indispensable ?


( http://www.argentmetal.com/2012/07/04/pourquoi-largent-est-il-un-metal-indispensable/ )

Largent est notamment utilis dans les


domaines suivants :
Anti-bactriens
Argenterie
Batteries
Bijouterie
Catalyseurs
lectroniques / lectriques
Energie solaire
Ensemencement des nuages
Explosifs
Industrie automobile
Industrie textile
Instruments de musique
Mdecine / Applications mdicales
Mtal montaire ( pices, lingots )
Miroirs / revtements rflchissants
Nanotechnologie
Photographie
Prservation du bois
Piles
Purification de leau
RFID (Radio Frequency Identification Devices)
Roulements
Soudure
Supraconductivit
Technologies vertes

Aprs le ptrole, il sagit aujourdhui de la matire premire la plus


utilise, notamment avec plus de 10000 applications diffrentes
permettant le dveloppement et le progrs de la technologie dans de
nombreux domaines.
Ses proprits tout fait uniques en font lun des mtaux les plus
importants pour nos civilisations modernes :

Il est le mtal le plus blanc.

Il possde le plus haut degr de rflexivit, permettant de


rflchir 95% de toute la lumire visible.

Il est plus dur que lor, mais plus moux que le cuivre.

Il est plus mallable que tous les autres lments mise part
lor.
Il peut tre rduit 6/10000 de millimtres, 1/150 de
lpaisseur dune simple feuille de papier. Une once dargent
(31g) permet de tirer un fil de 2,5 kilomtres.

Il est le meilleur conducteur dlectricit parmis tous les


lments. Il est en outre utilis comme mesure de
conductivit pour les autres mtaux.

Il rsiste fortement la corrosion

Il possde un haut degr de conduction thermique.

Il possde des proprits anti-microbiennes.

Il possde des proprits anti-fongicides.

Son prix est inlastique ( utilis en quantit infime,


laugmentation de son prix ne forcera pas trouver un substitut)

Lor est stock, largent est consomm


Depuis laube de lhumanit, lor a t stock. A notre poque, largent est utilis comme une matire premire industrielle et non pas valu comme un mtal prcieux. Avec lavnement de
la technologie, largent mtal a t consomm en masse en de si petites quantits, quil ne pourra jamais tre recycl. En fait, lUSGS (U.S. Geological Survey) dit que dans les conditions
actuelles dutilisation, largent deviendrait, en effet, le premier lment de la table priodique des lments venant disparatre.
Entre 1900 et 2010, les stocks mondiaux dor ont augment de 1 milliard donces 5 milliards, parce que lor extrait des mines na gure t consomm, mais thsauris, sous forme de lingots
ou de bijoux. Par contre, dans le mme espace de temps, les rserves dargent ont baiss de 12 milliards 1, parce quune partie de la production de ce mtal a t consomme par
lindustrie, sans tre recycle (largent est utilis, entre autres, pour les microcircuits lectriques des voitures, ordinateurs, tlphones portables, panneaux solaires, etc.).
En 1900, il existait 12 fois plus dargent que dor, alors quen 2010, il y a 5 fois moins dargent que dor. Puisquil est 5 fois plus rare, largent a une valeur intrinsque suprieure celle de
lor. Mais alors, comment se fait-il que son cours actuel soit de beaucoup infrieur celui de lor ?
Il nexiste pas de nouvelles grandes mines dargent dcouvrir
Durant les dcennies passes, nous avons consomm plus dargent chaque anne que les mines nen ont extrait. Cela na t rendu possible que parce que nous avons puiss directement dans
les stocks dargent extraits durant lhistoire de lhumanit pour couvrir cet norme besoin en argent. En 1950, on estimait les stocks 10 milliards donces dargent. Aujourdhui, ces mmes
stocks sont vides. Donc, mme si lor est 10 fois plus rare que largent quand il est extrait du sol, le fait est que lor est stock et largent consomm, fait de largent un mtal bien plus rare
que lor.
Le ratio or sur argent est 1:66
Il faut environ 66 onces dargent pour acheter une once dor. Si durant toute lhistoire, largent a t extrait seulement 10 fois plus que lor, combien de temps un ratio de 1:66 peut-il tenir ? Si
largent a t utilis et lor stock, combien de temps ce ratio de 1:66 pourra-t-il exister ? A un certain point, le march ne pourra ignorer cette opportunit exceptionnelle. Quand cela arrivera,
on pourrait voir largent dpass le cours de lor. Si vous voulez vraiment de lor, acheter de largent. Vous pouvez acheter 66 onces dargent maintenant et lorsque le ratio tombera 1:1, vous
pourrez lchanger contre 66 onces dor
Largent a la plus grande position vendeuse persistante de toute lhistoire des matires premires
La seule raison pour laquelle le ratio 1:66 tient, cest parce quil existe des banksters qui vendent de largent mtal papier sur le march pour contenir le cours de largent chaque fois que
celui-ci senvole, afin de protger le dollars et ses milliers de milliards qui nous gouverne. En mai dernier, lorsquils ont volontairement fait chuter le cours de largent, ils y sont parvenus en
vendant prt de 8 milliards donces dargent papier en 5 jours, alors quil nest extrait mondialement quun seul milliard donces dargent chaque anne. Ce systme sera enfin mis nu
lorsquils ne parviendront plus faire face la demande de livraison, ce qui ne saurait tarder
Les Banksters sont cours dargent mtal ainsi que de temps
Le COMEX ne dtient lheure actuelle plus que 27 millions donces dargent mtal. Javais dj compris en mai, que le crash de largent ntait quune grosse conn****. La logique voudrait
que si le prix chute, on devrait retrouver plus dargent mtal en stock dans leurs coffres. Malheureusement non, car lorsque le dcompte de leur stocks fut fait, il y avait en effet, moins
dargent. On ne se trouvait pas seulement face plus dargent livr physiquement aux acheteurs, mais aussi avec des vendeurs qui dcidrent dannuler leurs transactions pour rcuprer leur
argent dpos au COMEX, comme la fait lOPEC ( Organization of the Petroleum Exporting Countries ). Quand cette fraude massive sera mise nue officiellement, il y aura des acheteurs
dargent mtal en panique, comme des requins cherchant lodeur du sang.

L ARGENT Mtal, lactif le moins cher du monde (Theodore Butler)


(http://www.silverseek.com/commentary/worlds-most-undervalued-asset-13135 )

Pour commencer, je trouve particulirement audacieux, au vu de ce que cela implique, de surnommer un actif lactif le plus sous-valu du
monde . Une majorit des investisseurs du monde sintressant aux valeurs sont toujours la chasse de sous-valuations, et sils parvenaient
trouver lactif le plus sous-valu, il ne serait quune question de temps avant quils ne se jettent dessus. Pour dire les choses simplement, si
vous pouviez identifier lactif dinvestissement le plus sous-valu du monde, vous pourriez identifier la meilleure opportunit dinvestissement
qui soit.
Il faudrait donc associer de tels propos des raisonnements et des faits capables de supporter lide dune extrme sous-valuation. Lobjectif
de cet article est de prouver pourquoi je suis persuad que largent est le moins cher de tous les actifs dinvestissement et est trs certainement
destin devenir la meilleure opportunit dinvestissement. Le seul problme est celui de la dure. Il ne serait pas raliste de penser que
si vous tiez capable didentifier le plus sous-valu de tous les actifs et investissiez, vous en seriez immdiatement rcompens. Si le monde
entier se trompait sur le prix dun actif, la sous-valuation ne serait pas corrige la minute o vous dcideriez dinvestir. Accordez-lui du
temps, disons cinq dix ans.
Je naborderai pas aujourdhui de la sous-valuation de largent qui est unique au mtal, comme par exemple le fait que son prix soit
infrieur son cot de production et que largent soit un mtal rare, particulirement en termes de dollars, ou encore sa chute de
prix enregistre ces trois dernires annes. Il est clair que nous pourrions dire que largent est sous-valu pour ces diverses raisons, mais nous
ne pourrions pas en conclure quil est lactif le plus sous-valu du monde. En dautres termes, il nest possible de dclarer un actif
comme tant le plus sous-valu du monde que par comparaison de prix.
Fort heureusement, une telle chose nest pas difficile accomplir. Tenter dexpliquer pourquoi je nai pas essay de le faire plus tt lest bien
plus. Pour ma dfense, je discute de la valeur de largent par rapport celui de lor presque tous les jours. Aprs tout, lor et largent sont tout
autant connects que lamour et le mariage et un cheval et sa calche. Il est difficile dimaginer une meilleure comparaison de prix.
Commenons donc par lor et largent. Il est dit quune image peut parfois valoir plus que des mots. Laissez-moi donc vous pargner des lignes
inutiles. Pour une raison duniformit, je vous prsenterai ci-dessous la valeur relative de largent comme elle est habituellement dcrite, cest-dire sur le modle du prix de largent divis par le prix de lor. Rappelez-vous que plus le ratio est lev, plus largent est sousvalu par rapport lactif dpeint. Ces graphiques prsentent ces quelques trois dernires annes
=> Souvenez-vous que plus le ratio est lev, plus largent est sous-valu. Jinclurai galement le march immobilier si je disposais dun
graphique. Je suppose que largent apparatrait comme tant lactif le plus sous-valu contre toutes les autres matires premires. Mon ide est
simple sur une base relative, largent est le plus sous-valu de tous les actifs. De mon point de vue, cela en fait lactif susceptible doffrir les
meilleurs gains dans le futur.
Je nessaie de piger personne je ne pourrais pas tre plus clair. Comme je lai dit plus tt, je suis un peu du de moi-mme pour ne pas avoir
prsent les choses ainsi plus tt. Parce que la situation est limpide comme de leau de roche ne veut pas dire que mon approche est invalide. Le
seul point que je nai pas abord est la manire dont largent est devenu lactif le plus sous-valu du monde. Je suppose que sil existait une
explication lgitime cette question, sa sous-valuation serait certainement mieux comprise et justifie.
Ce quil y a de mieux au sujet de la sous-valuation de largent est que la raison pour laquelle il est sous-valu est aussi vidente que sa sousvaluation elle-mme, non pas en termes de lgitimit, mais en termes de clart. Comme je lexplique dj depuis des annes, largent du
Comex enregistre la plus forte concentration de positions dcouvert du march des matires premires. Huit traders, avec leur
tte JP Morgan, sont responsables de la sous-valuation de largent. La concentration de positions dcouvert la plus importante du
monde dcoule en toute logique sur lactif le plus sous-valu du monde. Cest une bonne nouvelle, parce quil serait impossible pour moi de
vous prouver que largent est le moins cher de tous les actifs sans vous donner une explication de sa sous-valuation.
Bien que cela puisse prolonger la sous-valuation de largent en termes de dure, la situation ne pourra pas durer indfiniment. Les
ventes additionnelles dcouvert de la part de JP Morgan et les autres finiront par leur exploser la figure. Vendre des contrats papier
dcouvert ne satisfera pas la demande physique en excs des rserves physiques disponibles. Ce jour viendra, aussi srement que largent est
lactif le moins cher du monde.
Cela ne veut pas dire que largent ne peut pas devenir encore plus sous-valu sur le court terme, mais nest-ce pas l lessence mme de
linvestissement ? Nest-ce pas lobjectif des investisseurs que de rechercher le plus sous-valu des actifs et dviter les plus survalus ?
Comme nous pouvons nous y attendre, largent nest pas devenu lactif le moins cher du monde sans peine. Lactif le moins cher du monde ne
peut que ltre devenu par le biais de non-apprciation ou de manipulation, et non au travers de retours positifs sur linvestissement. Par
dfinition, lactif le moins cher du monde a d enregistrer dhorribles performances de prix pour le devenir. Que la sous-valuation de largent
soit lie une manipulation est une bonne nouvelle, parce que cette manipulation finira par prendre fin.
L'autre bonne nouvelle est quil ne sagit pas de la premire fois que largent se trouve tre lactif le moins cher du monde, puisquil la t avant
son record de prix de 2011. La raison pour laquelle largent est le meilleur actif dinvestissement est sa sous-valuation antrieure sa rcente
hausse de prix. On dit souvent que lHistoire ne se rpte pas, mais pour ce qui est de largent, je ne vois pas comment une telle chose pourrait
tre vite. Je me souviens de lpoque laquelle largent schangeait pour 5 dollars par once. A lpoque, lide quil puisse un jour grimper
jusqu voir sa valeur multiplie par dix tait ouvertement ridiculise. Largent tait lpoque, comme aujourdhui, lactif le moins cher du
monde. Si vous avez rat le coche la premire fois, une deuxime chance vous est offerte aujourdhui.
Il est aussi intressant que largent soit le plus sous-valu de tous les actifs lheure o la valeur dinvestissement nette dans le monde est plus
importante quelle ne la jamais t. Les actifs des seuls hedge funds atteignent un record de 2,7 trillions de dollars, dont 1% (27 milliards de
dollars) reprsente plus que la valeur de tout largent physique du monde (sil pouvait tre achet). Les 100 millions donces de nouvel argent
disponible chaque anne linvestissement ne reprsentent qu1/10 e(2,7 milliards de dollars) des actifs des hedge funds. A moins que ces
derniers aient cess de rechercher de nouveaux actifs sous-valus, la situation ressemble de prs une mise en scne impliquant une
allumette et un baril de poudre...

Pourquoi jaccumule de largent mtal (T.Butler)


Demandez des centaines dinvestisseurs pourquoi ils accumulent de lor et de largent, et bien que vous nen obtiendrez certes pas des
centaines de rponses diffrentes, ils vous en donneront plus dune. Pourquoi ? Parce quil existe diverses raisons pour lesquelles les
gens choisissent dinvestir sur les mtaux prcieux. Parmi ces raisons, nous pouvons noter entre autres la volont de se protger de
linflation, mais aussi celle de se protger des effondrements bancaires, des crises des devises, de la dette gouvernementale et du
gonflement de la masse montaire, ou encore de leffondrement du march des actions et des obligations.
Bien que je puisse comprendre ces raisons et suis tout fait daccord avec le fait que lor et largent puissent fournir un excellent outil de
protection, elles ne justifient en rien mon accumulation personnelle dargent. Jachte de largent parce que je suis persuad quil finira
par enregistrer des performances bien suprieures nimporte quel autre investissement, y compris lor. Bien que je ne sois
pas omnibul par mon dsir dargent, je reste persuad que quel que soit linvestissement que je dcide de faire, il doit tre le meilleur
possible. Pour dire les choses simplement, je suis certain que largent finira par me rapporter plus que nimporte quel autre
investissement, et ce dans nimportes quelles circonstances.
Il est une chose de dire que largent sera linvestissement de ces prochaines annes, mais il en est une autre que de soutenir cette ide et
dexpliquer pourquoi. La raison en est simple. Je pense que largent souffrira bientt dune pnurie extrme. Sil est une chose qui
puisse influencer le prix dune ressource la hausse, cest certainement une pnurie physique. Que ce soit en temps de guerre ou en
priode de paix, chaque fois quune pnurie est apparue, le prix de la ressource concerne a flamb jusqu rationner le restant des
ressources disponibles. Le prix de largent se comportera de la mme manire ds quune situation de pnurie sinstallera.
Lide dune invitable pnurie est ce qui ma attir sur le march de largent il y a prs de 25 ans. Certains pourraient penser que cest
une attente trs longue pour une pnurie, mais certaines circonstances trs spciales expliquent pourquoi larrive dune pnurie a t
recule sur ce march. Dune part, de largent a t extrait du sol en de grandes quantits des centaines dannes durant, et dnormes
inventaires ont t accumuls la surface de la terre. Il est difficile de concevoir une pnurie tant quil existe des inventaires. Il ny a
jamais eu, tout au long de lHistoire, de pnurie dargent. Si une pnurie venait aujourdhui se dvelopper, elle serait sans prcdent,
ce qui ajouterait la panique motionnelle et lintensit de la rue vers largent qui laccompagnerait.
Il y a environ un sicle, le monde a dvelopp un apptit insatiable pour largent en tant que mtal industriel, aprs quil ait t
dcouvert que le mtal possde des proprits physiques et chimiques plus varies et vitales que nimporte quel autre mtal. Largent
est le meilleur conducteur lectrique qui soit, le meilleur transmetteur de chaleur, possde diverses proprits mdicales, et des
proprits chimiques qui rendent possible la photographie tout autant que la fabrication de catalyseurs pour dautres productions
chimiques.
La demande industrielle en argent tait si grande que jusquen 2006, plus dargent fut consomm que produit ou recycl. Au dbut de la
seconde guerre mondiale, les inventaires dargent de par le monde slevaient quelques 10 milliards donces dargent, dont la moiti se
trouvait entre les mains du gouvernement des Etats-Unis. Il est difficile de concevoir une pnurie lorsque les inventaires globaux
slvent 10 milliards donces. Mais depuis 2006, tant dargent a t consomm et si peu produit que les inventaires dargent (en
barres de 1000 onces) ne slvent plus qu un milliards donces aujourdhui, ce malgr la fin du dficit de consommation. Il est bien
plus ais dimaginer une pnurie lorsque les inventaires dclinent de 90% et que la population mondiale (et donc la demande) passe de
2,5 7 milliards.
Je perois largent comme une ressource destine enregistrer une pnurie parce que cest l ce que toutes les informations dont nous
disposons poussent croire. Mon pass professionnel se concentre sur lanalyse de loffre et de la demande, et jai dbut ma carrire en
tant que courtier pour Merrill Lynch il y a plus de quarante ans. Je ne savais alors pas que largent tait en passe de subir une pnurie,
mais en 1985, Israel Friedman, un client qui est plus tard devenu mon mentor ma demand pourquoi le prix de largent restait coinc
5 dollars alors que la demande excdait la production et que les inventaires chutaient danne en anne. Grce lui, jai fini par
dcouvrir que le prix de largent demeurait trs bas parce quil tait manipul par les ventes dcouvert excessives sur le COMEX,
principal march mondial des mtaux prcieux. Depuis lors, je me suis battu pour mettre fin cette manipulation. Je nai pas encore
connu le succs, mais des milliers dautres savent maintenant que le prix de largent a t supprim. Le fait est que rien ninvite plus la
pnurie quun prix maintenu artificiellement bas et ses effets sur les lois de loffre et de la demande.
Nimporte quelle ressource industrielle peut souffrir de pnurie. Tout ce quil faut pour cela est que la demande excde la production.
Les pnuries sont rares, mais chacun des produits industriels a travers une phase de pnurie au cours de lHistoire. Le cuivre, le nickel,
le plomb, le zinc, bon nombre de crales et de produits nergtiques ont enregistr des pnuries de divers degrs. Du fait mme de la
diversit de la consommation industrielle de base de largent, de la croissance de la population mondiale et du dveloppement
conomique, il est impossible dexclure largent comme candidat potentiel une pnurie.
Mais attendez une seconde. Nai-je pas dit plus haut que la production totale dargent a commenc excder la consommation
industrielle en 2006 ? Comment une pnurie pourrait-elle se dvelopper si la production totale est plus importante que la
consommation industrielle ? Pour commencer, la production totale dargent nexcde pas de beaucoup la consommation industrielle,
disons denviron 100 millions donces par an pour un milliard donces de production totale. On pourrait croire que compte tenu de la
rcente chute du prix de largent en-dessous de son cot de production, il ne se passera pas longtemps avant que la consommation
industrielle surpasse la production minire. Je suppose quun dficit dargent pourrait bientt apparatre, moins que son prix
naugmente, mais jai dautres raisons de croire quune pnurie puisse se dvelopper avant que la production minire ne se tarisse.

Ce qui permet de comprendre pourquoi, de toutes les ressources, largent est capable de dvelopper une pnurie, ce mme si la
production excde la consommation industrielle totale, est le fait que largent est le plus unique des matriaux dans le sens o sa
demande possde plusieurs aspects. Non seulement largent est un mtal industriel vital, il est galement un actif dinvestissement vital.
De mon point de vue, ce fait lmentaire est loin dtre suffisamment apprci. Et pourtant, il est la raison pour laquelle je possde de
largent.
Il arrive parfois que les investisseurs achtent du cuivre, du ptrole ou des crales pour des raisons de spculation, mais linvestisseur
moyen ninvestit que rarement sur le cuivre, le ptrole ou les crales sur le long terme. Si un investisseur achte quelque chose, cest
bien souvent de lor ou de largent. Puisque trs peu dor est utilis des fins commerciales et que le mtal est principalement considr
un actif dinvestissement, on ne peut pas parler dun double aspect de la demande. Cela ne veut pas dire que le prix de lor ne grimpera
pas, simplement que ce ne sera pas d des achats paniques par ses utilisateurs industriels. Seul largent jouit dune dualit de la
demande.
En raison de cette dualit de la demande qui lui est unique, le potentiel de pnurie de largent est unique en son genre. Les pnuries
apparaissent habituellement de manire graduelle la suite dune insuffisance de loffre par rapport la demande sur plusieurs annes.
Aprs tout, une majorit des ressources voient plusieurs types de participants sur leur march, aussi bien producteurs que
consommateurs, et les transformations en matire de production ou de consommation sont extrmement lentes. Les effets dune
pnurie ne deviennent apparents que lorsque les dlais de livraison se font longs et consistants. Mais il y a une grande diffrence entre
la demande industrielle et la demande dinvestissement. Pour ce qui concerne la demande industrielle, les utilisateurs achtent ce dont
ils ont besoin. Les investisseurs, quant eux, achtent ce quils veulent et peuvent se permettre. Et la nature humaine tant ce quelle
est, les investisseurs achtent souvent lunisson, ou tentent tous de vendre en mme temps. Et ce dtail a beaucoup dimportance pour
lventuelle pnurie dargent.
La demande totale en fabrication (consommation industrielle plus bijouterie, frappe de pices, etc) consomme plus de 90% des rserves
totales (production minire plus recyclage) dun milliard donces. Cela nous laisse donc environ 100 millions donces (sous la forme de
barres de 1000 onces), ou 2 2,5 milliards de dollars de mtal, pour les investisseurs du monde. En termes de fluctuations typiques de
la demande en investissement, cest une quantit insignifiante. Les investisseurs absorbent 100 150 milliards de dollars dor par an.
Puisque les investisseurs tendent agir lunisson et que les quantits en dollars sont si peu leves, les 100 millions donces dargent
disponibles peuvent tre absorbes en un trs court instant. Il est clair que les rserves dargent existantes peuvent aussi tre vendues,
mais souvenez-vous que les inventaires dargent ont diminu de 90% en 70 ans, ce qui signifie quil nen reste plus beaucoup entre les
mains des investisseurs.
La dualit de la demande est un mcanisme qui se renforce de lui-mme. Il ne sera quune question de temps avant que les
investisseurs achtent de largent en des quantits suffisantes pour en rduire la disponibilit. Lorsque la disponibilit en argent se
trouvera rduite, les consommateurs industriels se trouveront eux-aussi en difficult, ce qui causera des dlais de livraison pour les
utilisateurs dargent. Face aux dlais de livraison qui verront sarrter les chanes dassemblage, les utilisateurs industriels feront ce
quils ont toujours fait ils tenteront dacheter toujours plus dargent pour se construire leurs propres inventaires et liminer les dlais
de livraison futurs. Cest un comportement humain tout fait naturel le mme que celui qui nous pousse acheter du pain, du riz et
du carburant lapproche dun ouragan.
Vous vous posez peut-tre la question de savoir pourquoi cette invitable pnurie ne sest pas encore produite. La vrit, cest que le
monde tait en passe de subir une pnurie dargent il y a trois ans et demie, alors que le prix du mtal approchait les 50 dollars. A
lpoque, les investisseurs avaient achet suffisamment dargent, y compris de grandes quantits dETF, pour que les prix flambent et
que ltroitesse du march se fasse sentir sur toute la chane de production. Les ETF achtent exactement la mme forme dargent que
les autres utilisateurs (des barres de 1000 onces). Mais avant que les utilisateurs industriels aient eu le temps de se constituer leurs
propres inventaires, les prix ont t manipuls la baisse sur le COMEX, et au bout dune semaine, le prix de largent a perdu plus de
30%. Cette chute de prix a immdiatement ralenti la demande en investissement et pouss les investisseurs vendre, ce qui a prvenu
lapparition dune panique des utilisateurs industriels.
Je pense galement que nous avons chapp de prs une pnurie au printemps 2011. Mais que nous y ayons chapp ne change rien
linvitable, il ne sagissait que de remettre plus tard ce qui doit arriver et en dmultiplier les effets. Je ne peux que difficilement
imaginer que nous puissions passer au travers dune pnurie dargent. Pour moi, tout nest que question de temps. Mme sil est
impossible de dterminer quand une pnurie se dveloppera, nous pouvons plus ou moins en prendre le contrle. Tout nest question
que de configuration dinvestissement. Si vous tes convaincu, comme moi, quune pnurie dargent est venir, ne tentez pas de savoir
quand elle arrivera. Tentez de vous positionner de manire ce que le temps dattente nait aucune importance, uniquement la pnurie
elle-mme. La manire de le faire est dacheter du mtal, de le mettre de ct et dattendre. Nachetez pas dargent papier, ne vous
lancez pas dans le trading de court ou long terme, accrochez-vous au mtal physique en votre possession jusqu ce que vous en ayez
tant que vous ayez besoin de laide dun professionnel pour le stocker. En ne vous souciant pas de la question de temps, vous mettez le
temps de votre ct.

ALERTE: PREPARATION D'UNE SAISIE GLOBALE DE L'EPARGNE DANS


28 PAYS EUROPEENS
fvrier 2014 : C'est un article laconique qui est tomb sur le fil Reuters mais vous n'en avez pas entendu parler sur nos
Merdias habituels. L'article technique du FMI et valid par la Bundesbank (voir plus bas) a cette fois t valide par les
zombies de l'Union Europenne. Un rapport est en prparation pour saisir TOUTE L'EPARGNE des 500 millions
d'Europens pour la mettre disposition des banques (en faillite).
Messieurs Barnier et Moscovici, vous n'tes que des menteurs. Si la crise de la zone euro est "termine" alors pourquoi ce
projet de vol global directement sur le compte des Europens???
Regardez ce qu'crit Reuters: "the savings of the European Union's 500 million citizens could be used to fund long-term
investments to boost the economy and help plug the gap left by banks since the financial crisis, an EU document says".
Difficile d'tre plus clair et de voir que Mario Draghi, Mr Goldman Sachs, en est arriv l pour sauver la Banque Centrale
Europenne. Saisir l'pargne des gens. Cela revient peu prs ce qu'avait fait Roosevelt qui avait forc les Amricains
lui vendre leur or un prix trs bas, pay par la planche billets. Plus de 80 annes plus tard, il suffit Mr Draghi
d'appuyer sur un bouton pour que tous les ordinateurs de banque, interconnects dans tous les pays, oprent cette saisie un
vendredi 17 heures.
ZH crit: "So as Europe finally admits that the ECB has failed to unclog its broken monetary pipelines for the past 5 years
(...) Mobilize, once again, is a more palatable word than, say, confiscate."
Lire ici Reuters, ici ZH et ici la Libre.be pour un rappel sur la validation de la Buba qui demande ce que toute saisie soit
faite le week-end.
A nouveau, aux lecteurs concerns, prenez vos dispositions ( Argent, Or, Palladium,
ce sera trop tard. Revue de Presse par Pierre Jovanovic www.jovanovic.com 2008-2014

Platine, ). Aprs

En cas de crise, les banques pourront prlever les dpts des pargnants
Aprs la ponction des pargnants chypriotes cette anne et lide mise par le FMI dune supertaxe de 10% sur le
patrimoine, lEurope vient dentriner la participation des dposants au renflouement des banques en cas de crise
grave.Laccord, scell mercredi 11 dcembre, est pass relativement inaperu, alors quil pourrait tre dune
importance capitale pour les pargnants.
Les Europens se sont mis daccord sur une loi prvoyant des rgles de renflouement interne des banques, ou bail-in ,
afin dviter de faire participer les Etats au sauvetage des tablissements financiers.
Grand pas franchi ce soir: accord #BRRD pour 28, a crit sur son compte twitter le commissaire europen charg des
Services financiers, Michel Barnier, en rfrence la directive sur le sauvetage des banques. Contribuables ne seront
plus premiers payer pour erreurs des banques , a-t-il ajout.
Cest un pas fondamental vers la ralisation de lunion bancaire , a assur Michel Barnier dans un communiqu.
Des reprsentants du Parlement europen, du Conseil qui reprsente les Etats, et de la Commission europenne se sont
mis daccord au cours dun trilogue sur ce texte, qui sappliquera aux 28 Etats membres.
Cette nouvelle directive sarticulera avec le Mcanisme unique europen de rsolution des banques, qui fait toujours
lobjet de difficiles ngociations au niveau des ministres, et destin lui la seule zone euro. Les ministres des Finances
doivent se retrouver mercredi prochain pour tenter de finaliser un accord sur ce sujet.

Dpts garantis jusqu 100.000 euros


Chaque Etat membre devra mettre en place des fonds de rsolution nationaux qui devront atteindre un niveau de 1% des
dpts couverts dans les 10 ans.
Toutes les banques devront contribuer ces fonds mais les contributions seront plus importantes pour les banques qui
prennent plus de risques , a dit Michel Barnier.
Les banques devront mettre des rserves de ct pour les temps difficiles , afin de rendre le secteur financier plus
robuste pour quil prte lconomie relle , a-t-il comment sur twitter.

Ces rgles du bail-in entreront en vigueur au

1er janvier 2016. La Commission avait dabord prvu une

application partir de 2018, mais la Banque centrale europenne avait fait part de ses inquitudes pour la priode
intermdiaire, craignant que le Mcanisme de rsolution unique de la zone euro nait rgler le sort de certaines banques
sans disposer de cet outil.
Jusquici, ce sont les Etats, avec largent des contribuables, qui renflouaient les banques (un bail out ). Ce
renversement pose un certain nombre de questions, notamment sur la transparence de la gestion des banques pour les
pargnants. Les informations disponibles pour les clients sont souvent trs compliques dcrypter pour juger de la sant
financire de leur tablissement bancaire. En outre, cela assure les banques de ne pas faire faillite, ce qui pourrait les
inciter tre moins prudentes sur les marchs.

Exclusive: EU executive sees personal savings used to plug long-term financing gap
(http://www.reuters.com/article/2014/02/12/us-eu-banks-savings-idUSBREA1B1ZI20140212 )

(Reuters) - The savings of the European Union's 500 million citizens could be used to fund long-term investments to
boost the economy and help plug the gap left by banks since the financial crisis, an EU document says.
The EU is looking for ways to wean the 28-country bloc from its heavy reliance on bank financing and find other
means of funding small companies, infrastructure projects and other investment.
"The economic and financial crisis has impaired the ability of the financial sector to channel funds to the real
economy, in particular long-term investment," said the document, seen by Reuters.
The Commission will ask the bloc's insurance watchdog in the second half of this year for advice on a possible draft
law "to mobilize more personal pension savings for long-term financing", the document said.
Banks have complained they are hindered from lending to the economy by post-crisis rules forcing them to hold
much larger safety cushions of capital and liquidity.
The document said the "appropriateness" of the EU capital and liquidity rules for long-term financing will be
reviewed over the next two years, a process likely to be scrutinized in the United States and elsewhere to head off
any risk of EU banks gaining an unfair advantage.
The EU executive will also complete a study by the end of this year on the feasibility of introducing an EU savings
account, open to individuals whose funds could be pooled and invested in small companies.
The Commission also plans to study this year whether changes are needed to help fund small businesses by creating
a liquid and transparent secondary market for trading corporate bonds in the EU.

It is also seeking to revive the securitization market, which pools loans like mortgages into bonds that banks can sell
to raise funding for themselves or companies. The market was tarnished by the financial crisis when bonds linked to
U.S. home loans began defaulting in 2007, sparking the broader global markets meltdown over the ensuing two
years.
The document says the Commission will "take into account possible future increases in the liquidity of a number of
securitization products" when it comes to finalizing a new rule on what assets banks can place in their new liquidity
buffers. This signals a possible loosening of the definition of eligible assets from the bloc's banking watchdog.
The Commission will also "review" how EU rules treat covered bonds by the end of this year, the document says, a
step that will be welcomed by Denmark with its large market in bonds used by banks to finance home loans.
Other steps to boost financing in the EU include possible steps to aid crowdfunding, where many people contribute
relatively small amounts of money to create a sizeable funding pool.
The document said investors and asset managers also have a role and it will propose a revision of EU rules on
shareholder rights to "ensure better disclosure of institutional investors' engagement and voting policies".
More controversially, the Commission will consider whether the use of fair value or pricing assets at the going rate
in a new globally agreed accounting rule "is appropriate, in particular regarding long-term investing business
models".

Europe Considers Wholesale Savings Confiscation, Enforced Redistribution


(http://www.zerohedge.com/news/2014-02-12/europe-considers-wholesale-savings-confiscation-enforced-redistribution )
At first we thought Reuters had been punk'd in its article titled "EU executive sees personal savings used to plug long-term financing
gap" which disclosed the latest leaked proposal by the European Commission, but after several hours without a retraction, we realized
that the story is sadly true. Sadly, because everything that we warned about in "There May Be Only Painful Ways Out Of The Crisis"
back in September of 2011, and everything that the depositors and citizens of Cyprus had to live through, seems on the verge of going
continental. In a nutshell, and in Reuters' own words, "the savings of the European Union's 500 million citizens could be used to fund
long-term investments to boost the economy and help plug the gap left by banks since the financial crisis,an EU document says."
What is left unsaid is that the "usage" will be on a purely involuntary basis, at the discretion of the "union", and can thus best be
described as confiscation.
The source of this stunner is a document seen be Reuters, which describes how the EU is looking for ways to "wean" the 28-country
bloc from its heavy reliance on bank financing and find other means of funding small companies, infrastructure projects and other
investment. So as Europe finally admits that the ECB has failed to unclog its broken monetary pipelines for the past five years something we highlight every month (most recently in No Waking From Draghi's Monetary Nightmare: Eurozone Credit Creation
Tumbles To New All Time Low), the commissions report finally admits that "the economic and financial crisis has impaired the
ability of the financial sector to channel funds to the real economy, in particular long-term investment."
The solution? "The Commission will ask the bloc's insurance watchdog in the second half of this year for advice on a possible draft
law "to mobilize more personal pension savings for long-term financing",the document said."
Mobilize, once again, is a more palatable word than, say, confiscate.
And yet this is precisely what Europe is contemplating:
Banks have complained they are hindered from lending to the economy by post-crisis rules forcing them to hold much larger safety
cushions of capital and liquidity.
The document said the "appropriateness" of the EU capital and liquidity rules for long-term financing will be reviewed over the next
two years, a process likely to be scrutinized in the United States and elsewhere to head off any risk of EU banks gaining an unfair
advantage.
But wait: there's more!

Inspired by the recently introduced "no risk,guaranteed return" collectivized savings instrument in the US better known as MyRA,
Europe will also complete a study by the end of this year on the feasibility of introducing an EU savings account, open to individuals
whose funds could be pooled and invested in small companies.
Because when corporations refuse to invest money in Capex, who will invest? Why you, dear Europeans. Whether you like it or not.
But wait, there is still more!
Additionally, Europe is seeking to restore the primary reason why Europe's banks are as insolvent as they are: securitizations, which
the persuasive salesmen and sexy saleswomen of Goldman et al sold to idiot European bankers, who in turn invested the money or
widows and orphans only to see all of it disappear.
It is also seeking to revive the securitization market, which pools loans like mortgages into bonds that banks can sell to raise funding
for themselves or companies. The market was tarnished by the financial crisis when bonds linked to U.S. home loans began defaulting
in 2007, sparking the broader global markets meltdown over the ensuing two years.
The document says the Commission will "take into account possible future increases in the liquidity of a number of securitization
products" when it comes to finalizing a new rule on what assets banks can place in their new liquidity buffers. This signals a possible
loosening of the definition of eligible assets from the bloc's banking watchdog.
Because there is nothing quite like securitizing feta cheese-backed securities and selling it to a whole new batch of widows and
orphans.
And topping it all off is a proposal to address a global change in accounting principles that will make sure that an accurate
representation of any bank's balance sheet becomes a distant memory:
More controversially, the Commission will consider whether the use of fair value or pricing assets at the going rate in a new globally
agreed accounting rule "is appropriate, in particular regarding long-term investing business models".
To summarize: forced savings "mobilization", the introduction of a collective and involuntary CapEx funding "savings" account, the
return and expansion of securitization, and finally, tying it all together, is a change to accounting rules that will make the entire
inevitable catastrophe smells like roses until it all comes crashing down.
So, aside from all this, Europe is "fixed."
The only remaining question is: why leak this now? Perhaps it's simply because the reallocation of "cash on the savings account
sidelines" in the aftermath of the Cyprus deposit confiscation, into risk assets was not foreceful enough? What better way to give it a
much needed boost than to leak that everyone's cash savings are suddenly fair game in Europe's next great wealth redistribution
strategy.

Le FMI vient de donner son 'feu vert' pour une taxation de 10% de votre pargne
(http://www.express.be/business/fr/economy/le-fmi-vient-de-donner-son-feu-vert-pour-unetaxation-de-10-de-votre-epargne/196938.htm )
Le Figaro rapporte que le FMI propose doprer un unique prlvement de 10% sur les dpts privs des citoyens des 15 pays de la
zone euro pour les dbarrasser dfinitivement de leur problme dendettement trop fort. L'ide n'est pas nouvelle. Dj en 2011, le
Boston Consulting Group avait estim quimposer une taxe de 30% sur tous les actifs serait la seule faon de sortir de la crise de
l'euro.
Steen Jakobsen, lconomiste en chef de la Saxo Bank, a quant lui estim en avril de cette anne que cette taxe sur les actifs pourrait
atteindre de 10 15%.
Sur son site et dans sa revue Fiscal Monitor , le FMI se rfre une tude de lconomiste allemand Stefan Bach (page 27, partie 2
Taxing Our Way out ofor into?Trouble ) qui avait calcul en 2012 que si lon oprait une taxation de 3,4% sur les comptes
bancaires des Allemands disposant de dpts suprieurs 250.000 euros, il serait possible deffacer 4% de la dette
publique allemande, soit 100 milliards deuros.
Lintrt, cest que si une telle taxation est mise en place avant que les gens ne prennent leurs dispositions pour lviter et quil y a
une forte croyance quelle ne sera pas rpte, elle ne perturbera pas les comportements (et que certains pourront mme considrer
quelle est juste) () Les taux de taxation requis pour ramener la dette publique ses niveaux davant-crise, cependant, sont
quantifiables : rduire les ratios de dette pour leur faire retrouver leurs niveaux de fin 2007 (pour un chantillon des 15 pays de la

zone euro ncessiterait un taux de taxation denviron 10% sur les mnages disposant dune fortune nette positive , concluent les
conomistes du FMI.
Il ne sagit que de propositions purement thoriques, pour le moment, prcise le Figaro, qui se demande sil sera possible de
rsoudre le problme de la dette avec des solutions douces .
Pour le site Monfinancier.com, ce nest plus quune question de temps, avant que les pargnants franais ne subissent une ponction de
ce type. Il rappelle que lpargne des pargnants franais reprsente 12.000 milliards deuros, et spcule que la taxation pourrait tre
dcoupe en de multiples petits pourcentages annuels pour la rendre plus acceptable. Malheureusement, elle ne servira qu combler
le dficit public, plutt qu rduire la dette de lEtat. Et le FMI vient de donner sa bndiction au gouvernement , crit-il.
Privilgier ceux qui ne travaillent pas par rapport ceux qui travaillent, ceux qui n'entreprennent pas rapport ceux qui prennent des
risques et maintenant ceux qui ont dpens sans compter par rapport ceux qui ont mis de ct le fruit de leur labeur; quand tout cela
va t'il s'arrter? Un systme qui incite la paresse, l'assistanat, au refus du risque et maintenant la dpense est-il viable ? , se
demande le site.

Aprs le FMI, la Bundesbank prconise aussi une taxation exceptionnelle sur l'pargne
(http://www.express.be/business/fr/economy/apres-le-fmi-la-bundesbank-preconise-aussi-unetaxation-exceptionnelle-sur-lepargne/201597.htm )
Lundi, la Bundesbank a prconis que les pays de la zone euro en difficult devaient dabord prlever une taxe exceptionnelle sur
lpargne de leurs propres citoyens avant de demander l'aide des autres pays, a rapport le journal Frankfurter Allgemeine.
Il est crucial quun pays en crise puise dabord ses propres solutions pour regagner la confiance dans sa capacit grer de faon
durable ses finances publiques. Les programmes de sauvetage financs par les contribuables des autres Etats membres ne devraient
tre sollicits quen dernier ressort, lorsque la stabilit financire de la zone euro est mise en danger , crit la Buba.
Une taxation sur le capital correspond au principe de responsabilit nationale, selon lequel les contribuables sont responsables pour
les obligations de leur gouvernement, avant que la solidarit des autres Etats ne soit requise , nonce la banque centrale allemande,
dans son dernier rapport mensuel. Elle prcise quelle ne soutient pas le principe dune taxe rcurrente sur la fortune en Allemagne,
qui pourrait nuire la croissance, mais celui dune taxation exceptionnelle, qui ne serait applique quau cas o le pays en question
serait au bord de la faillite.
Cette taxe exceptionnelle devrait tre collecte rapidement (c'est dire pendant le week-end), afin d'viter le problme de la fuite des
capitaux.
La Bundesbank se joint ainsi au FMI qui avait lui-mme suggr l'option d'une taxe unique sur lpargne lanne dernire, et quia
ritr cette recommandation au dbut de cette anne.

Aprs le FMI et la Bundesbank, l'UE veut 'mobiliser' votre pargne


(http://www.express.be/business/fr/economy/apres-le-fmi-et-la-bundesbank-lue-veut-mobiliser-votre-epargne/202312.htm
)
Aprs le FMI et la Bundesbank, cest maintenant au tour de l'Union europenne de suggrer ouvertement que lpargne
des citoyens europens pourrait tre utilise pour renflouer l'conomie des Etats membres. Reuters rapporte que lUE a
publi un document qui explore une nouvelle mthode pour librer le bloc de sa trop grande dpendance lgard des
banques : il prvoit une mobilisation des conomies des 500 millions de citoyens. La crise financire et conomique
a sap la capacit du secteur financier transfrer des fonds vers lconomie relle, en particulier linvestissement de
long terme , indique-t-il. Pour certains commentateurs, il sagit dune confession de lincapacit de l'UE de trouver des
solutions viables pour rsoudre la crise, cinq ans aprs le dbut de celle-ci.
Le document prvoit galement quau cours du second semestre, la commission demandera lEIOPA, lAutorit
europenne des assurances et des pensions professionnelles, de lui proposer un projet de loi pour mobiliser plus
dpargne de retraite pour des financements de long terme .

Les banques se sont en effet plaintes quelles navaient plus la capacit de prter aux entreprises en raison de la nouvelle
rglementation bancaire, mise en place aprs la crise, qui les force disposer dun plus grand ratio de rserves. Les
dirigeants europens prvoient galement de mener une tude dici la fin de cette anne pour dterminer la faisabilit de
la mise en place dun compte dpargne europenne, qui pourra tre ouvert tous et dont lobjet sera de mettre des fonds
la disposition des PME, pour leur permettre dinvestir.
Les critiques observent que cest dsormais l'Union qui va dcider de la destination de nos conomies. Dans ce cas, le
terme confiscation est donc peut-tre plus appropri que mobilisation

Pour rduire la dette, l'ide d'une super taxe sur le capital ressurgit
( http://www.lefigaro.fr/conjoncture/2013/10/09/20002-20131009ARTFIG00524-le-fmi-propose-une-supertaxe-sur-le-capital.php )
Les taux d'endettement public ont atteint de tels niveaux qu'il faudra trouver des solutions iconoclastes, indique le FMI dans son
rapport sur les finances publiques. Le Fonds voque un prlvement une fois pour toute sur l'pargne prive, qui prsente des
risques considrables.
La proposition est assortie d'un solide point d'interrogation: un prlvement une fois pour toute sur le capital?, pour rduire la dette
publique s'entend. Il s'agit d'une simple hypothse, dans un rapport du FMI sur les finances publiques, qui, une nouvelle fois, pose le
problme de la soutenabilit des dettes des tats avancs, l'Europe, les tats-Unis, le Japon. Le FMI rappelle qu'elles reprsenteront
110% du PIB en moyenne dans ces pays, soit une augmentation de 35 point de PIB par rapport la situation de 2007. Il faut donc
trouver des solutions radicales.
De tels niveaux d'endettement sont sans prcdents, si ce n'est au lendemain des grandes guerres. Mais ne vient-on pas de vivre
une crise conomique aussi destructrice qu'un conflit arm? Alors, la guerre comme la guerre: et si l'on proposait une mesure one
off, en anglais, one shot comme on dit en franglais, ou encore une fois pour toute en vrai franais, avec la promesse qu'on ne
recommencera jamais plus?
Solution exceptionnelle
De telles propositions ont en ralit une trs longue histoire. Le grand conomiste David Ricardo recommanda une telle mesure pour
l'Angleterre au lendemain des guerres napoloniennes du dbut du XIXe sicle. En France l'ide germa aussi aprs la dfaite franaise
de 1870 contre la Prusse. Et dans l'Allemagne de l'empereur Guillaume II des annes 1890, on y pensa pour financer un programme
d'quipement public qui aurait redonn au pays la parit navale avec la Grande-Bretagne.
Toutes les nations europennes y songrent comme un seul homme, au lendemain de la premire guerre mondiale. Pourtant ni la
Grande-Bretagne, ni la France de Clmenceau ne parvinrent en imposer la solution. Seule l'Italie, avec une taxe de 3,3% 54,3% sur
les patrimoines acquis depuis 1914, y russit. L'exprience la plus probante est sans doute celle du Japon au lendemain de la Seconde
Guerre mondiale: le prlvement sur les patrimoines privs allant de 10% 90% s'inscrivait dans le cadre d'un vaste programme de
reconstruction de l'conomie nationale, sous la tutelle du gnral amricain MacArthur.
Le FMI renvoie lui-mme l'tude du professeur Barry Eichengreen, de l'universit de Californie, qui a pass en revue tous ces
exemples historiques. Il avait t mandat alors par les pouvoirs publics italiens, qui la toute fin des annes 1980 taient (dj)
confronts un taux d'endettement public de 100% du PIB, tout comme l'Irlande et la Belgique. Barry Eichengreen, qui depuis lors a
t l'un des rares conomistes amricains de renom avoir pris fait et cause pour l'euro, ne s'tait pas content de recenser les
prcdents historiques. Il examinait avant tout les avantages d'une telle solution exceptionnelle de prlvement sur le capital
(capital levy, en anglais), l'alternative tant notamment l'inflation, qui permet d'allger la dette publique rapidement. Comme ce fut le
cas en Europe et aux tats-Unis de 1945 1975.
Impt one off de 10% sur l'pargne des mnages en zone euro
Eichengreen considre galement le capital levy comme un substitut aux restructurations de dettes, dont la Grce est pour le
moment le seul exemple rel en Europe. Mais il n'ignore pas les normes problmes d'un tel prlvement sur l'pargne prive: cela
remet en cause la crdibilit des gouvernements qui doivent garantir que l'opration est vraiment exceptionnelle, sans compter les
difficults d'excution pour empcher les fuites de capitaux.
Le FMI cite une autre tude, toute rcente celle-l, d'un conomiste allemand, Stefan Bach, qui avec deux confrres a tudi en 2012
un projet similaire au nom de l'institut de conjoncture DIW. L encore avec un point d'interrogation: une taxe sur le patrimoine pour
amener les riches rduire la dette publique?. S'intressant exclusivement au cas allemand, ils parviennent la conclusion que la
richesse des gens possdant chacun plus de 250.000 euros reprsente au total une assiette imposable de 2950 milliards d'euros; une
taxe exceptionnelle de 3,4% permettrait alors d'engranger 100 milliards d'euros, soit 4% du PIB, pour allger la dette publique.

Aprs avoir cit leurs confrres, les conomistes du FMI se jettent eux-mmes l'eau. Les taux de taxation ncessaires pour ramener
les ratios de dettes (par rapport au PIB) leur niveau de la fin 2007 ncessiteraient une imposition d'environ 10% sur tous les mnages
disposant d'une pargne nette positive. Ces calculs, nous prcisent le FMI ont t faits pour 15 pays de la zone euro. Rappelons
encore que de tels raisonnements se veulent de simples suggestions caractre thorique. Ils n'en sont pas moins iconoclastes. Mais
existe-t-il des solutions douces de dsendettement en dehors de l'inflation, la plus hypocrites de toutes?

Pourquoi l'Europe ne peut rien faire dautre quoprer une ponction de 10 15% sur votre
argent
(http://www.express.be/business/fr/economy/pourquoi-leurope-ne-peut-rien-faire-dautre-quoperer-une-ponction-de-10-a15-sur-votre-argent/188809.htm )
Nous avons vu Chypre comment lUE est capable dabandonner ses principes lorsquelle est la recherche dune solution qui
satisfasse tout le monde sur le plan politique, crit Steen Jakobsen, lconomiste en chef de la Saxo Bank. Il y a eu 3 premires
Chypre :
- La mise en place d'un contrle des capitaux : comme les capitaux chypriotes sont bloqus, on peut conclure que la valeur dun euro
chypriote nest plus la mme que celle dun euro allemand ou franais.
- Une coupe de cheveux sur les porteurs dobligations seniors (c'est--dire porteurs de titres qui comportent des garanties), alors quen
Grce, seuls les porteurs dobligations juniors (dettes subordonnes) avaient t impacts.
- La mise contribution des dposants disposant de comptes avec des soldes suprieurs 100.000 euros.
Labsence de cohrence des solutions appliques pour les diffrents sauvetages invite sinquiter sur la nature de la faon dont on
rglera la prochaine crise : qui sera mis contribution la prochaine fois? Il est possible que lon envisage la mise en place dune
taxation sur les dpts, linstar de ce qui existe dj en Sude, o les dposants et les actionnaires payent une taxe sur leurs avoirs.
Willem Buiter, lconomiste en chef de la Citibank, a dtermin que pour recapitaliser toutes les banques de la zone euro, il faudrait
runir un fonds de 3.000 milliards deuros une somme colossale qui reprsente 30% du PIB de lensemble de la zone euro. Dj en
2011, le Boston Consulting Group avait indiqu quune taxe de 30% sur l'ensemble des actifs serait le seul moyen de sortir de la
crise de l'euro.

Jakobsen estime quant lui que le fonds devrait atteindre 2.000 milliards deuros, ce que lon pourrait atteindre avec une taxation des
actifs de 10% 15%.
En Italie et en Espagne, on taxe dj les dpts bancaires, au taux de 0,015% pour lItalie et de 0,2% 0,3% en Espagne. On peut
sattendre une multiplication de ce type dinitiatives ailleurs dans la zone euro, et avec des taxations qui vont progresser rapidement,
compte tenu que cest loption de facilit pour les politiciens. Il est important de noter que les taxes sur les dpts sont faciles
collecter, elles proviennent du secteur priv et elles seront rputes justes par beaucoup de gens qui ne sont pas cranciers () Avec
la politique actuelle de non-rforme, ce groupe reprsente de plus en plus de monde , crit Jakobsen.
La possibilit de trouver facilement un emploi et de retourner un normal de croissance intresse davantage les lecteurs que la
mthode employe pour les renflouements des Etats Membres les plus faibles, et avec le prcdent chypriote, cette volution devrait
donc s'acclrer. Les lecteurs italiens ont lanc un avertissement aux politiciens italiens lorsquils ont vot 25% pour Bepe Grillo,
un politicien qui na dautre programme politique que de sopposer lestablishment. Les politiciens continuent de perdre du temps et
de procrastiner pour ne pas mener les rformes ncessaires, mais sans changements, ils risquent de devoir faire face aux consquences
dsastreuses conomiques mais aussi politiques auxquelles ce choix les confronte.

Pourquoi la fuite vers les actions va mal se terminer


(http://www.24hgold.com/francais/actualite-or-argent-pourquoi-la-fuite-vers-les-actions-va-mal-seterminer.aspx?article=5798332896H11690&redirect=false&contributor=Michael+Pento.&mk=2 )
La cacophonie qui rsonne Wall Street depuis dj six ans fait retentir nos oreilles que depuis la mise en place des taux dintrts
zro pourcent, rien ne vaut mieux pour placer notre pargne que le march des actions. Pour beaucoup, il nimporte que trs peu que le
ratio de la capitalisation boursire totale par rapport au PIB, - soit de 125%-, soit de 15 pourcents suprieur son niveau de 2007, son
pourcentage le plus lev depuis la bulle sur la technologie qui a marqu le dbut du sicle. Les rendements des dettes souveraines
atteignent des records la baisse sur toute la plante, et la stratgie employe par une majorit dinvestisseurs est dignorer la
croissance anmique de lconomie et de continuer dinvestir leur argent sur le march, simplement parce quil ny a aucune autre
alternative.
Mais lpicentre du sisme qui se prsente sur les marchs sera le march des changes. Le dollar grimpe depuis mai du fait du
consensus selon lequel la Fed devrait mettre fin au QE et autoriser une hausse des taux dintrts en 2015. Le Japon et lUnion
europenne se dirigent dans une direction diamtralement oppose. La Banque du Japon a acclr son programme de QE, et la BCE a
annonc la semaine dernire que son propre programme dachat dobligations commencerait en octobre. Le dollar a dj gagn 5% sur
le DXY depuis quatre mois, et une hausse continuelle de la valeur du dollar finira par causer du tort au chiffre daffaire report par les
corporations amricaines. Cette force dflationniste est lune des raisons pour lesquelles les prix des actions devront tt ou tard
traverser une phase de correction.
Mais ce qui est encore plus probable est de voir se dvelopper un vritable renversement des fortunes tablies en dollars. Comme je lai
dj dit auparavant, Wall Street, presque tout le monde est convaincu que la Fed fera grimper les taux ds lanne prochaine. Et
maintenant que la BCE et la Banque du Japon se sont lances dans des programmes de QE, que peuvent-elles faire de plus pour
dvaluer davantage leurs devises ? Avec des obligations sur dix ans qui rapportent seulement .93% en Allemagne et .50% au Japon, ces
banques centrales peuvent-elles rellement continuer de nous faire croire que le taux demprunt demeure trop lev pour laisser place
une croissance du PIB ?
Si une croissance robuste du PIB des Etats-Unis ne se manifeste pas cette anne, comme elle a manqu de le faire depuis la fin de la
Grande rcession, le dollar subira de lourdes pressions. En ralit, le PIB rel nest pas pass au-del des 2,5% depuis 2006. Avec la fin
de ses achats dobligations par la Fed et un reste du monde au bord de la rcession, il est difficile de simaginer que cette anne
marquera une exception la rgle la croissance du PIB des Etats-Unis slve 1% pour les six premiers mois de cette anne.
Si le march venait simaginer que la Fed ne pourra pas redresser les taux dintrts lanne prochaine et pourrait tre force de
relancer son programme de QE en raison dune paralysie de lconomie des Etats-Unis, un renversement du carry trade du yen se
produirait invitablement. Les institutions financires ont emprunt des yens prs de zro pourcent et investi sur les marchs
amricains des actions et des obligations. Puisque les rendements sont plus levs aux Etats-Unis et que la direction du yen ne peut
aujourdhui tre qu la baisse au vu de lintervention continue de la Banque du Japon, ce trade a jusqu prsent t gagnant-gagnant.
En revanche, si le dollar renversait sa course, nous verrions se dvelopper une rue des vendeurs de dollars vers une porte de sortie de
plus en plus troite, pour chercher vendre des actions et obligations survalues afin de racheter des yens.
La volatilit des devises est lun des effets destructeurs qui rsultent de cette manipulation sans prcdent des taux dintrts par les
banquiers centraux du monde. La fin du carry trade du yen est un facteur qui pourrait enterrer la notion selon laquelle les prix des
actions ne peuvent chuter tant que la Fed adopte des taux zro pourcent.
Bien entendu, la vente des actions ne reprsenterait quun lger tremblement avant un sisme bien plus important qui se prouverait
dvastateur pour les actions comme les obligations. Ce sisme dont je parle est leffondrement synchronis des prix des dettes
souveraines du monde.
Le march libre fonctionne la manire de la tectonique des plaques. Le dplacement des continents cause des frictions dans la
lithosphre de la Terre. Le glissement des plaques engendre des sismes, qui sont une manire pour la nature de se dbarrasser de
pressions accumules. De petits tremblements tendent empcher de plus importants de se produire en se dbarrassant dun peu de
cette pression. De la mme manire, les dpressions et les rcessions soulagent les dsquilibres des bulles sur les actifs et sur les
actions qui se dveloppent dans lconomie. Tenter de prvenir de petits tremblements et des rcessions mineures ne peut que nous
mener la catastrophe.
Les banques centrales ont empch la rcession de gurir nos maux en 2008 en prenant le contrle du march des dettes souveraines.
Aujourdhui, en Europe, au Japon et aux Etats-Unis, les taux de rendements sont au plus bas. Des rendements trs bas devraient tre la
consquence dune baisse des ratios dette/PIB et de la rduction des bilans des banques centrales en vue de limiter linflation.
Mais cest aujourdhui tout le contraire. La dette nationale amricaine a augment de 8,6 trillions de dollars depuis 2008, et le ratio
dette/PIB a augment de 64% pour passer 105% sur la priode. En plus de cela, les bilans de la Fed ont augment de 800 milliards de
dollars pour passer 4,4 trillions de dollars depuis 2008. La qualit du crdit a donc t dtriore dans le mme temps que les dangers
de linflation ont augment en raison de la croissance de la masse montaire. A moins que lconomie ne flirte avec une dpression
dflationniste, les taux dintrts devraient tre bien suprieurs ce quils sont aujourdhui.

Les banquiers centraux devraient un jour parvenir atteindre leur objectif dinflation de plus de 2%. Mais ceux qui impriment la
monnaie ne peuvent pas dterminer un objectif dinflation et latteindre avec exactitude. Il y a des chances que linflation soit suprieure
leurs objectifs. Le choix difficile qui se prsenterait alors serait de laisser linflation devenir hors-de-contrle ou de forcer la vente
dobligations. Cela signifie que les banques centrales devraient passer du rle dacheteurs de dettes souveraines celui de vendeurs
dobligations. Dans un tel scnario, les taux dintrts seraient non seulement positifs, ils clipseraient leur niveau actuel dun degr
important.
Pour ce qui est du Japon, les obligations sur dix ans ont enregistr un rendement moyen de 3% entre 1984 et 2014. Une hausse des
rendements de .50 plus de 3% pourrait gnrer une explosion des dpenses sur la dette souveraine qui dvasterait lconomie toute
entire. Le mme scnario est applicable aux Etats-Unis et lEurope.
Si les banques centrales ne parvenaient pas gnrer croissance et inflation, alors le malaise conomique qui end coulerait pousserait
de nombreux dtenteurs dobligations perdre confiance en la capacit du gouvernement sassurer ce que les remboursements de
dette ne dpassent pas les recettes fiscales de leur pays. Cest exactement ce quil sest pass en Europe en 2010-12. Une fois quun
march est convaincu quune nation ne peut pas rembourser sa dette en termes rels, la valeur de cette dette diminue.
Cest ultimement cette crise qui nous attend de lautre ct de la distorsion sans prcdent des rendements de obligations. Cest
pourquoi le ralliement sur le march des actions se terminera suite un sisme qui fera ressembler les vnements de 2008 une
simple secousse.

Huit choses que tout le monde devrait savoir sur lor


Par James Turk - Goldmoney
L'or est l'un des actifs les plus incompris du monde. Il y a de nombreuses raisons cette situation malheureuse, mais il y en a une qui
ressort plus particulirement. L'or volue dans un environnement dans lequel de nombreuses forces puissantes lui sont farouchement
hostiles. Parmi les plus notables, il y a les gouvernements et la myriade d'intrts directs qui se nourrissent du porte-monnaie public ou
comptent sur quelque autorisation ou privilge accords par le gouvernement. Les gouvernements ont confisqu lor, l'ont tax, ont
organis de la propagande son encontre et l'ont mme mis hors-la-loi.
L'or n'a pas de partenaire puissant pour dfendre sa cause. En ralit, c'est plutt le contraire. Les apologistes des banques centrales,
ainsi que les flagorneurs du gouvernement rclamant grands cris que l'tat contrle l'argent de manire permanente, ont travaill dur
afin de discrditer l'or autant que possible, en le rendant par exemple responsable de choses dont il n'tait pas responsable, tel que la
grande dpression, et en le dnigrant en le faisant passer pour une navet de spculateur ou une superstition mieux adapte des
conomies primitives.
En bref, la sagesse conomique conventionnelle et la pense montaire ont un seul but, celui de justifier et de perptuer le systme
montaire actuel. Elles n'adoptent ni une vision critique du systme ni une considration impartiale et sans parti pris d'alternatives
telles que l'or.
Cependant, en dpit de cet environnement hostile, l'or continue d'tre estim partout dans le monde. Si l'on met de ct la
dsinformation et les semi-vrits propos de l'or, il est clair que celui-ci continue de tenir un rle important. Pourquoi ?
Parce que l'or est utile, et par consquent, il a de la valeur. Et comment l'utilit de l'or se prsente-t-elle ?
Voici un abcdaire basique qui souligne huit caractristiques essentielles de l'or que tout le monde devrait connatre. En les valuant, il
est possible de dterminer si l'utilit de l'or pourrait vous tre dune quelconque valeur, tout comme il a dj de la valeur pour des
millions et des millions de gens partout dans le monde.
1) L'or est une matire premire spciale et unique : cest la seule matire premire produite pour tre accumule.
L'or est une matire premire spciale et unique car c'est la seule matire premire produite en vue d'tre accumule ; les autres
matires premires sont produites afin d'tre consommes. Pratiquement tout lor jamais extrait existe encore. Nanmoins, l'or est
rare.
La quantit totale d'or extrait depuis laube des temps est d'environ 155 000 t seulement. Si l'on faisait tenir tout cet or d'une seule
pice, la taille de cette pice serait de 8000 m3, autrement dit 1/5 du Washington Monument, en partie basse, ou les trois-quarts d'une
piscine olympique. Il est galement tonnant de remarquer quen une seule journe, 20 fois plus d'acier est coul que le poids total d'or
extrait au cours de l'histoire.
2) Les rserves d'or sont ce qui a dj t extrait
Parce qu'il est accumul et non consomm, les rserves d'or sont ce qui a dj t extrait. Ce simple fait change tout en termes de
manire d'analyser l'or.
Le prix de l'or dpend toujours de la loi de l'offre et de la demande, mais les rserves qui importent rellement ne sont pas les
relativement petites quantits extraites chaque anne, dont l'histoire montre qu'elles augmentent les rserves un rythme relativement
stable de seulement 1,7 % par an. Les rserves d'or sont plutt le poids total qui a t accumul pour la simple raison qu'un gramme d'or
extrait aujourd'hui est le mme qu'un gramme d'or extrait par les Romains il y a 2000 ans. En d'autres termes, les rserves d'or dj
existantes sont tout fait remplaables par de l'or frachement extrait.
Sur le court terme, les rserves d'or demeurent relativement inchanges car la production minire ne peut pas tre augmente
rapidement de manire significative. Par consquent, le prix de l'or est surtout fonction de la demande.
Bien que l'on entende couramment que le prix de l'or est dtermin par la demande joaillire, cette croyance est infonde. De la mme
manire que les rues humides ne causent pas la pluie, le prix de l'or ne dpend pas de la demande joaillire. L'important, ce n'est pas la
forme que l'or revt lorsqu'il est fabriqu, mais plutt l'usage qui en est fait. La plupart des bijoux sont en or haute teneur en carats
cause des caractristiques montaires de l'or, et non pas pour des raisons esthtiques.
Par consquent, le prix de l'or, ou plus prcisment parce que l'or est une monnaie, le taux d'change de l'or face aux devises nationales
dpend de la demande montaire, ou de ce que certains appellent de manire errone la demande d'investissement. Il ne peut pas en

tre autrement, tant donn que les rserves d'or sont ce qui a dj t extrait et qu'environ 80 % de ces rserves sont stocks pour des
raisons montaires, et non pas pour des raisons de mode, d'esthtique ou autres.
3) Lor est la monnaie
Cette remarque sur la demande montaire signifie que l'or, c'est de l'argent. En d'autres termes, l'or est accumul car sa plus grande
utilit vient de ses caractristiques qui en font une monnaie.
Les avantages de l'or en tant que monnaie sont nombreux. Et peut-tre de manire plus importante, notre poque, marque par une
inflation chronique des devises nationales, l'or est une monnaie qui ne peut pas tre dvalue en en crant partir de rien par simple
dcret du gouvernement.
Un autre facteur important en faveur de l'or est la montagne de dettes et de produits drivs qui menacent l'conomie mondiale. L'or
est la seule monnaie qui ne dpend des promesses de personne, caractristique qui explique pourquoi l'or est appel une valeur sre
.
4) Lor est une alternative au dollar
Le dollar est en difficult car il connat actuellement une dvaluation ; il subit une inflation en raison de dollars nouvellement crs,
utiliss afin de financer les dficits budgtaires croissants du gouvernement fdral ainsi que d'autres dettes publiques et prives. Cette
inflation insidieuse rode le pouvoir d'achat du dollar un peu plus chaque mois. En consquence, de plus en plus de gens choisissent l'or
comme monnaie favorite.
Il y eut une poque o le dollar tait bon comme de l'or . Le dollar a accd ces distinctions car il tait formellement dfini comme
un certain poids d'or sous le systme de l'talon or. Sous ce systme, qui prit fin en aot 1971, l'or et les dollars taient interchangeables
et se valaient pour l'essentiel. Puis cela s'arrta, au dtriment de ceux qui dtenaient des dollars. D'aprs certaines estimations, le dollar
a perdu plus de 90 % de son pouvoir d'achat depuis lors.
En dpit de cette terrible dvaluation que le dollar a subie, il continue de circuler en tant que devise. Ces mmes forces inexorables qui
crent un environnement hostile pour l'or promeuvent le dollar et font de la propagande afin den augmenter la demande. L'objectif de
la propagande pro- dollar et anti-or de la Rserve Fdrale est de maintenir l'illusion que le dollar est une monnaie fiable. Par
consquent, par contraste avec leur rle interdpendant et complmentaire sous l'talon or, l'or et le dollar sont aujourd'hui devenus
des adversaires. En ralit, l'or est le seul adversaire srieux du dollar. Tous deux rivalisent pour trouver des possesseurs, et c'est leur
demande relative qui dtermine leur taux d'change, ou ce que l'on appelle le prix de l'or.
La demande relative dor et de dollars explique galement l'importance des taux d'intrt du dollar, qui doivent tre relevs de temps en
temps afin d'inciter les gens accepter le risque de possder des dollars plutt que de l'or. Mais souvenez-vous, ce sont les vrais taux
d'intrt qui importent, c'est--dire ceux qui sont ajusts l'inflation. Les taux d'intrts nominaux n'ont aucune importance. Par
exemple, si les taux d'intrt du dollar sont de 10 % et que le taux d'inflation est de 10 %, les taux d'intrt rels sont nuls, tandis que
des taux d'intrt bas ou ngatifs sont haussiers pour lor.
5) L'or prserve le pouvoir d'achat

Par exemple, le graphique ci-dessus montre une analyse en base 100 du prix du ptrole brut en dollars ainsi qu'en grammes d'or
depuis dcembre 1945. Depuis 1945, le prix du ptrole brut en dollars a t multipli par 64. Cependant, lon voit quelque chose de
diffrent si l'on considre le prix du ptrole brut en grammes d'or. Aujourd'hui, un baril de ptrole brut cote environ autant de
grammes d'or qu' n'importe quel autre moment du graphique ci-dessus. Ainsi, bien que le dollar ne soit plus dfini par un certain
poids d'or, comme cela tait le cas sous l'talon or, ce graphique montre clairement que l'or demeure l'talon le plus utile pour
mesurer le prix des biens et des services.
6) La valeur de l'or est dtermine par le march
La valeur de l'or provient de son utilit, et non des banques centrales. Il est important de comprendre que le march donne lor sa
valeur, bien que les banques centrales voudraient vous faire croire le contraire. Les banques centrales vous disent ce que vous voulez
entendre. Elles voudraient que vous pensiez qu'elles contrlent le prix de l'or, car cette croyance leur facilite la tche de soutenir la
demande de dollars. Mais la ralit est toute autre. C'est le march qui dtermine le prix de l'or, de la mme manire qu'il dtermine
le prix d'un Picasso ou d'une miche de pain.
Les banques centrales interviennent sur le march de l'or, de la mme manire qu'elles interviennent sur de nombreux autres
marchs. La raison pour laquelle elles tentent de grer le prix de l'or est simple. En maintenant le prix de l'or bas, les banques
centrales font apparatre le dollar sous un meilleur jour. Avec leurs interventions, les banques centrales tentent de faire en sorte que
le dollar ait l'air digne d'tre la monnaie de rserve du monde, alors qu'en ralit ce n'est pas le cas.
Le prix de l'or est un baromtre qui mesure si oui ou non une devise nationale est bien gre (cest dire pas d'inflation). Ainsi, en
essayant de maintenir le prix de l'or bas, les banques centrales rendent artificiellement la demande de dollars suprieure ce quelle

serait autrement. Ces interventions sont galement en accord avec la philosophie tatiste de nombreux gouvernements aujourd'hui,
c'est--dire qu'ils usurperont tous les pouvoirs ncessaires pour tenter de maintenir le statu quo qui prserve la position privilgie
dont les politiciens profitent aux dpens des contribuables.
Bien que les banques centrales ne contrlent pas le march de l'or, elles peuvent en influencer le prix. Mais leur influence est en train
de diminuer. Les banques centrales ont remis en circulation une bonne partie de l'or qui tait dans leurs coffres, elles possdent donc
aujourd'hui une part relativement petite du stock d'or mondial. Aprs la seconde guerre mondiale, environ 68 % du stock d'or
mondial se trouvait dans les coffres des banques centrales. Aujourd'hui, elles n'en dtiennent quenviron 10 %.
Le fait que les banques centrales aient moins d'or sous leur contrle signifie galement qu'elles ont moins d'influence sur son prix, ce
qui est l'une des raisons pour lesquelles les banques centrales n'ont plus rle qu'elles avaient autrefois. Afin d'en savoir plus sur les
implications des banques centrales dans le march de l'or, vous devez savoir ce que le GATA sait. Le Gold Anti-Trust Action
Committee(comit d'action antitrust) a publi une recherche combine de nombreux analystes, incluant plusieurs de mes articles ;
celle-ci est disponible gratuitement sur www.gata.org.
7) Lor est dans un march haussier
Le cours de l'or remonte depuis 2001, et les nombreux problmes que rencontrent les devises nationales signifient que l'or va encore
monter. Mais de combien ?
Bien sr, personne ne le sait, car rien n'est jamais sr lorsqu'il s'agit des marchs. Mais lors de mon interview pour
Barron (publication hebdomadaire pour les investisseurs) en 2003, j'ai dit que je m'attendais ce que le prix de l'or atteigne les
8 000 $ dici 10 12 ans. Jai raffirm ce prix, en tenant compte galement des sept neuf ans restants lors d'une autre interview
pour Barron en mai 2006. Avant de dire que ce prix est exorbitant, considrez ce qui suit.
Il faut environ 10 $ aujourd'hui pour acheter ce que l'on pouvait acheter avec 1 $ dans les annes 1970, et c'est au cours de cette
dcennie que le prix de l'or grimpa de 35 $ plus de 800 $ en 1980. Je pense que l'histoire va se rpter, et raliser le mme ratio
mathmatique quant l'augmentation du prix de l'or, mais avec cette fois un prix en dollar 10 fois suprieur afin de compenser sa
perte de pouvoir d'achat. Ainsi, je pense que l'or va grimper de 350 $ en 2003 plus de 8000 $ en l'espace de 10 ans.
Il n'est pas draisonnable de s'attendre ce que l'or commande nouveau le pouvoir d'achat, comme cela a t le cas dans le pass,
surtout si l'on considre l'inflation actuelle et la dvaluation du dollar. Il ne faut jamais sous-estimer la capacit des banques
centrales dtruire le pouvoir d'achat d'une devise. En d'autres termes, l'or ne monte pas, tel que le montre le graphique ci-dessus, il
achte toujours la mme quantit de ptrole brut qu'il y a 60 ans. Quant au dollar, il s'effondre.
8) Achetez de l'or physique, pas de l'or papier
Il est prudent d'acheter de l'or en raison des problmes alarmants auxquels font face le dollar ainsi que les autres devises nationales.
L'or offre un moyen simple de se diversifier et par consquent de se protger des risques inhrents aux devises nationales, mais
assurez-vous que vous achetez du mtal physique, pas du papier. Il y a une grosse diffrence entre possder du mtal et une simple
promesse de vous payer en mtal. Parfois, la promesse ne vaut mme pas le papier sur laquelle elle est crite.
Des exemples de mtal physique que vous pouvez vous procurer sont les pices de monnaie, les lingots, des bijoux haute teneur en
carats et l'or qui vous est propos par ma compagnie, GoldMoney, qui stocke lor que vous possdez dans un coffre lingots spcialis
et assur prs de Londres, en Angleterre. Des exemples d'or papier sont les certificats mis par les banques ou par la Monnaie, les
comptes-or, les comptes terme et lETF cot au NYSE. Avec de tels produits, vous dtenez un morceau de papier mais pas de l'or
vritable. Ces produits papier vous lient au prix de l'or, mais ils comportent un risque de cessation de paiement, c'est--dire que vous
ne pourrez peut-tre pas disposer de votre mtal quand vous en aurez besoin.
L'or devait tre considr comme lactif de base de votre portefeuille, alors ne prenez aucun risque avec lui. Par consquent, il vaut
mieux avoir du mtal physique plutt qu'une simple promesse de papier.
Conclusion
L'un des objectifs de ce court essai est de prsenter les raisons pour lesquelles acheter et possder de l'or physique, mais il a un autre
objectif primordial, celui de prsenter des faits qui permettent d'user de la raison, et non de l'motion, afin d'analyser la nature
essentielle de l'or, et par consquent son utilit. Dans notre monde, certaines choses ne sont pas ce quelles semblent au premier
abord, et cette maxime est particulirement vraie en ce qui concerne l'or, qui au cours des dernires dcennies est devenu l'un des
biens les plus incompris du monde.
L'or n'est peut-tre pas pour tout le monde, mais un regard nouveau sur les faits ne fait jamais de mal. Les huit caractristiques
prsentes ci-dessus doivent tre considres attentivement afin de mieux comprendre l'or, ce qui est la premire tape pour
dterminer si l'or peut vous tre utile.

Le tribut que le monde verse lEmpire


Les rserves montaires internationales ont atteint un nouveau record : elles slvent dsormais
plus de 12.000.000.000.000 de dollars, soit 12 trillions de dollars. Le dollar reprsente une majeure
partie de ces rserves, et le reste est compos deuros, de livres sterling, de yens et de francs suisses.
Mais que signifie ce chiffre colossal ?
Les rserves mesurent la quantit de crdit que les pays exportateurs du monde ont prt aux pays (et
lUnion montaire europenne) qui mettent des devises qui sont perues comme pouvant jouer le
rle de rserves pour les banques centrales du monde. Le fait quil sagisse de crdit est assez clair,
puisque les 12 trillions de rserves de dollars, deuros et autres sont investis sur des obligations, qui
sont des promesses de paiement futur mises par les Etats-Unis, lUnion montaire europenne et
dautres. Ceux qui dtiennent ces obligations sont des crditeurs, cest--dire quils ont largi la base
de crdit.
Les rserves montaires de la Banque du Mexique sont comprises dans la somme mentionne cidessus, ce qui signifie que le Mexique contribue lui-aussi llargissement du crdit, notamment
celui des Etats-Unis, parce que la majorit des rserves de Banco de Mexico sont investies sur des
obligations en dollars.
Mais cette extension de crdit signifie que le Mexique na pas reu le versement de ce quon lui doit.
Les Mexicains financent les Etats-Unis, lEurope et dautres metteurs de devises de rserve, au point
que la Banque du Mexique possde dans ses rserves des obligations en dollars, en euros et dans
dautres devises.
Depuis aot 1971, alors que les pays du monde se sont vus interdire de recevoir de lor en change de
leur balance commerciale positive, ou dtendre le crdit en recevant des dollars, les rserves
montaires dtenues par les banques centrales ont monstrueusement augment. Depuis lors, il ny a
plus eu de paiements en or, et le monde na eu dautre solution que daccorder toujours plus de crdit
dans lattente dun paiement rel qui ne sera jamais effectu.
La triste vrit, cest que ces 12 trillions de dollars reprsentent le tribut imprial soutir aux pays qui
nmettent pas de devise de rserve, qui est vers depuis 43 ans ceux qui les mettent. Il ne peut
sagir de rien dautre que dun tribut imprial, parce que ces fonds reprsentent des obligations qui ne
seront jamais rembourses. Les exportations changes contre des obligations qui ne seront jamais
rembourses sont un tribut vers par les pays exportateurs aux Etats-Unis et lEurope.
Quand Csar a envahi la Grande-Bretagne en 54 avant J-C, ses lgions ont d massacrer plusieurs
milliers de Britanniques. Aprs que les Britanniques se soient rendus, il a demand la GrandeBretagne de lui verser un tribut annuel, ou stipendia, sous la forme de ressources diverses. Ce tribut a
t pay par les Britanniques pendant quatre cent ans. Les tributs sont ce qui soutient et nourrit un
empire.
Tout au long de lHistoire, il ny a jamais exist de tribut imprial de lchelle de la combine financire
actuelle, qui demande ce que les importations soient payes grce des obligations qui ne seront
jamais rembourses. Pire encore, personne ne comprend rellement ce systme.
Seul un paiement en or peut annuler la dette internationale.
Tant que lor ne sera plus utilis pour rgler les dettes internationales, comme a a t le cas jusquen
1971, le monde continuera de verser un tribut aux pays qui mettent les devises de rserve, et les pays
exportateurs continueront de verser une partie de leur richesse pour nobtenir rien en retour. Telle est
lessence dun tribut.

La BCE court de solutions, les bourses europennes vacillent !


Par Charles Sannat - AuCOFFRE
Mes chres contrariennes, mes chers contrariens !
Aujourdhui, vous aurez droit un dito plus court, nettement plus court que dhabitude pour la simple et bonne raison que vous aurez
le plaisir, pour ceux qui le souhaitent, de me retrouver en direct 11h00 dans Intgrale placements sur BFM Business. Il en sera de
mme pour cette dition, histoire que je prpare quelques notes pour essayer de ne pas passer pour un mamamouchi lantenne (ce
qui serait le comble suprme pour un contrarien).
Pour contacter BFM Business et faire part de vos retours, nhsitez pas utiliser leurformulaire de contact ici car cest en encourageant
cette radio faire venir de nouveaux intervenants que vous pourrez avoir de nouveaux intervenants et des analyses plus riches avec
des points de vues diffrents !! Alors vos courriers !
Pour couter cette mission en direct, cest soit la radio, soit sinon par Internet ici
Passons maintenant linformation importante du jour. Hier, Mario Draghi a pris la parole lors de sa traditionnelle confrence de
presse et, en gros, il a parl pour ne rien dire ou plus prcisment Mario Draghi na pas cherch, cette fois, le conflit avec lAllemagne ou
jouer au plus malin avec les autorits conomiques et politiques allemandes.
Pire, il na pas cess de demander avec insistance tous les pays jugs comme peu vertueux, comme la France et lItalie, faire encore
plus de rformes structurelles.
Le message implicite dlivr lissue de cette confrence de presse est clair et sans ambigut. Au moment o jcris ces lignes, cest
lAllemagne de Merkel qui tient bon les cordons de la bourse europenne et refuse fondamentalement toute cration montaire pure de
forte ampleur et un quantitative easing europen de grande importance.
LAllemagne de Merckel est un pays vieillissant et linflation, mme modre, serait particulirement mauvaise pour lconomie
germanique. Dailleurs, Angela Merkel la expliqu sans dtour aux autorits franaises. Ce faisant, lAllemagne, depuis le dbut de la
crise en 2007, joue uniquement sa propre partition et poursuit ses propres intrts en ne sintressant qu la marge aux difficults de
ses voisins. En gros, lAllemagne se penche sur le sort malheureux des autres pays europens uniquement si cela lui permet de rafler
bon compte quelques beaux actifs ou si cela menace sa propre stabilit, comme ce fut le cas avec les pisodes grecs o les banques
allemandes, bourres de titres grecs pourris, se seraient effondres, sans interventions publiques fortes.
Nous en sommes donc au mme point quen 2007 ou presque. Aucun des pays europens qui se portaient mal ne se portent mieux.
Les fragilits intrinsques leuro sont toujours l et rien na fondamentalement chang.
Depuis le dbut de la crise, la dette des pays dont celle de la France a considrablement volu et la hausse.
Les rformes, aussi souhaitables quelles soient, sont fondamentalement illusoires dans un contexte conomique anmique. Il ny a pas
de travail, pas de boulot, le chmage est en hausse partout et sa stabilisation est en ralit en trompe-lil.
Alors que peut faire Mario Draghi ?
Pas grand-chose, ou plus grand-chose. Il est, pour le moment, rduit au silence par lAllemagne et sous la menace de la cour
constitutionnelle allemande qui pourrait bien mettre fin toute tentative crdible de planche billets europenne et sans planche
billets, point de planche de salut en tout cas court terme.
Rien na donc chang, la seule arme dont Mario Draghi a su user dune main de matre est celle de la parole. Car avec de simples mots et
de simples phrases, Mario Draghi tient lEurope la tte hors de leau depuis lt 2011 pourtant depuis il na rien fait, rien ou presque
Certes, les taux sont 0 mais cela na rien chang. Rien, ils sont mme ngatifs pour les dpts bancaires et cela ne change pas grandchose non plus.
Le plus grand risque dsormais, et la chute des marchs dhier la particulirement bien montr, cest que les marchs ne croient plus en
la capacit daction de la BCE et dans un tel contexte, voir leuro seffondrer et retourner vers la parit 1 pour 1 avec le dollar est
parfaitement envisageable, le tout accompagn dattaques sur les dettes souveraines ou encore de panique bancaire.
La crise nest pas finie. Elle ne la jamais t. Nous avons vcu une pause trs longue dans cette crise base sur la croyance que la BCE
pouvait tout et le march ne lutte jamais contre une banque centrale en mesure dimprimer autant de papier quelle le souhaite, mais si
les marchs constatent une impuissance de la Banque centrale europenne, alors ce sera la cure.
Prparez-vous et restez lcoute.
demain si vous le voulez bien !!
Charles SANNAT
vouloir touffer les rvolutions

(JFK)

pacifiques, on rend invitables les rvolutions violentes

La Rserve Fdrale montise-t-elle rellement la dette du gouvernement?


Si montiser la dette signifie crer de la monnaie pour rembourser les dficits du gouvernement, alors la Fed est coupable.
Les rgles sont trs simples. Le gouvernement fdral met des obligations porteuses dintrts que la Fed rachte. La Fed paie ces
obligations en entrant des chiffres reprsentant des dollars dans un ordinateur. Grce Ron Paul, beaucoup savent dsormais que ces
chiffres ne sont en rien des emprunts contracts auprs du public. La Fed nest pas un intermdiaire financier, mais une usine billets.
Alors que les usines des entrepreneurs produisent pour le bnfice des masses, la Fed cre des dollars en faveur de ceux ayant reu les
faveurs des politiciens, et au dtriment du peuple. En ce sens, la Fed est anticapitaliste et soppose au concept mme dun march libre.
Les 12 membres du FOMC (le Comit de Politique Montaire) dcident des quantits de monnaie qui doivent tre cres, et les
produisent, partir de rien. Lide dimpression montaire est une mtaphore, bien quelle soit exacte. Il est en effet bien plus simple
pour la Fed dentrer des chiffres dans une base de donnes que dimprimer de la monnaie.
Certains pourront dire que ceci nest pas quivalent de limpression montaire, dans la mesure o la monnaie fiduciaire nest pas un
actif porteur dintrts. En achetant des obligations du gouvernement, la Fed collecte des intrts auprs du Trsor, ce qui gnre une
grande partie des profits de la banque centrale. Il aurait t plus simple pour le gouvernement de faire passer un ordre de service son
usine de monnaie pour quelle imprime les quantits de dollars demandes et pouvoir contourner les paiements dintrts. En dautres
termes, il aurait fallu laisserGeithner crer les chiffres plutt que de demander Bernanke de le faire.
Imprimer de la monnaie pour rembourser ses dettes place un gouvernement lgitime devant le risque de ne plus tre peru comme tel.
Mme les enfants de huit ans savent quun contrefacteur est un escroc qui imprime des billets dans lobjectif de les dpenser. Il est
heureusement encore possible aujourdhui que quelques enfants survivent aux mfaits de lcole publique et atteignent lge adulte avec
la certitude que leur empereur est nu comme un ver, et que cela pourrait finir par entraner une rvolution. La plupart des adultes ne se
soucient que trs peu de la provenance de la monnaie si tant est quelle continue de leur acheter des biens au centre commercial ; et les
conomistes, ayant pour habitude de ne pas mordre les doigts de ceux qui les nourrissent, laissent courir lide que la FED est
indpendante.
Si tricher est le but du jeu, alors il est ncessaire de disposer dun moyen de cration montaire qui laisse le public indiffrent. Cest
pour a quont t cres les banques centrales. La Fed reoit des intrts des obligations gouvernementales quelle dtient, mais en
reverse la majeure partie au Trsor. Aprs le paiement des frais relatifs son fonctionnement, elle paie ses banques actionnaires un
dividende de 6% sur les actions quelles possdent ce qui en 2010 a reprsent la somme de 1,5 milliards de dollars. Selon la loi, les
banques membres doivent investir un minimum de 3% de leur capital sur la banque fdrale de leur rgion un prix fixe de 100 dollars
par action (voir ici).
Le solde du bnfic gnr par la FED est vers au Trsor Amricain la fin de chaque anne fiscale. En 2010, ces intrts slevaient
79,3 milliards de dollars (voir le rapport annuel de 2010, pg. 130, Tableau 4 pour plus de dtails). En versant au Trsor les revenus qui
lui restent dduction faite de ses frais de fonctionnement et des dividendes verss ses actionnaires, la Fed garantit au gouvernement
des emprunts taux zro.
Comme nous avons pu le voir, le gouvernement, en mettant des obligations, obtient de la monnaie partir de rien, puis la dpense. De
la mme manire que danciens rois le faisaient en faisant tourner la planche billets lorsque leurs recettes fiscales ne leur suffisaient
pas, le gouvernement daujourdhui cre de la monnaie par le biais du systme bancaire central.
Pourquoi les banquiers acceptent-ils cet arrangement ?
Les banques commerciales tirent leurs profits de la protection fournie par le cartel bancaire encadr par les banques centrales. Le
systme bancaire de rserve fractionnaire est une invention rcente et bien quil puisse savrer trs profitable pour les banquiers, il
peut galement tre sujet des dsastres lorsque les banques grandissent un peu trop, ce quelles font inluctablement. Aussi
confortable que puisse paratre cet arrangement, la plupart des banquiers ne semblent pas se rendre compte que leurs politiques
inflationnistes les mneront un jour o lautre vers leur propre fin. La monnaie finira par perdre tant de valeur que les gens refuseront
de continuer lutiliser.
La seule solution pour viter le dsastre venir serait de sparer la monnaie (et les banques) des gouvernements.

Epargnez en or pour garantir votre futur


Votre devise devrait tre la suivante : Un trentime donce chaque soir tient linflation lcart
et immunise votre pargne contre les bouleversements financiers qui font dj trembler les fondations de la structure montaire
internationale.
Ce plan dpargne est extrmement simple. En voici les bnfices ngatifs - ou ce dont vous naurez PAS besoin si vous le mettez
excution :
Ce plan :
Na pas de sponsor officiel,
Il nimplique pas une agence de rgulation ou une commission de contrle du gouvernement,

Il nimpose pas de frais dinscription, de frais mensuels, dhistorique de compte, de bases de donnes centralises, de corps
gouvernementaux, de conventions de compte, de clauses darbitrage, de commissions, de jours fris ou de quoi que ce soit dautre de
cette nature,
Personne nen tire un quelconque bnfice lexception de vous-mme et de votre famille,
Il est facile mettre en place,
Il ny a aucun document remplir,
Vous navez besoin de demander la permission personne, navez pas besoin de licence ou de quoi que ce soit dautre pour en parler
votre famille et vos amis,
Vous navez pas besoin dabandonner votre contrle, votre titre de proprit ou de possession de vos actifs en change de bnfices
illusoires (tels que des intrts verss dans une monnaie fiduciaire qui se dprcie).
Et voici quels en sont les bnfices positifs :
Il vous est possible deffectuer des retraits tout moment sans avoir besoin daller la banque ou de vous rendre un distributeur
automatique,
Aucune banque na de droit lgal sur vos actifs (ce qui nest pas le cas si vous dposez de largent papier sur votre compte),
Votre capital est entirement priv. Personne ne sait combien vous possdez,
A mesure que le dollar est dvalu, il faut de moins en moins dor pour acheter le papier ncessaire au paiement de limpt sur vos
gains en capital. Viendra un jour o le dollar perdra de la valeur par rapport lor plus vite encore que gonflera le taux dinflation. Vous
serez donc en avance pendant un certain temps,
A mesure que vous poursuivez ce plan dpargne et en parlez dautres, le nombre de personnes qui y prennent part augmente
exponentiellement, ce qui gonfle la demande en or et en fait grimper le prix ainsi que la valeur de votre pargne en termes de dollars,
Si vous tes endett (ce qui est le cas dune majorit de citoyens), ce plan dpargne peut vous permettre daccumuler plus rapidement
largent ncessaire au remboursement de votre dette, et de vous librer de vos crditeurs plus promptement que par nimporte quel
autre moyen. Mais vous devrez savoir rester disciplin,
Vous, votre famille, votre famille largie, vos amis et vos voisins pourront sisoler des politiques financires et montaires irrflchies
de leur gouvernement. Cest la seule solution ouverte ceux qui souhaitent se protger de lattaque que subira leur monnaie quand un
demi-milliard de Chinois dcideront dacheter de lor,
Et vous pourrez dormir sur vos deux oreilles, peu importe le taux dinflation, et o que vous soyez.
Cest simple comme bonjour !
Imaginez que cinq millions de personnes le fassent rgulirement, avec dtermination et clairvoyance. Quel en serait limpact ?
Les sommes que vous dcidez dpargner ne tiennent qu vous. Vous navez pas acheter une once par mois.
Une once peut tre de trop. Elle peut ne pas tre assez. Mais vous devriez prendre une partie de ce que vous pargnez normalement
sous forme de monnaie papier et la placer sur lor.
Ninvestissez pas sur lor, pargnez en or
Nul besoin de convertir votre pargne existante en or. Epargnez en or progressivement chaque mois, et commencez ds aujourdhui.
Vous serez satisfait des rsultats.
A dire vrai, pour votre propre tranquillit desprit, il est prfrable de ne pas convertir une grande partie de votre pargne en or. Le faire
vous placerait en position de spculateur. Vous finiriez par vous asseoir devant votre ordinateur pour observer le prix de lor chaque
jour, craindre chaque minute. Et ce nest pas ce que vous recherchez.
Epargnez petit petit et ny pensez plus. Laissez votre or o il est. Ny touchez plus. Laissez-le gagner de la valeur, comme vous le
faites avec votre compte pargne. Vos nerfs vous en remercieront, et votre portefeuille aussi.
Cela ne veut pas dire quinvestir sur lor est une mauvaise chose. Tout ne dpend que de la tolrance que vous avez pour le risque et de
votre sens de laventure. Ce nest quune philosophie diffrente et une raison dagir diffrente. Lorsque vous investissez , vous
recherchez des profits futurs. Ces profits sont gnralement vivement anticips et attendus sous la forme de monnaie papier.
Lpargne est une bien diffrente chose. Elle vous permet de vous assurer que vous aurez des actifs disponibles dans le futur, une fois
que les jeux seront faits. Nous pargnons pour des raisons de scurit, de stabilit, de tranquillit desprit et de croissance de long
terme. Et en ce sens, rien ne vaut une pargne en or.
Epargnez en or !
Que Dieu vous garde,
Alex Wallenwein

Les rgulateurs et les banques s'entendent sur le dos des pargnants


C'est souvent le week-end que les choses importantes se passent en finance, quand les marchs sont ferms, quand les ngociations et
les bruits de couloirs ne peuvent pas avoir de rpercussions ou profiter des initis, et quand les mdias tournent sur les faits divers et
la mto. Un accord important a t sign samedi, 11 octobre, entre les grandes banques mondiales, "sous la pression des rgulateurs",
prcise ladpche AFP, et il concerne les produits drivs et, plus spcifiquement, les CDS (Credit default swap). Ces derniers sont des
assurances permettant de se couvrir contre le dfaut d'un pays sur sa dette ou la faillite d'une entreprise.
L'ide de dpart est sduisante, puisqu'il s'agit d'une protection contre la faillite d'un actif que l'on dtient ; qui trouverait y redire ?
Le problme est que ces produits ont t vendus en grande quantit par les banques et qu'elles ne possdent pas forcment les fonds
propres ncessaires en cas de dfaut, ce qui les mettrait elles-mmes en faillite, provoquant un effet domino catastrophique. On a pu le
voir, lors de la crise de septembre 2008, avec la faillite de Lehman Brothers, gros trader sur le march de ces produits drivs, qui avait
donn lieu un dbouclage massif de contrats drivs avec la banque, ce qui avait provoqu le chaos sur les marchs financiers.
Les rgulateurs des grands pays font valoir qu'un dlai, aussi minime soit-il, pourrait permettre une banque dfaillante de pouvoir se
recapitaliser et viter un effet de panique sur les marchs financiers. L'Association internationale des swaps et drivs (ISDA),
l'organisme reprsentant le secteur bancaire, a ainsi accept d'abandonner le principe du dbouclage automatique ("close out") des
contrats, si une institution financire se trouve en difficult. En cas de dfaillance d'une grande banque "too big to fail", les rgulateurs
auront le temps de mettre au point une solution pour viter une faillite "dsordonne" aux consquences potentiellement explosives.
On peut penser que la signature de cet accord traduit le fait que le risque de faillite de grandes banques existe bel et bien, ce qui nest
pas rassurant. Nanmoins, cet accord constitue objectivement une bonne chose, puisquil loigne un risque d'effet domino
catastrophique. Mais attention ! On sait dsormais comment les rgulateurs sy prennent pour rsoudre les crises bancaires la
mthode a t inaugure Chypre, au printemps 2013, et crite dans une directive europenne qui entrera bientt en vigueur (le 1er
janvier 2016). Ce sont les comptes des pargnants qui servent renflouer les pertes bancaires ; une ponction est directement opre
sur leur pargne afin de restaurer la solvabilit de la banque. Chypre comme dans la directive, seuls les comptes de plus de 100.000
euros sont concerns, mais cela ne suffira videmment pas en cas de crise grave, et on peut tre certain que tous les comptes seront
touchs.
Cet accord arrange les rgulateurs et les banques, qui loignent ainsi un risque destructeur et trs difficile matriser, mais il faut bien
comprendre qu'il se fait sur le dos de l'pargnant qui a plac ses conomies dans le circuit bancaire et qui, lui, na pas son mot dire.
Remerciements Philippe Herlin. de www.goldbroker.com

FDR: Le grand confiscateur


Il est difficile dimaginer un plus grand crime contre les citoyens des Etats-Unis que le vol de leur or, qui a t offert des banquiers
trangers contre des dollars papier non-changeables. Le vol continu de la productivit des Amricains par la dette et linflation ne
cesse de les appauvrir et de les rduire lesclavage.
FDR: LE GRAND CONFISCATEUR
Ou la promotion de la tyrannie sous couvert du patriotisme et du sacrifice.
Il a mis en avant lide dun gouvernement paternel une heure o une partie la eux contre nous tait rellement
lordre du jour.
Ecoutez la version audio de son adresse.
Suivie d'un coup de grce un mois plus tard - le vol de l'or des citoyens Amricains
Lisez ici le texte de lordre excutif de FDR: FDR Issues Executive Order 6102Banning Gold Ownership
President Franklin D. Roosevelt: My friends, I want to talk for a few minutes with the people of the United States about banking
to talk with the comparatively few who understand the mechanics of banking, but more particularly with the overwhelming majority of
you who use banks for the making of deposits and the drawing of checks. I want to tell you what has been done in the last few days, and
why it was done, and what the next steps are going to be. I recognize that the many proclamations from the state capitals and from
Washington, the legislation, the Treasury regulations and so forth, couched for the most part in banking and legal terms, ought to be
explained for the benefit of the average citizen. I owe this in particular because of the fortitude and the good temper with which
everybody has accepted the inconvenience and the hardships of the banking holiday. And I know that when you understand what we in
Washington have been about I shall continue to have your cooperation as fully as I have had your sympathy and your help during the
past week.
First of all, let me state the simple fact that when you deposit money in a bank the bank does not put the money into a safe deposit
vault. It invests your money in many different forms of creditin bonds, in commercial paper, in mortgages, and in many other kinds of
loans. In other words, the bank puts your money to work to keep the wheels of industry and of agriculture turning round. A
comparatively small part of the money that you put into the bank is kept in currencyan amount which in normal times is wholly
sufficient to cover the cash needs of the average citizen. In other words, the total amount of all the currency in the country is only a
comparatively small proportion of the total deposits in all the banks of the country.
What, then, happened during the last few days of February and the first few days of March? Because of undermined confidence on the
part of the public, there was a general rush by a large portion of our population to turn bank deposits into currency or golda rush so
great that the soundest banks couldnt get enough currency to meet the demand. The reason for this was that on the spur of the moment
it was, of course, impossible to sell perfectly sound assets of a bank and convert them into cash except at panic prices far below their
real value.

By the afternoon of March 3, a week ago last Friday, scarcely a bank in the country was open to do business. Proclamations closing
them in whole or in part had been issued by the governors in almost all of the states.
It was then that I issued the proclamation providing for the national bank holiday, and this was the first step in the governments
reconstruction of our financial and economic fabric.
The second step, last Thursday, was the legislation promptly and patriotically passed by the Congress confirming my proclamation and
broadening my powers so that it became possible in view of the requirement of time to extend the holiday and lift the ban of that
holiday gradually in the days to come. This law also gave authority to develop a program of rehabilitation of our banking facilities, and I
want to tell our citizens in every part of the nation that the national CongressRepublicans and Democrats alikeshowed by this action
a devotion to public welfare and a realization of the emergency and the necessity for speed that it is difficult to match in all our history.
The third stage has been the series of regulations permitting the banks to continue their functions to take care of the distribution of
food and household necessities and the payment of payrolls.
This bank holiday, while resulting in many cases in great inconvenience, is affording us the opportunity to supply the currency
necessary to meet the situation. Remember that no sound bank is a dollar worse off than it was when it closed its doors last week.
Neither is any bank which may turn out not to be in a position for immediate opening. The new law allows the twelve federal reserve
banks to issue additional currency on good assets and thus banks that reopen will be able to meet every legitimate call. The new
currency is being sent out by the Bureau of Engraving and Printing in large volume to every part of the country. It is sound currency
because it is backed by actual, good assets.
Another question that you will ask is this: why are all the banks not to be reopened at the same time? The answer is simple, and I know
you will understand it. Your government does not intend that the history of the past few years shall be repeated. We do not want and
will not have another epidemic of bank failures.
As a result, we start tomorrow, Monday, with the opening of banks in the twelve federal reserve bank citiesthose banks which on first
examination by the Treasury have already been found to be all right. That will be followed on Tuesday by the resumption of all other
functions by banks already found to be sound in cities where there are recognized clearing houses. That means about 250 cities of the
United States. In other words, we are moving as fast as the mechanics of the situation will allow us.
On Wednesday and succeeding days banks in smaller places all through the country will resume business, subject, of course, to the
governments physical ability to complete its survey. It is necessary that the reopening of banks be extended over a period in order to
permit the banks to make applications for the necessary loans, to obtain currency needed to meet their requirements, and to enable the
government to make commonsense checkups.
Please let me make it clear to you that if your bank does not open the first day, you are by no means justified in believing that it will not
open. A bank that opens on one of the subsequent days is in exactly the same status as the bank that opens tomorrow.
I know that many people are worrying about state banks that are not members of the Federal Reserve System. There is no occasion for
that worry. These banks can and will receive assistance from member banks and from the Reconstruction Finance Corporation and of
course they are under the immediate control of the state banking authorities. These state banks are following the same course as the
national banks except that they get their licenses to resume business from the state authorities, and these authorities have been asked
by the secretary of the treasury to permit their good banks to open up on the same schedule as the national banks. And so I am
confident that the state banking departments will be as careful as the national government in the policy relating to the opening of banks
and will follow the same broad theory.
It is possible that when the banks resume a very few people who have not recovered from their fear may again begin withdrawals. Let
me make it clear to you that the banks will take care of all needs except of course the hysterical demands of hoardersand it is my belief
that hoarding during the past week has become an exceedingly unfashionable pastime in every part of our nation.
It needs no prophet to tell you that when the people find that they can get their moneythat they can get it when they want it for all
legitimate purposesthe phantom of fear will soon be laid. People will again be glad to have their money where it will be safely taken
care of and where they can use it conveniently at any time. I can assure you, my friends, that it is safer to keep your money in a
reopened bank than it is to keep it under the mattress.
The success of our whole national program depends, of course, on the cooperation of the publicon its intelligent support and its use of
a reliable system.
Remember that the essential accomplishment of the new legislation is that it makes it possible for banks more readily to convert their
assets into cash than was the case before. More liberal provision has been made for banks to borrow on these assets at the reserve banks
and more liberal provision has also been made for issuing currency on the security of these good assets. This currency is not fiat
currency. It is issued only on adequate security, and every good bank has an abundance of such security.
One more point before I close. There will be, of course, some banks unable to reopen without being reorganized. The new law allows the
government to assist in making these reorganizations quickly and effectively and even allows the government to subscribe to at least a

part of any new capital that may be required.


I hope you can see, my friends, from this essential recital of what your government is doing that there is nothing complex, nothing
radical, in the process.
We had a bad banking situation. Some of our bankers had shown themselves either incompetent or dishonest in their handling of the
peoples funds. They had used the money entrusted to them in speculations and unwise loans. This was, of course, not true in the vast
majority of our banks, but it was true in enough of them to shock the people of the United States for a time into a sense of insecurity
and to put them into a frame of mind where they did not differentiate, but seemed to assume that the acts of a comparative few had
tainted them all. And so it became the governments job to straighten out this situation and to do it as quickly as possible. And that job
is being performed.
I do not promise you that every bank will be reopened or that individual losses will not be suffered, but there will be no losses that
possibly could be avoided; and there would have been more and greater losses had we continued to drift.
I can even promise you salvation for some at least of the sorely pressed banks. We shall be engaged not merely in reopening sound
banks but in the creation of more sound banks through reorganization.
It has been wonderful to me to catch the note of confidence from all over the country. I can never be sufficiently grateful to the people
for the loyal support that they have given me in their acceptance of the judgment that has dictated our course, even though all our
processes may not have seemed clear to them.
After all, there is an element in the readjustment of our financial system more important than currency, more important than gold, and
that is the confidence of the people themselves. Confidence and courage are the essentials of success in carrying out our plan. You
people must have faith; you must not be stampeded by rumors or guesses. Let us unite in banishing fear. We have provided the
machinery to restore our financial system; and it is up to you to support and make it work.
It is your problem, my friends, your problem no less than it is mine. Together we cannot fail.

Le sentiment des particuliers envers lor s'acclre depuis le


krach de 2013
En bref :
1. Les cours de lor en dollars baissent de 5,8% en septembre, soit une chute record depuis juin 2013.
2. Le sentiment des particuliers envers lor a bondi le plus rapidement en 17 mois.
3. Les utilisateurs de BullionVault renforcent leurs positions sur lor et largent alors que les cours chutent.
Londres, le 8 octobre 2014. LIndice des investisseurs en or de BullionVault a montr que le sentiment envers le mtal jaune avait
rebondi en septembre vers un pic de sept mois. Cest la hausse la plus rapide depuis le printemps 2013 avec les cours chutant vers les
niveaux bas de lan pass proches des 1 200 dollars lonce.
La plus grande plate-forme au monde pour les achats en ligne dor et dargent, BullionVault, a vu le nombre dinvestisseurs particuliers
achetant de lor physique augmenter de plus dun tiers en septembre, par rapport au mois daot. Le nombre de vendeurs est quant lui
rest inchang.
Lindice mesure lquilibre entre les acheteurs et les vendeurs nets sur le mois. Il passe donc de 51,7 53,4 : cest le niveau le plus lev
depuis fvrier.
Une mesure de 50,0 signifie un quilibre parfait entre les gens qui renforcent et ceux qui allgent leurs positions. LIndice a par le pass
culmin 71,7 en septembre 2011 alors que les cours atteignaient des pics historiques de 1 900 dollars lonce. En juin 2014, lindice a
touch un point bas de quatre ans et demi 51,2.
Septembre a montr le plus fort rebond dun mois sur lautre depuis que les prix ont krach lan pass en avril 2013. Cest aussi la
premire fois que lindice a augment au-dessus de sa moyenne dun an.
Aprs un t calme, le mois dernier a offert la plus forte baisse des cours depuis que le krach de lan pass a trouv son plancher en juin.
Ceci a amen un regain des chasses aux bonnes affaires par les investisseurs privs, marquant une diffrence nette avec ce que les
gestionnaires dargent font avec lor.
Que ce soit des acheteurs de bijoux asiatiques ou des investisseurs privs occidentaux, il faut ajouter quun march de lor men
seulement par des chasses aux bonnes affaires ne peut pas monter beaucoup plus haut. Mais le nombre de personnes choisissant de se
protger contre le risque financier avec lassurance quest lor, qui plus est au plus bas, continue de grimper.
Les cours de lor en dollars US ont fini septembre 5,8% plus bas 1 216 dollars lonce, soit la plus forte chute depuis juin 2013. Le prix a
depuis rebaiss 1 200 dollars. Cest le plus petit niveau depuis le krach de 2013 1 180 dollars, niveau dj atteint en fin juin et encore
en fin dcembre 2013.
Les cours ont baiss moins fortement en euros et en livres sterling, cependant, car ces devises ont aussi chut contre le dollar.
En poids, les utilisateurs de BullionVault ont ajout 0,3% de mtaux leurs rserves au total pour atteindre un nouveau record de 33,2
tonnes dor.
Les utilisateurs ont aussi ajout 0,3% dargent mtal pour un record total de 468,5 tonnes dargent, alors que les cotations de largent en
dollars US ont baiss de plus de 12%. Comme lor, cest la plus forte chute sur un mois depuis juin 2013. Le cours de largent a donc
atteint un point bas de quatre ans et demi 16,75 dollars lonce.

10 raisons pour lesquelles l OR est la raction instinctive et pourquoi l ARGENT est le


choix intelligent
[http://www.argentmetal.com/2011/08/11/10-raisons-pour-lesquelles-lor-est-la-reaction-instinctive-et-pourquoi-largent-est-lechoix-intelligent/ ]
Voici la traduction dun article du site DontTreadOnMe qui rsume bien pourquoi largent est, et restera, le meilleur investissement
de la dcennie !!!
On est au dbut du basculement du papier vers les valeurs relles et tangibles. Les derniers arrivants dans ce nouveau
paradigme, nont pas une ide claire de ce quils font quand ils achtent de lor. Evidemment ils peuvent comprendre quil est rare et
que leurs grands-parents disaient dacheter ce mtal jaune, mais ils ne sont pas alls jusquau fond des choses pour comprendre le
sens de leur geste. Quand jai voulu sortir du papier, jai achet de lor comme une raction saine. Et puis, plus jen apprenais sur
largent et plus jai ralis que lachat dargent tait le choix intelligent.
Quand jai commenc me rveiller, courant mars 2005, jai pris pleine conscience de la crise qui allait survenir, jai commenc
tudier les cycles de dettes. Durant cette recherche, jai finalement compris que la Federal Reserve est une entit priv dtenue
par des banques trangres. Jai donc dcid de sortir mes conomies de leur casino financier fait de papier. Jai commenc
alerter les investisseurs de la folie de parier dans leur jeu, parce que ce systme papier, allait entirement seffondrer. En effet, qui
se soucie de votre pari quand le casino scroule ? De plus en plus de personnes prennent conscience de cette folie et ont
dcid den sortir. Mais o donc vont-ils se rfugier, eux qui ont fait confiance au march papier depuis tant dannes ? Une seule
rponse, lor.
Lor est le plus grand march de mtal prcieux dans le monde, il fascine et reprsente la richesse dans nos subconscients depuis des
sicles. Les gens lont vu dans les films de pirates, dans les mdias, etc. De plus, avoir de lor entre ses mains est si impressionnant et
magique, quil est difficile de ne pas vouloir en faire son premier achat. Pour rsumer, lor est une raction instinctive pour la plupart
des investisseurs papier souhaitant sortir du casino. Je pense que cest la raison pour laquelle nous voyons tant dactivit sur lor en ce
moment.
Mais plus jen ai appris sur largent, et plus jai compris que ctait le seul choix dinvestissement pour moi et ma famille. Jen suis
encore mieux persuad aujourdhui en 2011, que je ne ltais en 2005 lorsque jai dcid de parier sur ce mtal. Quand vous
comprenez rellement ses fondamentaux de base, vous ne pourrez arriver qu une seule et unique conclusion, cest quil
sagisse simplement du meilleur investissement sur terre. Je vous mets au dfi de me trouver un meilleur investissement. Jadore
les challenges !
La premire chose et de loin la plus importante, est que largent mtal est une valeur tangible. Quand je dis investir dans
largent , je ne veux parler que de ce qui peut se trouver entre vos mains. Si vous ne pouvez le toucher, il nest pas vous. Rester en
dehors des SLV, comptes de mtaux, des actions minires, etc. Restez focalis sur le physique. Il serait dommage davoir investi dans
largent, mais sous la mauvaise forme.
Nous entrons dans un virage historique qui voit fuir lpargne du papier vers les biens tangibles.Comme je lai fais remarquer
plusieurs fois dans le pass, le dollars est sur le point de seffondrer et, de ce fait, le socle sur lequel se maintient toute lconomie
mondiale. Cest une certitude mathmatique. Leffondrement du dollars sera le plus grand vnement lchelle mondiale que nous
ayons connu dans toute lhistoire humaine, une crise qui touchera dramatiquement toutes personnes sur terre et marquera de
cicatrices profondes les gnrations venir. Oui, ce sera ce point l.
Quand leffondrement mathmatiquement invitable du dollars surviendra, toutes les valeurs papiers seront dtruites. Cela vaudra pour
le Dollars, Yen, Euro, CDS ( Credits default Swap ), Munis ( Obligations municipales ), Treasury Bills ( Obligations court terme
amricaine ), marchs de change, polices dassurances, pensions, entreprises prives, scurit sociale, dividendes, 401ks, IRAs,
actions, options, obligations et mme limmobilier. Sans le fonctionnement sain dune monnaie, et la scurit que cela procure, la
machine du crdit se bloquera, ainsi que les marchs, les paiements. Toute lconomie sarrtera. Les gens paniqueront, et cest l
que la guerre intervient chaque fois.
Cela poussera naturellement les investisseurs vers les biens tangibles comme les matires premires. Les matires premires
sont les choses que nous utilisons tous les jours dans notre vie, comme le cotton, le mas, la viande, le ptrole ou encore lacier. Le
problme avec la majorit des matires premires est le stockage. Dans les faits, les deux meilleures matires premires en terme de
protection durant linflation seront la nourriture et lessence. Ce sont les biens les plus essentielles lhumanit et il serait difficile de
vivre sans. Je recommande fortement les gens en mettre aussi de ct avant dacheter de largent. Vous aurez besoin dau minimum
3 mois de stocks de nourriture par personne pour faire tampon avec le choc sociale massif dans lequel nous allons entrer avec
leffondrement du dollar. Le problme avec les investissements dans la nourriture et lessence, cest le stockage. Au fil du temps, ils se
dtriorent et deviennent sans valeurs. Vous devrez aussi faire face au prix de stockage si vous souhaitez investir des milliers de
dollars. Je ne sais pas vous, mais je ne possde pas de silo grain ou dentrept de stockage.
Dans des conditions extrmes, les gens qui investissent dans la nourriture et lessence, mettent leur vie en danger. Les gens
ragissent avec violence ceux qui tentent de monnayer leurs stocks de nourriture durant des temps de crise. En 1565, lun des
hommes les plus riches dAnvers, Pauwels Van Dale, acheta de larges quantits de grain avec lespoir de voir monter les prix. Quand
les gens affams apprirent la nouvelle, ils se rvoltrent dans toute la ville, ciblant avec violence les riches pour leur arrogance et
cupidit.
Si vous ntes pas un paysan ou un baron du ptrole, cela restreint dj les possibilits dinvestissement dans les matires premires.
Cela nous amnent naturellement vers les mtaux parce quils ne se dtriorent pas. Pour la plupart des mtaux, le stockage est tout
autant problmatique, car avec $8000 dollars, vous pourrez acheter une tonne de cuivre mais juste peine 4 onces dor. Cest

pourquoi les mtaux prcieux sont autant apprcis, cest parce quils sont rares et permettent de stocker beaucoup de valeur dans un
espace rduit.
Lune des raisons pour laquelle les gens investissent dans les mtaux prcieux est parce quil ny pas de contre-partie risque, car sa
valeur provient simplement de sa composition intrinsquement rare et de leurs potentielles utilisations. Avec des mtaux prcieux,
vous navez pas vous souciez de recevoir des dividendes ou bnfices ou devoir subir linflation dune devise. En fait, plus
lconomie sera mal en point, et plus les gens fuiront vers les mtaux prcieux faisant ainsi monter leur cours.
Maintenant, que vous avez compris que les mtaux prcieux est l o vous devez vous trouver, il vous faut dornavant choisir vers
lequel des quatre grands mtaux prcieux vous allez vous diriger. Vous avez le choix entre lor, largent, le platine et le palladium. Le
platine et le palladium ont la raret et lutilisation industrielle qui jouent pour eux, mais ils nont jamais t utiliss en tant que monnaie
durant lhistoire. Avec leffondrement du dollar, je veux obtenir un mtal qui aura la plus forte demande potentielle pour faire monter
son prix. Je veux que mon mtal possdent en mme temps une demande industrielle, dinvestissement et montaire.
Il ne nous reste plus que lor et lARGENT comme choix rationnels pour linvestissement face linvitable effondrement
conomique que nous allons traverser.

1) Largent est la deuxime matire premire la plus polyvalente. La premire est le ptrole
Avec laugmentation de ses utilisations technologiques et mdicales, la demande dargent est vitale pour toute rmission de
lconomie. Largent possde des proprits anti-microbiennes, rflchissantes et de conductions thermiques et lectriques
uniques, ce qui en fait un lment ncessaire tout dveloppement de projet incluant un minimum de technologie. Comme il est si
important mais utilis dans des quantits infimes, son prix nest pas lastique. Si largent monte jusqu 1000 dollars lonce et que
la socit Apple besoin d1/10 dune once pour produire un ordinateur qui cote 2000 dollars, il devra simplement augmenter le
prix de vente de $100 pour faire face la monter du cours.
2) Largent est assez peu cher pour le simple mortel contrairement lor
Investir dans lor $1700/1800 dollars lonce, nest pas trs concevable pour lamricain moyen, et encore moins pour le reste des
habitants de la plante, qui nauront certainement jamais assez de papier monnaie pour acheter ne serait-ce quune seule once
dor. Les gens sont trangls par les factures en fin de mois, ils le seraient encore plus avec lachat dor. Avec largent 38$ dollars
lonce, un mari peut acheter quelques onces dargent sans consulter sa femme. Sil achetait une once dor, il aurait certaines
explications donner. Jusqu ce que largent soit relativement peut cher face lor, la demande du quidam moyen se dirigera
naturellement vers largent.
3) Lor est stock, largent est consomm
Depuis laube de lhumanit, lor a t stock. A notre poque, largent est utilis comme une matire premire industrielle et non
pas valu comme un mtal prcieux. Avec lavnement de la technologie, largent mtal a t consomm en masse en de si
petites quantits, quil ne pourra jamais tre recycl. En fait, lUSGS (U.S. Geological Survey) dit que dans les conditions actuelles
dutilisation, largent deviendrait, en effet, le premier lment de la table priodique des lments venant disparatre.
4) Il nexiste pas de nouvelles grandes mines dargent dcouvrir
Durant les dcennies passes, nous avons consomm plus dargent chaque anne que les mines nen ont extrait. Cela na t
rendu possible que parce que nous avons puiss directement dans les stocks dargent extraits durant lhistoire de lhumanit pour
couvrir cet norme besoin en argent. En 1950, on estimait les stocks 10 milliards donces dargent. Aujourdhui, ces mmes
stocks sont vides. Donc, mme si lor est 10 fois plus rare que largent quand il est extrait du sol, le fait est que lor est stock et
largent consomm, fait de largent un mtal bien plus rare que lor.
5) Le ratio or sur argent est 1:75
Il faut environ 75 onces dargent pour acheter une once dor. Si durant toute lhistoire, largent a t extrait seulement 10 fois plus
que lor, combien de temps un ratio de 1:75 peut-il tenir ? Si largent a t utilis et lor stock, combien de temps ce ratio de 1:75
pourra-t-il exister ? A un certain point, le march ne pourra ignorer cette opportunit exceptionnelle. Quand cela arrivera, on pourrait
voir largent dpass le cours de lor. Si vous voulez vraiment de lor, acheter de largent.Vous pouvez acheter 75 onces dargent
maintenant et lorsque le ratio tombera 1:1, vous pourrez lchanger contre 75 onces dor.
6) Largent a la plus grande position vendeuse persistante de toute lhistoire des matires premires
La seule raison pour laquelle le ratio 1:45 tient, cest parce quil existe des banksters qui vendent de largent mtal papier sur le
march pour contenir le cours de largent chaque fois que celui-ci senvole, afin de protger le dollars et ses milliers de milliards qui
nous gouverne. En mai dernier, lorsquils ont volontairement fait chuter le cours de largent, ils y sont parvenus en vendant prt de 8
milliards donces dargent papier en 5 jours, alors quil nest extrait mondialement quun seul milliard donces dargent chaque
anne. Ce systme sera enfin mise nu lorsquils ne parviendront plus faire face la demande de livraison, ce qui ne saurait
tarder. ( Acheter de largent pour acclrer la chute de la JP Morgan ).
7) Les Banksters sont cours dargent mtal ainsi que de temps
Le COMEX ne dtient lheure actuelle plus que 27 millions donces dargent mtal. Javais dj compris en mai, que le crash
de largent ntait quune grosse conn****. La logique voudrait que si le prix chute, on devrait retrouver plus dargent mtal en stock
dans leurs coffres. Malheureusement non, car lorsque le dcompte de leur stocks fut fait, il y avait en effet, moins dargent. On ne
se trouvait pas seulement face plus dargent livr physiquement aux acheteurs, mais aussi avec des vendeurs qui dcidrent
dannuler leurs transactions pour rcuprer leur argent dpos au COMEX, comme la fait lOPEC ( Organization of the Petroleum
Exporting Countries ). Quand cette fraude massive sera mise nue officiellement, il y aura des acheteurs dargent mtal en
panique, comme des requins cherchant lodeur du sang.
8 ) Le march de largent est minuscule
Avec seulement 27 millions donces au COMEX, un petit milliard de dollars emporterait la totalit du plus grand centre de stockage
dargent. Vendredi dernier, le trsor amricain rajout 240 milliards de dollars de dettes en seulement une journe. Il faut donc
comprendre que lorsque les milliers de milliards de dollars papier vont faire dfaut, il ne restera pas beaucoup de solutions

disponibles, et vu la taille du march de largent, il ne faut pas normment dimagination pour comprendre ce qui pourrait se
passer quand une partie des gens dcideront de se diriger vers ce march. Comme le march de lor est plutt grand, il est normal
de voir sy diriger les banques centrales. Si elles dcidaient dinjecter 1 milliard de dollars dans largent, elles exploseraient
littralement ce petit march, alors que ce mme milliard dans le march de lor, ne donnerait quune lgre ondulation. Cest pour
cela que, pour le moment, lor est mis en avant afin de pouvoir dtourner lattention de largent, mais a ne pourra durer
ternellement.
9) La majorit des propritaires dor sont les banksters
Si vous regardez les plus grands stocks dor, vous tomberez surtout sur les banques centrales du monde. Les destructeurs du
papier monnaie sont ceux qui sont assis sur les plus gros stocks dor. Il ny a pas de banque centrale que je connaisse qui ne
possde mme une seule once dargent. Comme largent a t de nombreuses fois utilis en tant que monnaie durant lhistoire, la
logique voudrait qu un certain point les banques dcident den acheter. Jusqu quand se borneront-elles acheter uniquement
de lor ?
10 ) Lor est beaucoup plus mdiatis que largent
Lor est au moins mdiatis deux fois plus que largent dans les petits mdias et peut tre 100 fois plus dans les mainstream
mdias o largent est compltement ignor. La dernire fois que jai entendu parler dargent, ctait lors du Krach davril, dans
lequel on expliquait quil tait risqu dinvestir dans le march de largent.
Il y aurait de nombreux autres points sur lesquels je pourrais revenir, mais je vous laisse le soin de faire votre choix, quil soit instinctif
ou intelligent.

L ARGENT COUTERA PLUS CHER QUE l OR !?!...


[http://www.argentmetal.com/2011/05/19/l%E2%80%99argent-coutera-plus-cher-que-l%E2%80%99or/ ]
Entre 1900 et 2010, les stocks mondiaux dor ont augment de 1 milliard donces 5 milliards, parce que lor extrait des mines na
gure t consomm, mais thsauris, sous forme de lingots ou de bijoux. Par contre, dans le mme espace de temps, les rserves
dargent ont baiss de 12 milliards 1, parce quune partie de la production de ce mtal a t consomme par lindustrie, sans tre
recycle (largent est utilis, entre autres, pour les microcircuits lectriques des voitures, ordinateurs, tlphones portables, panneaux
solaires, etc.). En 1900, il existait 12 fois plus dargent que dor, alors quen 2010, il y a 5 fois moins dargent que dor. Puisquil est
5 fois plus rare, largent a une valeur intrinsque suprieure celle de lor. Mais alors, comment se fait-il que son cours actuel soit de
beaucoup infrieur celui de lor ?

Le cours de largent est maintenu artificiellement bas, par quelques banques amricaines, qui vendent sur papier du mtal
quelles ne possdent point. Au besoin, elles puisent dans les rserves mondiales pour satisfaire les exigences de livraison
physique formules par tel ou tel investisseur. Or cette rserve de mtal physique dcrot continuellement, car les besoins de
lindustrie sont suprieurs la production minire. Le dficit est de lordre de 150 millions donces par an. Il restait 965 millions donces
au dbut de lanne 2010 (dont une partie dtenue par des personnes investissant sur le long terme, donc indisponible pour la
consommation industrielle).
Par consquent, les rserves disponibles auront disparu dici 2015. Or des investisseurs et, surtout, des industriels voudront tre
livrs physiquement. Mais les banques qui vendent dcouvert ne pourront plus livrer. Leur manipulation la baisse prendra ainsi fin
et la raret du mtal argent clatera au grand jour.
Largent cotera plus cher que lor. Dj aujourdhui, certains mtaux ou minerais (platine, coltan, rhodium, etc.) cotent bien plus
cher que lor, parce quils sont plus rares. Comme largent est, lui aussi, plus rare que lor, il suffit dattendre lpuisement des stocks
mondiaux, pour voir son prix rajust en fonction de sa raret et de son utilit industrielle. Plus fort encore : non seulement les
rserves auront fondues dici 2015, mais encore la production minire se tarira vers 2025, ou en tout cas diminuera drastiquement.
Or lindustrie ne pourra pas se passer de cette matire premire irremplaable. Labsence doffre combine une forte demande fera
que ce mtal prcieux atteindra des prix astronomiques.
CONCLUSION : Une once dor cote 1400 dollars (fin 2010) ;

lARGENT, cinq fois plus rare, devrait donc valoir 5 x 1400 = 7000 $.

Le prix actuel (30 $) est 230 fois trop bon march. On peut en tout cas sattendre ce que largent arrive au moins parit avec lor
dans les prochaines annes. Une affaire exceptionnelle saisir !
LE PRSIDENT DES TATS-UNIS LYNDON B. JOHNSON fit une analyse financire qui corrobore notre pronostic. Ds 1965, il
constata avec lucidit que largent se faisait rare et que son prix allait monter en consquence. Pour y parer, Johnson dcida de ne
plus faire frapper des pices en argent et dengager les rserves gouvernementales pour maintenir le prix bas. Voici son discours du
23 juillet 1965, annonant que les pices en argent allaient tre retires de la circulation. Chacun de vous sait que ce changement
est ncessaire, pour une raison trs simple : largent est un mtal rare. Notre consommation dargent augmente avec notre population
grandissante et avec le dveloppement de notre conomie. Cest un fait quon consomme deux fois plus dargent quon en extrait
annuellement. Considrant cette pnurie mondiale dargent et aussi laugmentation rapide de notre besoin de pices, il ne restait
quune faon de procder : nous devions rduire notre dpendance de largent lors de la production de pices. Si nous navions pas
saut ce pas, nous aurions risqu, dans trs peu de temps, un manque chronique de pices. [] Sil venait lesprit de quiconque de
vouloir thsauriser nos pices dargent, je veux lui dire ceci : le ministre des Finances dispose amplement dargent ; il peut servir et il
sera employ maintenir le prix de largent l o se situe galement la valeur de nos pices actuelles en argent .
Ainsi donc, les USA retirrent de la circulation les pices de monnaie en argent ; les tats europens firent de mme, peu de temps
aprs. Les pices furent fondues et converties en lingots pour investisseurs ou pour industriels. Comme escompt par Johnson, cette
mesure gouvernementale a effectivement retard lexplosion du prix du mtal, depuis les annes soixante jusqu prsent. Mais
aujourdhui, il ny a plus gure de pices fondre et les gouvernements nont plus de rserves significatives. Dsormais, il ny
a plus dobstacle lenvol du cours
Par Louis SCHNEIDER, EUPOROS SA
Source : www.euporos.ch

PERSONNE na jamais vu un march libre de l ARGENT ?


[http://www.argentmetal.com/2011/04/21/personne-n%E2%80%99a-jamais-vu-un-marche-libre-del%E2%80%99argent-juillet-2007/ ]
Je narrive pas me souvenir de la premire fois que je lai entendu, ou de qui a bien pu me le dire, mais cest une question que je me
pose depuis bien des annes : comment expliquer les couleurs un aveugle de naissance ? Ou la musique sourd ? Cette simple
question nous fait mettre en perspective les bonheurs les plus simples que nous considrons comme naturels et pour lesquels nous
devrions tre profondment reconnaissants, et nous oblige penser ceux qui en sont dpourvus.
Ce qui rend impossible la description de la couleur un aveugle ou de la musique un sourd est la condition mme de laveugle ou du
sourd. Eux-mmes ne peuvent surmonter leur affliction quen comptant sur leurs autres sens et en les dveloppant afin de sadapter
la vie. Ce nest pas tche facile.
Ce prambule peut sembler inhabituel pour commencer un article sur largent comme investissement, et je vous remercie par avance
de votre patience. Je vais en effet tenter de vous convaincre de regarder largent mtal dans une perspective non conventionnelle,
totalement diffrente de lanalyse traditionnelle.
Vous voyez, lorsquon pense largent mtal, nous sommes tous aveugles : vous, moi, les producteurs, les utilisateurs industriels, le
gouvernement, les analystes du march de largent, et mme les vendeurs dcouvert qui manipulent les cours. Tout comme ceux qui
sont ns sans yeux, nous sommes tous ns aveugles concernant le march de largent. Que vous ayez 20 ou 90 ans ne fait aucune
diffrence. En matire dargent, ce quoi nous sommes tous ns aveugles et sourds tient ce simple fait : personne au monde na
jamais t tmoin dun march libre de largent.
Permettez-moi de me rpter : personne au monde na la moindre exprience dun march libre de largent mtal. Maintenant que jy
pense, personne na jamais pu connatre un march libre de largent. Comment cela aurait-il t possible ? Largent na jamais t
libre. Ni aujourdhui, ni hier, ni jamais.
Permettez-moi de vous lexpliquer, et ce faisant, jai lespoir de vous convaincre dinvestir dans autant dargent mtal que vous pouvez
vous le permettre.
La raison pour laquelle nous sommes tous aveugles concernant largent est quun grand nombre de forces ont converg depuis des
centaines, des milliers dannes pour empcher largent dtre chang librement. La plus importante force a t le rle historique de
largent comme monnaie (nombreux sont ceux qui pensent que largent a encore une fonction montaire, mais je nen fais pas partie).
Pendant des sicles, largent a t utilis comme monnaie et les gouvernements lui ont assign un prix rigide. Des prix fixs ou
contrls par un gouvernement sont lantithse dun march libre. Tous ceux qui auront vcu pendant ces centaines et milliers
dannes durant lesquels les gouvernements ont fix le prix de largent nauront jamais pu connatre un march libre de largent.
Plus rcemment, disons depuis les 100 dernires annes, les politiques gouvernementales, particulirement aux Etats-Unis, ont
empch largent dtre ngoci librement. Au dbut du sicle dernier, le gouvernement amricain a achet des centaines de millions,
et mme des milliards donces dargent grce au Sherman Act. Cette loi fut le rsultat du lobby politique des tats de lOuest, o lon

extrayait largent. Si le gouvernement navait pas achet cet argent des prix fixes, le prix en aurait t nettement infrieur. Donc, l
non plus, aucun march libre.
Plus tard, en gros depuis 60 ans, et notamment du fait de linfluence de lAssociation des Consommateurs dArgent et des programmes
de fabrication de pices, les milliards donces acquis par le gouvernement amricain ont t systmatiquement vendues sur le march,
l encore des prix fixes. Donc, toujours pas de march libre.
Maintenant, aprs plus de 100 ans, le gouvernement amricain a cess dacheter et de vendre des milliards donces dargent prix
fixe. Mais le cours de largent est toujours fix (ou manipul) par les vendeurs terme sur le COMEX. De la mme manire, cela
signifie que le march de largent nest toujours pas libre. En consquence, personne en train de lire ces lignes na jamais pu faire
lexprience dun march libre de largent. Nous sommes tous aveugles face lexprience dun march libre de largent : vous, moi,
tout le monde.
Pour autant, comme tous ceux ns aveugles ou sourds, cela ne signifie pas que nous ne pouvons pas nous adapter notre condition
et essayer den tirer le meilleur parti possible. Comme les aveugles et les sourds doivent utiliser leurs autres sens pour vivre, nous
devons utiliser notre esprit et notre bon sens pour compenser notre manque dexprience dun march libre de largent.
La premire chose que vous devez faire est de dcider si ce que je vous ai dit jusquici est correct. Est-ce quune lecture indpendante
de lhistoire vous suggre que le prix de largent a jamais t libre, et plus particulirement au cours des 100 dernires annes ? Le
gouvernement amricain na-t-il pas dabord acquis, puis vendu, des milliards donces aux prix quil avait lui-mme fixs ? Ny a-t-il pas
une pratique de ventes terme, ainsi quune position dcouvert extrmement forte du fait de trs peu dintervenants ?
Lorsque vous aurez convenu que ces faits sont tablis, il ne vous faudra gure de temps pour arriver la conclusion que nous navons
jamais connu, durant notre vie, quoique ce soit qui ressemble de prs ou de loin un march libre de largent. Rappelez vous. Je ne
tente pas de vous raconter des histoires. Jadmets, bien que jai pass les vingt dernires annes tudier tout ce qui concerne le
march de largent, que je nai absolument aucune exprience en ce qui concerne un march libre de largent. En ce sens, je suis
aveugle comme tout le monde.
Il en dcoule que nous ne devons pas reconnatre les caractres dun march libre quelque chose qui na jamais t ngoci
librement. En consquence, si nous savons que le march de largent na jamais t libre, nous ne devons pas utiliser les rgles et
interprtations que nous utilisons pour analyser un march fonctionnant librement pour y investir. Le concept que jessaie dexpliciter
est quil faut reconnatre que le prix de largent a t, et est encore manipul, de manire agir en consquence de cause.
Jai investi beaucoup de temps et dnergie pour tenter de faire cesser cette manipulation du march de largent, mais ce
nest pas mon propos ici. Mon objectif est de vous montrer comment cette manipulation est votre allie la plus prcieuse pour
investir dans largent ds maintenant.
La raison pour laquelle la manipulation du march de largent est votre meilleure allie est quelle maintient le prix de ce
mtal un niveau artificiellement bas. Cependant, toutes les manipulations doivent cesser un jour. Il nest pas possible de toujours
faire fi de la loi de loffre et de la demande. Lorsque les manipulations cessent, il y a toujours un mouvement violent dans la direction
oppose la manipulation. Puisque largent a t manipul la baisse depuis maintenant plus dun demi-sicle, nous savons que son
cours ragira trs fortement la hausse une fois que la manipulation cessera. La vraie question, cependant, est le timing. Si cette
manipulation durait encore des annes, voire des dizaines dannes, cette situation naurait gure dintrt pour la plupart des
investisseurs.
Combien de temps devons-nous encore attendre pour que cette manipulation cesse et que le prix de largent senvole ? Je vais vous
donner mon opinion, mais vous devrez dcider par vous-mmes. Je pense que la manipulation du march de largent va cesser trs
prochainement. Laissez-moi vous expliquer pourquoi.
Le principal moteur de la manipulation du march de largent a t la vente de milliards donces provenant des stocks dargent de
divers gouvernements, que ce soit par des ventes, des ventes terme, la frappe de pices ou la fonte. Largent a t vendu sur le
march et consomm. Ces milliards donces nexistent plus, tel que les statistiques lont confirm. Larnaque de la vente terme au
COMEX semble galement toucher sa fin. Je base ceci sur le fait que la vente terme est devenue extrmement vidente, et sur
lincapacit des rgulateurs lempcher correctement. Puisquil ny a plus dargent mtal vendre sur le march, et que les vendeurs
terme sont sur la dfensive, la manipulation de largent est bientt termine, selon moi.
Quand la manipulation de largent prendra fin, ce qui est inluctable, nous entrerons soudainement et violemment dans lre du march
libre de largent. Cest une re qui durera toujours, quel que soit le jour o elle commencera. Pour la premire fois dans lhistoire, le
prix de largent sera libre. Rflechissez y. Je sais que ce que je dis est extravagant. Je suis en train de vous dire que pour la premire
fois depuis plusieurs milliers dannes, le prix de largent sera soudainement libre. Et rien ne pourra len empcher. Ce sera aussi
choquant que si un aveugle se mettait soudainement voir.

Prcisment parce quil ny a plus des milliards, ou de centaines de millions, ou mme de dizaines de millions donces dargent dans
les mains des gouvernements disponibles la vente sur le march, pour la premire fois de lhistoire du monde, la manipulation doit se
terminer bientt. Il y a des centaines de millions donces dargent dans le monde, bien sr, mais elles ne sont pas disponibles la
vente sur le march. Ces onces restantes sont maintenant dtenues par les investisseurs qui attendront que les prix soient plus levs
pour les vendre, et ne voudront pas les cder au cours actuels.
Prcisment parce que larnaque des ventes terme sur le COMEX a atteint des niveaux de manipulation si vidents, celle-ci doit
bientt prendre fin. Les manipulations ne peuvent pas russir au vu et au su de tous. Puisquil ny a plus de grandes quantits
disponibles pour la vente sur le march, et que les vendeurs terme sont sous les projecteurs, il est difficile de ne pas conclure que la
manipulation prendra bientt fin, et que le prix de largent atteindra des niveaux faramineux. Et ensuite, le coin des bonnes affaires et
des niveaux dachat bas risque aura disparu pour ainsi dire tout jamais.
Quand la manipulation prendra fin lattention se portera sur les niveaux que les prix pourront atteindre. Et cest de cela dont nous
navons pas lexprience. Cest l que nous sommes tous aveugles. Peut-tre dpassera-t-il le prix de lor, tel que le croit Israel
Friedman, mon mentor dans le domaine de largent. Aussi fou que cela puisse paratre, nous parlons dun profond changement dans le
domaine de largent, dune manipulation qui a dur des centaines dannes une poque o largent ne pourra plus jamais tre
manipul. Aprs tout, il est clair que nous commenons manquer dargent, alors que ce nest pas le cas pour lor.
Le moment idal pour acheter de largent sera la veille de la fin de cette manipulation. Sil tait possible de savoir la date de ce
jour, je vous le dirais, mais il est cela est impossible. Par contre, ce que lon sait dj, cest que ce jour va arriver, et bientt. Ce que
lon sait dj aussi, cest quil vaudra mieux avoir investi bien avant que ce jour arrive, et pas un seul jour plus tard.
Si jai ne serait-ce quun tant soit peu raison dans ce que jaffirme sur largent, nous sommes devant quelque chose qui est rellement
au-del de lopportunit dune vie. Cest une opportunit qui couve depuis maintenant des centaines dannes, et le fait que nous
soyons l, en mesure de rellement profiter financirement de ce grand changement, dpasse presque lentendement. La transition
dun march manipul un march libre relve du changement le plus drastique possible, et saisir ce changement en tant
correctement positionn peut rendre riche vie. Le seul moyen de vous assurer que vous tes positionn correctement est
largent rel, physique !!! La grande majorit des investisseurs du monde entier sera forcment aveugle cette opportunit car elle
nest pas consciente des grandes dynamiques en prsence.
Si vous ouvrez les yeux sur la ralit et agissez tant quil en est encore temps, vous verrez lavenir et en rcolterez les fruits.
Par Ted Butler. - Investment rarities
Article originellement publi le 30 juillet 2007

LE COMEX, ou comment tirer ARTIFICIELLEMENT les cours de lArgent vers le bas


[http://www.argentmetal.com/2011/06/09/le-comex-ou-comment-tirer-artificiellement-les-cours-de-largent-vers-lebas/ ]
Comme on a pu le voir durant ces derniers mois, le COMEX, avec ses attaques rptes contre largent, est devenu notre ennemi
numro 1. Pilot par les grandes banques daffaires comme JP Morgan ou HSBC, voir directement par les Etat-Unis pour certain, celui
voit ses stocks seffondrer continuellement. Par quels moyens tente-t-il daffaiblir notre mtal prcieux ?
Quest ce que la Comex ? Comment ses manipulations la baisse sur le court terme favorisent-elles une hausse sur le long
terme ?
La COMEX (abrviation de New York Commodities Exchange) est la principale bourse de mtaux prcieux du monde. On y spcule
terme (les contrats sont appels futures), misant sur la hausse/baisse du mtal dici un, deux ou trois mois. lchance du contrat,
lacheteurpeut soit demander la livraison physique, soit encaisser sa plus-value en dollars.
Par rapport au volume global des transactions, la COMEX stocke seulement une fractionde mtal, parce que la plupart des
spculateurs se contentent de se faire rgler en papier-monnaie. Les stocks dargent physique de la COMEX ont diminu
considrablement au fil du temps, et il faudrait seulement un petit nombre de demandes de livraison pour les vider compltement.
Autrement dit : il ny en a pas pour tout le monde ! Une partie seulement des acheteurs recevra du mtal, les autres auront du papier,
du vent, rien !
Afin dviter une rue sur les derniers lingots dargent restants, la COMEX, de mche avec de grandes banques amricaines, tente de
dcourager les investisseurs, en faisant chuter artificiellement les cours. Deux techniques, parfois combines, sont employes : 1 la
vente dcouvert et 2 lappel de marge .
1 Vente dcouvert (short selling) : les prix sont pousss vers le bas artificiellement, au moyen de ventes sur papier, qui ne sont
pas couvertes par du mtal physique. Les vendeurs dcouvert sont essentiellement de grandes banques amricaines.

2 Appel de marge (margin call) : la COMEX demande une augmentation de lacompte. La COMEX a plusieurs fois relev sans
pravis les exigences de dpt dacompte, exigeant des acheteurs de dposer des sommes plus importantes au moment de conclure
le contrat. Ceux parmi les acheteurs qui nont pas les moyens daugmenter immdiatement leur acompte sont ainsi obligs
dabandonner leur contrat. Leurs ventes renforcent la baisse. Les margin calls de la COMEX ont fait choir brutalement le cours de
largent en janvier et mai 2011.
Nanmoins, ces deux tactiques se retournent la longue contre leurs auteurs. La vente dcouvert , en maintenant le prix bas,
constitue une subvention offerte aux acheteurs, une opportunit dacheter un bien un cot en dessous de sa valeur relle. Les
appels de marge de plus en plus levs liminent les acheteurs fragiles, car seuls ceux qui ont les reins solides (trsorerie bien
garnie) restent en lice. En langage boursier : on secoue les mains faibles , et le mtal passe entre des mains fortes .
Les manipulations baissires de la COMEX ne feront pas long feu, car des investisseurs bien dcids et financirement solides
profitent de lopportunit pour entrer dans le march sous-valu des mtaux prcieux. Limposture de la COMEX prendra rapidement
fin, car ses stocks seront prochainement tombs zro. Le grand gagnant sera alors celui qui dtiendra du mtal physique, car tous
les papiers promettant du mtal ne vaudront plus rien!
Par Louis SCHNEIDER, EUPOROS SA
Source : www.euporos.ch

Rapport sur lavenir de la demande industrielle pour l ARGENT METAL


[http://www.argentmetal.com/2011/05/09/rapport-sur-l%E2%80%99avenir-de-la-demande-industrielle-pour-

l%E2%80%99argent-2/ ]
Le mtal blanc est une vraie star chez les industriels ! Selon un nouveau rapport du Silver Institute, la demande dargent pourrait
passer de 487 millions donce en 2010 665 millions en 2015 soit une augmentation de la demande de 36% en 5 ans.
Un nouveau rapport, command par le Silver Institute, de la firme de recherche GFMS, intitul The Future of Silver Industrial
Demand , fait des projections de la demande industrielle pour largent dici 2015. Le rapport met lemphase sur certaines proprits
uniques de largent qui, dans la plupart des cas, ne peuvent tre remplaces par des alternatives moins onreuses.
Les usages de largent dans de multiples applications, que ce soit dans les produits lectroniques, dans la fabrication de piles solaires
photo-voltaques, ou encore comme agent anti-bactrien, lui assurent de nouveaux marchs destins prendre de lexpansion au-del
des marchs traditionnels comme la joaillerie, la photographie et largenterie. La demande du seul secteur photo-voltaque est passe
de 3Moz en 2004 environ 50Moz en 2010. Le rapport anticipe une forte demande de lindustrie, qui pourrait passer de 487.4Moz en
2010 plus de 665.9Moz en 2015, soit une augmentation de 36% en cinq ans.

Un mise en perspective du prix de l'argent mtal, souvent valu au plus haut un prix de 50$. Cette vido nous propose d'actualiser ce
prix haut de rfrence grce l'inflation. On dcouvre alors que le point haut ne se situe plus aux alentours des 50$ l'once, mais bien
plus de 138$ l'once. Le prix de l'argent est donc compltement sous-valu et artificiellement maintenu ce niveau grce des
manipulations financires. : http://www.47carat.com/index.php/metaux-precieux/argent-metal/perspective-sur-largent-metal/

POURQUOI investir dans lARGENT METAL ?


Les mtaux prcieux constituent un placement sr et rentable sur le moyen et le long terme. Ils protgent contre les risques
dinflation et/ou de collapsus du systme financier international si fragile. Le cours de lor montera et celui de largent encore
plus.
UN PLACEMENT SR ET RENTABLE
Contrairement aux obligations dtat ou dentreprise, les mtaux prcieux nont aucun risque de contrepartie (counter part
risk), car ni lor ni largent ne peuvent faire faillite ; ils constituent une valeur en soi immuable depuis des millnaires.
Contrairement aux billets de banque, les mtaux prcieux ne sont nullement touchs par linflation ou une quelconque rforme
montaire. Un kilogramme dor restera toujours un kilogramme avec sa valeur intrinsque, tandis que le papier-monnaie retournera
tt ou tard sa valeur intrinsque: zro (Voltaire). Les tudes historiques portant sur tous les pays toutes les poques prouvent
que le papier-monnaie, tant multipliable lenvi, a toujours perdu plus ou moins rapidement son pouvoir dachat. Durant la Rvolution
franaise (1789 1799), celui qui avait fait confiance au papier-monnaie perdit en une dcennie dans la proportion de 1000 : 1 (Ren
Sdillot : Le cot de la Rvolution franaise, 1989).
Depuis lautomne 2008, de plus en plus dinvestisseurs et des sommes de plus en plus importantes se positionnent sur les mtaux
prcieux. Cette tendance se renforcera dans les prochaines annes, car les raisons davoir peur instabilit du systme financier
international et inflation subsisteront, voire saggraveront en raison du surendettement croissant.

Le collapsus du systme montaire nest quune question de temps, car lusure produit dabord lendettement, puis le surendettement
et enfin la cessation de payement. Laugmentation des dettes est produite inluctablement par les intrts et les intrts composs
(= les intrts des intrts, qui font que les dettes grandissent de plus en plus vite). Comme les dettes produisent des intrts, qui
gnrent leur tour des intrts composs, et ainsi de suite, lendettement des particuliers, des entreprises et des tats grandit de
faon exponentielle. Cette acclration de laugmentation des dettes mnera les dbiteurs la faillite. Comme le montre si bien le film
Largent-dette , le papier-monnaie nest rien dautre quune reconnaissance de dette, que ce soit sous forme de billet de banque ou
dobligation, et puisque cette dette produit des intrts composs en augmentation de plus en plus forte, il arrivera forcment un
moment o le surendettement se soldera par la banqueroute des nations. Cest pourquoi il est mathmatiquement certain que le
systme du papier-monnaie, bas sur des dettes, seffondrera (comme cest dj arriv des dizaines de fois dans le pass). Dtenir
des billets de banque ou des obligations quivaut un suicide financier.
Les mtaux prcieux sont non seulement une valeur sre, mais encore un placement rentable, car de plus en plus dinvestisseurs
sy intressent, ce qui fait monter le prix.
LE COURS DE LOR MONTERA
Le cours de lor montera, parce que loffre (production minire et dstockage des banques centrales) diminue, tandis que la demande
des investisseurs devient plus pressante.
La production dor : lextraction dor baisse rgulirement depuis quelques annes, parce que beaucoup de mines spuisent.
Explorer de nouvelles rserves et ouvrir une mine prend beaucoup de temps et dargent (2 5 ans pour commencer la construction
dune mine partir de la dcouverte dun dpt dor).
Le dstockage des banques centrales : les banques centrales des gros pays industrialiss ont vendu dnormes stocks dor sur le
march depuis labandon de la couverture en or des monnaies en 1971. Cela a caus de fortes pressions baissires sur le prix de lor
jusquen 1999, o les principaux pays dtenant encore de lor ont sign un accord pour limiter ces ventes 500 tonnes dor par an. En
1945, 68 % de lor mondial tait dtenu par les banques centrales ; 20 % en 2003 ; les rserves actuelles sont proches de 0 %, mme
si les statistiques officielles prtendent le contraire. Les banques centrales nont donc plus gure le moyen de faire baisser le cours de
lor par des ventes supplmentaires.
Plus positif encore, il sest dvelopp ces dernires annes une nouvelle tendance parmi certains pays en voie de dveloppement
(Chine, Inde, Russie, Argentine,) qui ajoutent de lor dans les coffres de leur banque centrale, suite une mfiance accrue envers le
dollar.
La demande des investisseurs : le troisime argument pour une hausse du prix de lor, cest la petite taille du march de lor (6 billions
de $) compare la quantit de dollars qui sont investis dans le march des actions (40 billions) et des obligations (100 billions). En
cas de crash boursier, les capitaux qui fuiraient les actions ou les obligations ne pourraient entrer dans le march de lor sans
causer une hausse vertigineuse du prix de lor, et plus forte raison du prix de largent, dont le march est minuscule (0,02 billions).
Actuellement, 4 % de la fortune mondiale est investie en or et argent ; si on atteignait 30 % (pourcentage dj vu en 1980 !), le prix
des mtaux prcieux serait multipli par 7.
LARGENT CONNATRA UNE FORTE HAUSSE
Il y a au moins dix raisons qui, conjugues ensemble, provoqueront une forte hausse du mtal argent.
1. Les mines dargent seront puises dici quinze ans environ (2020/2030).
2. Les stocks mondiaux sont tombs de 10 milliards donces en 1950 1 milliard en 2010. Si ce mouvement continu (et il ny a
aucune raison quil sinverse), il ny aura plus de rserves du tout dici peu dannes.
3. De nouvelles applications industrielles ou mdicales voient le jour, qui consomment de largent. Dans chaque voiture, chaque
ordinateur, chaque panneau solaire, il y a de largent.
4. Largent consomm par lindustrie nest gnralement pas du tout recycl.
5. la fin des annes 1960, les USA et les tats europens ont retir de la circulation les pices de monnaie en argent. Ces pices
ont t fondues et converties en lingots pour les investisseurs. Les couverts en argent ont t galement fondus et transforms en
lingots. Comme il reste de moins en moins de pices et de couverts fondre, ce type de recyclage diminue progressivement.
6. Largent est cinq fois plus rare que lor. Il y a 4983 millions donces dor en stock, mais seulement 965 millions donces dargent.
7. Le ratio or/argent est actuellement (t 2010) de 1 : 65 (1 lingot dor a la mme valeur que 65 lingots dargent), alors que largent
est plus rare que lor, et que la moyenne sculaire tait de lordre de 1 : 15. Le ratio actuel redescendra vers la moyenne normale,
cest--dire que largent montera en valeur par rapport lor.

8. Au sommet de la prcdente hausse des mtaux prcieux (1980), lor culminait 850 $ lonce et largent 50 $. Le cours actuel de
lor est suprieur celui de 1980, mais le cours actuel de largent est infrieur celui de 1980, donc il a une large capacit de
rattrapage avant quon puisse parler de bulle.
De plus, en tenant compte de lrosion montaire du dollar (inflation du papier-monnaie), on doit multiplier par sept le prix nominal de
1980 pour avoir lquivalent en pouvoir dachat de lan 2010. 50 $ x 7 = 350 $. Le cours actuel de lonce dargent est loin davoir atteint
ce niveau-l.
9. La bourse des matires premires COMEX New York est incapable de livrer lensemble des contrats de vente terme (futures)
venant expiration, car ses stocks dor et dargent reprsentent seulement une fraction du volume global des transactions. Tant que
les spculateurs se contentent de se faire payer leurs bnfices en dollars, la rserve fractionnelle de mtaux peut suffire, mais si
jamais trop de personnes en mme temps venaient exiger la livraison physique du mtal, cette bourse devrait dclarer forfait. Ce
systme de rserve fractionnelle est galement pratiqu par certains ETF (exchange-traded fund).
Une banque amricaine elle seule vend dcouvert un tiers de la production mondiale annuelle dargent.
Un seul et mme lingot est vendu 50 fois sur papier. Cette manipulation baissire chouera le jour o les vendeurs de certificats en
papier ne pourront plus honorer les demandes de livraison physique, parce que leur rserve fractionnelle sera devenue
insuffisante, en raison de lpuisement des rserves mondiales rellement disponibles.
10. Quand tout le monde veut acheter le mme produit, il faut surpayer sa valeur. Au contraire, quand peu dinvestisseurs sont
intresss, on peut lavoir prix sacrifi. Or largent est un placement mconnu. Par rapport lensemble de la population, seuls
quelques rares avertis en thsaurisent. Par consquent, la valeur de largent est largement sous-value. Lensemble de toutes
les rserves mondiales (1 milliard donces) vaut peine 20 milliards de dollars ; le march des emprunts pse 100000 milliards et celui
des actions 40000 milliards ; si seulement 1 % des sommes investies en obligations se dirigeaient vers le mtal argent, le prix de ce
dernier serait multipli par 50. Si on prenait 10 % des obligations et des actions, le prix serait multipli par 700 !?!.
11. Les dix arguments voqus ci-dessus ont dautant plus de force quils sadditionnent. Les dix facteurs haussiers se feront sentir
simultanment, ce qui dcuplera limpact sur le prix. Voici le scnario : mines puises et plus de pices anciennes ni de couverts
recycler ; stocks mondiaux tombs zro ; industriels cherchant dsesprment la matire premire indispensable leur production ;
panique des vendeurs dcouvert, qui doivent acheter nimporte quel prix pour honorer les exigences de livraison de mtal
physique ; investisseurs se ruant sur ce placement dont tout le monde parle ; pargnants cherchant se rfugier dans une valeur sre,
parce que le systme financier mondial croule sous leurs yeux affols et que le guichet de leur banque reste ferm.
CONCLUSION
Les mtaux prcieux sont un placement sr et trs rentable. Lor, cest bien, largent cest mieux encore.
Par Louis SCHNEIDER, EUPOROS SA

Source : www.euporos.ch

Manipulations massives sur les cours de l'or et l'argent


[http://les7duquebec.wordpress.com/2010/11/17/massive-manipulation-du-prix-des-metaux-precieux/ ]

Ceci est une des plus grandes histoires de fraude conomique de la dcennie. Une autre de plus. Il y a eu Enron, laffaire Bernard
Madoff, la crise des saisies immobilires, lassouplissement quantitatif et les autres, sans oublier le dollar US qui est manifestement
mr pour une dvaluation catastrophique.
Il sagit de limpressionnante fraude et la manipulation qui a lieu dans les marchs des mtaux prcieux, dont particulirement lor et
largent, par des institutions financires majeures. Une histoire un peu complexe qui sera ici explique en termes simples et
comprhensibles. Cest dune importance capitale puisque cette fraude a le potentiel de causer un massif effondrement conomique.

Depuis un bon moment dj, plusieurs observateurs et experts aguerris avaient de srieux doutes que les prix de lor et de largent
taient vastement manipuls. Cependant, grce un tmoignage dun trs courageux informateur, la manipulation clatante des
marchs mondiaux des mtaux prcieux est maintenant expose publiquement. Elle rvle aux yeux de tous lincroyable corruption du
systme financier mondial. La U.S. Commodity Futures Trading Commission (CFTC) est une agence indpendante du gouvernement
amricain qui est charge de la rgulation des bourses de commerce, o se traitent lesmatires premires et qui a pour mission de
protger les usagers des marchs ainsi que le public de la fraude, manipulation et pratique abusive.
Mais il se trouve que la Commodities Futures Trading Commission sest assis sur de solides vidences que llite bancaire manipule
grossirement les cours du prix des mtaux prcieux depuis au moins quelques annes. Bien quils aient reu des informations claires
et srieuses ce propos, ils nont absolument rien fait avec celles-ci. En novembre 2009, Andrew Maguire, un ancien oprateur des
marchs de largent mtallique (trader) de Goldman Sachs, rattach au bureau de Goldman Sachs Londres, avait contact la CFTC
pour signaler une manipulation illgale du march de largent par les oprateurs de march de JPMorgan Chase.
Avant de poursuivre, il est important de comprendre comment le march des mtaux prcieux fonctionne. Plus de 95% des
transactions de mtaux prcieux sur les marchs mondiaux sont des changes de titres en papier et non de mtaux physiques en tant
que tel. Cest--dire que moins de 5% des dtenteurs dor ou dargent possdent physiquement ces mtaux, sous forme de barres, de
pices de monnaie ou autres, alors que les autres 95% ne dtiennent que des titres, des documents attestant quils possdent une
certaine quantit dor ou dargent dans les coffres-forts dune banque quelconque quelque part. Or, il a maintenant t rvl que la
majorit de ces mtaux prcieux transigs ne sont pas appuys par de vritables rserves physiques et tangibles. Depuis longtemps,
la plupart des gens ont assum que le London Bullion Market Association (LBMA), le plus vaste march dor au monde, possdait
suffisamment de rserves relles pour garantir les dpts dor pullulant les banques majeures de la LBMA.
Mais ce nest pas le cas. En fait, les gens commencent raliser quil existe bien peu dor rel dans le systme de la LBMA. Lorsque
les gens pensent quils achtent de lor ou de largent, ils ne font quacheter des morceaux de papier attestant quils possdent
ces mtaux. Mais est-ce vraiment le cas? Il semble que non. Soutenant cela, Jeffrey Christian de CPM Group a confirm lors
daudiences publiques de la CFTC que les banques de la LBMA ont effectivement mis cent fois plus de titres dor quil nexiste
rellement de lingots dor physique.
Oups.
Quarriverait-il si tout le monde dcidait de vendre ou de prendre possession de leur or? Cela pourrait savrer tre une catastrophe.
En mme temps, cela pourrait aussi tre une arme redoutable entre les mains de la population pour punir et envoyer un puissant
message au cartel des banquiers privs qui sont les artisans et les profiteurs de cette crise conomique mondiale. De vritables
terroristes conomiques. Mais on y reviendra plus tard.
Le fait est que, de nos jours, la plupart des transactions sur le London exchangene sont que du papier contre du papier. Les petits et
grands investisseurs le savent, les banques centrales qui sont les plus grands acheteurs nets ces derniers mois sont tout aussi
conscients que ce papier ne vaut rien. Alors, on assiste prsentement une nouvelle rue vers lor et les autres mtaux prcieux qui
enflamme la plante entire. Les gens achtent ces mtaux parce quils sont une vraie commodit, un lieu o traditionnellement les
gens se rfugient lorsque lconomie seffondre ou que le dollar amricain chute en valeur. Plus la monnaie fiduciaire perd de sa
valeur, plus les gens se prcipitent vers ces valeurs sres, entrainant un effet de domino dangereux. Cest la raison pour laquelle les
prix des mtaux prcieux sont manipuls la baisse: pour viter cette course folle vers les portes de sortie et entrainer un
effondrement catastrophique des monnaies fiduciaires, dont limportant dollar amricain. Cette facette sera aborde plus en dtails
sous peu.
Pour linstant, il serait ncessaire de souligner que ce nest pas vraiment le prix des mtaux prcieux qui augmentent, mais bien la
valeur de la monnaie fiduciaire qui chute. Linflation est une taxe cache, car elle est le rsultat dune dprciation de la monnaie
fiduciaire et de la contraction de la masse montaire. Il faut donner davantage de ces billets de papiers pour acheter les mmes
produits.
Le constat est quil y a des milliers de clients autour du globe qui pensent dtenir dnormes dpts en or et en argent mtallique sur
lesquels ils paient des frais dentreposage et pourtant, ces dpts ne sont quimaginaires la seule chose quils possdent vraiment
est une pile de documents en papier.
Andrew Maguire expliquait cette situation de cette faon: sur 100 clients qui se prsentent, il y en a seulement un qui pourra
rellement mettre la main sur son or ou argent. En dautres mots, il y en a aura 99 qui repartiront les mains vides; et sans de nouveaux
fonds arrivant dans les marchs, le seul fait de demander possession de cet or ou argent va crer un dfaut de paiement . (Source)
Quest-ce quun dfaut de paiement? Voici une dfinition assez claire:
Le dfaut de paiement dsigne le fait quune entreprise ou un pays (NDLA: ou une banque, institution financire) ne soit pas en
mesure dhonorer une partie ou la totalit de ses engagements envers un tiers.
Le dfaut de paiement de la part dune entreprise peut entrainer la faillite de celle-ci.
Consquemment, il est simplement impossible pour la LBMA de remettre tout cet or et argent quils doivent aux propritaires de ces
contrats. Sans doute, cela reprsente un gigantesque problme. Le pire est que ce type de situation nest pas sans prcdent. Par
exemple, Morgan Stanley a d verser plusieurs millions de dollars en 2007 pour rgler les poursuites judiciaires qui les accusaient
davoir prlev des frais de stockage auprs de 22 000 clients propritaires de lingots dargent qui nexistait pas.
Adrian Douglas, est lditeur de MarketForceAnalysis.com et membre du conseil dadministration du Gold Anti-Trust Action
Committee (GATA). Il estime quil y a jusqu 50 000 tonnes dor inexistant qui aurait t vendu. Ceci, explique-t-il, est lquivalent de
toutes les rserves minires dor travers la plante qui reste exploiter, ou encore, lquivalent de 25 ans de production minire
dor. Le systme fractionnaire bancaire est donc aussi loeuvre dans les marchs des mtaux prcieux et cette fraude pourrait
totaliser 5 trillions de dollars ($5000 milliards). Soudainement, la fraude de $50 milliards de Madoff parait minuscule.

Adrian Douglas analysait dans cet article les donnes de la LBMA provenant de leur propre site Internet et il a calcul quenviron 20
millions donces dor sont changs chaque jour. Il cite Paul Mylchreest qui a fait une analyse dtaille de ces donnes sur les
changes quotidiens dor sur les marchs de Londres et il en est venu la conclusion que 2134 tonnes dor transigeaient par jour. Ce
chiffre est norme puisquil cest 346 fois plus dor qui est extrait quotidiennement dans le monde.
Et cela, cest sans parler des faux lingots dor dcouvert par des fonctionnaires Fort Knox, aux tats-Unis, qui est cens tre lor du
Trsor amricain. Des millions de lingots dor se sont avr tre des faux! Ils contenaient des noyaux de tungstne avec seulement un
revtement externe dor vritable. Ce phnomne de lingots dor avec un coeur de tungstne ont fait leur apparition en Allemagne, tel
que rapport par les mdias allemands et amricains, mais aussi en Chine et en Angleterre. Et que dire de cet or qui rouille en
Russie?
Est-ce que quelquun essaie de faire peur aux petits investisseurs dans le but de les tenir loin de lor pour les pousser vers les marchs
boursiers, maintenant que nous nous dirigeons vers une autre vague de cette crise conomique mondiale?
Manipulation du prix des mtaux prcieux
William Murphy, le prsident du Gold Anti-Trust Action Committee(GATA), a t invit tmoigner. GATA a compil des donnes sur
la manipulation des marchs de lor et de largent pendant un bon moment dj.
Quand on lui a demand une preuve solide de la manipulation, Murphy a publi une bombe bien garde par un informateur qui avait
envoy des courriels la CFTC en expliquant comment les traders de JPMorgan ont truqu le march de lor pour ensuite sen vanter.
Le dnonciateur, un commerant de Londres de mtaux prcieux nomm Andrew Maguire, avait des preuves assez accablantes
contre le cartel, mais le panel du CFTC tait visiblement rticent en apprendre plus et ne demandait rien dautre ce sujet.
Maguire a expliqu la CFTC la manire dont sy prenaient les commerants dargent chez JPMorgan Chase et leur a rvl quils se
vantaient ouvertement de leurs exploits y compris la faon dont ils envoient un signal lavance au march afin que dautres
ngociants puissent raliser un profit au cours des pisodes de compression des prix.
Les traders sauraient reconnatre ces signaux et faire de largent en misant sur la baisse du cours des mtaux prcieux, aux cts de
JPMorgan Chase. Maguire a expliqu la CFTC quil existe des manipulations systmatiques du march au moment des expirations
des contrats, ainsi que lors dautres moments stratgiques.
Le 3 fvrier dernier, Maguire a envoy un avertissement deux jours lavance par courrier lectronique Eliud Ramirez, qui est le
chercheur principal pour la CFTC, propos dun vnement de manipulation des marchs qui tait pour se produire.
Maguire a averti Ramirez que le prix des mtaux prcieux serait supprims lors de la publication des donnes de paie non agricoles, le
5 fvrier. Comme la manipulation des marchs des mtaux prcieux se droulerait le 5 fvrier, Maguire envoy des courriels
supplmentaires Ramirez, lui expliquant exactement la nature de ce qui se passait.
Ce ntait pas seulement le fait que Maguire avait prdit que le prix de largent serait forc diminuer qui surprend le plus, cest surtout
le niveau de prcision quil a t en mesure de communiquer la CFTC qui a t le plus spectaculaire. Il avait averti la CFTC que le
prix de largent, peu importe ltat du nombre demplois, se retrouverait en dessous de $15 lonce. Au cours des deux prochains jours,
le prix de largent a chut, partant de $16,17 lonce jusqu un creux de $14,62 lonce.
Grce lalerte de Maguire, la CFTC a pu observer un crime se drouler en temps rel, directement sous leurs yeux.
Alors quest-ce que la CFTC a fait ce sujet?
Rien.
Absolument rien.
Les marchs ont t supprims par les grandes institutions financires depuis des annes, ce qui a cr un tranglement potentiel
sur les marchs des mtaux prcieux qui pourrait envoyer le prix de lor et largent dans la stratosphre.
La ralit est quil ny aurait plus dor dans le monde entier si tous les fonds indiciels cots (Exchange Traded Funds ETF)
demandaient la livraison physique de leurs avoirs.
En fait, Maguire affirme que larnaque des ventes dcouvert par les grandes institutions financires se chiffre en milliers de
milliards de dollars, ce qui en fait une des plus grandes fraudes financires de lhistoire. Maguire nomme cela du terrorisme
financier et il accuse les institutions financires impliques dans cette fraude de trahison, mettant ainsi la scurit nationale en
pril. La scurit nationale est menace.
Parce que si la vritable ampleur de cette fraude venait qu se savoir, elle pourrait provoquer leffondrement du systme financier
dans son ensemble.
(Source, traduction par lauteur)

Les secrets de linstitut dmission des Etats-Unis


[http://www.horizons-et-debats.ch/index.php?id=695 ]
Contrairement une croyance gnrale, linstitut dmission des Etats-Unis est, en fait, une machine fabriquer de largent dtenue
par un cartel bancaire priv, qui gagne dautant plus que les taux sont levs. Mine de rien, il imprime des dollars bon march et les
revend plus cher.
Linstitut dmission des Etats-Unis, appel aussi Rserve fdrale ou FED, revient constamment en point de mire lorsque le
monde financier international se demande, anxieux, sil va modifier son taux directeur ou non.
Labrviation FED se rapporte au Board of Governors of the Federal Reserve System, cest--dire la confrence des gouverneurs

du Federal Reserve System rig il y a 93 ans. Il sagit non pas dune banque centrale traditionnelle, mais de la runion de cinq
banques prives rgionales tout dabord, de douze banques actuellement, dissmines aux Etats-Unis, habilite chacune porter le
nom de Federal Reserve Bank, un petit nombre dinitis seulement sachant qui elles appartiennent. Un seul point est certain: elles
nappartiennent pas lEtat. Nanmoins, elles exercent les fonctions dun institut dmission de lEtat. Elles prennent leurs dcisions au
sein du Federal Reserve Board, dont le prsident les reprsente lextrieur et dont les sances ont lieu Washington dans leur
propre et imposant monument historique. La plus importante de ces banques prives est la Federal Reserve Bank of New York, qui
contrle lnorme place financire de cette ville.
Privilges dune machine fabriquer de largent
Ce cartel de banques prives dispose de privilges incroyables, dont trois doivent tre souligns:
En imprimant des dollars, la FED convertit moindres frais du papier sans valeur en dollars et prte ceux-ci aux Etats-Unis ainsi
qu dautres Etats et dautres banques contre reconnaissances de dettes. Au cours de son histoire, le cartel a donc cr des
milliards de crances partir du nant et encaiss des intrts en permanence, ce qui lui assure un profit annuel atteignant des
milliards. Ainsi, aucun gouvernement amricain ne doit se faire des soucis propos du dficit budgtaire tant que ces messieurs en
complet sont ses cts et tel est le cas du financement des guerres durant la prsidence de Bush mettent en branle la planche
billets en cas de besoin.
Le privilge des intrts permet la FED de fixer elle-mme les taux et il est vident quelle a le plus grand intrt encaisser les
plus hauts intrts possibles. Les taux atteignent donc un niveau souvent particulirement lev et occasionnent priodiquement des
crises ce qui est le cas actuellement et donne loccasion la FED dintervenir ultrieurement comme sauveur. Les intrts oprent
en permanence une ponction sur le pouvoir dachat des citoyens amricains en faveur des banquiers de la FED, par les intrts des
crdits comme par les impts transforms en intrts dus la FED en raison de lnorme service de la dette publique. Modifiant
constamment les taux dintrt, la FED change les conditions cadres de la plus grande conomie du globe et de la plus importante
bourse des actions, celle de Wall Street, qui, principale bourse du monde, diffuse des signaux en direction des autres bourses.
Pour tre en mesure de rsoudre les crises bancaires, la FED gre les rserves montaires de ses banques membres (rmunres
raison de 6% par anne), quelle remet disposition du systme bancaire lors de lclatement dune de ces crises. Actuellement, la
FED sefforce de prvenir, en fournissant maintes reprises des liquidits aux banques, une crise financire mondiale cause par le
krach du systme de financement immobilier amricain. Comme de nombreuses banques amricaines de crdit hypothcaire ont
sagement li leurs crdits des papiers-valeurs et transmis ainsi leurs problmes des banques europennes, celles-ci ont
commenc aussi vaciller.
Mais cest la FED et son ancien prsident, Alan Greenspan, qui ont provoqu cette crise. En abaissant rapidement et dramatiquement
les taux dintrt aprs avoir port le taux directeur jusquau niveau exorbitant de 6% , et avoir approvisionn lconomie amricaine
excessivement en liquidits, Greenspan avait tent, partir du 3 janvier 2001, denrayer la plus forte chute boursire depuis 50 ans. Au
25 juin 2003, le taux directeur tait tomb son niveau minimal de 1%, ce qui avait permis aux banques doctroyer des crdits aux
taux extrmement bas et ce qui avait fait tomber de nombreuses familles dans le pige du crdit, les incitant acheter des
logements crdit, des conditions auxquelles elles ne pouvaient faire face qu des taux bas.

Crise provoque par la FED


A la fin du cycle des taux dintrt, Greenspan avait provoqu une situation qui avait dclench une avalanche. En effet, la FED a
major douze fois de 0,25% son taux directeur, du 30 juin 2004 au 29 juin 2006, le portant alors 5,25%. Il dpasse ainsi de 525% le
taux fix il y a quatre ans! Les taux fixs pour les crdits hypothcaires sont monts en consquence et ont atteint un niveau que
toujours davantage de familles ne peuvent pas supporter. Comme la propension pargner est actuellement ngative aux Etats-Unis,
que la plus grande partie de la population doit recourir au crdit et que les carnets dpargne ne jouent gure de rle, la crise
saccentue. Vu que, depuis lanne prcdente, toujours davantage de bailleurs de fonds hypothcaires sont tout comme leurs
clients en retard dans leurs paiements dautres banques, le systme bancaire est en crise, celle-ci ayant atteint un point culminant
en aot 2007, lorsque la FED et la Banque centrale europenne (BCE) nont pu stabiliser le systme que par plusieurs injections de
liquidits.
La crise des liquidits bancaires sest immdiatement rpercute sur la bourse, qui ragit gnralement de manire sensible aux
variations de taux de la FED. En effet, la hausse des taux rend les titres intrt fixe plus attrayants que les actions, freine lconomie,
est donc un poison pour la bourse et abaisse les cours des actions. Ainsi a commenc septembre 2007.
Les motifs des banques de la FED
Pour comprendre la manire dagir et les motifs de la FED, qui paraissent parfois curieux, il faut jeter un coup dil sur lhistoire de
linstitut dmission.
La proposition dtablir une banque centrale est due au banquier allemand Paul Warburg. La crise financire et bancaire dclenche
en automne 1907 par la faillite de Knickerbocker Trust Co. et la situation menaante de Trust Company of America a mis en pril 243
banques, car aucune institution ntait en mesure de mettre temporairement des fonds leur disposition pour surmonter leurs
difficults de paiement. Dans un discours prononc peu de mois auparavant la Chambre de commerce de New York, le banquier
John Pierpont Morgan avait prvu par hasard cette crise et appel fonder une banque centrale. La crise se prtait merveille au
soutien de cette revendication. Par la suite, Morgan a jou un rle essentiel, larrire-plan, dans la ralisation du projet.
Initialement copropritaire de la banque Warburg de Hambourg, Paul Warburg avait pous en 1893, lors dun sjour aux Etats-Unis,
la fille de Salomon Loeb, de la banque new-yorkaise Kuhn, Loeb & Co., qui a fait de lui et de son frre Felix des partenaires de la
banque (fusionne en 1977 avec Lehman Brothers).
Pourvu gnreusement par la Banque Kuhn Loeb dun salaire annuel de USD 5 000 000, Paul Warburg sest occup uniquement,
pendant les six ans qui ont suivi la crise bancaire, dune rforme bancaire tendant riger une banque centrale daprs le modle
de la Banque dAngleterre, laquelle appartenait alors des banquiers privs. Ce faisant, il a t soutenu par le snateur Nelson D.

Aldrich, beau-pre du premier hritier milliardaire amricain, John D. Rockefeller junior, connu comme porte-parole du banquier J.P.
Morgan au Congrs des Etats-Unis.
Conspiration au yacht-club de Jekyll Island
En novembre 1910 finalement, un groupe de personnes tries sur le volet sest rassembl, sous prtexte dune excursion de chasse,
dans un wagon de chemin de fer aux jalousies fermes du yacht-club que possdait le banquier J.P. Morgan Jekyll Island, en
Gorgie. Lors de cette runion secrte, taxe ultrieurement de conjuration, Paul Warburg, reprsentant de Kuhn Loeb et dautres
banques ainsi que deux banquiers de J.P. Morgan, reprsentant aussi les intrts du groupe Rothschild, et deux du groupe Rockefeller
ont dcid daider le snateur Aldrich rdiger en neuf jours un projet de loi que le Rpublicain vaniteux entendait prsenter en son
nom au Congrs. Il sagissait non pas dune banque centrale, mais seulement dune socit prive nationale de rserve dont plusieurs
comptoirs devaient tre dissmins aux Etats-Unis et dans lesquels des banques affilies volontairement devaient dposer des
rserves montaires de crise. En raison de ses relations bien connues avec le centre financier et boursier de Wall Street, Aldrich a
chou, la majorit mfiante des dputs voyant juste titre dans son projet un plan tendant assurer un cercle restreint de
banquiers puissants et lis les uns aux autres une position dominante et, partant, la possibilit de raliser des profits normes dans
lconomie amricaine.
Les requins de Wall Street ne se sont videmment pas dcourags et ont profit des lections prsidentielles de 1912 pour faire lire
le candidat dmocrate Woodrow Wilson, quils ont soutenu massivement sur le plan financier. Pendant la lutte lectorale, il sest fait
passer pour un adversaire du Wall Street Money Trust et a promis au peuple un systme montaire exempt de main-mise des
banquiers internationaux de Wall Street. En fait, la conception de la banque centrale a t labore par le groupement qui semblait
avoir perdu la partie.
En tout cas, les Schiff, Warburg, Kahn, Rockefeller et Morgan avaient mis sur le bon cheval. Sous le titre de Federal Reserve Act
qui dissimule sa porte et qui prtendument rduit nant le projet de banque centrale formul par Wall Street, ils ont dvers le 23
dcembre 1913 sur des dputs dmocrates des mieux disposs et avec le soutien du prsident Wilson, un projet de loi trs peu
modifi et ont requis lapprobation du Congrs alors que de nombreux dputs non informs prenaient dj leurs vacances de Nol et
que trs peu avaient lu le texte du projet.
Le plus grand cartel du monde
Les rares dputs qui ont peru la nature de ce jeu pervers nont gure pu se faire entendre. Avec sagesse, le conservateur Henry
Cabot Lodge senior a prvu une inflation norme de moyens de paiement et que la monnaie dor serait noye dans un flux de
papier-monnaie non changeable. Aprs le vote, Charles A. Lindbergh senior, le pre du clbre aviateur, a dclar au Congrs:
Cette loi tablit le cartel le plus important au monde [] et lgalise ainsi le gouvernement invisible de la puissance financire []. Il
sagit du projet de loi Aldrich dguis []. La nouvelle loi provoquera de linflation tant que le cartel le souhaitera [].
Lindberg avait raison, comme le prouve le privilge du dollar. Avant ltablissement du Systme fdral de rserve, des banques
prives avaient dj imprim des billets. Dans les annes soixante du XIXe sicle, il y avait encore 8000 sortes de billets, mises par
des State Banks prives avec lautorisation de lEtat. A partir de 1880, 2000 banques pourraient avoir encore mis leurs propres
billets. Depuis 1914, le chiffre sest limit la douzaine de banques privilgies.
Quand le prsident Abraham Lincoln a eu besoin dargent, en 1861, pour financer la guerre civile et que les crdits des banques
Rothschild, financiers traditionnels des guerres, lui sont devenus trop chers, il a lud le privilge des banques prives et fait imprimer
un billet dEtat, le Greenback. Il ne devait pas survivre longtemps cette dmarche tmraire. En 1865, il a t assassin par un
tireur isol, abattu lui-mme lors de sa fuite. Le successeur de Lincoln, Andrew Johnson, a suspendu limpression de billets pour des
raisons inexplicables.
Le prochain prsident qui a voulu redonner lEtat le monopole de limpression de billets a t John F. Kennedy.
Tentative de Kennedy de priver la FED de son pouvoir
Peu de mois avant son assassinat, John F. Kennedy a t semonc par son pre Joseph dans le salon ovale de la Maison Blanche.
Si tu le fais, ils te tueront! Mais le prsident ne sest pas laiss dissuader. Le 4 juin 1963, il a sign lacte excutif numro 111 110,
abrogeant ainsi lacte excutif 10289, remettant la production de billets de banque dans les mains de lEtat et privant en grande partie
de son pouvoir le cartel des banques prives. Aprs que quelque USD 4 milliards en petites coupures nommes United States
Notes eurent dj t mises en circulation et alors que limprimerie de lEtat sapprtait livrer des coupures plus importantes,
Kennedy a t assassin le 22 novembre 1963, soit 100 ans aprs Lincoln, par un tireur isol abattu lui-mme lors de sa fuite. Son
successeur sappelait Lyndon B. Johnson. Lui aussi a suspendu limpression de billets pour des raisons inexplicables. Les douze
banques fdrales de rserve ont retir immdiatement les billets Kennedy de la circulation et les ont changs contre leurs propres
reconnaissances de dette.
Grce son monopole de production illimite dargent, le cartel bancaire du Systme fdral de rserve dispose dune norme
machine fabriquer de largent, qui lui permet de gagner normment. Qui se cache derrire ce systme est un secret bien gard. Car
il faut distinguer entre les banques propritaires et les simples banques membres, qui dposent des rserves montaires pour, le cas
chant, tre sauves par la suite. Il y a quelques annes, la Federal Reserve Bank of New York a publi les noms de ces banques
membres, qui nont par ailleurs aucun droit. La rmunration annuelle de leurs dpts se chiffre 6%. Mais le niveau de leurs parts est
tenu secret comme les noms des propritaires des banques fdrales de rserve, initialement trois, aujourdhui quatorze.
Critique aprs le krach de 1929
Paul Warburg a refus la prsidence du Federal Reserve Board en 1910, alors que ce juif allemand laccent prononc, juste avant le
dbut de la guerre contre lAllemagne, venait dacqurir la nationalit des Etats-Unis. Toutefois, il devint membre du Conseil
dadministration et du puissant Council on Foreign Relations, qui passe encore aujourdhui pour le berceau des politiciens amricains
et des banquiers de la FED.
Les efforts quil a dploys pendant de longues annes pour fonder linstitut dmission amricain lui ont valu non seulement de

largent et des honneurs dans la haute finance, mais aussi la pire exprience de sa vie. En 1928, il a exig sans succs une limitation
de la circulation montaire afin de freiner la spculation boursire qui rappelait la rue vers lor. Mais ceux qui taient disposs
lentendre sont rests rares; on le nommait la Cassandre de Wall Street. Aprs le krach doctobre 1929, il devint la cible de ceux qui
avaient perdu leur patrimoine. Des rumeurs, des brochures et des articles de presse lont dcrit, lui qui avait tent dentraver les
catastrophes financires, comme lauteur non amricain de la panique boursire dalors. On a pu lire que Paul Warburg avait prt
avec sa bande de largent au Systme fdral de rserve afin de mettre en mains juives les finances amricaines et dexploiter
lAmrique jusqu son puisement. De telles lgendes se sont poursuivies jusqu la Seconde Guerre mondiale. Aigri par ces
attaques, il est dcd en 1932. En 1936-1937, les cours des actions ont baiss de 50%, en 1948 de 16%, en 1953 de 13%, en 1956
de 13%, en 1957 de 19%, en 1960 de 17%, en 1966 de 25% et en 1970 de 25%. Ont suivi le krach doctobre 1987, les chutes de
cours de 1990, 1992 et de 1998 ainsi que, finalement, la forte baisse davril 2000 mars 2003 et la crise actuelle qui a commenc en
aot/septembre 2007 et dont les effets sont incertains.
Aujourdhui, on rpand le bruit mais ne le confirme pas que le groupe bancaire Rockefeller dtient 22% des actions de la Federal
Reserve Bank of New York et 53% de tout le Systme fdral de rserve. Principal acqureur de bons du Trsor des Etats-Unis, la
Banque du Japon possderait 8% de ces actions. On attribue 66% aux banques purement amricaines et 26% aux vieilles banques
europennes (dont 10% aux banques Rothschild).
Source: International III/2007
(Traduction Horizons et dbats)

Surveillez la monnaie
Lorsque vous observez que les changes sont raliss non par consentement mutuel, mais par obligation,
Lorsque vous observez que pour produire vous devez obtenir lautorisation dhommes qui ne produisent rien,
Lorsque vous observez que largent coule vers ceux qui changent non des biens ou services, mais des faveurs et des
privilges,
Lorsque vous observez que ces hommes senrichissent par lappropriation des biens dautrui plus que par le travail,
Lorsque vous observez que vos lois ne vous protgent pas contre eux mais les protgent contre vous,
Lorsque vous observez que la corruption est rcompense et que lhonnt devient un sacrifice
Vous pouvez commencer vous rendre compte que votre socit est condamne.
Ayn Rand
Something to Reflect on, 1959

Quest-il vraiment arriv Bear Stearns?


Il y a six ans, la clbre banque dinvestissement du nom de Bear Stearns implosait. En fvrier 2008, les actions
de Bear Stearns schangeaient pour 93 dollars. Mi-mars, la socit insolvable acceptait dtre rachete
par JPMorgan pour 2 dollars par action (puis pour 10 dollars par action aprs quelques poursuites). Dans les annales de
Wall Street, aucun effondrement na t aussi soudain que celui de Bear Stearns. La raison en aurait t une panique
bancaire, cause par le retrait de leurs actifs par des investisseurs nerveux.
Quelque chose a violemment frapp Bear Stearns au premier trimestre de 2008, bien que nous nayons que peu dindices
quant ce quil sest pass. Puisque Bearavait une position significative sur les subprimes des prts immobiliers et que le
march tait en difficult, on entend gnralement dire que sa faillite y tait lie. Ce pourrait tre vrai, mais il ny avait pas
suffisamment de stress sur le march des actions la mi-mars pour reflter une crise du crdit. La socit sest-elle
effondre pour dautres raisons ?
Je suis davis que des pertes importantes et soudaines de plus de 2,5 milliards de dollars sur des dizaines de milliers de
contrats sur lor et largent du Comex sont cequi ont tu Bear Stearns. Observons les choses comme elles sont Bear avait
un tel effet de levier quune demande soudaine de plus de 2,5 milliards de dollars de paiements immdiats pour quelque
raison que ce soit aurait pu faire seffondrer la banque. Les positions dcouvert excessives de Bear Sterns sur le Comex
sont la raison la plus probable de son effondrement soudain. Bear Stearns sest effondre, et a t rachete
par JPMorgan pour une fraction de ce quelle valait deux mois auparavant. Bear Stearns avait alors la plus grosse position
dcouvert sur le Comex. Le jour de leffondrement de Bear Stearns concide avec le jour dun record historique des prix
de lor et de largent. Cest aussi le mme jour que les plus grosses positions dcouvert sur le Comex ont enregistr leurs
plus grosses pertes et quune demande cumulative de plus de 2,5 milliards de dollars de dpts a t enregistre. Ce nest
pas une concidence si Bear Stearns sest effondre ce jour-l.
Le prix de lor est pass de moins de 800 dollars en dcembre 2007 1000 dollars en mars 2008, un gain de plus de 200
dollars. Le prix de largent est pass de moins de 14 dollars en dcembre 21 dollars la date de leffondrement de Bear le
17 mars 2008. Les mtaux avaient atteint un record de prix depuis 1980. Bien videmment, une hausse de 200 et 7 dollars
pour lor et largent nest pas idale pour celui qui occupe la plus grosse position dcouvert sur ces mtaux.

La position dcouvert concentre des quatre plus grosses positions dcouvert sur largent tait de plus de 300 millions
donces. Pour vous donner une ide de ce que cela reprsente, la position concentre des quatre plus grosses positions la
vente sur largent taient lgrement suprieures aux 100 millions donces. En termes de contrats sur lor du Comex, les
grosses positions dcouvert dtenaient deux fois et demi ce que dtenaient les plus grosses positions la vente. Puisque
nous savons que Bear Stearns tait la plus importante et que nous savons quel point les prix de lor et de largent ont
grimp sur la priode, nous navons plus qu dterminer combien de contrats dcouvert la banque dtenait. Cela nous
indiquerait la somme que la banque devait accumuler en marges. Le membre compensateur principal du Comex
(Bear Stearns) devait dposer des fonds chaque jour pour viter des mouvements de prix adverses.
Grces aux donnes enregistres par les rapports Commitments of Traders (COT) entre dcembre 2007 et le 17 mars
2008, la position nette des quatre plus grosses positions dcouvert sur le Comex atteignait respectivement 165.000 et
60.000 contrats pour lor et largent. Mes analyses indiquent que Bear Sterns dtenait 75.000 contrats dcouvert sur lor
et 35.000 contrats dcouvert sur largent. Ce sont des minimums, et les positions de Bear pourraient avoir t plus
importantes.
Un mouvement adverse de 200 dollars sur 75.000 contrats Comex sur lor aurait rsult sur une perte de valeur march et
un appel de marge de 1,5 milliards de dollars. Un mouvement adverse de 7 dollars sur 35.000 contrats Comex sur largent
aurait rsult sur une perte de valeur march et un appel de marge de 1,2 milliard de dollars. Bear Stearns devait mettre la
main sur 2,7 milliards de dollars parce que les prix de lor et de largent ont fortement augment en 2008 et que la banque
avait plac de mauvais paris. Cest selon moi la raison pour laquelle elle sest effondre.

Ce qui est arriv Bear Stearns est exactement ce que javais annonc la Commodity Futures Trading Commission
(CFTC) vingt ans avant les faits. En dehors de limpact manipulateur quune appropriation du march aurait sur les prix,
le plus gros risque tait ce quil se passerait si la plus grosse position dcouvert se retrouvait en difficult. Le
cas Bear Stearns indique que le pire sest produit. La plus grosse position dcouvert sest effondre. A lpoque,
jchangeais des emails avec le commissaire de la CFTC Bart Chilton, qui mavait annonc que la Commission observait de
prs le march de largent et quun rapport serait bientt publi. Le rapport de la CFTC a t publi le 13 mai 2008 et niait
que quelque chose nallait pas sur le Comex de largent du fait des gros traders.
Voil o est le problme le rapport a menti. Il a ignor lchec de la plus grosse position dcouvert sur le Comex, mais
en considrant les vnements jusquau 31 dcembre 2007 et non jusqu la faillite de Bear le 17 mars 2008, ce qui est une
omission vidente. Comment la CFTC a-t-elle pu publier un rapport sur les gros traders dcouvert sur largent sans
aborder la faillite de Bear ? Il ma fallu du temps avant de voir les choses du bon angle. Ce que je vois est assez
dconcertant, mais rpond beaucoup de questions. Bien que jaie interrog la CFTC quant la lgalit des positions
dcouvert concentres sur le Comex, elle na pas prt attention mes avertissements. Et puis Bear Stearns a coul pour
les raisons que javais avances. Alors la CFTC sest tue et a ni toutes les allgations.
http://www.24hgold.com/24hpmdata/articles/200...20090516260.htm
Tout rgulateur digne de ce nom aurait pu voir que certaines positions dcouvert taient dsquilibres. Ayant mal jug
le danger de la situation, le CFTC et CME Group ont mis en place un plan de sauvetage des positions dcouvert et puni
les investisseurs sur lor et largent. En sarrangeant avec le directeur de la Rserve fdrale et le secrtaire du Trsor pour
que JPMorgan rachte les positions deBear, le gouvernement des Etats-Unis sest lanc dans un long priple de
manipulation de prix et de violation des lois relatives aux marchandises.
Puisque lchec de Bear Stearns menaait le systme financier, il a invit limplication des plus gros rgulateurs du pays, le
secrtaire du Trsor et le directeur de la Fed. Les deux ne pouvaient qutre conscients du problme des marges sur lor et

largent de Bear. Puisque la banque tait le membre principal du march, CME Group tait certainement aussi au courant.
CME envoyait les appels de marge Bear. JPMorgan ne pouvait aussi que le savoir. Et pourtant, rien na t rendu public.
Ces faits indiquent que ceux den haut savaient que lor et largent taient au cur du fiasco de Bear Stearns. Puisque
lassistance de JPMorgan a t requise, il est vident que JPMorgan a demand (et reu) limmunit permanente contre
toute allgation relative lor et largent. Ceci explique comment ils ont pu saccaparer les marchs de lor et de largent
bien que la loi linterdise. Si le secrtaire du Trsor, le directeur de la Fed, la CFTC et CME Group navaient pas autoris
JPMorgan reprendre Bear Stearns, la concentration et la manipulation excessives sur ces marchs nauraient pas pu se
poursuivre.
Linterfrence du gouvernement amricain dans les affaires de Bear explique ce qui tait jusqualors inexplicable :
pourquoi la CFTC na rien pu trouver aprs avoir enqut pendant cinq ans sur la manipulation du march de largent, et
pourquoi la CFTC et la CME ont gard le silence suite leffondrement du prix de lor et de largent, notamment suite la
baisse de 30% du prix de largent en seulement cinq jours en mai et septembre 2011.
Ce qui mtonne le plus aujourdhui, cest quaucun journaliste extrieur au march de lor et de largent na encore ralis
quil sagit l dune affaire aux proportions potentiellement gigantesques et facile documenter. Il sagit de la raison pour
laquelle Bear Stearns sest effondre, et pour laquelle la manipulation des prix de lor et de largent a continu depuis le
jour o JP Morgan a rachet Bear. Cette affaire a Prix Pullizer tamponne en lettres capitales sur son front.

Lart de la guerre mdiatique contre lor


Aide tes adversaires sous-estimer tes capacits . Cest ce qucrivait le Gnral chinois Sun Tzu dans le fameux livre de
stratgie militaire LArt de la guerre.
Cette stratgie militaire sapplique aujourdhui parfaitement au march de lor. La presse occidentale et les tenants du statu quo
financier actuel font tout pour dtourner les investisseurs de lor physique (cela ne fonctionne que dans les pays
occidentaux). Deux tactiques dans lapplication de cette stratgie : la publication darticles o lexplosion de la demande
physique mondiale nest jamais mentionne, et la manipulation directe du cours spot des mtaux prcieux via des
techniques financires, notamment sur le COMEX, via la vente massive de contrats futures aux heures les moins liquides du march.
Cet article du Figaro qui titre "Les cours de lor poursuivent leur dgringolade est un bel exemple de brouillard mdiatique perturbant
la vision des investisseurs.
Dsinformation @Le_Figaro vous ne parlez pas des ruptures de stock et de la backwardation sur le march du
physique http://t.co/qiCI7zp5PY
Goldbroker.com (@FabriceDrouin) November 7, 2014
Rsultat de cette stratgie applique depuis quelques annes : le cours spot papier des mtaux prcieux se situe aujourdhui
en dessous du cot dextraction, ce qui est une aberration dans un contexte dexplosion de la demande mondiale (cot dextraction
dune once dargent : 16,5 dollars), et le sentiment dune grande partie des investisseurs occidentaux envers les mtaux prcieux est au
plus bas.
Dissipons ce brouillard de dsinformation en citant quelques vnements rcents et en posant une question de logique conomique trs
simple :
- La loi de loffre et de la demande permettant de dterminer le prix dun actif rend impossible la baisse du cours dun actif dans un
contexte de forte demande. Tout le monde peut comprendre ce concept.
Comment les conomistes et journalistes financiers spcialiss peuvent-ils donc nous parler de baisse des cours
des mtaux prcieux avec tant daplomb, alors que la demande mondiale pour lor et largent physique a
littralement explos ces dernires annes ?
Comment expliquent-ils cette distorsion de la loi de loffre et de la demande ? Cette manipulation de la ralit physique ?
Voici quelques preuves rcentes dexplosion de la demande physique mondiale :
- L'US Mint est en rupture de stock de production des pices dargent Silver Eagles ; cette rupture de stock, certes
temporaire, ne pourrait pas se produire si la demande dargent physique ntait pas hors norme . LUS Mint doit lgalement fournir
autant de pices dargent que ce quelle peut produire, et elle ne peut lgalement rationner sa production si elle a la capacit de produire
des pices et que la demande lexige. Posons-nous nouveau la question : comment est-il donc possible que le cours spot de largent soit
aujourdhui aussi bas, alors que lUS Mint annonce une rupture de stock en raison de problmes dapprovisionnement sur largent ?
Le mcanisme actuel de dtermination du cours de largent peut-il tre considr comme crdible dans ce contexte ?
On continue
- Au moment de la nouvelle chute du cours de largent fin octobre, et avant la rupture de stock annonce par lUS Mint, les
investisseurs ont achet 1,4 millions de pices Silver Eagle en deux jours.

- 2014 devrait tre lanne du record historique de vente de pices Silver Eagle, vu les volumes de commandes. La demande
nest pas seulement forte , elle est historiquement leve. Encore une fois, comment une demande leve combine une offre qui
commence diminuer peut-elle se traduire par un prix bas ?
- La Russie, qui possdait dj la cinquime rserve mondiale dor physique, a achet plus dor physique cette anne que depuis la
dernire crise de 1998. La Russie a achet 37,2 tonnes dor physique en septembre 2014. En vingt ans, la Russie na
jamais dtenu autant dor physique.
Comment le cours des mtaux prcieux peut-il baisser dans ce contexte ?
Je nai mme pas besoin daborder les importations records dor de la Chine ou de l'Inde pour prouver que la demande mondiale
dor et dargent physique est hors norme , surtout venant dAsie.
Importations dor de la Chine via Hong-Kong : 68.6 tonnes lors du dernier
mois #Chine #or #importations pic.twitter.com/ujyAA9Bw7r
Goldbroker France (@Goldbroker_FR) November 7, 2014
Il nest pas ncessaire dtre un expert financier pour comprendre que quelque chose ne fonctionne plus dans la dtermination du cours
des mtaux prcieux. Et cela, depuis plusieurs annes, mais les tensions sur le march du physique ntaient pas aussi apparentes.
Jai dj donn plusieurs reprises mon point de vue sur la raison de la baisse des cours : elle est lie la manipulation des cours,
et Chris Powell, du Gold Anti-Trust Action Committee (GATA), en explique trs bien le mcanisme dans cette interview que nous avons
traduite :
Jusqu aujourdhui (mercredi 12 novembre), aucune banque navait t accuse de manipulation du cours des
mtaux prcieux.
Lattente a t longue, mais la FINMA (organisme de rgulation suisse) accuse aujourdhui UBS de manipulation et fraude sur les
marchs des mtaux prcieux.
Le point que je voulais mettre en vidence dune manire comprhensible dans cet article est quune forte demande physique nest
pas compatible avec la baisse du cours dun actif. Un point que tout le monde peut comprendre.
La baisse de ces dernires annes est due une manipulation que la BAFIN (organisme de rgulation allemand) et la FINMA
ont rvl officiellement.
Les cours spot papier de lor et de largent ne reprsentent pas la valeur relle du mtal physique.
Les investisseurs occidentaux dans lor et largent sont pris au milieu dune guerre mdiatico-psychologique, mais les
vnements que jai cit plus haut devraient les rassurer quant labsurdit du mcanisme actuel de dtermination du cours des mtaux
prcieux, mcanisme qui est en sursis.
Il faut donc tre patient et attendre que le march du physique redevienne le dterminant principal des cours.
Quel vnement peut dclencher cette volution ? Une rupture sur le march physique comme, par exemple :
- Un dfaut de livraison rendu public sur un contrat papier or qui prouvera quil y a beaucoup plus dor/argent papier en circulation
que ce quil nexiste de quantits physiques disponibles.
- Une annonce de la Chine quant au montant exact de ses rserves dor physique. Suivie dune demande de la Chine aux tats-Unis de
prouver leurs rserves relles dor physique.
- Un OUI au rfrendum suisse sur l'or du 30 novembre, puisquil obligerait la Banque nationale suisse acheter de lor physique
directement sur les marchs (20% de ses rserves de change) et, surtout, rapatrier ses rserves dor, alors quon sait que lAllemagne
na pu rcuprer quune toute petite partie de son or stock aux tats-Unis, Londres et en France. Autrement dit, et cela rejoint mon
premier point : un dfaut de rapatriement/livraison d'or physique.
La fin de la manipulation viendra dun vnement rvlant que lor physique (ou largent) est tout, sauf disponible
physiquement dans les quantits que lon veut nous faire croire.
Sur ce, un dernier indicateur de la part dun ex-prsident (imprimeur) de la Fed :
- Alan Greenspan recommande dsormais linvestissement dans lor devant le CFR...

World To Enter Second Terrifying 2008-Style Global Meltdown


Today King World News is featuring a piece by a man whose recently released masterpiece has been praised around the
world, and also recognized as some of the most unique work in the gold market. Below is the latest exclusive KWN piece by
Ronald-Peter Stoferle of Incrementum AG out of Liechtenstein.
STAGFLATION ahead?
The following illustration places the current economic situation in an inflation matrix and explicates possible developments. It shows
possible scenarios based on different growth and inflation rates.
Stagflation, artificial boom or recession?

A scenario that has a destructive effect from an economic, political, and social perspective is stagflation...
The term (stagflation) designates an economic situation marked by economic stagnation (falling growth and high unemployment)
combined with high inflation (rising prices). The term was coined during the economic trouble of the 1970s, when the United States
went through a period of rising inflation rates along with an economic recession. Mainstream economists had considered this
impossible.
But stagflation already could be observed for the first time in the US and the UK in the 1960s. In the 1960s the Federal Reserve
believed that there was a stable inverse correlation between unemployment and inflation. The goal of the Fed's monetary policy was to
stimulate demand for goods and services and keep unemployment low. The only trade-off in the eyes of economists at the time was a
rising inflation rate (which still was considered controllable).

But the wage-price spiral set in motion by high inflation (which is a process of adjustment between wage increases and rising prices on
the part of households and corporations) was not the trigger of the stagflation of the 1970s. Prices began to rise dramatically in the
subsequent decade. The transition also had grave effects on the capital markets as well as investors real returns. Because of the
monetary inflation of the 1970s (and the subsequent rise in prices), the decade delivered well below average bond and stock
returns, whereas commodities and precious metals rallied.
The next major theme is stagflation -- this will be the legacy of the Bernanke regime. You cannot keep real short-term rates
negative for this long in the face of even modestly positive real economic growth without generating financial excesses today
and inflationary pressures in the future. -- Dave Rosenberg
According to mainstream economics, stagflation is generally triggered by supply shocks (price shocks), which influence the general
level of prices due to rising cost pressures. Entrepreneurs are driven to raise their sales prices on the back of higher input costs
(energy prices). With total demand unchanged, a decline in revenues results, which leads to a decline in production and accordingly
the dismissal of employees. In Keynesian economic theory, the Phillips curve postulates that there is a proportional relationship
between economic growth and inflation.1
A closer examination of the current situation reveals signs of the start of a stagflation period. Japan's economic history may be
a harbinger with respect to stagnating growth. This case demonstrates that the Keynesian fiscal policy implemented in the past was
unable to counter sustained economic stagnation. Instead Japan's government amassed an enormous debt load. In light of the lack of
success, it is now attempted with typical Keynesian logic2 to cast out the devils by enacting even greater stimulus programs in the
framework of Abenomics -- supported by loose monetary policy.
It cannot be ruled out that deflationary effects will intermittently prevail, as with another banking crisis or a government bankruptcy. A
temporary deflationary episode similar to that of 2008, on the road to greater inflation, could well be a realistic scenario.

A Cataclysmic Great Unwind & Global Meltdown Is Coming


Today one of the legends in the business warned King World News that we are living in a world that is teetering on the brink.
Keith Barron, who consults with major companies around the world and is responsible for one of the largest gold discoveries
in the last quarter century, also spoke about some of the shocking events that are taking place across the globe, including
the spreading of the incredibly dangerous and deadly Ebola virus.
Barron: The big news last week was the announcement by the ECB to take its balance sheet higher with more QE. Interest
rates were also lowered to near zero at .05 percent. Draghi said they will be buying asset-backed securities, which are
basically toxic, junk securities derived from mortgages. This will be done across the length and breadth of the EU. These
assets are completely worthless...
Of course if the banks were forced to put them on their balance sheets on a mark-to-market basis, they would be shown to
be worth zero and it would reveal that the banks themselves are insolvent.
So this is all part of a much larger move to re-inflate the EU economies, especially the Mediterranean countries, in a
desperate attempt to stave off the inevitable collapse. I dont think its going to work. Anybody who has studied economic
history knows this is going to eventually result in massive inflation, which will send gold skyrocketing.
However, its very difficult to predict the timing because the governments are actively manipulating every market and
economic release, including the inflation rates, interest rates, the gold price, stock markets, etc. So the central planners feel
they are in a position to carry on as if nothing catastrophic is happening behind the scenes.
Of course central planners dont want to create any excitement in the gold market at all so they have kept pressure on the
gold price for quite some time now. The U.S. dollar has also been allowed to rise. This rise in the dollar is artificial and wont
last because of a global rebalancing of central bank reserves out of the U.S. dollar, particularly by China.
In the meantime this has been extremely frustrating for investors in gold and silver and the gold and silver mining shares.
But people just need to sit tight with their high quality shares and their physical bullion because the clock is against the
manipulators. And at some point there will be a radical change in the status quo.
This change in the status quo will be as a result of some event that takes the world by surprise and seems to come
completely out of left field. Its difficult to say if the event will be a geopolitical storm or a derivatives nightmare that triggers
a full-blown collapse of the financial system, but its coming. When this event shocks the world it will trigger the Great
Unwind. People need to make sure they are prepared for this unwind by owning a significant portion of their portfolio in hard
assets. This will allow them to survive the coming purge.
Barron added: You are old enough to remember how Nixon was reviled for wage and price controls, and then eventually
everything fell apart as interest rates skyrocketed in the United States to the upper teens. Volcker then had to come in and
help save the system along with others in the Reagan administration.

But whats going on today, this managing of the economy and managing of the interest rates, is really just another modernday version of wage and price controls. In fact, its much more severe and its really interfering with the business cycle.
Companies and banks that should have failed are not being allowed to fail.
So there are all these zombie banks out there and the situation just continues to get more dire, even though the central
planners have fabricated this illusion, this great lie, that the world is on its way to prosperity. Its all a smokescreen of lies
that is aggressively pushed by Joseph Goebbels-style propaganda through the mainstream media. There is a denial that
there is ever going to be a cleansing of the financial system, but it will happen.
After the cleansing it will be much better for the economies of the world. There will be great pain from the cleansing, but the
world will not end and the economies of the world will rise from the ashes and rebuild. People just need to be aware that
trouble is coming. This means they have to ignore the constant stream of propaganda coming from the mainstream media.
Again, I cannot stress enough how

important it will be for people to protect themselves from the coming


financial destruction by owning hard assets such as physical GOLD & SILVER.

Global Market Collapse & Wealth Destruction Is Now Upon Us


Today a 42-year market veteran warned King World News that a global market collapse and massive wealth destruction is
now upon us. He also discussed the gold market. Below is what Egon von Greyerz, who is founder of Matterhorn Asset
Management out of Switzerland, had to say in this extraordinary interview.
Greyerz: Eric, this year we have been talking about the autumn being a critical time in terms of being an inflection point for
the world economy and global markets. In every single area of the world there are problems. Japan alone has enough debt
and deficits that that when it implodes it should create a worldwide depression. And China, the former growth engine of the
world, is struggling....
Its important to look at the consumption of commodities in China. Right now they are declining rapidly. Then we have the
shadow banking system in China which is in a massive bubble. In Europe, only one major economy, which is Germany, has
kept the eurozone alive. But German growth has now come to a halt.
And as weve discussed many times, Spain, Italy, Greece, and Portugal will not survive in their present construct. And in
spite of that these countries can borrow money at ridiculously low rates, as if there was no risk at all. The markets dont even
understand what risk means today.
In the U.K. we have seen a slight improvement but its all debt and deficit based so its not sustainable. And France will be
the economy that tips Europe over the precipice. Both politically and economically France is now on the brink. Hollande is
disliked by 86 percent of the people. And French workers will not accept austerity. We recently saw French farmers setting
fire to a French tax office. Add to that a European banking system which is massively leveraged and full of debt and a great
deal of that debt will never be repaid. So in my view the European banking system will not survive.
And the U.S. is like the U.K in the sense that wealthy investors are prospering based on government spending and money
printing. But ordinary people are just becoming more indebted. And the U.S. debt is still going up by $1 trillion each year.
Soon the U.S. debt will increase by tens of trillions each year.
Currently money stock is imploding in the U.S. and most countries. In spite of that its not leading to inflation because the
velocity of money is falling. But that will change as governments start to accelerate money printing in the coming weeks and
months.
On top of these massive economic problems, we have a very serious geopolitical situation, both with Russia and Ukraine and
even more so in the Middle East. And in addition to escalating wars in those regions, there is almost a certainty that there
will be terrorist attacks in the West.
Another great danger is Ebola. Its probably only a question of time before it spreads out of Africa and into the rest of the
world. Eric, normally each one of these problems would be enough to bring the world down. But instead what has happened
is the global stock markets have continued to go to new all-time highs in many countries.

But that is about to change now. As I said earlier, the autumn was the most likely time frame when all these risk factors
would erupt. In my view we are now starting a major secular bear market in the world economy and in global markets. Eric, I
think this collapse of the world economy will last for a very long time.

So markets are now starting a major bearish phase which should see precipitous falls in the next few weeks and months.
This will kick off massive wealth destruction that will last for many years. Governments and central banks will of course
panic and there will be massive money printing worldwide, with the Fed, IMF, Bank of England, Bank of Japan, etc,
participating.

They have been waiting for this situation of wars and collapsing markets being the perfect excuse to start this massive
stimulus. But this time it will have no effect. Its not like 2008. Interest rates are now zero and debt is sky high. So they will
just be pushing on a string. This will lead to collapsing currencies and eventually hyperinflation.

One of the best forms of protection will be physical


gold and SILVER kept outside the banking system. Because of all the coming chaos, gold and silver
are going to go to highs that are difficult to imagine today.
This global collapse will be bigger than anyone can imagine.

Eric King: Egon, earlier today we spoke with Bill Haynes who runs one of the largest gold and silver dealers in the United
States. He told KWN there is one client who is looking to buy $40 million of gold. Im curious about your thoughts on the
massive gold and silver demand that Haynes talked about because thats just one person who is looking to buy $40 million of
gold.
Greyerz: $40 million happens to be one ton of physical gold. The amount of billionaires in the world represent a staggering
amount of wealth, and most of those individuals have not yet put any money into gold. But that will change. I visit with some
of these people and these are people who have fortunes worth billions of dollars today who own no gold at all.
So I think we will see these types of one ton and even much bigger purchases of gold happening in coming years. This will
only accelerate as these people exit the global stock markets where they have made a lot of money. And as the markets
really begin to collapse, this is when these billionaires will begin to seriously think about preserving their wealth.

Legend Warns World Headed For Financial Chaos & Contagion


Today a legend in the gold world warned King World News that the world is headed for financial chaos and contagion. John
Ing, who has been in the business for 43 years, also discussed the role that gold will play as the global chaos unfolds and
the contagion spreads.
The Money Printers vs Gold
China has pushed for a bigger role in the international theatre and even pariah Russia has attempted to use alternatives to
the dollar calling for the usage of other currencies in exchange for oil. Russia last defaulted in 1998 and sanctions are not
soon forgotten. Ironically, the US will need the cooperation of its allies and financial partners to execute its foreign policy and
the politicization of the worlds financial infrastructure simply undermines that role. Without this system of partners and
cooperation, the financial world will descend into chaos....
Cheap Money Is The Norm
Debt levels of most of the developed world, led by America are already above the threshold of sustainability. Americas
exceptionalism is crippled by a stretched balance sheet with gross federal debt, the highest since 1948. America is trying to
inflate away its public debt. Debt ratios are higher than in 2007 but nearly every asset class, including the stock market has
reached new highs as low returns caused investors to chase riskier assets. In the credit markets, securitisation is back, a
tribute to the power of the Fed which has rigged the markets in spectacular fashion. Tellingly, if one combines private sector
debt, the debt ratio goes over 400 percent. We recall that at the beginning of 2007, the Feds balance sheet stood at $880
billion and currently tops $5 trillion with half in Treasuries and mortgage backed debt. Debt on debt is not good. In a debtclogged world, not even a 1 percent bond yield has coaxed overextended debt players to consume or invest. After almost
seven years, the Fed has emptied its tool chest and has even slowed down the purchase of bonds with newly created money,
creating a dilemma for the central bank since those assets now make up such a larger percentage of the market that any
selling would swamp the market and collapse prices.
There is little question the end of the Feds easy money policy is in sight.
Despite fits and starts, yields remain at near record lows as investors appear to be rushing to take advantage of the so-called
last ten percent of gains. However tighter regulations and higher capital requirements have resulted in less liquidity.
Regulators have raised red flags with central banks warning of excessive levels, introducing new rules like a surcharge or
taxing the redemptions of the big money market funds, the keystone of Americas financial system. The Securities and
Exchange Commission (SEC) perhaps anticipating the rush for the exits has allowed the $3 trillion money market fund
industry to introduce exit fees, if funds drop below 30 percent of liquid assets. The fees are supposed to stop a run, but that
is the feedstock of financial contagion.
Signs of a Higher Rates Ahead
The markets are not braced for higher rates or even normalized rates. In the nineties, interest rates averaged five percent. In
the seventies, inflation and interest rates went to double digits levels fueled by a string of deficit spending, rising oil prices
and a war with Vietnam. Today, interest rates are near zero and investors have a complacent view that normalized rates are
actually just the odd percent. Wrong.

At the same time, regulators across the world have also introduced new rules requiring bail-in provisions making bond
holders and depositors bear the cost of future collapses, limiting public money in the next too big to fail crisis. Depositors
beware! The 848 page Dodd-Frank Act, passed in 2010 in response to the 2008 crash is still in a draft stage. Dysfunction is
the reason. While governments have socialized risk, there is a war on creditors. Simply, central banks and the IMF no longer
can afford to bail-out the huge amounts needed to stave off sovereign defaults or even a big bank. As such, the lending
rules were changed (including Canada) to include bail-in provisions. Cyprus was the first where depositors were asked to
finance the banks liability. Governments are no longer the last resort.
Legal Risk Has Replaced Credit Risk
Another sign of higher rates are the spate of debt defaults such as the Argentinean default or the failure of Banco Espirito
Santo, Portugals largest bank which missed a bond payment. On balance, we believe that the monetary exit after years of
unconventional monetary stimulus increases the risk of an accident. And to little surprise, after supplying hundreds of banks
with free money from the discount window in 2008, the regulators led by the US Treasury have introduced new rules that have
transformed their roles as lenders of last resort. By tightening the provisions of guarantee access to the discount window
and the treatment of debt-holders, it raises the question of who is to choose too big to fail or too big to succeed. The
bottom line is that governments under pressure to avoid the next round of bail-outs have reintroduced moral hazard with all
the moral risks. Legal risk has replaced credit risk.
But the big worry is that having siphoned off trillions of the worlds liquidity, there is the unintended consequence of a
crowding out effect of too little savings and too much debt. In creating its own bubble, Fed Chair, Janet Yellen worries over
signs of excess in junk bonds and leveraged loans but no rational exuberance here. Crying inflation is likened to crying
wolf. The lack of inflation is not felt on Main Street but already exists on Wall Street which allows the central banks to keep
the money spigots open whilst threatening to shut them off. Rhetoric it seems to be the Feds policy du jour. However, we
believe that the economic recovery and inevitable pickup in core inflation, as what is happening in Canada will prompt the
banks finally to put those reserves to use. Borrowing rates will rise and with it financial fears over the high concentration of a
relatively few too big to fail players. That is not a good omen.
Dollars Hegemony Ending
While Russias problems are largely self-inflicted, there are concerns of a damaging trade conflict with the West as the
sanctions escalate. Of growing concern, however is the risk of a full-blown financial crisis as Russia must rollover its debt, at
a time when western capital is no longer available. Russia cancelled fourteen debt auctions so far. To date, the Russian stock
market has been in a free fall and $70 billon has left the country in the latest quarter. Russia has $730 billion of foreign debt
and is heavily dependent on the Wests financial system since over half of Russian revenues come from energy sales. For
example, Russian state company, Rosneft will need US$42 billion over the next 12 months. In turn, Russia has increased its
gold holdings by 40 percent buying 16.8 tonnes in June alone to hold 1,094 tonnes, becoming the fifth largest holder in the
world. Russian foreign reserves stand at $472 billion, a sufficient enough war chest to defend the ruble, but not enough for
the longer term. Western banks themselves already have a sizable exposure and they too are susceptible to the changing
political headwinds.
The shape of the modern financial system emerged after the collapse of the Bretton Woods Agreement with the US dollar
replacing the British pound to become the anchor for the global economic system. Since 1971, the world has relied on the
issuance of an American led fiat reserve currency that was the basis for Americas prosperity and allowed it spend more than
they earned, becoming the worlds largest debtor. Foreigners have accumulated those paper promises recycling them back
to America at low interest rates to finance its profligate consumption and mountainous deficits.
However over the past two decades, the dollars dominance has shifted irreversibly with the emergence of China and BRICS
while Americas public debt load approached 100 percent with total debt over $17 trillion excluding the trillions of unfunded
entitlements. China currently has $4 trillion in reserves with a third invested in US dollar securities. Both care little about the
other, however the financial architecture of yesterday does not seem to be suited for tomorrow.
Alternatives To The Dollar
Chinas economic ambitions have seen the renminbi became more internationalized and in becoming the worlds largest
creditor is utilizing its trillion dollar cash hoard to buy other currency alternatives to the dollar. And, the BRICS (Brazil,
Russia, India, China and South Africa) have even established their own version of the World Bank, a $100 billion development
bank headquartered in Shanghai to spur growth, forsaking traditional institutions as the IMF and World Bank. BRICS now
control over 50 percent of global currency reserves and are considering the establishment of a BRICS exchange in
recognition of the need for alternatives. Others may follow. Ironically, the BRICS are shaking up global economic governance
and in a riskier world, gold is expected to resume its historic role as the best store of value and dollar alternative.
Here is the rub, over half of Americas debt is held by offshore investors. And now, China has recently reduced its dollar
exposure by purchasing other dollar denominated assets like gold and commodities. Chinese purchases of Americas debt
have dropped four times in the past six months. When the dollar falls in value or Americas creditors decide to accept

alternatives, America must pay the piper. This happened in 1971 when Nixon closed the gold window. This happened when
Saddam Hussein accepted euros for oil. Ultimately creditors will dictate policy, sort of like the tail wagging the dog.
The financial world is evolving. The renminbi is being used more and more as part of the $5 trillion a day foreign exchange
market. The dollar once used for oil and major commodity transactions is being used less and less by Americas trading
partners as they search for alternatives. Foreigners have stopped buying US corporate debt and have not returned. US
dollars now make up less than 60 percent of reserves down from 72 percent in 2001. The worlds big central banks, awash in
dollars and the largest holders of gold are accumulating gold, as an alternative to the dollar.
Gold Is An Alternative Currency
Alarming news spills out from the Middle East these days. The Islamic of Iraq and the Levant known as ISIS has reignited an
eight century rivalry between Shiites and Sunnis promising a wave of sectarian violence. And yet, after wars in Iraq and
Afghanistan, US foreign policy continues to try and put Humpty Dumpty together again. Muslims are fighting Muslims and the
shifting landscape in the Middle East together with military successes by the militants has caught America on the wrong side
of history. Ironically after the promising Arab Spring caused the fall of the various monarchial dynasties, the radical
hardliners have filled the vacuum left by exiting western powers, who in causing regime change, were not able to create the
political unity necessary for those countries to grow. The genie left the bottle. However, Americas financial system is hard
wired into a fiat currency in ways that tomorrow problems cant be handled. Rising tensions and western inertia will mean
that the genie wont be returned to the bottle any time soon. The upshot is that gold will be a good thing to have.
We believe strongly we have entered a dangerous phase.
The Middle East has polarised the divide between the West and East. Europe is in dire shape. Argentina is this years first
default and the banking system has become more leveraged than 2007. The Argentina debt default has resulted in a squeeze
on credit default swaps (CDS) as part of the $700 trillion global derivatives which is now 10 times the worlds GDP. In the
sphere of the shadow banking world, recent default swaps pay the holder value in exchange for the underlying securities or
cash. Yet, credit default swaps almost sank the financial system in 2008 and after the failure of Banco Espirito Santo,
policymakers were not able to implement needed changes to the financial system. Moreover, fresh on the heels of the
Argentine default, the Ukraine has some $12 billion of $73 billion debt coming due this year and the IMF is considering raising
its $17 billion standby facility by another $19 billion to shore up Ukraines reserves. Russia itself has some $53 billion to
rollover. Despite these issues, the Fed tells us that all is well.
The gold price, after rising for twelve years peaked in 2011 and subsequently pulled back 28 percent last year. Gold has been
in correction phase for almost one and half years, but in December, gold reached a triple bottom and since yearend has risen
almost 8 percent. At the same time, gold stocks rebound some 28 percent and still look awfully cheap. Gold in renminbi
actually made new highs.
The prevailing wisdom is that all is well. It is not. 2007 was a prelude and we did not learn. Little has changed. The dollar is
the worlds currency but it is being debased daily. We believe that golds role as a measure of the dollars value will carry it
ever higher. Gold is an alternative investment to the dollar. Central banks are net buyers of gold having been sellers in the
previous two decades. The IMF reported eight countries added to their holdings in June and last year 19 countries bought
gold. There was a time when gold was money and in todays uncertain world, gold is back in fashion. It is a store of value
when everything else seems risky.
The geopolitical conflicts in the Middle East and Ukraine alone have raised the real risk to economic recovery and those
frictions come at a time when newish regulations like Dodd-Frank have little effect on the global financial infrastructure with
respect to cross border liabilities, fragmentation and of course contagion. Simply, globalisation underpinned by debt have
masked risks with a long term threat to stability. The lessons are clear. The game is rigged and golf obsessed Obama
appears to be on the 10th green, undermining confidence in Americas leadership and its currency. Gold is a good thing to
have.

Peoples Savings May Now Be Destroyed Virtually Overnight


As the world continues to move into uncharted territory, today a 40-year market veteran sent King World News a tremendous
piece which warns that peoples savings may now be destroyed virtually overnight. He also covers key developments across
the globe. Below is what Robert Fitzwilson, founder of The Portola Group, had to say in this exclusive piece for King World
News.
Charles Erwin Wilson was the fifth U.S. secretary of defense. During his Senate confirmation hearing, it was reported that he
replied to a question with: Whats good for General Motors is good for the country. It was a misquote that Mr. Wilson tried
to correct, but even he eventually gave up and the phrase became enshrined as an example of corporate insensitivity even
though falsely attributed to him....
But the comment was probably factually correct at the time. America was responsible for half of global gross product in the
immediate post-World War II period. In our view, investors need to consider that what was attributed to Wilson is no longer
the case. What is good for General Motors is simply good for General Motors. As corporations continue to relocate and

outsource production (as well as research/development), the connections between the outlook for the company, customers,
employees, and even shareholders continue to diverge, erode, and then reform into new structures and relationships.
The impetus for this has been the rise of truly global markets connected by technology and the necessary transportation
infrastructure. Equally important to the capture of the global market share is the imperative to become the most efficient and
cutting-edge producers and service providers. A large part of that process implies the use of lower-wage labor as well as
automation.
When we look at some companies that have had spectacular success in the global marketplace, names such as Amazon,
Boeing, Apple, Ebay, Google, and Priceline leap to the forefront, capturing an enormous amount of market share and
revenue. In the social media, Facebook and WhatsApp are also showing the power and rewards of addressing large global
markets.
The success of companies often has come at the expense of the old relationships and infrastructure. We see it manifested in
the tragic unemployment that plagues the world along with stagnant to declining incomes. In the United States we see it in
the virtual dismantling of Detroit, an icon for both the industrial and automobile revolutions as well as an immense benefactor
for mining and steel producers. The efficiency-boosting characteristics of technology inexorably destroy more jobs than are
created.
We are also seeing it manifested in the inevitable relegation of the powerful telecom industry toward a pure utility model.
Trillions were invested in the global telecom infrastructure both to expand coverage and to increase throughput. If you were
in the telecom business, you did this with the idea that you would then reap massively increased revenues from the new
services that would operate on that infrastructure.
These new services and revenues were intended to make up for the inevitable loss of traditional sources such as land lines.
Instead, high-tech firms are using the telcos' infrastructure to enable their own high-value-added services and capturing
enormous revenue streams with high marginal profits.
For the economists, they would call this creative destruction. For the unemployed, the retired, or nearly so barely getting
by, it is a tremendous tragedy, worsened by rampant inflation in goods and services. Just destruction, creative or not.
War is breaking out on almost every front imaginable. In the currency markets, the euro plunged from a recent high of 1.3933
to 1.2960 on Friday. That is theoretically good for European exports, but the benefits will be offset by an increase in the cost
of imports. The central banks top fear has been deflation, so giving a boost to inflation might be deemed a good idea.
Perhaps, but it is sure to generate concerns from other exporters as their relative competitive positions are affected.
Currency wars are no strangers to history. The magnitude of the move in the euro might signal equally competitive and
disruptive responses from other countries. We should expect this eras version of currency wars to become much more
intense.
Real war continues to smolder and erupt in many places, particularly in the Ukraine region and the Middle East. Libya has
also spiraled out of control and has now dragged both Algeria and Egypt into the melee. Saudi Arabia has announced the
building of a huge fence along the border with Iraq. As ISIS continues to wreak havoc and destruction in that part of the
world, the Saudis must assume that their country is on the hit list.
The battle for supremacy in the investment markets continues to rage between the central planners and natural economic
forces. For too long the central planners have succeeded in suppressing, supporting, and manipulating markets, choosing
winners, and losers. The volatility we have seen in recent weeks could be a sign that the traditional tools of the central
planners are being used not just for manipulation but also for conducting economic war at the state level. Expect much more
volatility across all markets.
As KWN discussed with Art Cashin regarding the so-called demogrant proposal to distribute cash to everyone, it brought
back memories of George McGovern. He proposed giving everyone $1,000. Others have proposed $50,000 or most recently
$100,000. It turns out that the demogrant concept has a long history, even reportedly with Thomas Paine.
It will be interesting to see if the proposal ends quickly and quietly like the rest. If it ever came to pass, all traditional savings
would take a very large step toward being worthless virtually overnight. Proposals like this should be taken as another

GOLD and SILVER are


certainly two to consider, but the key is to move sooner rather than later, regardless of which type of
real asset is added to portfolios.
warning for savers and investors to exchange as much fiat currency as possible for real assets.

Rule - Takedowns In Gold, Silver & Oil To End Badly For Bears
Today one of the wealthiest people in the financial world told King World News that the takedowns in the gold, silver, oil, and
uranium markets will end badly for the bears. Rick Rule, who is business partners with Eric Sprott, also discussed why he is
so incredibly bullish on the metals and energy.
Rule: In the near-term gold and silver have been moving down. There is strength in the U.S. dollar. (Laughter). Strength
that, frankly, perplexes me. There would seem to be a global belief that what you do in times of crisis is buy U.S. Treasury
securities, and there is certainly a lot of crisis in the world....

I disagree with investors buying U.S. Treasuries, but thats what makes a market. For those of us who want to buy gold and
silver, it looks like we will have a continuing opportunity. Some analysts, including one at Goldman Sachs, have predicted
sharply lower gold prices for this year. Eric, as you would guess, Im obviously making a very different bet.
Eric King: Rick, what about the longer-term outlook?
Rule: The long-term bets on gold and silver are pretty obvious. The alternative to gold is U.S. Treasuries, including the
benchmark 10-Year Treasury. The 10-Year yields 2.7 percent in a currency that I strongly believe is depreciating at a rate of 5
percent compounded each year.
That means the value proposition over the long-term is that over 10 years your purchasing power is diminished by about 40
percent. That doesnt seem very attractive to me. It appears to me like the U.S. government is suggesting that If you give us
$100,000, we absolutely promise to give you back $60,000 in purchasing power 10-years from now. That is just one of many
reasons that I personally prefer to own gold in the short, intermediate, and long-term.
Eric King: Im curious as to your thoughts on the energy markets. Lets start with the uranium market and then we will
move on to oil.
Rule: There has recently been a little bit of strength in the uranium market. I dont necessarily think this is based on
fundamentals. Uranium was way oversold and I think we are seeing a technical rebound. I would suspect that the uranium
market will continue to be soft over the next 12 months, but I continue to be extremely bullish about uranium over the 2, 3,
and 4-year time frames.
Uranium is a very fast-growing energy source in emerging economies. These are fast-growing economies such as China,
Taiwan, Korea, and United Arab Emirates. People also need to know that according to Cameco, the largest uranium producer
in the world, the fully loaded cost of producing uranium, including cost of capital, is $70 per pound. So right now these guys
produce uranium for $70 per pound and sell it for $32 per pound. That cant go on because its obviously not sustainable.
My suspicion is that as demand for uranium grows from new-built plants, and as the Japanese nuclear fleet begins to restart,
that a bull market in uranium will get underway in earnest. But this isnt for people who have a quarter by quarter outlook.
Eric King: What about the oil market? It has taken a hit recently.
Rule: The oil market has taken a hit, but I will tell you that its awfully strong, Eric. For many years the oil market always
showed that it was very economically sensitive. Weve had a very weak economy in the West, despite propaganda to the
contrary, for the last 4 or 5 years.
Demand for oil has been weak in the Western European market, the North American market, and particularly in the Japanese
market. There is also no indication that those markets are recovering. And yet the oil price held for what seemed to be a very
long time above $100 a barrel. This is particularly perplexing in the United States where weve had a doubling of oil
production as a consequence of the convergence of technologies that have made extraction of oil from shale possible.
The answer to this is that the decline in production from national oil companies in places like Mexico, Indonesia, Iran, Peru,
Ecuador, and Venezuela, will accelerate in coming years. This will eventually create a supply crunch for the world. These
countries have not reinvested in their oil infrastructure. Instead, they have spent the money on socially expedient programs.
We have also seen a slight increase in capital spending in the United States. If that translates in to any kind of economic
recovery in the U.S. at all, and for the record Im not saying thats going to happen, but if we have any kind of demand growth
in the United States, which currently represents 24 percent of world GDP, the oil price could surprise to the upside. On the
other hand, if we see stability return to either Iraq or Libya, that additional crude coming into the market could lead to lower
prices. So its very much a game of chance at this point.
I need to say that at Sprott we have enjoyed really spectacular margins internally on our own proprietary oil and gas
production activities. And we are increasing our exposure to this sector because the returns that we are enjoying at this

In closing, I believe the takedowns we have seen in the GOLD, SILVER, oil,
and uranium markets will end badly for the bears and time is against them at this point.
price point are just extraordinary.

Despite Recent Weakness In Gold, Revaluation Spike Is Coming


With major markets on the move, today James Turk told King World News that despite the recent weakness in gold, a major
revaluation spike is coming in the gold market. Turk also added some additional comments to go along with the
extraordinary chart he sent to KWN yesterday. Below are Turks comments and his fantastic chart.
Turk: I think the following chart puts several key markets in their proper perspective, Eric. It shows the correlation between
the Fed's balance sheet, S&P 500, gold and crude oil. This is a base-100 chart that plots the relative movement in these
assets at the close of each week from March 2009, which is when the Fed announced its first QE program (see chart below).

1) When central banks print money by growing the size of their balance sheet, the currency they are printing gets debased.
Another way of saying that is that asset prices rise, which happened for gold until January 2013 and oil later in the year, but
the S&P 500 kept rising.
2) The S&P 500 closed at a record high Friday for the same reason the Feds balance sheet is at a record high at just under
$4.5 trillion - money printing. The S&P is not rising because of good economic conditions. Regardless of what the
government central planners are saying, the economy stinks because the labor force is shrinking and is still well below the
2007 peak.
3) On a relative basis, gold and oil look very undervalued. Both should be rising along with the S&P 500, as they did up until
2013. But oil is weak because demand is falling because of the weak economy. And gold is weak because its price is being
manipulated by central banks.
4) Finally, look at the green line carefully on the chart above. This line shows the growth in the Feds balance sheet, and
growth is coming to a halt as the Fed winds down QE.
Point #4 is particularly important. It suggests to me one of two things will happen: Either the stock market will tank as it did
in 2011, or the Fed will renew its QE program. The Fed will do this to foolishly keep printing in the hope that infinite money
creation will jumpstart a sick, debt-laden economy that government central planners have turned into one of borrowing and
spending, instead of saving and producing.
The central planners cant have it both ways. If they debase the dollar by expanding their balance sheet, asset prices will
rise, regardless of whether those assets are the S&P 500, houses, collectibles, or gold. The fact that gold has not risen is an
artificial anomaly arising from the gold price suppression scheme. These circumstances repeat exactly what happened in the
1960s.
President Johnsons Great Society meant government spending needed to be increased, which required an accommodative
Fed policy, which in turn of course debased the dollar. Inflation began to rise and the stock market made new highs - but
reality caught up eventually. The gold price was released with the collapse of the central bank cartel called the London gold
pool that was manipulating the gold price. Gold soared, the dollar tanked and so did stocks.
Markets can only be prodded so far. But today the central planners are being helped by what I call the Money Bubble. People
mistakenly think that government debt and the currency in which it is denominated are a safe haven, notwithstanding all the
many episodes in monetary history disproving that notion.
So what investors can expect to see is that gold will be revalued dramatically higher, either by market forces or through the
announcement of a new currency bloc in the East that is backed by physical gold. We are seeing the last legs of the
desperate gold price suppression scheme at work in the West. As this suppression scheme collapses, just as it did in the
1960s, this is when you will begin to see immediate and violent moves higher in the gold market.

Paul Craig Roberts Accuses US Banks Of Gold & Silver Smash


Today former US Treasury official, Dr. Paul Craig Roberts, spoke with King World News about the gold and silver smash and
what is happening with the U.S. dollar. Below is what Dr. Roberts had to say in this riveting interview.
Eric King: What about whats happening with the U.S. dollar and gold? What do you see going on there?

Dr. Roberts: In recent days, in fact for quite an extended period, theres been an enormous amount of short in the futures
market, and theyve taken the gold and silver prices way down. And it has sustained (at low levels)....
So one more or less has to conclude that the Federal Reserve is worried about the dollar. Why would it be worried about the
dollar right now? Well, we know that one effect of the sanctions on Russia has been to move Russia out of the dollar
payment system. And they (the Russians) have made these new deals with China and so forth, to transact energy without
using the dollar.
But this hasnt been in place long enough, or happened to an extent that is sufficient, in my view, to have put the dollar under
immediate pressure. So I dont know what the cause of pressure on gold is right now that has led to this extraordinary
shorting on the Comex. I also dont understand how something this visible and this illegal can be permitted to continue.
But my understanding is that at the Comex all the directors are all the bullion banks. And the players on Comex are the
hedge funds. So since the bullion banks are directors of the Comex, they see precisely the positions of the hedge funds.
And when the hedge funds are most vulnerable to being looted by (naked) shorting in the (paper) futures market, (the banks
manipulate the price and loot the hedge funds of a portion of their capital allocated to those markets). This has got to be an
extreme form of insider trading....You can hear the rest of this riveting discussion on gold, the coming crisis, and much more
by CLICKING HERE to listen to Dr. Roberts incredible KWN audio interview.

Why Goldman Sachs Is Wrong On Gold & Danger For The U.S.
By Michael Pento of Pento Portfolio Strategies
With the attack on gold continuing throughout the week, today Michael Pento told King World News that Goldmans Sachs is
wrong on their bearish gold prediction. Goldman Sachs has even urged clients to short gold so this will get very interesting.
Pento also discussed the immediate dangers the United States is now facing.
Why Goldman Sachs is Wrong on Gold
Wall Street powerhouse Goldman Sachs has recently reiterated its negative view on gold, which it has held for the past year.
However, it is now doubling down on this view and advising clients to go short the metal. Jeff Currie, head of commodity
research at Goldman, wrote, Our target is really driven by the view that we think that the Fed will ultimately be the dominant
force here and put more downward pressure on gold prices....
While I agree with Goldman that the Fed will be the dominant force behind the price of gold, I believe the central bank will
soon be back into the quantitative easing business, rather than raising interest rates and crushing the dollar price of gold.
Below is the reason why:
Since President Nixon closed the gold window in 1971, gold has made an impressive move up from its fixed price of $35 an
ounce to where it sits now around $1,250. But few seem to grasp what actually causes gold to move higher. An increase in
the gold price occurs when the market becomes convinced that a currency will lose its purchasing power due to central
bank-induced money supply growth and real interest rates that have been forced into negative territory. And nothing
convinces a market more of a rising gold price than when debt and deficits explode.
But while the parabolic move higher in gold from 2009 to 2011 did contain a period of low nominal interest rates, real rates did
not fall. And the surging gold price was not accompanied by a growing money supply either. In fact, the growth rate of M3
plummeted during 2009 through 2010. It wasnt until 2011 that the money supply rebounded.
So what would explain the steady move in gold from $800 to $1,900 per ounce during that period? The gold price simply got
ahead of itself because the market feared that out-of-control deficits would force the Federal Reserve into an unending cycle
of debt monetization, which would engender a protracted period of negative real interest rates, booming money supply
growth, and inflation.
Those fears were temporarily ameliorated by the reduction of federal budget deficits starting in 2011. This is because the Fed
was, ironically, able temporarily to re-engineer asset bubbles while sending borrowing costs lower, causing revenue to
increase and expenditures to decrease. Annual deficits fell from $1.3 trillion in 2011 to $500 billion today. Adding to the gold
markets recent woes is the specious belief held by U.S. dollar bulls that the Fed will be aggressively raising interest rates
while the rest of the world is cutting rates. This is the explanation why gold and gold mining shares have suffered mightily for
three years.
Today the equity and bond markets have positioned themselves for the best outcomes of all possible scenarios. These
markets are assured that the Fed can painlessly exit QE in October and real interest rates will rise with no ill effects on the
economy. The pervasive belief is that US bonds, stocks, and dollars will be the sole beacons of economic hope in an
otherwise slumping worldwide economy; and that budget deficits will continue to shrink.
I dont buy any of it, and here are the reasons:

Last week we learned that mortgage applications plunged to a 14-year low. This is because home prices are still so
unaffordable that just a slight tick higher in interest rates is enough to stall both potential home buyers and borrowers
looking to refinance. This confirms that after six years of unprecedented Fed manipulation of markets, our economy has
become hypersensitive to the slightest interest rate change. It also supports my contention that the rise in rates in the second
half of 2013 was much more influential on the first quarters negative 2.1 percent GDP figure than what can be attributed to
snow. Our economy is not anywhere near strong enough to sustain growth in an environment of rising interest rates. That is
why the Fed wont venture very far into this game.
Further, economies in Europe and Japan are in recession, while the once-mighty emerging-market economies are flailing. As
their central banks frantically print money, the US dollar is soaring due to the belief that the US economy will remain
unscathed from a global economic slowdown. But the idea that the U.S. economy will stand alone on a pristine island while
Europe and Japan sink into the sea is just as preposterous and unprofitable as the belief back in 2008 that economies around
the world would remain untouched by the U.S. housing meltdown.
The markets also seemed to shrug off last weeks disappointing jobs report as an anomaly. Perhaps a colder-than-normal
August is a good scapegoat. But this week Fed Chairwoman Janet Yellen gave us an interesting glimpse into the Feds view
of the jobs picture with her Labor Market Dashboard. It showed that only three out of nine metrics regarding the labor
market are better than they were before the Great Recession. Investors should think again if they believe the Yellen Fed will
be aggressively raising rates and boosting the value of the dollar given the labor markets fragile condition.
Most importantly, the tide of shrinking budget deficits is about to turn. For instance, since 2011 we have seen a significant
reduction in defense spending (down 5.5 percent during 2014 alone), due to the withdrawal of troops from Iraq and
Afghanistan. And though we have yet to learn the full costs associated with President Obamas plan to destroy ISIS, we can
assume it will be very expensive.
Adding to this is the drastically underestimated cost of Obamacare. Insurance risk pools failed to get the proper demographic
mix, and the Cadillac tax -- delayed until 2018 -- has companies scheming to redesign their insurance plans to avoid these
taxes.
Add to this the unexpected costs of illegals flooding the border, demographics moving far out of favor, and an increase in
interest rates that will drive up debt service costs and you can see why deficits will rise. Nothing adds to the deficit like a
recession. Our asset-bubble addicted economy faces another reduction in GDP growth very shortly. This factor alone will
send deficits north of $1 trillion in short order.
Faced with a worldwide economic slump, central banks remain the only game in town. And todays central banks, determined
to smooth out every hiccup in the economy, have only one answer -- print money. When all you have is a printing press,
every problem looks like a monetary crisis.
The Fed will not be raising rates any time soon. To the contrary, Yellen will soon be forced back into the money-printing
business in an attempt to force higher money supply growth, push real interest rates further into negative territory, keep the
dollar from rising, and make sure debt service payments remain under control.
So we soon will have a perfect storm in which gold will rise. The next phase in the gold bull market will include all four
conditions that existed in the massive bull run that started in 2009 -- negative real interest rates, rapid money supply growth,
a falling dollar, and skyrocketing deficits. Investors who have the foresight to realize this opportunity today stand to benefit
greatly in the near future.

Paul Craig Roberts - Worlds Most Powerful Banks To Loot U.S


Today former US Treasury official, Dr. Paul Craig Roberts, warned King World News that that the most powerful banks in the
world have already set the stage and are now preparing to loot the United States by essentially seizing its most prized
assets. Below is what Dr. Roberts had to say in this shocking interview.
Dr. Roberts: For reasons that dont seem to make a whole lot of sense, the Federal Reserve, the Comptroller of the
Currency, and the FDIC, have told the big banks that they can no longer meet their high quality liquidity requirements of their
asset holdings by using municipal bonds.
This doesnt make sense because the regulators are allowing the banks to continue to hold corporate bonds that have less
quality credit rankings than some of the municipals, and they are letting the corporations continue to hold the Russell 1000
(stocks), which are generally weak stocks in times of crisis....
So the reason for this is unclear at this time, but remembering Nomi Prins recently published book, All The Presidents
Bankers, she shows how the financial sector has completely taken over not only the economy, but also the government. And
the financial sector also no longer performs any positive function. Its essentially a looting mechanism.

It (the financial sector) piggybacks in on IMF loans to countries and strips them of their (highest quality) assets in order to
pay (back) the creditors. And so what we may be seeing here is the financial industry is setting it up so that the situation of
cities, with their municipal bonds, becomes untenable. If all the big banks have to dump their portfolios of municipal bonds,
it has to have a negative impact on the price of the bonds and on the attitude of investors toward the bonds.
So if this puts the municipalities in financial difficulties, like Detroit, then the banks can step in and strip the cities of their
assets, like they are doing in Detroit. This of course always includes the pension funds. ... It will harm municipalities because
it will lead to a selloff of the bonds. It will lead to suspicion of the bonds, and higher borrowing costs, at a time when a lot of
these municipalities are already borderline (in terms of their finances).
And if they get into financial difficulties, which is likely to be the case from this decision, then you can see this sort of
situation (the looting of premier municipal assets) thats occurring in Detroit. So the big banks are now looting mechanisms.
They dont perform any positive function in the economy. But they loot and steal the assets (for the bankers). So this
(situation) needs watching.
It looks like capitalism today cant perform by producing increases in the Gross Domestic Product (GDP), increases in wages
and salaries, and so it essentially becomes a looting mechanism. Therefore it will discredit itself just like Soviet central
planning discredited itself.
... It shows that the American system has just become a looting mechanism, and the law is not permitted to interfere with
that. So what theyve done to Greece, and what they are doing to Argentina and Detroit, they are now prepared to do to U.S.
municipalities. This is one of Dr. Paul Craig Roberts greatest audio interviews everand its available now. When it is
released you can listen to the audio by CLICKING HERE. He discusses the endgame, gold, the coming collapse and much
more.

Putin Has Won In Ukraine & What China & Germany Are Up To
Today an acclaimed money manager spoke with King World News about the gold and silver smash as well as the push for a
new monetary world order. Stephen Leeb also spoke about what the Russians, Germans, and the Chinese are up to as gold
and silver prices plunge and the West continues to see its power recede.
Leeb: Clearly the world is a mess right now. We have the chaos in Ukraine and the Middle East. As far as the situation in
Ukraine goes, Russia won. They got exactly what they wanted. They have stopped fighting and they are now in a position
where eastern Ukraine is not going to be part of Russia but they are going to be more or less independent....
Its a very big deal that Putin won in Ukraine. You also see Russia moving closer to China, forging a strong alliance. Now
we see that China is moving to have closer ties with India. Chinese President Xi is skipping a trip to Pakistan and heading to
India instead.
So we are seeing this move to consolidate an alliance in the East. China is going to want to have a lot more control over how
much energy it buys and at what price, which also means some sort of gold standard will emerge in the East.
This morning OPEC reported they are going to have 200,000 fewer barrels of production next year because the United States
is going to be producing another 700,000 or 800,000 barrels. The problem with this is that fracking is basically plateauing at
this point.
Let me also remind KWN readers that the country paying the most in the world for each energy unit consumed is Germany.
Germany pays much more for electricity than anybody else. This is because they are producing their electricity through
renewable sources.
Germany pays a lot more than China. Why? Because China is spending trillions of dollars on achieving a renewable energy
infrastructure. But in the meantime China is still using about 67 percent coal for its energy needs and coal is cheap.
Many people wonder why Germany is willing to pay such a high price for its energy. This is because Germany wants to be
the global leader in renewable energy infrastructure. This will be a huge business and Germany wants to lead the way in this
industry by getting the costs down. Meanwhile, most of the rest of the Western world is floundering and not investing
anything in energy infrastructure. No Western leaders are working on a long-term energy plan that builds a better future.
Otto von Bismark said, The difference between a politician and a real statesman is a real statesman cares about his
grandchildren. The problem with the United States is that we dont have real statesmen. But it appears the East does. So
the West needs a shock. We need for people to wake up and say, This is not about tomorrow -- this is about tomorrow for
our grandchildren.
But right now the West is content in trying to drive up paper stock prices and keeping the price of gold suppressed. But the
future for the West will be very bleak if our central planners continue to play games by manipulating major markets. None of
this is good for the West. In fact, it is setting the stage for a bad outcome, and the longer this goes on, the worse the
outcome will be.

This
is why you have to be buying GOLD and SILVER if you are in the West because once the world does
begin to change, that change can come incredibly fast.
The U.S. should be doing what the Chinese and the Germans are doing. These countries are making long-term plans.

If anything, the situation is getting worse for the West and better for the East. Unfortunately that really is the big picture.

So

for investors, the core of their wealth should be in physical GOLD and SILVER because the Wests
policies are doomed, and this is how they can protect themselves and their families from the coming
financial turmoil the West will have to endure.

The Global Ticking Time Bomb, Economic War & World War III
As the world continues to move into uncharted territory, today a 40-year market veteran sent King World News a tremendous
piece which warns about a global ticking time bomb, economic war, and World War III. He also covers the gold and silver
smash. Below is what Robert Fitzwilson, founder of The Portola Group, had to say in this exclusive piece for King World
News.
Life is like arriving late for a movie, having to figure out what was going on without bothering everybody with a lot of
questions, and then being unexpectedly called away before you find out how it ends. Joseph Campbell, Creative
Mythology
Joseph Campbell was an American mythologist, athlete, lecturer and writer. Before his death in 1987, he had taught for 38
years at Sarah Lawrence College. One of the characters buried deep in history that Campbell studied was a man named
Lucius Quinctius Cincinnatus known to most as simply Cincinnatus. Campbell was intrigued by both the mythology
surrounding Cincinnatus as well as the hero. Campbell wrote extensively about the concept and role of the hero, and
Cincinnatus certainly was that both to the Romans of 2,500 years ago as well as to relatively contemporary figures such as
George Washington and Harry Truman....
Cincinnatus was the archetype of the citizen soldier. The Roman system of government during his day relied upon power
sharing between the senate and two appointed consuls. The consuls shared power for one year, dividing decision making
every other day. Each consul had the power to nullify the others proclamations. The system was designed to minimize the
chance of a return to the hated monarchies leading up to this era.
The one exception was in time of threats to the state. In such cases, a dictator would be appointed. The dictator had absolute
power. Cincinnatus was given such powers on two occasions. Recruited from his modest farm, he abandoned crops in the
field to defeat Romes enemies. At the end of each period, he relinquished his power and returned to his farm.
During the period leading up to the Revolutionary War in the United States, classicism was undergoing a revival among those
with formal educations stimulated by amazing archaeological discoveries made on the Italian peninsula. The arts were most
definitely impacted, but a renewed interest in the Roman forms of government played a significant role in the documents,
symbolism and postwar transition that grew out of the Revolution.
George Washington found himself, as did Cincinnatus, with de facto dictatorial power at the end of the Revolutionary War.
Using the example of the Roman hero, Washington relinquished his power and went home to his estate as did Cincinnatus.
The name of Cincinnati, Ohio has its roots in the Society of Cincinnatus that emerged after the war. The Society was set up to
broaden the citizen soldier concept to the troops and officers being decommissioned after the War.
But right now there appear to be no heroes on our horizon. The post-WWII and post-Cold War eras are devolving before our
eyes. Centuries-old political alliances are breaking apart in Spain and the United Kingdom. The markets continue to be more
brazenly and openly manipulated with no regulatory or legal responses, as we have seen with the most recent moves in the
oil and precious metals markets. Even the Pope came out over the weekend to state what we all know or should know, that
World War III is upon us.
We see war physically in places such as Ukraine and the Middle East. We see it monetarily in the war over the reserve
currency played out in the precious metals and fiat currency markets. We see political war in the manipulation of the price of
oil.
We hear that the price of oil is down due to weakening economies and increasing production in the United States. The
increased production is a good thing for the United States, but the increased production represents less than 2% of global
demand. The global demand is actually increasing, after a slowdown for a month earlier this year. The budgets for the key oil
producing countries require a triple-digit price to make ends meet, Russia in particular. Saudi Arabia requires a third of their
production just for domestic needs that cannot be exported. We suspect that the decline in the price of oil is not supply or
demand related, but simply a form of warfare to hobble Russias economy. So we remain very bullish on the long-term price
of oil.
As for precious metals, the recent smash could also be aimed at the currency antagonists of the West, particularly Russia
and China. Those two nations, along with India, own the lions share of the worlds stock of gold and silver. Driving the price

down to tarnish the role of precious metals makes perfect sense if you want to keep printing money out of thin air without
constraints. As with oil, there is no economic basis for the price of precious metals being this low. It is simply collateral
damage from war between the major powers.
Oil and precious metals should continue to be accumulated for the day when prices reflect economic reality. As Campbell
says in his quote above, we are all just trying to figure this out, and hoping to be around when the answers are known. In the
meantime, dont fall prey to the meme that there is a rationale for existing stock, bond, energy and precious metals prices.
The central planners have created a ticking time bomb through market manipulation that could ignite at any moment.

This Terrifying Black Swan To Collapse Global Financial System


Today a 42-year market veteran spoke with King World News about a terrifying black swan that will collapse the entire global
financial system. Below is what Egon von Greyerz, who is founder of Matterhorn Asset Management out of Switzerland, had
to say in this powerful interview.
Greyerz: Eric, Im looking at the enormous risk of holding money or other assets in a bank. We know that banks were
bankrupt in 2008, and since then nothing has changed. The balance sheets havent improved at the banks. The only thing
that has happened is the banks now have the right to value toxic debt at maturity rather than at market value. We know that if
they valued these toxic assets at market value, most banks would not survive....
Banks are paying almost zero interest to most customers, and after fees it could even be a negative return. And the risk of
holding your money in the bank is bigger than ever. The difference today versus 2008 is that weve had Cyprus. In 2008
every bank was bailed out and no depositor lost money.
So governments increased their debts and saved the banks. But after Cyprus most countries have adopted the bail-in
principle. This means that next time around, and there will be a next time, anyone who has assets in the bank is likely to lose
either much or all of them.

But we wont just have bail-ins. There will also be forced saving or even confiscation
of investor money. Governments will force investors to put a major part of their funds
in the bank into government securities to finance the increasing deficits that we will
see in the next few years.
As weve discussed before, Europe has come to a halt. We also know that Japan came to a halt a long time ago with its 250
percent debt/GDP ratio. But now Europe is under more pressure with a contracting economy and deflation taking hold. Italy
has had a triple-dip and Germany is contracting. France will be the next big domino to fall in Europe.
But coming back to Italy, wages need to be cut by 30 to 40 percent to be competitive with Germany. We know that wont
happen. Thats why they will continue to have massive problems in Italy. Before the creation of the euro, Italy, Spain, and
even Greece used to be cheap countries to travel to. Since the euro they have become expensive and totally uncompetitive.
Joining the euro has proven to be an extremely poor decision for these countries. They also have structural reforms in these
countries. This means austerity. We also know that austerity is a loser in terms of elections for politicians. So we are likely
to see a constant change of governments in Europe because of the anger of the populations of these countries. This will
create major instability in Europe.
There is only one way for Europe and the rest of the world to defer the problem, which is growing, and that means bigger and
bigger bubbles must be created and inflated. This virtually guarantees that the European Central Bank willl not only do asset
purchases but also outright, massive quantitative easing. I strongly believe that when the ECB starts this money printing in
earnest, the Fed will join in because it will become a worldwide problem.
These deflation pressures in the eurozone are creating euro weakness. So we are not seeing dollar strength today. What
we have been seeing is simply a weak euro. The irony is that the dollar isnt strong. The dollar is undergoing a continuous
devaluation. It just looks better as an index because of the currency wars and the race to the bottom in currencies.
We also know that the economic announcements in the United States are totally fraudulent. Real unemployment in the U.S. is
a staggering 23 percent. Just to give you one example, the job participation rate for Caucasian men was 88 percent in 1980.
Today it has fallen to 72 percent. Real wages are also down substantially and 50 million people are on food stamps.
So the underlying economy in the U.S. is very weak. But the big problem in the U.S., in addition to deficits and debts, is the
massive derivatives position held by the major banks. Debt in the U.S. has increased in the past year by $1 trillion. The debt
is continuing to grow exponentially.

But coming back to the massive derivatives positions held by banks in the U.S., they have an unimaginable several hundred
trillion dollars worth of derivatives. The largest part of this potentially lethal derivatives bubble is in government bonds.
Thats the backstop. So its critical for governments to keep bond rates as low as possible to keep the banks solvent,
because if rates go up, the derivatives implosion will destroy the banking system. This would have horrific consequences for
the world.
So governments are doing all they can to keep interest rates low. But they will fail. Because of the money all governments,
including the U.S. government, will print in the next few years, at some point we will see the derivatives implosion that will
trigger the end of the current financial system.
This is why the role of gold as insurance and wealth preservation is so critical. Over time gold preserves purchasing power
and protects investors against financial calamity. This is why it is so important for investors to position themselves in
physical gold outside the banking system, because the derivatives implosion will mark the end of the financial system. Gold
held outside of the banking system will preserve wealth.
The recent weakness in gold wont last much longer. Gold is certain to start its journey to new highs. The gold price will
reflect the money printing and the credit creation in the world. This has continued exponentially since gold last peaked in
2011. So gold has a lot of catching up to do, and once the rise starts, it will be violent.
King World News note: A derivatives implosion was the black swan that ignited the global crisis in 2008. With the amount of
total global derivatives now over a staggering 1.25 quadrillion dollars, there is no question that Greyerz is correct when he
predicts this will eventually collapse the current financial system. Its just a question of when it will begin and what the next
trigger will be.

Art Cashin Warns Of Another Disastrous Global Lehman Event


Today 50-year veteran Art Cashin warned King World News that the world is going to see another disastrous Lehman
moment. Cashin, who is Director of Floor Operations at UBS ($650 billion under management), also discussed the gold
market and the world stumbling headlong into a global currency war. Below is what Cashin had to say in this powerful
interview.
Eric King: Youve been warning for some time that the global markets discount everything geopolitical and that may come
back to bite us.
Cashin: I absolutely still feel that way. And I am concerned that there is inbred opinion that geopolitical events tend to be
short-lived and therefore, in many cases, buying opportunities when you get them. I fear mightily that somewhere people
might miscalculate and one of these things could turn into the equivalent of a Lehman moment in which everyone assuming
that the worst will not happen discovers that the worst has happened and are ill-prepared for it.
Eric King: As you watch the ECB getting ready to ramp up its balance sheet once again, you (had previously) warned that
we may see a similar about-face from the Fed in the future.
Cashin: I think thats a possibility. We note that the euro had its weakest day almost in its existence right after the ECB
made the move. And certainly over the last 5 days the dollar has had the strongest up-move that it has had since the euro
was invented. I dont know how long the Fed can contain itself in the fact that they want the U.S. economy to get moving
again. But if the multinationals have to compete with a Germany that has a greatly depressed euro, were going to have a
problem.
So we started out with Japan basically building toward a currency war. Now we have the ECB apparently fully into it. And its
difficult to understand how the Fed can stand back from the fray and talk about letting yields rise, etc, and see the dollar
strengthen to the competitive disadvantage of the nation.
Eric King: I found it interesting, Art, that you did warn not too long ago about the Fed eventually doing an about-face
(regarding QE) sometime in the back half of the year. We just saw the ECB do this about-face. But we also had the Council
on Foreign Relations saying that the central banks should give money directly to the people. What did you make of that?
Cashin: (Laughter). Well, you get some of these organizations that speak before they think. Thats a rather grand thing. I
can recall back in the days of Lyndon Johnson when he talked about the concern that people in poverty were living below the
poverty level and he was going to resolve that by giving them money.
Well, that would have then raised the poverty level because the average would have had to change. And that would mean
they would still be falling behind and they would still be below that average. So this idea of giving money directly to the
people doesnt always bear fruit.
The difficulty is that theyve pumped nearly $4 trillion dollars in the U.S. into the system and the banks have not found ready
ways to lend it out. First of all there is not a great demand for loans. Second of all the banks have already been warned that

to whomever they lend to they must be sure that they are credit-worthy.
So an analogy Ive used in the past, Eric, on this call, is that if Bernanke flew over your house and dropped $1 million, you
may be so nervous you just put it in the garage. And thats why were not seeing any inflation. The money has no velocity
because no one is lending or spending it in large amounts. ... Once this money begins to move, gold holders will have a much
different day for themselves.
Eric King: Once this money starts to circulate, once the velocity begins to pickup, can the gold market change in almost the
blink of an eye and be attacking the all-time high in a violent manner? I realize that would be a major move, but is it the kind
of thing that can happen almost in the blink of an eye like youve described in the past?
Cashin: It feels like the blink of an eye but it would be rapidly, over several days or weeks. Its quite possible in the sense
that if money were to begin to gain velocity it becomes a contagious kind of event. If people see that happening, they see
people spending and borrowing and say, Well, wait a minute, I better get on that train before it leaves the station, you can
get that contagion result and that looks like an almost near-instantaneous event. But first youve got to get that velocity. Art
Cashin covers what to expect in the gold market in detail as well as other markets across the globe, the European move to
more QE, geopolitical instability around the world, and what surprises to expect in the future in one of his most important
interviews ever. The King World News audio interview with Art Cashin is available now and you can listen to it by CLICKING
HERE.

Mauldin - This Great Danger May Trigger A Worldwide Crash


Today John Mauldin spoke with King World News about the great danger he believes may trigger a worldwide crash.
Mauldin, President of Millennium Wave Securities, also warned that the problems in Europe are so enormous that it may
ultimately shock the Europeans by causing the destruction of their currency.
Eric King: John, what is your big worry going forward? What will send the world into another round of chaos?
Mauldin: China. If China makes a macroeconomic mistake as they are trying to rebalance their economy, that could be a
(major) problem....
It is not impossible for them to make one. Its a real concern that I have. They have too much debt. They have created
several bubbles.
They do have $3 trillion dollars in assets, but they are going to need every penny of it. Theyve basically created an economic
miracle by moving 1/4 of a billion people into the cities -- finding jobs, housing, and so forth for them. This brought them out
of, essentially, a Middle Age existence.
But theyve got a long way (to go). Theyve still got a number of people that they have to pull out of poverty. And the have a
lot of adjustment to do to go to a consumer society. They cant live on foreign-direct investment forever. That road is
beginning to wind down. They are not going to be able to grow by 7 to 7.5 percent like they have been.
They are going to slow down and the world isnt prepared for a slowdown. It (the world) can handle a marginal slowdown to 4
or 5 percent. But if China slows down to 2 or 3 percent (GDP) growth, which is very possible, it will change world cash flows
and world commodity flows. It will affect Canada to some degree, Australia to a great degree, and Brazil to a great degree.
So the world is watching to see what happens in China.
Europe is a problem but I dont think its a problem this year. Europe will be a crisis when everybody looks up and says, You
know, we are concerned about the French being able to pay. The French are not solving their budget crisis. They are still
running at 4 percent+ deficits. They are now running a negative GDP. So their Debt/GDP is getting worse because they are
increasing their deficits. And at some point people are going to say, This is a problem, I will start demanding higher
(interest) rates. And as those rates get higher, that makes the debt and deficit problems worse for France, and it starts to
spiral.
So Draghi is going to end up having to buy a great deal of debt. And it remains to be seen if the Germans will allow him to
buy the amount of French debt that would be necessary to stave off a problem there. I think we are going to have to see a
restructuring of the Maastricht Treaty, which will be contentious. And if they dont, then the euro is going to come under
enormous pressure. Without a move to a fiscal union in Europe, you are going to see a breakup of the euro. Thats not
something that Europe is contemplating right now, but down the road thats a crisis. This is a fascinating audio interview
with John Mauldin. It is available now and you can listen to the audio by CLICKING HERE. He discusses the great dangers
the world faces going forward and much more.

Turk - We Are About To See A Repeat Of 2011 In Gold & Silver

With the Dow trading back above the 17,000 level, and the U.S. Dollar Index holding above 84, today James Turk told King
World News the world is about to see a repeat of 2011, when gold and silver skyrocketed, and stocks and bonds tanked as
the Fed announced the end of QE2.
Turk: After the big drop in gold and silver the past couple of weeks, Eric, the normal question to ask now is whether the
worst is behind us? We will see how this week develops, but todays bounce in the metals is a hopeful sign....
The precious metals are trying to stabilize, and the small base put into place today is the result. One could say that it is the
first baby-step to turning things around, but the turnaround that we all intuitively know and expect is coming has to start from
somewhere.
Of course only time will tell whether this mornings low and todays subsequent bounce is indeed the turning point. It could
be just a relief rally from the oversold condition that gold and silver find themselves in at the moment. There is no doubt that
gold and silver are very oversold, Eric. For example, each day last week gold closed in New York lower than the previous
day.
To have five lower closes in a row is unusual. It is just one sign how oversold the metals have become. The extremely
bearish sentiment for both gold and silver prevailing now is yet another sign. But it is interesting to note that neither gold nor
silver have broken below their 2013 lows. I see this an important point. Higher lows signal that an uptrend is in place. It may
not be much of an uptrend yet, but it is an uptrend.
And despite the extremely bearish sentiment in the precious metals, which is prevailing at the moment, gold is up about 2.5
percent this year. The more volatile silver is down about 3 percent, but that could easily be erased in a week or two - if this is
indeed the turning point for the precious metals. We should have a better picture by the end of this week.
The Federal Reserve has a FOMC 2-day meeting scheduled for Tuesday and Wednesday. So gold and silver may remain
quiet until the Fed announcement on Wednesday afternoon. But we are approaching the end of the Feds latest QE program.
It is important to remember that when the Fed ended QE2 in 2011, the stock market tanked and gold climbed. It will therefore
be interesting to see whether history repeats if the Fed announces the end of QE3 on Wednesday.
There is no doubt that the Federal Reserve has been operating dangerously. Its money printing QE-experiments have failed
to stimulate the economy in the way the Fed had hoped. Instead, QE just kept some illiquid and technically insolvent banks
afloat.
The other result is that QE has driven the stock market and the price of bonds into bubble territory, while at the same time,
the central planners have managed to keep gold under their thumb with a flurry of paper selling. If there is one thing markets
do not like, it is extreme overvaluation or extreme undervaluation, which explains, respectively, the key difference at present
between stocks and bonds on the one hand and gold and silver on the other. The paper assets are overvalued, and the
tangible assets are undervalued.
So what will happen if the Fed, on Wednesday, removes the prop that has been driving the stock market and the price of
bonds higher? What if the Fed ends QE3 without announcing another bond buying program? I think we will be looking at a
replay of 2011 and the return of asset prices back to the mean. This means stocks and bonds will fall, and gold and silver
rise.

Celente: Propaganda Aside, Its Bad Out There & Getting Worse
On the heels of the announcement from the Fed, today the top trends forecaster in the world warned King World News that
despite the propaganda, its bad out there and its getting worse. Celente also discussed the gold market. Below is what
Gerald Celente, founder of Trends Research and the man considered to be the top trends forecaster in the world, had to say
in this timely and powerful KWN interview.
Celente: The Fed just tapered a bit more, so they are only pumping $15 billion a month into the system. But I think its more
important to note that the OECD is cutting its assessment for global growth, and they are warning of a possible high risk
environment as well....
Its not just the economies in Europe and the U.S. that are struggling. Look at whats going on in China. China is also
talking about their own version of quantitative easing because their economy is slowing and the banking system is in trouble.
So its a global slowdown. When you look at the numbers in manufacturing, retail sales, employment figures, everything is
basically flat to down or only moving up just slightly. And this is with record low interest rates. For anyone who doesnt
remember, the Fed hasnt raised interest rates since 2006. And with these record low interest rates the economy is still
sluggish.
The mainstream media can spew out all the propaganda they want but the facts are the facts, and the truth is there is a global
slowdown and the economies around the world are struggling. Now the Fed is basically saying they dont know when they
are going to raise interest rates and its going to depend more on data than timing. So if the data continues in the direction
its going in, we are going to see low interest rates for the remainder of 2014.

Eric King: Gerald, Fed propaganda aside, whats really going on with the U.S. economy?
Celente: Just look at the data. If you look at retail sales, industrial production, housing, employment numbers, everything is
weak. Thats very important because if there was any kind of recovery we would have a lot of positive data coming out. But
its just not happening. And, again, this is global. Thats the most important point is that the economic struggles have now
engulfed the entire world.
China has been saying there would not be any stimulus program, but now they have flip-flopped because their economy is
sagging. By the way, if you look at the unemployment numbers in China, those with college educations cant find jobs. The
reason for this is because the only real job growth that is taking place is on the low end -- slave labor type jobs in
manufacturing. So China is facing a crisis as well, and their crisis is going to be even greater than that of the United States
because they have 1.2 billion people.
Chinas greatest fear is not the United States, Japan, or any other foreign nation -- its their own people. If they cant create
jobs, they are facing serious social unrest. And its barely reported in the United States the amount of riots, disturbances,
and social unrest that is going on in China. They have serious social and economic problems facing a large part of the
Chinese society.
Eric, in China, there are a staggering 70 million luxury apartment that remain vacant. Again, when you look at where the
highest unemployment numbers are among college educated people, you can see that those people who have the potential
take possession of those vacant luxury apartments arent getting jobs. So this problem isnt going away any time soon.
Celente: After the Fed tapering, they took gold and silver lower and the dollar higher. But this will only be temporary.
Whats going to turn the gold market around is when the Fed is forced to admit they need to pump more money fake money
into the system in order to prop it up.
I believe thats going to happen after they raise interest rates. When interest rates go up, what has been a minor recovery
comes to an end. The only thing that is sustaining this economy and the equity markets are the record low interest rates.
This has propelled the merger and acquisition activity to 2007 levels.
We are also seeing record numbers of companies buying back their own stock. This is what is boosting the equity markets,
not the fundamentals. But we will see a real panic on the streets when the economy begins to tank. And that will trigger the
unveiling of a new stimulus plan from the Fed. That new stimulus will take the gold price through the $2,000 level to new alltime highs.

China, Russia, Gold & A New World Order Rising From The East
Today an acclaimed money manager spoke with King World News about China, Russia, gold, and a New World Order that is
rising in the East. Stephen Leeb also spoke about how the Russians and the Chinese are planning to set up this new hub of
power in the East.
Leeb: I am watching what is developing between China and Russia. They have a shared desire to establish a region that is
completely independent of the West. China has had a persistent focus on gold....
Recently the Free Trade Zone in Shanghai has opened futures trading and expects to be the worlds hub in terms of gold
trading. But, Eric, these trades arent going to be denominated in dollars. These trades are going to be denominated in yuan.
Because the trades are going to be denominated in yuan this means there is going to be a real-time way of relating yuan to
gold. In the not-too-distant future it will be almost de facto that gold is backing the yuan. So this is the first substantive step
in establishing the yuan, and perhaps another basket of currencies, like the ruble, mark, etc, as being part of a new reserve
currency.
In todays world, I continue to believe that any long-lasting reserve currency is going to have to have gold backing.
Remember, Eric, the Golden Age in the United States was post-World War II. During the period between 1946 and the early
1970s the U.S. was still on a gold standard.
I now think the East is putting together some sort of version of what the U.S. had during that remarkable time period. You
can just imagine that as the Chinese and Russian militaries get a little bit larger, and as Saudi Arabia doesnt know where to
turn, the Chinese may look at this as an opportunity to see oil denominated in yuan instead of dollars. This may be what
Saudi Arabia is more comfortable with as well, especially after all of the destabilization which has been taking place in the
Middle East.
So a lot of the things that are going on suggest the whole Eastern part of the world is ready for something new. America
really cant stretch its military presence around the world indefinitely, and I think its clear that the combination of the
Russian military and the Chinese military is certainly a match for the U.S. in that part of the world. So I think they can
guarantee the Saudis security much better than the United States can.
If you look at Iran, who controls it, Russia or the U.S.? Remember that the Russians built Irans nuclear plants. We didnt.
Also, Iran has been off the radar screen and yet they are building a nuclear bomb.
But coming back to China and gold, their imports of gold have been somewhere around 1,200 tons this year. At a certain
point the Chinese are going to have more gold than we had at the end of Bretton Woods. So this move to a new world
currency is now unfolding.
Leeb also added: I just want to share a story from Bloomberg that shows how brainwashed our news media is in the West.
The story was basically saying that the Russian economy may really be hurt over the next 3 years because there is no
solution to this Ukraine crisis. So essentially Russia has to buckle down and be prepared for 3 years of suffering.

Well, Russia went through 10 years of suffering at the end of the Cold War and conditions were so bad that life expectancy
dropped. So Russia can go through that kind of suffering. But if Russia is going to go through 3 years of suffering, guess
what? The Ukrainians are going to go through Purgatory and probably wont survive.
Whatever suffering happens to Russia, you can multiply it by ten and you will see whats going to happen to the Ukraine.
This will also tell you what is going to happen to the Baltic States. And who knows what other parts of Europe are going to
be affected?
So the message here is not so much that Russia is going to suffer -- they will suffer some -- but what people should infer from
this is that Russia is prepared to drag this out for 3 years. And if they do, there will probably be no more Ukraine, and
probably no more Baltic States. So this will end in a massive victory for Russia and the East.
This is all part of a massive shift of power from West to East. So I think the move to trade gold in yuan is the first step in a
New World Order in which monetary policies will come from the East. Investors should get ready for this by owning gold.
Gold may drift for a short period of time, but over time this buying opportunity in gold will look like the Dow Jones in 1982.
That 1982 buying opportunity was the greatest buying opportunity for stocks in my lifetime, and I think this current
opportunity in gold will be seen as something similar.

Russians Stunned As Chinese Leader Pushes Gold Backed Yuan


Today a legend who was just asked by the Chinese government to give a speech to government officials in China told King
World News that the Russians listened intently as the leader of a state owned Chinese company pushed for a gold backed
yuan. John Ing, who has been in the business for 43 years, also shared many other stunning developments from his trip to
speak with a large number Chinese government officials.
Ing: Gold has made an 8 1/2 month low while the U.S. dollar has made a 4 year high. I have said repeatedly that gold has a
triple-bottom in place at $1,180. So I think thats the worst case and thats less than 3 percent away from current levels...
Weve already seen gold fall 6.5 percent recently, so I feel that the worst is over. The technical charts show that gold and the
gold stocks are very oversold, and of course the U.S. dollar and the stock market are very overbought. So my sense is that
this disconnect will not last long.
Also, Eric, I was invited to give a speech at the first ever Chinese Gold Congress, which was sponsored by the Chinese
government and the 5 big gold companies, including (state owned) China National Gold. There was a heavy Chinese
government representation (600+ attendees). The fact is that the Chinese remain bullish on gold and they have been buying
up to 1/3 of world supply.
All five Chinese producers echoed that their reserve life is something that concerns them. So all of them are looking
internationally to acquire reserves in the ground. Even the president of China National Gold said that the renminbi, which is
becoming internationalized, should have a gold backing.
It was also announced that the Chinese have planned another gold vault which will be equipped to store about 1,900
additional tons of gold. And that will be located across from Hong Kong in the Chinese city of Shenzhen. I believe that
brings the total number of gold vaults in China to four. This is necessary because they are such a big player in the physical
market and their presence in the gold market will only increase over time.
When I was in China the Shanghai Gold Exchange announced that they will be trading gold internationally, and they intend to
set the physical price for gold. The importance of that, Eric, is that they are going to initially introduce something like 11
renminbi contracts. So gold will be transacted and settled in renminbi instead of the U.S. dollar.
All the big houses are there -- HSBC, Goldman, ANZ, etc. In fact, recently weve seen even more evidence of the huge
appetite on a physical basis that the Chinese have. So together with the vaults and the changes at the Shanghai Gold
Exchange opening up for international investors, this tells me the Chinese are setting up to dominate the gold market in the
future as they continue to soak up the worlds available supply of gold.
I also found it interesting that the Russians were attending and listening intently at the Chinese Gold Congress. Im sure the
Russians were surprised at the open discussion of a Chinese gold backed currency. This shows that the Western sanctions
have moved Russia and China closer together as the Russians look to the East for financing. We also know that the
Russians have been big buyers of gold. The Russians have moved up their reserves from 600 tons to well over 1,000 tons.
So the Russians also continue accumulating gold.
Ing added: What we are seeing is the last gasp in terms of U.S. dollar strength. You see the Chinese, Russians, and other
countries buying currencies other than the U.S. dollar. In fact, this move away from the dollar will be one of the catalysts to
move gold higher. We seem to be in the midst of a currency war where every country is trying to weaken their currencies,
including the Japanese and the Chinese. These currency wars are a very favorable backdrop for higher gold prices. So on a
risk/reward basis, the downside is somewhat limited in gold and the sky is the limit on the upside.

War In Silver Rages As Peoples Confidence In The West Fades


Today a man who has been involved in the financial markets for 50 years told King World News that a war is now raging in the
silver market as peoples confidence in the West fades. John Embry, who is business partners with billionaire Eric Sprott,
also discussed the massive manipulation of markets by the U.S. government.

Embry: There is remarkable manipulation of key markets being conducted by the United States, in particular, and the West.
Everything possible is being done to elevate the dollar because the people running the country know that events are moving
against them....
There are these agreements between countries in the East to cut the dollar out of international transactions. This eventually
will have an enormously negative impact on the dollar.
And I really commend Robert Fitzwilson on his latest KWN piece, where he pointed out that gold, silver, and oil, are all being
aggressively manipulated down to weaken the adversaries of the United States. Lower oil prices hurt Russia as an example.
I have believed for some time that the Russians are clearly vulnerable on the oil front, and one of the best ways to hurt them
is to take the oil price lower. I understand that oil demand is off a little due to the weak economies, but I think there is an
even greater risk on the supply side. So that oil has come off $15 from recent highs seems more than excessive and has to
have some manipulation in it.
And with China now being the largest sovereign holder of gold, a weaker gold price works to the advantage of the United
States.
While all this is going on, there is an effort to make the U.S. economy look stronger than any other Western economy by
blatantly manipulating and therefore lying about the macro-statistics. The latest propaganda came with the August retail
sales numbers, which the mainstream media trumpeted as strong.
The strength in car sales is directly related to dramatic increase in subprime car loans, which is going to be a great disaster.
I also noticed that credit card debt is rising once again and is now reaching the highest level since the onset of the global
financial crisis. And the results of individual retail outlets certainly do not represent strong consumer spending. In fact,
there are a lot of disasters in the individual retail reports.
The consumer is neither strong nor sustainable. The job market is lousy, real disposable income for the vast majority of
people with the highest propensity to consume is falling, and the price of necessities, which average people spend the vast
majority of their income on, are rising much faster than the visible Consumer Price Index number that the U.S. government
reports.
Just to irritate myself further, I read an article by the ultra-Keynesian Paul Krugman in The New York Times that mocked
anybody expecting higher inflation. He wrote that anybody who has been in this camp has been wrong for years. What
Krugman conveniently ignores is that inflation embodies far more than a fake CPI number concocted by the U.S.
government.
As an example, there is massive financial asset inflation in stocks and bonds. And the fact that the CPI number is as weak as
it is relates to falling monetary velocity because banking is so impaired and most borrowers are either already over-indebted
or in such bad shape that they dont qualify for loans.
This means that the governments in the West havent been able to get leverage going through the banking system, the
leverage we have seen in all past post-recession expansions, and its reflected in the lower money velocity. So the
inflationary monetary policy manifests itself in financial assets, works of art, high-priced urban real estate, etc. There is
tremendous inflation -- its just going into particular asset categories.
But the day is coming where the public is going to lose all confidence in the so-called value of paper money as the central
banks continue to spew it into the system. And as the Western central banks try to get rid of their paper money, velocity is
going to explode. This is when we will see an extraordinary rise in inflation, and the obnoxious Krugman will finally have to
eat his words.
Embry on the remarkable war in silver: I would like to speak about the silver market for just a minute. Silver is in a total
lockdown mode, as you know. Silver has been pounded down to near the recent lows since coming off the $50 high.
Last week on one of the several sharp down days the open interest on Comex rose by more than 6,000 contracts, or more
than 30 million ounces, to nearly a record. This is contrary to the general action in silver. On particularly weak days in gold
and silver, open interest has tended to contract as longs capitulate and the winning shorts book their profits by covering their
short positions.
Whats going on now? In the silver market there appears to be a resolute long who has deep pockets and is prepared to take
on the cartel. If that's the case, with the shortage of physical silver in the world and on the Comex, this could get very
interesting when the worm finally turns. To put it mildly, Im really excited about the war in the silver market and what the
implications are for higher prices.
Embry added: One more thing happening shortly is the Scottish referendum. The British have brought out all the heavy
guns, including the entire City of London, to lobby against a yes vote because they know how disruptive Scotland's

secession would be. It would just add one more uncertainty in an already uncertain and dangerous geopolitical
environment. So I will be very surprised if the Scottish vote to leave, but in this environment anything is possible.

John Embry On The Wild Action In Gold, Silver & Other Markets
Today a man who has been involved in the financial markets for 50 years spoke with King World News about the wild action
in the gold, silver, and other key markets. John Embry, who is business partners with billionaire Eric Sprott, also discussed
the madness of Alibaba, the danger of Ebola, and more in this powerful interview.
Embry: I am focused on the recent carnage in the gold and silver markets. It has been the same story of constant paper
selling pressure in gold and silver, where they hit the markets with algorithm-driven paper short selling during the quiet
periods of trading. Last night silver fell over 40 cents in the blink of an eye. Silver is an asset that is now extraordinarily
undervalued by any metric you choose to use...
At one point on Friday silver had plunged 3.5 percent. And then, as I said, it was briefly down another 2 percent in the
overnight trading session.
This is manipulation of the worst sort and I dont know quite what the endgame is because when this is over the silver price is
going to increase many, many multiples of the current silver price. People should either add to their physical silver positions
now or hold what they have. Regardless, they should not let this artificial manipulation create enough frustration to separate
themselves from their silver. Silver will be one of the few life rafts available to investors when this whole Ponzi scheme
comes unglued.
I also want to add that I was fascinated by Michael Pentos brilliant KWN piece this weekend. There has been an economist in
the United States who has been predicting deflation for at least 20 years. And I was reading something by this guy the other
day and he was talking about the deleveraging going on in the United States as a sign that deflation is imminent.
I would submit based on what Michael Pento had to say that there is no deleveraging of any significance going on in the
United States at all. At the corporate level they are borrowing money hand-over-fist to buy their shares back. I see that U.S.
credit card debt is on the rise again, student loans are out of control, subprime auto debt is going wild, and collateralized
debt obligations are growing at an alarming rate again. It was only 6 years ago that these things were part of the problem.
Also, I was recently looking into the U.S. budget deficit. The U.S. has been talking about a budget deficit of just under $600
billion. Yet in that very same time frame it would appear that the funded debt of the United States has grown by exactly $1
trillion. So there seems to be a disconnect between whats being reported on the budget deficit and whats being funded.
So I would be inclined to pay more attention to the funded debt number than the budget deficit. Again, the funded debt
number shows there is no deleveraging going on whatsoever. And there wont be any deleveraging because of the fear that if
it ever gets under way we really will have a deflationary collapse.
So from an Austrian perspective the outcome remains only one of two possibilities with the most likely being that they will
print whatever money necessary to keep debt deflation from occurring and that will lead at some point in the future to a
hyperinflation.
Embry added: I thought the Alibaba madness last week was a little overdone. Heres a company that came out at a very rich
valuation, and yet the next thing I notice its up something like 38 percent, at a market cap of $238 billion. Thats a lot of
money to pay for a Chinese-based company. One article asked, do you trust these people enough to pay that sort of
premium to own their company? I just think its a sign of the times that there is madness afoot everywhere and this was just
another example of it.
Embry also added: I thought the Ebola situation was a containable problem but it continues to expand at alarming rates in
Africa. The question will be, can it be contained in Africa? Heaven help us if it ever gets loose in the Western world because
I think its doing untold damage to the African economy right now. The West is in enough trouble without the Ebola crisis
destroying what is an already fragile economy.

Two Shocking Charts Expose The Stunning Collapse In The US


With the Dow still trading above 17,000 and the U.S. Dollar Index holding near 85, today James Turk
sent King World News two shocking charts that expose the stunning collapse which has taken place in
the United States. Turk also discussed how a bankrupt company fits into the puzzle and what is
happening with gold and silver.
Turk: There are news reports today that the Indiana Toll-Road Co. is filing for bankruptcy. It operates
the motorway that runs across northern Indiana, between Illinois and Ohio, that is part of the U.S.

Interstate Highway System. At first glance this news may seem not worth mentioning, but some
important observations need to be drawn. The professed reason for the bankruptcy is the companys
debt, but there is more to this story....
The key point is why it is unable to service this debt, which is declining traffic.
The Financial Times put it this way: The fall in traffic volumes on U.S. roads since 2004 has undercut the financial
assumptions behind a series of deals devised in the middle of last decade during an infrastructure investment boom. Note
that the FT mentions U.S. roads in the plural because what is happening in Indiana is not unique. It is happening across
the United States.
The bankruptcy of this Indiana company confirms what a seven-year decline in gasoline sales is illustrating: People are
driving less.

The key to interpreting what is happening with this road in Indiana is understanding the bigger picture. So is this decline, as
the Financial Times says, because economic and lifestyle changes have prompted people to use cars less? Or is it just
another clear indicator of a declining workforce driving fewer miles in a weak economy, which has also stretched consumer
budgets so they are driving less?
I think the latter, particularly when considering the growth in population. The decline in gas sales no doubt reflects, in part,
increased fuel efficiency. But if gas sales per person were illustrated when looking at the total population, the decline would
be even more dramatic.
There is no doubt about it -- Americans are driving less. This has reduced the countrys demand for gasoline. It has also
reduced what governments take in each year from the gas tax. This is also an important point. The federal gas tax has not
been raised since 1993. So declining fuel sales have brought the Highway Trust Fund -- yet another government fund -- to
insolvency.
As the following chart shows, the US Department of Transportation is saying the fund is running out of money.

Now what does all of this have to do with the precious metals? Basically it underlies the key reason for owning physical
gold and silver.
There is too much debt in the economy that cannot be serviced. This is what the creditors of this bankrupt Indiana company
are finding out.

The price of financial assets has been forced up by all this debt, which in turn is making

gold and silver relatively cheap. It is this point that we should be focusing on after last weeks
drubbing, as the precious metals return to the chore of base building. Also note that although silver made a
new low price in its now 3-year correction, gold is still holding well above the $1,180 low it made in June 2013. This
divergence is a sign that the precious metals are oversold and due for a bounce.

Richard Russell - The Grim & Devastating Tragedy Of America


Today the Godfather of newsletter writers, 90-year old Richard Russell, exposed the grim and devastating tragedy of
America. The 60-year market veteran also discussed what is happening with gold, the desperation of the Fed, and he also
takes KWN readers on a trip down Memory Lane.
Russell: Fridays market closed with the Dow eking up to a new record high of 17,279. Transports were down 43 and
obviously did not confirm the new record high in the Dow. To those who believe the market will remain range-bound in a high
area, I recommend physical silver and gold and CEF. And for the adventurous, I recommend W.R. Berkley (WRB),
an interesting insurance stock that may be a mini-Berkshire Hathaway.
As for the Fed, it appears we will have zero interest rates well into 2015. The Fed is of the opinion that the US economy can
sustain itself without QE. The Fed will experiment (so they say) by omitting QE in October. Can a group of men that call
themselves the Federal Reserve outthink the forces of supply and demand? The great experiment is in action. We await the
outcome with bated breath.
A war thats not yet a war General Dempsey, Chairman of the Joint Chiefs of Staff, said this week that US combat troops will
be sent into Iraq if air strikes fail to rout ISIS. This put President Obama in an uncomfortable spot. Dempseys comments
came just a week after Obama ruled out using US ground troops in the battle against ISIS, saying the fighting would instead
be done by whats left of the Iraqi army.
........................................
Reminisces: One advantage of my age is that I have seen what years of minor but compounding inflation has done to our
cost of living. Excuse me, but I am going to reminisce a bit. I attended high school at Horace Mann School for Boys, located
in Riverdale, New York. Each day I was given seven nickels, which was to include my fare on the subway and my lunch. The
fare on the subway was one nickel. This took me from midtown Manhattan, 35 miles to Riverdale and school.
At the base of the hill leading to school was a White Tower an early fast food hamburger store. Hamburgers were priced at
5 cents each, and I would usually have three hamburgers for lunch, plus a glass of water. At around 1938 or 1940 a chain of
restaurants opened called Chock Full ONuts. They sold a delicious cream cheese sandwich on a special bread with a cup of
coffee (refills free) for 17 cents.
My father took our family out every Sunday to an upscale restaurant on 72nd St., near Broadway. I still remember the
name of the restaurant, Fame Food. And the price for a full-course dinner was 90 cents. When Fame Food raised its Sunday
price to $1.10, my father was furious and halted our visits to Fame Food.
In those days the borough of Brooklyn was out of bounds for Manhattan-ites. In the 35 years I lived in Manhattan, I visited
Brooklyn only twice. I had heard about the wonders of Coney Island, and one day a few friends and I took the subway to
Coney Island. When we got there we bought a hot dog named Nathans Famous (now available at Nathan's restaurants and
grocery stores worldwide, from that humble beginning in Coney Island). After changing into our swimsuits (lockers to
change into swimsuits cost a nickel), what I remember about the swimming was that I had never seen so many obese people
wallowing about in the water.
Those were the days when debt was equated with evil and semi-bankruptcy. People hesitated to take out a mortgage. When
mortgages were paid off, there were frequently mortgage parties. One of my favorite pastimes was going up to Harlem with a
few of my high school buddies. There, we would marvel at the exotic clothes in the windows. Peg pants (tight at the ankle),
wildly colored shirts and steel-tipped shoes.
One of the interesting facets of growing to the age of 90 is how clear ones memory is. I frequently remember with clarity the
names of stores I used to frequent. Whoops, heres something that just came to mind: on the Times Square subway stop
there was a stand that used to sell malted milk for a nickel. I never missed a chance to drink one of those malteds, although
God knows what was in them.
........................................
Late Notes The US dollar dropped sharply near the close. But with the VIX at a low 13.89, its clear that traders saw no need
for downside protection. The Dow closed down 107, just 172 points above the critical 17,000 level. Following the Dow, the
Transports closed down 119.
The good news about Scotland is now out. Scotland will remain in what is left of the British Empire. Britain still retains some
of its vast power. The stalwarts of the eurozone are Germany, France and Britain. In the meantime, gold remains under

pressure as it builds its enormous base. Personally, I never sweat a lower gold price because unlike a stock, gold, a measure
of pure wealth, cannot go bankrupt. Like Berkley, gold can be held from generation to generation. Measured over the years,
unlike the dollar, gold has held its purchasing power.
Consider this: from 1930 to the present, gold has risen from $29 an ounce to over $1200 per ounce. Gold pays no dividends,
so the amazing advance from $20 to $1200 has been accomplished without dividends. Because gold represents pure wealth,
and ultimately safety from bankruptcy, it needs to pay no dividends to attract investors. From before Biblical times, gold has
been the ultimate symbol of safety and power. History shows that gold moves towards the most powerful nations. The
nation that is accumulating gold runs the world as we know it.
The great tragedy of America is that it has lost its gold. Thus nothing stands behind the dollar but the full faith and credit of a
US that has lost its gold (no wonder the US refuses to release an audit of its gold or non-gold holdings).

Thank God Russell is with us to help people get through what will be seen in the fullness of time as one of the most chaotic
and catastrophic periods in world history. I would urge all KWN readers around the world to subscribe to legendary Richard
Russells Dow Theory Letters by CLICKING HERE.

Sovereign Buy Orders In Gold, But Watch Silver For Price Gains
Today an outspoken hedge fund manager out of Hong Kong told King World News that we are now seeing aggressive
sovereign buy orders in the gold market taking place at the LBMA. William Kaye, who 25 years ago worked for Goldman
Sachs in mergers and acquisitions, also discussed the physical markets for both gold and silver, and said that silver will be
the one to watch in the future.
Kaye: I think either this is the bottom or we are very, very close. I say that because we are deep within levels where we are
seeing evidence of sovereign-sized gold buyers, particularly at the LBMA afternoon fix..... I also think we will be seeing real
critical mass in a number of foreign markets that look very promising. The gold market that is now up and running ahead of
schedule is in Shanghai. This is another potential catalyst for true price discovery. This development can only be bullish for
gold. China is the largest source of demand for gold in the world. So this is another brick in the wall in terms of the recovery
in the gold price.
Right now sentiment in the gold market is as negative as I can ever remember it. Its even worse than it was at the bottom in
June of 2013. So the elements are definitely in place for a rebound to the $1,350 area. After that we will have to wait and
see.
Eric King: Yesterday we saw silver hit a new secular bull market low in terms of sentiment. There were an astounding 20
percent fewer silver bulls yesterday than there were at the bottom of the 2008 - 2009 collapse.
Kaye: In recent times silver has tended to lead gold. In the last downturn silver actually started declining first. So I agree
that the bigger bang for the buck will actually be in the more volatile silver market. And the premiums in Shanghai would
tend to validate that proposition. There are very meaningful premiums now being paid for physical silver, which obviously is
in scarce supply in markets like Shanghai. This just casts further doubt on the legitimacy of the price we are seeing quoted
on the Comex.
Eric King: This paper charade in the metals markets, how much longer can this go on?
Kaye: Well, its not sustainable. The key is the timing. There is no doubt in my mind that blatant manipulation of gold and
silver is going on and has been going on for an extended period of time. So theres no question that precious metals have
been overtly suppressed by the central planners. The question is, when will they stop being able to get away with this?

Gold and silver are trading at valuations that are far


too cheap if there was anything close to resembling a free market. Im extremely optimistic at this point
What I do know is that these markets are not in equilibrium.

because the West cant keep finding gold in order to flywheel the huge demand that has been created by these artificially low
prices. And this has been going on for an extended period of time.
Theres a lot of anecdotal evidence to suggest we are getting close to the end of the Wests ability to keep a stranglehold on
gold and silver prices. We have seen the deals to obtain individual countrys gold such as Ecuador. We have also seen the
financing schemes with India which are obviously nothing more than schemes by the West to get gold out of Indian vaults
and make it available to the Western central planners in order to continue the price suppression scheme.
So the anecdotal evidence is that there is already elements of desperation in the Wests efforts to continue the artificial price
suppression of both gold and silver. So I am optimistic that it will end sooner rather than later.

Gold, Silver, Hindenburg Omens & Full-Blown Global Collapse

Today an outspoken hedge fund manager out of Hong Kong spoke with King World News about gold, silver, Hindenbug
Omens, and a full-blown global collapse. William Kaye, who 25 years ago worked for Goldman Sachs in mergers and
acquisitions, also discussed what investors really to know -- what does it all mean and how will this all end? Below is what
Kaye had to say in his outstanding interview.
Kaye: We are also watching the equity markets, which tend to trade inversely to the metals. This is a potential positive for
gold and silver if the markets finally lose traction at these levels and begin to decline.... If you think about it, it makes a lot of
sense. If people sell an over-owned and overbought asset class such as equities, that money has to go somewhere. It would
flow into perceived safe havens but it would also include the true safe haven which is gold. This would provide additional
fuel to the upside in terms of a bounce in the metals from extremely oversold levels.
Eric King: You dont count because you are a veteran in the business and you can handle this kind of carnage, but for
investors around the world who have suffered through this brutal bear market in the metals, who have turned in some of their
fiat money for physical gold and silver and who continue to do so but are just worn out by the endless pressure on the metals
from the central planners, what do you say to them?
Kaye: What

I would say is that they should continue to buy physical gold and silver and they should
find a place outside of the banking system to store it, and they should count their wealth in ounces,
not in some fiat currency such as the dollar. Because the day will come when they will be very, very
happy with the investment they have made.
Meanwhile, if people have invested money that they dont need to live on, they dont need to sweat it out. They should just be
very confident their day will come, and when it comes they are going to be a very, very happy person in what will most likely
be a very unhappy world.
And if people do have some free cash lying around, which is hopefully not in an unsafe bank, its probably not earning
anything. If its in Europe, it might even be earning negative interest.

My point is that there is virtually no


opportunity cost for many people to put money to work in what are now deeply undervalued levels for
both gold and silver.
Again, investors need to store their metals outside of the banking system and be patient because they will be rewarded.
People just have to be patient and not panic or let the price movement affect what they know is the underlying truth -- that

For people who do not hold gold and


silver, that reset will be extremely painful because most of them will essentially see their careful
savings of a lifetime wiped out.
this current financial system is doomed to failure and will eventually be reset.

Kaye added: Embellishing on the earlier point I made that global markets appear to be topping or may have already topped,
we now have this Hindenburg Omen. This is pretty complicated for people and Im not going to spend 30 minutes to explain
it, but the most interesting characteristic of the Hindenburg Omen is that its characterized by serious market divergences
that typically presage a tremendous increase in volatility in the markets and often a significant decline and sometimes a
collapse in stocks.
The most important characteristic of the Hindenburg Omen phenomenon is an unusual number of new highs, which is not
surprising when markets are hitting new highs, but equally, by a couple of standard deviations, an unusual number of new
lows.
Now this is a curiosity that is normally seen only before a major decline as part of the topping process in equity markets. It
was seen in 1929 before that collapse and subsequent depression. It was seen in 1987. It was also seen in 2008. Again, right
before the market collapse in all of those years, and Im just using three of many examples, this Hindenburg Omen appeared.
We have now had two consecutive readings of the curious phenomenon that is the Hindenburg Omen, which have pointed
out the negative divergences in the major markets. This strongly suggests major market instability is ahead, and perhaps
even a full-blown collapse. In fact, there is a 25 percent chance of a collapse just based on the mathematics.

Stunning Demand One Individual Buying $40 Million Of Gold


Today the man who owns one of the largest gold and silver dealers in the United States told King World News that there is
massive and stunning buying of physical gold and silver now taking place at these levels. One individual has contacted him
about purchasing $40 million worth of gold, which is equivalent to one ton of physical gold. Below is what 41-year market
veteran Bill Haynes had to say about the massive physical gold and silver buying.
Eric King: Bill, from what I understand there is massive buying of physical gold and silver that is now taking place.

Haynes: Eric, we have huge buying in gold and silver here at the bottom. Our business has increased a stunning 50 percent
over the past few months. To give you just one example, there is an individual who is making an incredibly large purchase of
physical gold....
This one individual has approached us and is shopping the market for $40 million of gold. And, Eric, this is just one person.
Think about that for a minute. These are the types of things you see at major market bottoms. You get some really smart
money stepping in and buying. So I think we will be looking at higher prices into the end of this year and going into next
year.
Eric King: There are many individuals who are stepping in here to buy physical gold and silver at these low levels. How
long can the artificial price suppression continue with prices this depressed, especially when you see this type of increased
physical demand? As you said, thats just one individual who is buying $40 million or one ton of physical gold -- one buyer.
Haynes: Eric, Im not sure how long the price of gold and silver can stay down here at these levels with this type of massive
demand for physical metal. This will eventually lead to a bottleneck in terms of supply, and that will happen quickly if prices
continue to weaken like they did in 2008.

It is also important to note that we are selling huge quantities of silver. We are seeing massive buying of both silver bars and
coins. So we are seeing signs that a major bottom is developing here. Im not saying prices cant weaken a bit further before
they go significantly higher, but as I mentioned earlier, this price drop is bringing huge buyers of physical metal and thats
exactly what you see at a major bottom.

Maguire - Final Stages Of Historic Capitulation In Gold & Silver


Today London metals trader Andrew Maguire told King World News that what we are seeing in the gold and silver markets is
the final stages of a historic capitulation. Maguire also said there was a large buyer in the silver market. Below is what
Maguire had to say in Part II of a series of interviews that has now been released on KWN.
Maguire: Eric, we are really at the final stages of what is a historic capitulation point. Of course we are going to see options
and news event gaming continue, but it will be inconsequential in the big picture because the true supply/demand
fundamentals will actually be determining a real price that is far less influenced by the synthetic dilution that we are seeing in
todays markets....
Now, Eric, price discovery is finally moving to where the physical markets are. And as these markets are springing up all
over Asia and the Middle East, things are going to change.
Here in the West we don have delivery markets. We have bank run casinos like the CME, Comex, where the game has been
historically rigged by insider member banks. And over time this has created massive dilutive price distortions that dont
anywhere near reflect the real supply/demand fundamentals.
If one only looks at the evidence, its right there for us to see right now. The primary bullion banks are definitely exiting their
proprietary Comex positions. And this is leaving the remaining open interest to be gamed by robots who are chasing
declining open interest amongst themselves. They are just running over any remaining real money.

... What sets this historic time apart from others and will insulate investors from another wash and rinse in that price
discovery process is that price discovery is actually migrating to the physical markets. And these large investors are not
buying synthetic gold. They are vaulting the real thing, well away from the shark-infested Comex waters. I give it until the
first of the year before we see the first signs of a major derivatives blowup.

And, Eric, physical demand has been enormous these last few weeks. Silver has had a very large physical buyer active in the
last four weeks. And weve seen an enormous 13,715,000 ounces, or 426 tons of silver added to the SLV ETF. Now, Shanghai
warehouse stocks have conversely reached an all-time record low at only 80.5 tons (of silver).
Yesterday we had reliable reports of a 21-ton gold purchase at the (London fix). This is just a fraction of what weve been
seeing being accumulated since gold broke through the $1,300 level on the 19th of August. So sovereigns and central banks
are accumulating all the way down, while paper longs throw in the towel.

And this is why unleveraged physical market buying flies under the radar for so long, while leveraged players swamp the
market with their synthetic supply. And the trouble for these sellers, whether short or long, is the physical flow is now oneway, and its a non-return valve. So watch as deleveraging plays out.

John Embry - Silver Is The Cheapest Asset In The World Today


Today a man who has been involved in the financial markets for 50 years spoke with King World News about the Goldman
Sachs tapes, and also said silver is the cheapest asset in the world today. John Embry, who is business partners with
billionaire Eric Sprott, also discussed the endless stream of propaganda from the U.S. government.
Embry: Michael Pento did an absolutely fantastic piece for King World News over the weekend. I wasnt sure what Pento
was going to do to top last weeks brilliant piece about debt deflation, but he came through again....
Nothing emphasized the insanity of what is taking place in todays global stock markets more than that stupid internet
company Pento highlighted called Yo. Im just flabbergasted that internet company has any value at all.

Turning to the propaganda in the United States, the GDP upgrade in the second quarter was 4.8 percent. That number is an
insult to anybody with an IQ exceeding that of a grapefruit. I spend a lot of time reading John Williams Shadowstats, and I
can tell you that the U.S. government is just making these GDP numbers up. This indicates to me that there is a huge
problem in the United States. They are afraid of a major crisis that is happening behind the curtain.

And as far as I can see, everything is being done right now to artificially elevate that value of the U.S. dollar. This tells me
that U.S. authorities are becoming increasingly afraid of the dollar being rejected internationally. And in my opinion they
should be afraid as Russia, China, etc, are planning just such as undertaking.
As an example, I see that the Canadian dollar has been crushed recently. Its down under 90 cents vs the U.S. dollar. It
wasnt that long ago that the Canadian dollar was trading at a significant premium to the dollar. And I would say that in many
ways the situation in Canada is better than it is in the United States. So the U.S. dollar is being elevated for reasons that have
nothing to do with the true fundamentals.
That brings me to another thought. In reality, if the U.S. dollar is the worlds strongest currency, which it appears to be in the
very short-term, I cant think of a better endorsement for gold and silver. The U.S. is, for all intents and purposes, bankrupt.
The dollar will become increasingly more worthless with the passage of time, and gold represents real money with absolutely
no counterparty risk and you do not want counterparty risk in this mess the world finds itself in right now.

Embry added: The action in silver is becoming more and more bizarre with each passing day.

Silver is the cheapest

asset in the world today. Silver was hit hard once again shortly after the opening of trading in the access market. Silver
fell about 25 cents, or 1.5 percent, in the quiet trading period.
The silver market has continually been experiencing these brutal attacks to the downside. The statistic that is mind-boggling
is that in the quiet access market, at the opening, silver has fallen 106 out of the last 110 trading days. And its probably
traded down at the opening in the last 60 straight trading days. Thats an algorithm being employed to knock it down in order
to set the tone for trading in the silver market.
It is setting up one of the greatest silver buying opportunities in history.

I would just encourage the KWN readers to

take advantage of this artificial manipulation and buy all of the physical silver they can get their hands
on at these ridiculously low prices.
Embry also added: Im fascinated by Bill Gross leaving Pimco. The suggestion by the New York Times was that he left
before he was booted out. I have a very high regard for Gross. Ive been reading his stuff for years and I think hes an
incredibly smart guy. I think he also realized that trying to be a bond guru in this environment, particularly to the extent that
he uses derivatives, is a really tough, if not impossible, job. So I think getting out of Pimco might work to his advantage. But
quite frankly, if I had any assets at Pimco I would have second thoughts about leaving them there.
Embry closed with this final thought: I found the Goldman Sachs tapes fascinating. The greatest line about those tapes
came from Michael Lewis, who said, The Ray Rice video for the financial sector has arrived. I think thats a brilliant
comment. Not that anything she said came as a surprise to me, but what did surprise me was that she had the courage to say
it. This just exposes the extent to which the financial sector is totally corrupt.

Total Corruption In Global Markets & Silver In Backwardation


With the Dow still trading above 17,000 and the U.S. Dollar Index holding near 86, today James Turk told King World News that there
is total corruption in all global markets and silver is now in backwardation. Turk also discussed gold and the coming Great Reset.

Turk: I have been watching the silver price as we speak, Eric, and December delivery is trading between 2-to-3 cents below
spot. So silver is clearly in backwardation according to the price quotes I receive here in London, which are based on
dealings in the actual physical market. In fact, silver has been in a persistent backwardation in London even as the price of
silver continued to fall these past few weeks.... I believe that it wont surprise you, Eric, when I say that I dont even follow
Comex futures prices anymore, and havent for some time. Comex prices are not a true reflection of market conditions.

A lot has been said and written about the artificial nature of the paper-driven markets in New York, so this is old ground, and
there is no need to get into it. But sometimes it is useful to restate the obvious, which is that a paper promise to deliver
something in the future is entirely different from buying or selling that same thing today. And this observation is particularly
true in a world in which - to use Chris Powells wonderfully incisive statement - there are no markets anymore, only
interventions.

At the moment, this difference between paper silver and physical silver is particularly clear. But the same thing could be said
about the gold market, although not quite to the same extent. In short, there is a world of difference between receiving a
promise versus owning a tangible asset.

This difference was highlighted, Eric, in the excellent interview you had this weekend with Andrew Maguire. And it is reflected
in the fact that as we speak, December delivery for paper silver is cheaper than buying physical silver today. This abnormal
condition reflects the true tightness prevailing in the physical market for silver.

But I dare say that when Comex posts its settlement prices later today, those prices will not show any backwardation. The
spot price reported on Comex is as artificial as some of the LIBOR rates the banks reported before that market manipulation

and corruption became mainstream.

Like the LIBOR scandal, apparently Comex spot prices are pulled out of thin air. I assume this is done to make the shorts the big bullion banks - look good by showing a low spot price. It is not a coincidence that these big bullion banks are the
same banks that were reporting false LIBOR rates to make themselves look financially stronger and less risky by claiming
they could borrow at rates cheaper than the actual rates at which they were borrowing.
Despite the big fines, fired employees and public hand-wringing, it seems the culture within these banks hasnt changed. So
what can we do in these unusual circumstances where regulators turn a blind-eye and markets are clearly corrupt and
entirely manipulated?

There was an interesting comment this morning in the Financial Times that is worth considering. The article discussed the
surprising news that Bill Gross left Pimco, the firm he co-founded and built up over four decades. In the FTs conclusion, he
is a potent symbol of a distorted investment world.
The FT used here the politically correct word distorted rather than the more descriptive manipulated. But one does not
have to read too carefully between the lines when the FT writes that governments are intimidating or at least wrong-footing
the bond gurus, which I think is the key point. Do not get wrong-footed here. Ignore fictitious Comex prices. Dont take
your eye off the ball. Continue to focus on accumulating physical gold and physical silver because the Great Reset is
coming.

Ebola Crisis, America Headed For Lockdown? Gold, Silver & Fed
Today one of the legends in the business warned King World News about the Ebola crisis and the possibility of America
being headed for a lockdown. Keith Barron, who consults with major companies around the world and is responsible for one
of the largest gold discoveries in the last quarter century, also what is happening with the gold and silver markets.
Barron: Yesterday I traveled through Denver International Airport. I was watching the news in one of the airport restaurants
and the story was being about the person infected with Ebola, who had traveled through Dallas International Airport and is
now in a hospital in Dallas. Its now a confirmed case of Ebola by the Centers for Disease Control (CDC)....
They claimed that the individual with Ebola was not infectious and that he was five days away from becoming infectious. So
they were urging people not to worry.
I thought about this as the news was being transmitted and I looked around at the people inside this airport restaurant and
quickly realized that I was the only one who was watching the news break about the first Ebola case in the United States.
Everyone was blithely unconcerned. But had that individual traveled from Liberia to America just five days later, what would
have happened would have been complete and utter turmoil.
There are no safeguards in this country right now to stop somebody from entering the U.S. who looks like they have a fever
or some type of sickness. But just imagine what steps will be taken by the U.S. government if Ebola begins to take hold in
this country.
In a KWN interview on August 28th I warned that Ebola was quickly becoming turning into a major crisis:
The World Health Organization just pulled its people from Sierra Leone because there were a couple of people in the hotel
where they were staying who were infected. There is no containment whatsoever on this. Just two weeks ago a clinic in
Liberia was overrun and people were running off with bedding infected with the Ebola virus.
So this is quickly turning into a disaster for humanity. Many people could die because of this outbreak. I think we are going
to see an explosion of new cases over the next six weeks after the incubation period is complete. Much air travel to Africa
will cease. This will have short- and long-term consequences for Africa's economies. Ebola is quickly turning into a major
crisis. We still dont have a cure for this disease and lets hope to God that the health workers can contain it and it doesnt
make its way to North America.
Now just imagine what would happen if we get the first case Ebola in the United States where someone gets infected by
another individual who is traveling. What do you think that would do to commerce in America? What do you think that is
going to do to traffic at the malls, movie theaters, or attendance at schools?
People may not realize this but there is nobody attending school in Sierra Leone right now. Its not because the schools are
closed, its because everyone is scared to death of coming in contact with this thing. I have talked from time to time about an
exogenous event that comes out of left field that is going to rock the global economies and financial markets. This Ebola
crisis has the potential to set up another 2008-style crash.

So far the U.S. government has been very slow to react to this crisis and the problem is this is a very serious situation. I am a
trained scientist with a PhD and I think most people who are trained in the sciences certainly understand the severity of this
crisis. All its going to take is one individual walking down the center isle of an airplane who is hot and sweaty and making
contact with individuals on a crowded plane and then we have multiple people infected. They can then infect a whole bunch
of other people and this could potentially get out of control.
I can then see the front page of the Wall Street Journal saying, America in lockdown. Unfortunately I think this is going to
happen if there are not serious measures which are immediately taken to avert this disaster from spreading. I cannot stress
enough to KWN readers around the world how much this Ebola crisis scares the hell out of me. This Ebola is horrible, nasty
stuff.
Barron added this regarding the action in gold and silver: As Ive said for some time now the gold and silver markets are
phony, contrived markets. Gold and silver prices are working on the back of manipulation in the paper futures markets and
low interest rates. And eventually it (the manipulation) is going to break because history has shown that all artificial pricing
mandates eventually come apart at the seams.
But the road to true price discovery for the gold and silver markets is going to have to be arrived at by the natural market
forces overwhelming the Fed and other central banks, but right now they are putting up one hell of a fight. The Fed has been
doing everything it can to halt true price discovery in these markets.
We saw flashes of true price discovery being unleashed in the gold and silver markets in 2011, but the situation was quickly
turning into a disaster because it was exposing the fraudulent Western fiat-based paper Ponzi scheme that is the current
financial system. So over the last several years an incredible amount of negative energy has been applied to the gold and
silver markets in order to suppress prices. This suppression has been mission critical for the Fed in order to keep the dollar
from collapsing.
The situation in the mining sector has become so bad that its very reminiscent of when the sector was on its knees back in
2000 and 2001. There is virtually no exploration going on because the risk is no longer rewarded. But people need to
remember what happened in the years after 2001 -- there was a massive bull market that began in the both the metals and the
shares.
Weve been in this bearish cyclical phase of the secular bull market for years. However, if we dont see a major rally in the
prices of gold and silver, you are going to see a great many mines closures. This will only serve to further cripple what will
already be declining future mining output and this will definitely exacerbate the ultimate upside explosion in the metals. So
we are close to a major point of inflection and people just need to hang on at this point. History has always shown that all
artificial manipulations are eventually overrun and this one in gold and silver will end like it did in the 1970s -- in an upside
mania. The manipulation has all but guaranteed that.

Pento - Expect 2008-Style Collapse But Gold Headed Higher


On the heels of another wild week of trading in global markets, today Michael Pento warned that global markets are now set
for a 2008-style collapse. Pento also says that investors must own during the coming turmoil because it will act as the true
safe haven it has been for thousands of years.
October 4 (King World News) - Expect 2008-Style Collapse But Gold Headed Higher
Dollars Ride is About to End
Under the stewardship of Shinzo Abe, Japan has become a global leader in debt, currency devaluation, and inflation.
Unfortunately for the Japanese, Abenomics is also leading Japan into a hyperinflationary depression, as the first of his three
arrows has shot right through the yen and put a gaping hole in the wallets of every Japanese citizen....
The Bank of Japan has placed all its chips on the bet that inflation will cure all the nations economic problems. Making
deflation Public Enemy No. 1 is rather convenient when your country's public debt to GDP is the highest in the world. To end
deflation, the central bank has purchased 70 percent of all newly-issued Japanese Government Bonds. All this money
printing is intended to get prices rising, and it has been very successful. Japan's consumer prices rose 3.1 percent in August
from a year earlier. Prices for fuel, light, and water rose 6.4 percent on the year. But as real wages continue to fall, the policy
appears to aim to destroy the Japanese middle class.
In the nonsensical world of Abenomics -- where inflation is viewed to be the progenitor of growth -- the 3.1 percent CPI
reading is deemed insufficient. This is because the core rate of 1.1 percent was far shy of the 2 percent level they are aiming
for. So, as expected, there are calls coming from the lobotomized economic experts in Japan for yet more money printing
from the BOJ.
Japans experiment with Abenomics would be much more interesting if we didnt already know how it ends. This so-called
experiment of massive debt monetization has already been tried in countries such as Weimar Germany and, more recently, in
Zimbabwe, with disastrous results. The misguided policy of using inflation to create growth is predictably causing asset
bubbles in JGBs and stocks. The BOJ is tirelessly printing money to monetize nearly all the enormous debt load of the
Japanese government and to buy stocks. This has ballooned the central bank's equity portfolio alone to be an estimated 7
trillion yen ($63.6 billion). But all this has done nothing to boost real GDP, balance trade, or boost real wages. In fact,
Industrial production shrank 1.5 percent month-on-month in August and spending among Japanese households fell a
steeper-than-expected 4.7 percent.

The Japanese economy has reached the point of no return. The BOJ will continue to print yen until the people of Japan,
unable to take any more pain from intractable inflation, insist on a change of course. The real solution for Japan will be to
explicitly default on its monstrous debt.
The major beneficiary of Abenomics has been the value of the U.S. dollar. But this will not be the case for very much longer.
There appears to be a trenchant divergence between the monetary policies of the BOJ, and those of the Federal Reserve. The
market has become convinced that the Fed will soon be raising interest rates, while the BOJ continues to reckless print
money. This has caused a large increase in the value of dollar vis--vis the Yen.
The dollar is going higher because of the misperception that the U.S. economy is strengthening. Markets are also convinced
that the Fed will have a graceful exit from QE and a smooth transition to interest rate mean reversion. But this could not be
further from the truth. The US economy is still highly susceptible to even slight interest rate hikes. This is why Q1 GDP was a
negative 2.1 percent. The 10-year note went from 1.6 percent in May, to 3 percent by the end of 2013. Keynesians blamed
snow for the negative first quarter, but our over-indebted economy falls apart once debt service costs increase -- even from
such low levels.
As the Fed exits QE and prepares the market for rate hikes, we see the Case-Shiller home price index fell 0.5 percent in July,
the biggest drop since November 2011 and the third month in a row of such declines. The Russell 2000 is down 12 percent
from its March highs, and half of the NASDAQ is in a bear market. Commodity prices are crumbling as the economic data is
weakens. Pending home sales, the ISM Manufacturing Index, construction spending, and factory orders all recently came in
worse than expected.
QEs purpose was to boost real estate, equity, and bond prices. After six years of successfully re-inflating assets, the Fed has
duped itself and the markets into believing it can exit monetary manipulations with impunity. So get ready for the resumption
of plummeting asset prices as we experienced in 2008.
But remember, central banks first fear is deflation. The Fed under Chairwoman Janet Yellen is certainly not the exception,
and she will do whatever is necessary to curtail the dollars strength. This is why the Fed will not be aggressively hiking rates
in 2015; and could even start another round of QE in the near future.
Much like the BOJ, our central bank firmly believes that inflation can somehow lead to prosperity. After asset bubbles
crumble and the Fed re-engages, the true anemic state of the dollar will be revealed.
Most importantly, it is crucial to understand that the intrinsic value of the dollar is not rising. Real interest rates in the United
States are still very much negative and the money supply is growing far faster than real GDP. So the dollar is rising only if
measured against those countries whose central banks are trying to depreciate their currencies. And the U.S. Fed is about to
rejoin that effort.
If they have any discretionary investment income left, the people of Japan should be aggressively selling their paper money
and buying gold. It wont be long before all holders of fiat currencies are forced to do the same.

Man Who Executed QE1 For Fed Says Own Gold, Fiat Will Burn
With the Dow punching back above 17,000, the US dollar surging and the gold market getting hit, today King World News
spoke with the man the Fed called on to execute QE1 and who also set up the Feds massive trading room, former Fed
member and former Managing Director at Morgan Stanley, Andrew Huszar. What he had to say might surprise KWN readers
around the world. He warned that investors must own gold because the reckless behavior of the Federal Reserve is going to
lead to a serious crisis by creating a major selloff in the dollar and U.S. Treasuries. Below is what Huszard had to say in this
remarkable interview.
Huszar: I think the Greenspan legacy is a fascinating topic for the Fed. If you are going to ask me what my No. 1 take on the
Greenspan chairmanship is, its that he was in the seat (of power as head of the Fed) way too long -- 19 years. I think we saw
a pretty dramatic shift over time in the way he actually managed the Fed.

Much of the consequences of what happened in the first decade of the 21st century, as well as QE, is directly related to
decisions he made. ... I think that because Greenspan was in that seat for so long he lost perspective, and I think his legacy
going forward will be a quite negative one....
The Fed has kept its foot on the pedal, and I wonder whether this (recent) piece (from Greenspan) isnt Greenspan on some
level trying to encourage a retrenchment of Fed policy and perhaps send a slight shot across the bow about how the Fed
should be a little bit more sensitive to some of the unintended consequences of what its doing, one of which, inevitably, will

be the selling off of the U.S. dollar and potentially the selling off of Treasuries and some real weakness in the American
currency....
That could be next year, that could be in 5 years, that could be in 10 years, but I think there is almost no doubt that you dont
print more than $4 trillion of cash, effectively, through these emergency programs and not see it have some impact on the
value of your currency.
Eric King: You and I are invested in gold, Andrew, and it appears -- and Greenspan hints at this -- that a new reserve
currency may be created from a basket of currencies, including the U.S. dollar but also including gold. Thats going to mean
a dramatic repricing of gold, isnt it?
Huszar: I think over time for sure. Again, with all this money printing around the world, there is only a limited amount of
gold. So from a purely technical standpoint gold will remain in limited supply. I think in terms of any investing strategy gold
has to be a piece of it.

... We could see some massive pressure in terms of the dollar no longer being the reserve currency. There has to be some
alternative and I dont necessarily see an alternative to the dollar today. But as to your point, any investor needs to have a
longer-term perspective. And having a set of diversified assets in one's portfolio, which has to include the steady rock -literally, gold -- I think is a smart move. Andrew Huszars extraordinary KWN audio interview is available now and you can
listen to it by CLICKING HERE. Also, you can follow Andrew on his twitter account @andrewhuszar.

Fleckenstein - This Is Why All Hell Is Breaking Loose In Markets


Today Bill Fleckenstein spoke about why all hell broke loose in major markets after the release of the Fed Minutes. Below
Fleckenstein, who is President of Fleckenstein Capital, lays out exactly why the insanity is continuing to take place and does
so in a way that only he can. This interview is Fleckenstein at his best.
Eric King: Bill, obviously we had the release of the Fed Minutes move the markets. We had gold turn higher, the dollar went
down, and stocks began to soar. What are your thoughts on what has transpired?
Fleckenstein: They demonstrated that they are doves but I dont know why that would surprise anyone. And supposedly
the markets are ripping because now the Fed is not going to hike rates? They were never going to hike rates. Its very
difficult for people to remember that one and one equals two, when for six years the market and all the people who believe in
the Fed have been telling them that one plus one equals four.
You know you have to have been around and been tortured a few times in order to not give in and to know that one plus one
only equals two and common sense still works.... But it doesnt work everyday and you get into periods where having
common sense is very painful. People are extrapolating the second quarter and they forgot about the first quarter.
The expectations and the assumptions that people have made about how strong the economy is and what the Fed is going to
do, its all garbage. But the market trades how the market trades and you have had this epic run in the dollar and that has
weakened gold. And all the stock bulls who worship at the alter of the Fed are short gold and so we are seeing a short
covering rally and a scramble and all the markets are lit up. This is what happens when you are on the Jawbone Standard,
right?
Now that the Fed is winding down QE they are moving to the Jawbone Standard. So the volatility has picked up and there
will probably be big swings in the stock market and maybe the metals are finally done going down. The environment is just
so insane. It really cant get that much more insane. It can last for a long time but I dont know how it can get much dopier
than it is right now.
Eric King: Bill, you brought up a very interesting point. Now that the Fed is winding down QE they are going to have to go
back to jawboning the markets because they wont have the endless stream of money available to push the markets around.
Fleckenstein: There is no way on Earth that the S&P is going to stay near 2,000 without the Fed printing money -- theres no
way. They tried to exit from QE1 and QE2 and it failed and the market tanked. Does anybody really think that they can print
$1.5 trillion over the space of a year and a half, and then stop and not have the markets go down? Thats the only reason the

stock market went up.


But when everyone believes that the emperor is wearing clothes, even though he is standing naked, to them he is wearing
clothes until they see that hes not. So its really difficult to say why the market decided to do this and that when everything
is where it is based on five years of zero interest rates and $3.5 trillion of money printing and the U.S. economy has gone
nowhere.

What The Last 14 Years Have Taught Me About Gold & Markets
Today one of the wealthiest people in the financial world spoke with King World News about the incredible lessons the last 14
years has taught him about gold and the major markets. Rick Rule, who is business partners with Eric Sprott, also discussed
why he is so bullish going forward.
Rule: It really has been the strength in the dollar that has been creating the weakness in the metals recently. I believe the
strength in the dollar is way, way overdone at this point. I continue to believe that the simple arithmetic is on the side of the
gold trade and not on the side of the dollar trade....
Its also important to note that in times like these you have to be a contrarian. This has meant that we are a victim in the
short-term as the sector has not yet turned, but in the long-term we will be the primary beneficiaries as the situation reverses
dramatically in favor of gold and away from the dollar.

The truth is that big moves always take place from times of absolute pessimism. Over the weekend I was thinking about the
striking similarities between what we are going through now and what we had to endure in 2000. I remember in 2000 having
to write a position paper for my clients called A Case For Gold. People who wanted to be long the gold trade in the year
2000 needed to visit a variety of psychological excuses to do so.

People should also note that back in 2000 there were some striking similarities to now. We had a very, very strong U.S. dollar
and very strong U.S. equities markets, particularly very strong tech markets. There was also a complete aversion to all trades
that werent regarded as being long U.S. debt, long the S&P 500, or long technology, and we all know how that ended. We
know how it ended with regards to the major markets and the U.S. dollar as well as the trade for gold.
Its interesting that in periods like we were seeing in 2000, with gold at $260, there was no interest in gold. But 11 years later
when the gold quote crossed $1,900, everybody, including Goldman Sachs, said that gold was going to be substantially
higher. Of course nobody wants to buy the bottoms and nobody wants to sell the tops. Where are we now? I dont know but
I suspect we are extremely close to the bottom.
Rule also added: I think the other thing that I need to add is regarding the broader natural resource theme, Eric. If its true
that the Western world, the United States, Canada, western Europe, and Japan, are in recovery, and Im not saying they are in
recovery, there are tremendous plays to be made in the other out of favor commodities. This would include things like oil
which has fallen substantially in price. Or more particularly coal, which has been halved in price.
With regards to copper and the various base metals, I am not saying that we are in the throes of an economic recovery, but an
economic recovery is the justification that is being utilized to substantiate the trade in the U.S. dollar and the trade in the S&P
500. And if we are going to have a real recovery, I mean a recovery that includes things like jobs and a real increase in
disposable incomes and capital goods investments, then the stuff of capital goods, meaning natural resources, will do
extremely well. This isnt a suggestion to your readers that we are in a recovery but if we are, dont disregard the basic
building blocks of a recovery, in particular energy.

Richard Russell - We Just Saw Ultimate Bottom In Gold & Silver


Today the Godfather of newsletter writers, 90-year old Richard Russell, said we have witnessed the ultimate bottom in the
gold and silver markets. The 60-year market veteran also warned that the world is going to see a new monetary system which
will feature gold as the centerpiece.
Russell: Currently, the world is beset by a multitude of emergencies. The water shortage and the change in the earths
climate along with the disasters of Ebola and ISIS must be solved. As a rule, we dont address problems until they become
emergencies. My belief is that in coming years, we will address all potential disasters and emergencies.
World Wars I and II plus the Holocaust may stand out as the worst episodes in human history (other than communist regimes,
considered responsible for 85-100 million deaths). The three worst epidemics in history were the bubonic plague, which
wiped out one-third of Europe, the influenza epidemic which killed 50 million people in 1918 and most recently the AIDS
scare, which has killed 36 million since its inception, according to the World Health Organization. As a sign of human
progress, the world is taking the Ebola epidemic seriously. It remains to be seen whether Ebola can be confined to Africa.
Time marches on and the human race really does make progress.

........................................
Robots will shortly take over thousands of jobs. This is particularly true in the fast food industry, where robots will shortly be
taking over the very jobs where workers are currently pressuring for higher wages.
........................................
Gold I cant prove it yet but I believe the last decline in gold knocked out the last of the gold bugs and gave gold,
technically, a clean slate. I believe we saw the ultimate bottom of the gold bear market on Friday, and (yesterday) the whole
universe of gold is higher, and closing at its high. Everything I have said about gold is also true about silver. I believe this is
the time to invest in gold and silver if you have not done so already.
If I am correct, gold should act like the release of a compressed spring. Gold above 1300 would make me even more certain of
my opinion, and gold above 1350 would represent a major buy signal. If you cant handle physical gold, take a position in
CEF, which represents physical silver and gold and is located in Canada.
........................................
Let me digress for awhile. I believe a new monetary system is in our future. China and Russia are combining to move the
center of gold activity away from the US. Who has been buying gold as the faithful dropped out of the picture? All of the
central banks, and particularly China. The direction of international power has coincided with the flow of gold. In its frenzy to
pressure down the price of gold, the Federal Reserve has handed China a remarkable gift the gift is cheap gold. But as of
today, I believe we are seeing the process of cheap gold becoming more expensive gold. Im betting that within six months
physical gold will be scarce and hard to find. In a sentence, Im betting that the long bear market is gold has ended.
........................................
Half an hour before the close, the US dollar was lower and the Dow was trading at 16,997. The markets, or most of them, have
been stuck in trading ranges. I believe these are the calms before the storm. I cant prove it but my intuition tells me that we
are at the edge of the storm. Before a new monetary system and a brave new world can be instituted, the debt-logged old
world must be destroyed. My instinct tells me that we are now moving into the deleveraging and deflationary period that
represents a correction of the inflationary spiral that the Fed has foisted upon us since WWII.

Total Systemic Collapse, The Destruction Of Money & War

Today King World News is highlighting apiece by one of the greats which discusses total systemic collapse, the destruction
of money and war. Below is the powerful piece which all KWN readers around the world must read.
By Art Cashin Director of Floor Operations at UBS
October 10 (King World News) - Originally, on this day (+1) in 1922, the German Central Bank and the German Treasury took an
inevitable step in a process which had begun with their previous effort to jump start a stagnant economy. Many months
earlier they had decided that what was needed was easier money. Their initial efforts brought little response. So, using the
governmental "more is better" theory they simply created more and more money.
But economic stagnation continued and so did the money growth. They kept making money more available. No reaction. Then,
suddenly prices began to explode unbelievably (but, perversely, not business activity).
So, on this day government officials decided to bring figures in line with market realities. They devalued the mark. The new
value would be 2 billion marks to a dollar. At the start of World War I the exchange rate had been a mere 4.2 marks to the dollar.
In simple terms you needed 4.2 marks in order to get one dollar. Now it was 2 billion marks to get one dollar. And thirteen
months from this date (late November 1923) you would need 4.2 trillion marks to get one dollar. In ten years the amount of
money had increased a trillion fold.
Numbers like billions and trillions tend to numb the mind. They are too large to grasp in any real sense. Thirty years ago
an older member of the NYSE (there were some then) gave me a graphic and memorable (at least for me) example. Young
man, he said, would you like a million dollars? I sure would, sir!, I replied anxiously. Then just put aside $500 every
week for the next 40 years. I have never forgotten that a million dollars is enough to pay you $500 per week for 40 years
(and thats without benefit of interest). To get a billion dollars you would have to set aside $500,000 dollars per week for 40
years. And a..trillion that would require $500 million every week for 40 years. Even with these examples, the enormity is
difficult to grasp.

Lets take a different tack. To understand the incomprehensible scope of the German inflation maybe its best to start with
something basic.like a loaf of bread. (To keep things simple well substitute dollars and cents in place of marks and
pfennigs. Youll get the picture.) In the middle of 1914, just before the war, a one pound loaf of bread cost 13 cents. Two
years later it was 19 cents. Two years more and it sold for 22 cents. By 1919 it was 26 cents. Now the fun begins.
In 1920, a loaf of bread soared to $1.20, and then in 1921 it hit $1.35. By the middle of 1922 it was $3.50. At the start of 1923 it
rocketed to $700 a loaf. Five months later a loaf went for $1200. By September it was $2 million. A month later it was $670
million (wide spread rioting broke out). The next month it hit $3 billion. By mid month it was $100 billion. Then it all
collapsed.
Lets go back to marks. In 1913, the total currency of Germany was a grand total of 6 billion marks. In November of 1923
that loaf of bread we just talked about cost 428 billion marks. A kilo of fresh butter cost 6000 billion marks (as you will note
that kilo of butter cost 1000 times more than the entire money supply of the nation just 10 years earlier).
How Could This All Happen? In 1913 Germany had a solid, prosperous, advanced culture and population. Like much of
Europe it was a monarchy (under the Kaiser). Then, following the assassination of the Archduke Franz Ferdinand in Sarajevo
in 1914, the world moved toward war. Each side was convinced the other would not dare go to war. So, in a global game of
chicken they stumbled into the Great War.
The German General Staff thought the war would be short and sweet and that they could finance the costs with the post war
reparations that they, as victors, would exact. The war was long. The flower of their manhood was killed or injured. They
lost and, thus, it was they who had to pay reparations rather than receive them.
Things did not go badly instantly. Yes, the deficit soared but much of it was borne by foreign and domestic bond buyers. As
had been noted by scholars..The foreign and domestic public willingly purchased new debt issues when it believed that
the government could run future surpluses to offset contemporaneous deficits. In laymans English that means foreign
bond buyers said Hey this is a great nation and this is probably just a speed bump in the economy. (Can you imagine
such a thing happening again?)
When things began to disintegrate, no one dared to take away the punchbowl. They feared shutting off the monetary heroin
would lead to riots, civil war, and, worst of all communism. So, realizing that what they were doing was destructive, they kept
doing it out of fear that stopping would be even more destructive.
Currencies, Culture And Chaos If it is difficult to grasp the enormity of the numbers in this tale of hyper-inflation, it is far
more difficult to grasp how it destroyed a culture, a nation and, almost, the world.
Peoples savings were suddenly worthless. Pensions were meaningless. If you had a 400 mark monthly pension, you went
from comfortable to penniless in a matter of months. People demanded to be paid daily so they would not have their wages
devalued by a few days passing. Ultimately, they demanded their pay twice daily just to cover changes in trolley fare. People
heated their homes by burning money instead of coal. (It was more plentiful and cheaper to get.)
The middle class was destroyed. It was an age of renters, not of home ownership, so thousands became homeless.
But the cultural collapse may have had other more pernicious effects.
Some sociologists note that it was still an era of arranged marriages. Families scrimped and saved for years to build a dowry so
that their daughter might marry well. Suddenly, the dowry was worthless wiped out. And with it was gone all hope of
marriage. Girls who had stayed prim and proper awaiting some future Prince Charming now had no hope at all. Social morality
began to collapse. The roar of the roaring twenties began to rumble.
All hope and belief in systems, governmental or otherwise, collapsed. With its culture and its economy disintegrating, Germany
saw a guy named Hitler begin a ten year effort to come to power by trading on the chaos and street rioting. And then came
World War II.
We think its best to close this review with a statement from a man whom many consider (probably incorrectly) the father of
modern inflation with his endorsement of deficit spending. Heres what John Maynard Keynes said on the topic:
By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the
wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the
process impoverishes many, it actually enriches some..Those to whom the system brings windfalls.become
profiteers.
To convert the business man into a profiteer is to strike a blow at capitalism, because it destroys the psychological
equilibrium which permits the perpetuance of unequal rewards.
Lenin was certainly right. There is no subtler, no surer means of over-turning the existing basis of society than to
debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and
does it in a manner which not one man in a million is able to diagnose.By combining a popular hatred of the class of
entrepreneurs with the blow already given to social security by the violent and arbitrary disturbance of
contract.governments are fast rendering impossible a continuance of the social and economic order of the
nineteenth century.
To celebrate have a jagermeister or two at the Pre Fuhrer Lounge and try to explain that for over half a century America's
trauma has been depression-era unemployment while Germany's trauma has been runaway inflation. But drink fast, prices
change radically after happy hour. And, tell former Fed Chairman Bernanke that it was the German Experience that caused
many folks to raise an eyebrow when he alluded to the power of the printing press a few years ago. It is why so many,
including some of the FOMC, express concern about unintended consequences of each new wave of quantitative easing.
(And, if you think no government would ever sponsor wild inflation to liquidate its debt, take a look at Zimbabwe.)

It was deflation rather than inflation that worried markets yesterday.


Draghi Brings An Empty Plate And Markets Implode Stocks opened softer Thursday as German exports dropped a stunning
5.8%, reinforcing the growing perception that the world's economies were slowing down.
The selling was contained for the first 90 minutes. Then Mario Draghi stepped to the microphone. He had disappointed
markets at the ECB press conference several days ago so there was some expectation that he would use this speech to
soothe the markets. Not even close.
Draghi basically said that European monetary policy needed fiscal reform to become effective. Traders know that such
reform would require cooperation from the various EU leaders. Since they make our Congress look collegial, that made
reform highly unlikely.
That made traders fear that the Draghi toolbox was empty and they began to sell stocks in earnest.
Adding to the stock selloff was a virtual crash in crude, with West Texas dipping below $85 and Brent breaking $90.
The selling eased slightly around 1:30 and then markets reverted to a choppy mode with several attempts to retest the recent
double bottom around S&P 1925 (the closest they got was 1927).
Ultimately, they closed not far off the day's low. It was an ugly day with little to give it merit. The selling was very broad, with
over 2800 stocks declining, while less than 400 gained.
Of Octobers And Volatility On this day in 2008, the Dow swung over 1000 points from high to low, the largest intraday swing
in the 118 year history. Sometimes Halloween comes early. Consensus Futures indicate we may take out 1925 level in the
S&P early on. If so, napkins will then look to the area around the 200 DMA (circa 1900/1905). Stay wary, alert and very, very
nimble. Have a great weekend!

Corrupt Paper Markets May Reverse Gold, Silver & Oil Higher
As the world continues to move into uncharted territory, today a 40-year market veteran warned King World News that the
corrupt paper markets may now be set to reverse the gold, silver & oil markets higher. He also discusses what investors
should be doing in this dangerous environment. Below is what Robert Fitzwilson, founder of The Portola Group, had to say
in this exclusive piece for King World News.
October 13 (King World News) - Corrupt Paper Markets May Reverse Gold, Silver & Oil Higher
Excluding options and the over-the-counter market trading, a top energy analyst we follow recently computed that the volume
of trading for financial oil was 20-times the volume for physical oil on a global basis. Given the murky data from which even
he must work, it is safe to say that the number at which he arrived is no doubt a severe understatement....
The analyst had taken a look at the size of the trading in financial oil versus the physical market for oil to understand the
conundrum of falling prices for energy, and his data showing that the global supply and demand for oil was in rough balance.
According to his numbers oil supplies are tight on a global basis, and that global demand has been growing and projected to
do so next year by 1-2%. His conclusion was that the recent severe decline in the price of oil was due to a reduced demand
for financial oil that had little to do with the current physical market.
While just a guess on our part, it might also have something to do with the announcement by the California retirement fund
known as CalPers to completely exit allocations to hedge funds. CalPers is a huge fund, and their announcement could have
caused other institutional-sized retirement funds to mimic their decision and pull out, too.
Redemptions on such a scale and given the inherent use of leverage by the hedge funds would have dictated fairly massive
liquidations not only in the stock market, but also in the market for financial oil derivatives. Those redemptions could have
been triggered in recent weeks, and may also have been a major factor in the volatility we have seen.
About the same time as the analysts report was released, there was a notable acquisition in the energy space. The
juxtaposition of his report, coinciding with the takeover of a company with real energy assets triggered thoughts of how a
sudden meltdown in the derivatives markets might translate into higher prices for the physical assets upon which the
derivatives are based, including gold and silver. In the financial markets, the price of oil was declining. In the market for
physical oil, an acquirer was willing to pay a substantial premium for the targets assets in the ground.
Our read of history is that there used to be a rough equivalence between the amount of futures contracts outstanding and the
underlying commodities. Farmers could sell their products prior to harvest to financial speculators thereby locking in the
current price. The speculators would then trade the contracts until the expiration date, and the last holder of the contract
would take delivery.
That certainly is no longer the case. It has been estimated that the claims against gold are 100-times the physical amount that
might be available. Contracts are created and destroyed before the contract expiration date in unrestrained and unregulated
quantities, combining to create a dangerous and toxic game of musical chairs. If the music were to stop so to speak, only 1
person out of 100 could receive the metal. Either 99 would be severely disappointed or all holders of claims would receive 1
penny on the dollar.

No doubt many of those holding derivatives were simply financial speculators and would suffer the appropriate losses. For
those who actually were hoping to take delivery of the underlying metal, it would create a global panic to acquire physical
gold at almost any price. Measured in collapsing fiat currencies, we do mean any price and higher than virtually anyone can
imagine.
It is important to remember that the utility of a futures contract used to be a deferred delivery mechanism about which
speculators bet on the price during the contract period. The other aspect of utility was that the contract position could be
taken using extreme leverage. For the manipulators working for the central planners, the other key component of utility was
the ability to create unlimited quantities backed by the central banks to accomplish the price manipulation. Given the extreme
quantities of these derivatives, there is zero utility now for anyone assuming that delivery is possible for all outstanding
contracts. These contracts have zero connection with the physical world -- just gambling parlors run by the manipulators and
their proxies.
The physical gold, silver and oil do have tremendous utility. If the day comes when the derivatives markets implode, the
utility of the contracts becomes zero, collapsing prices for contracts, and skyrocketing prices for physical metals and energy.
As to when to find out if these thoughts prove to be correct is a question that is impossible to answer. We live in world of
latent chaotic systems. The central planning manipulations have staved off the day of reckoning, but the potential chaos
grows exponentially. We occasionally see the face of that latent chaos in such events as the recent Japanese stock debacle
where almost half a trillion dollars of trades had to be cancelled.
So far, the central planners have exhibited the means and the determination to keep a lid on the mess that has been created.
We are now at another crossroad where it comes down to doing another deus ex machina, or letting things collapse. There
does seem to be a sense of fatigue and frustration coming from the central planners. The apparent inability of Mario Draghi to
deliver on his open commitment to do whatever is necessary sent shockwaves through the markets. It should not have
been a surprise as there was never any real money with which to deliver on the commitment, but his acknowledgement threw
cold water on those living the fantasy.
Could it be that the central planners are now willing to let things collapse? We will soon see. It would be an incredibly bold
and dangerous gambit. Regardless, the fall in the price of financial oil, in the face of takeovers with significant premiums in
the energy sector, those two events suggest the possibility that we may finally be nearing the end of worldwide acceptance of
Western paper manipulated markets. If this is the case, I expect it to translate into radically higher prices for oil, gold, and
silver as the paper are pushed into the dustbin of history.

This Will Send Massive Shock Waves Through The Gold Market
Today one of the legends in the business spoke with King World News about an event that is going to send massive shock
waves through the gold market as well as the entire financial world. Keith Barron, who consults with major companies
around the world and is responsible for one of the largest gold discoveries in the last quarter century, also discussedwhat is
happening with the gold and silver markets.
Barron: There has been a tremendous amount of volatility in the stock markets worldwide. We have also seen some
volatility in the gold market as well....
I believe the bottom is in with regards to gold. It also looks like gold is turning around very, very tentatively. This is taking
place as the U.S. stock market appears to be rolling over. As money exits the stock market it will look for safe havens and
that should include the gold market.
We are now heading into the holiday season in India and that should also help to put a floor under the gold market. Gold has
made a very large base over a lengthy period of time. We also know that at current prices most of the producers cant make
any money. These companies have already been high-grading their deposits so they can stay in business and you can only
do that for so long. The chorus of bearish calls on the gold market is also an indication to me that gold is about to head
higher.
Eric, I would also like to add that I am a staunch support of the Swiss Gold Initiative. This initiative will cause the repatriation
of Switzerlands gold. This will also cause a 20 percent gold backing of the Swiss franc as well as halting any future Swiss
gold sales. This vote is coming up in the Swiss referendum on November 30. The entire adult population of Switzerland will
be voting on this historic Swiss Gold Initiative.
This is an incredibly important event for Switzerland and for the world. It also has the potential to send major shock waves
through the gold market because if it passes Switzerland will have to acquire over 1,500 tons of physical gold. I strongly
believe it will be incredibly difficult to find that much physical gold anywhere near current prices.
The key here is that if this passes, it is law. They cant do a runaround like they can in other Western countries. Meaning,
when the Swiss citizens pass this historic initiative it becomes law and it cant be circumvented. As we approach the date of
that vote, it has become very evident that the Swiss National Bank is getting extremely vocal in terms of opposing the Swiss
Gold Initiative. The Swiss National Bank claims the Swiss franc should not be shackled to the price of gold.
Well, theyve very definitely shackled the Swiss franc to the euro by pegging the Swiss currency at 1.20. They have
supported that peg by buying up an incredible amount of euros. Now about 83 percent of Switzerlands foreign reserves are

held in euros. What does that mean? To me it means that the independence of Switzerland is on the verge of being lost.
To me this will mean that Switzerland will be equivalent of countries like Malta, Greece, Spain, etc, because Europe is almost
de facto dictating monetary policy to the Swiss. This is an absolutely absurd situation. If they went to my Swiss neighbors
and said to them that they were going to have to give over a portion of their wealth to support countries like Greece, there
would be riots.
But what is taking place is tantamount to the same thing. I believe the incredibly heavy concentration of Swiss foreign
reserves in euros has already placed the country in a precarious position. We have already seen the euro tumble quite a bit
and this means that Switzerlands foreign reserves have taken a hit along with the euro.
People think that the euro cant go to zero, but the French franc went to zero five-times in one century. And having lived in
enough countries where the currency went to zero, I can tell you that people need to be prepared to protect their assets when
they see the warning signs of a coming great inflation. We are not there yet but that day is rapidly approaching.
This is a very dangerous experiment that only 3 or 4 people in the Swiss National Bank have been conducting. This is why
the Swiss Gold Initiative is so important. It will send a signal to Western central planners that the Swiss want to retain their
independence and it will definitely send major shock waves through the gold market. The move by the Swiss to back their
currency with 20 percent gold will be a victory for hard money advocates all over the world, not just in Switzerland.
As Egon von Gryerz so eloquently put it, On November 30, Switzerland has the unique opportunity to lead the world back to
sound money and sounder economies. I hope my Swiss compatriots will create history on that day. In order to fight a
successful campaign, we will need to raise additional funding for the Swiss Gold Initiative. Any contribution, large or small
would be extremely helpful and welcome. This is a chance for readers around the globe to change the world, one country at a
time. To donate please click on the button below.

Here Is Chinas Stunning Master Plan For Gold, Silver & Oil
Today an acclaimed money manager spoke with King World News about Chinas stunning master plan for gold, silver, and
oil. Stephen Leeb also spoke about the big picture for resource wars, fracking, Russia, the United States, and Saudi Arabia.
Leeb: Saudi Arabia is flooding a world that is not particularly strong economically with oil. This is taking place at a time
when demand for oil is relatively weak because we are between heating season and driving season. So this is the time of
year where demand for oil comes down and OPEC generally cuts back on production....
So why is Saudi Arabia doing what its doing? Well, one of Saudi Arabias biggest trading partners is China. Not only do the
Chinese buy Saudi oil, but Saudi Arabia takes in massive amounts of materials from China.
Among the most important materials China sends to Saudi Arabia are the materials that are needed for alternative energy.
The Saudis want much of their economy to be running on alternative energies within the next 15 - 20 years. We are talking
here about things like solar and wind power, and desalination for safe water consumption. Well, guess who is the expert on
those things? China.
So there is a strong mutual interest between China and Saudi Arabia. So the Saudis have grown closer to China and less
close with the United States. Regardless, oil prices have been temporarily coming down. I believe the bottom of this
pullback will be $75 at the lowest. But that will be enough to crush a lot of our fracking companies.

Just to give you one example, Continental Resources, their debt level is one and a half times their revenues. So I would stay
away from these types of companies because they will run into serious trouble. What I am saying is that these low oil prices
are hurting the United States fracking industry the most. This will hurt U.S. GDP.
Who is being helped by these low oil prices? China. This is allowing China to inexpensively build out its energy
infrastructure. This is helping the Chinese to develop their solar, wind, hydroelectric, and other alternative energy
infrastructures. I would add that this these low oil prices are also hurting Russia. But it helps China that Russia is being hurt
by these low oil prices. This is forcing Russia to turn to China and away from the West as they make all of these historic
deals with China. These deals with Russia are being forced to take place on Chinas terms.
Now, the excuse the Saudis are using to bring down the oil price is because they dont want to lose market share in the
East. This is why they are saying they are keeping oil production so high. This is preposterous. The Saudis are not worried
about losing market share to a country that probably has 10 or 15 years of 5 - 7 percent growth ahead of it. China has longterm plans with the Saudis. So what we are seeing right now is an element of the global resource wars as China puts
pressure on the West and secures historic deals with Russia.
If these fracking companies are forced in many cases to halt production, when the price of oil rises they will be in a difficult
position because most of the low-hanging fruit has already been consumed. This could put the U.S. in a position where it is
back to being dependent on other countries for its oil. This will only serve to put additional long-term pressure on the dollar.
This would mean that all hell would break loose because this will mean massive inflation and the price of gold will be
spiking. I would also add that at whatever price oil bottoms, the price of oil will then double from that depressed level.

So a train wreck is coming for the United States because the Chinese are calling the shots. And when the Chinese have
accumulated enough physical gold, they are going to take the lid off of the gold price and let the gold market scream to the
upside because China will benefit the most from massively higher gold prices. So investors need to own physical gold and
silver ahead of that coming move because this is certainly part of Chinas plan.

Fleckenstein - Expect The Stock Market Collapse To Accelerate


Today Bill Fleckenstein spoke about why all hell is breaking loose in major markets. Below Fleckenstein, who is President of
Fleckenstein Capital, lays out exactly why the insanity is continuing to take place and does so in a way that only he can. This
interview is Fleckenstein at his best.
Eric King: Bill, last week in your remarkable KWN interview you stated:
There is no way on Earth that the S&P is going to stay near 2,000 without the Fed printing money -- theres no way. They
tried to exit from QE1 and QE2 and it failed and the market tanked. Does anybody really think
that they can print $1.5 trillion over the space of a year and a half, and then stop and not have the
markets go down? Thats the only reason the stock market went up.
Eric King continues: We've already seen the stock market tank 7 percent since you said that last Wednesday. What are
your thoughts here as we see the Dow down roughly 300 as we near the close?
Fleckenstein: Ever since tapering was announced there was no way the Fed could taper to zero, in other words not print any
more money, and have the market stay where it was....
I knew the market had not discounted the fact that the only reason the market went up was because the Fed had printed
money. Last week the Fed was very close to the end of QE and yet the market was acting like it got there all by itself and we
had a beautiful self-sustaining economic recovery.
So the market now has to collapse until the Fed comes in with the next round of QE or they forestall tapering or say they
might come in and ride to the rescue. I don't know what level on the S&P will trigger that. We were just at 2,000 on the S&P.
Right now we are at roughly 1,830. Will the Fed make their move at 1,750, 1,700, 1,650? I don't know.
But there will be a place where the market going down will weaken the economy in the same way the market going up helped
the economy, even though most of the capital gets misallocated, and the Fed will ride to the rescue. From there it will get
very interesting because the question becomes: Will the Fed be behind the curve like they were in 2008 because they didn't
understand the situation? Probably.
This implies that the Fed won't do enough to get the market to recover. But who knows? Maybe the Fed will be big and bold
and they will get the market to scream. But the important point is that we will be into the next phase. It's at that point that
people will realize that the Fed can't shut down QE. The other thing that will create panic is when people realize the Fed can't
create an economic recovery and that they are only engendering the misallocation of capital and madness in the markets.
Will that be the period where people lose confidence in the Fed? I don't know but they could. Life will get much more
interesting if you are a thinking person and didn't drink the central bank Kool-Aid as so many did. It shouldn't be a surprise
to anyone when they couldn't quit after QE1 or QE2, or Operation Twist, where they gave us QE3.
Now for some reason people think that after the biggest, boldest monetary experiment of all-time where the Fed printed $1.8
trillion in the space of about 20 months that the Fed can simply walk away, and there is not going to be anything bad
happening? Why the hell do they think the market went up in the first place? It was just money printing.
So I think this rout will continue until such time as the Fed makes it clear that they are going to try to do something about it.
Eric King: That moment where the Fed makes it clear they are going to do something about it, is that the point where the
Fed's credibility is shattered?
Fleckenstein: They don't have any credibility with me so I'm the wrong guy to ask. Why don't you call Goldman Sachs Jeff
Currie and say:
Look, you've been saying that the economy is going to be strong and we are going to have a self-sustaining recovery, and
the Fed is going to hike, and the dollar is going to go to the moon. Guess what, the economy
is not great and you guys cut your own numbers. What's going to persuade Jeff Currie and Goldman Sachs
that the Fed is not in charge?
So you have to ask someone who believes in the Fed what it will take for them to lose confidence in the Fed. I can't imagine
people aren't going to start questioning Jeff Currie and Goldman Sachs. But if the Fed believes what it did in 2008, which is
they thought subprime was contained and they didn't understand it, I'm sure they won't understand what's going on now -that they can't taper and not have major problems.

This means the Fed will do too little and get a series of failed rally attempts in the stock market. Then the Fed will try to do
something big and bold after it's too late. I don't know because we can't really try to analyze these idiots until we start to see
them move. But at what point do they lose credibility? I can't say. And as I said, I'm the wrong guy to ask because they don't
have any with me.
Eric King: Last week you said the metals may have bottomed. The gold market has certainly perked up since the stock
market has tanked. Where do we go from here?
Fleckenstein: The whole strong Fed, strong dollar, strong market, strong economy idea that caused people to be short gold
was all a false premise. They really believed the Fed was all-powerful. In a perverse sense, the Fed printed so much money
that people believed this great experiment would work and they wouldn't need to own gold.
As it becomes even more clear that this experiment hasn't worked, the people who are short gold will cover and the market
will see new buyers. So I think that the worst is over for gold from a perception standpoint. Meaning, the major part of the
pain from owning gold is already behind us.
The gold market hasn't yet had that sigh of relief where people can clearly see it's going to blast off from $1,200 but that's
coming. I think a lot of people wrongly believe that if we have a 2008-style stock market collapse that you will see gold get
crushed like it did back then.
I don't happen to believe that because the price of gold quadrupled from early 2001 to 2008, and this was happening as the
stock market ran into periods of major problems. So there was a lot of hot money in gold. Now the hot money is short gold,
and they are short gold because they are long stocks and they believe in the Fed's nonsense.
So a declining stock market will be friendly to gold this time around. The gold market is getting very close to punching
through $1,250 and having a major move. By and large the next big move is going to be people deciding they need to own
some gold once again. That's why the gold market will continue to rally as the stock market collapses.

50-Year Veteran Predicted Stock Plunge Last Week: What Now?


Today a 50-year market veteran, who last Thursday astonishingly predicted that a cascade of panic selling would engulf the
stock market, warned King World News that this is still an extremely nervous market. He also gave the exact level that will
trigger the next cascade of panic selling to the downside and discussed the historic action in the bond and gold markets.
Below is what Cashin, who is Director of Floor Operations at UBS ($650 billion under management), had to say in this timely
and powerful interview.
Eric King: Art,when I asked you last Thursday if the early signs of selling could develop into some more serious you issued
what turned out to be an astonishingly accurate warning:
We are heading toward a potential retest of the area around 1,925 on the S&P. We stopped in that approximate area last
Thursday, and again before the most recent bounce yesterday. So if we get down there and we
test it and fails, we run the risk of a kind of cascade effect (of selling) at that point.
Eric King continues: Sure enough, Art, the stock market began to hemorrhage to the downside after 1,925 broke on the
S&P. That break is what has led to a series of down days where all hell seems to be breaking loose. Is there another major
level you are now watching?
Cashin: If 1,790 - 1,800 gives way on the S&P, that could create another cascade of selling to the downside. That area
giving way would be the equivalent of the 1,925 break on the S&P and that would bring in more waves of selling.
It's a very, very nervous market. This morning (Wednesday) you had ISIS and Ebola, and you had Greece suddenly back in
the center stage as the weak man of Europe. The Greek market lost the equivalent of 1,000 points on the Dow. And then at
8:30 you ended up getting all kinds of weak data here in the United States and that created some major selling that the market
was ill-prepared for.
And interestingly, one of the other things that has been a negative is that oil has been in near free fall now, but by 9:45 in the
morning oil made it back to the plus side. So the market tried to rally but then late in the day Texas West Intermediate Crude
looked like it was going to break below $80 and that took the Dow down to the low of the day. We bounced back because oil
has now stabilized.
Eric King: Art, when you see the kind of panic that was happening earlier today, were those some forced liquidations that
were taking place, or was that aggressive short selling? What caused that massive tumble in stocks earlier today?
Cashin: The rumors around were that some of the hedge funds had to liquidate some positions. Some hedge funds had
positions that were oil-related. That caused a problem. But some of them were on the wrong side of the trade in the bond
market and so you had a panic by traders and investors to get to safety. The 10-Year bond traded below 2 percent in one of
the more stunning moves I've ever seen. I've been doing this for over 50 years and that was truly one of the more stunning
moves I've seen in my career.
Eric King: Art, I don't remember anything like that in the bond market. You said it was one of the more stunning moves.
Have you ever seen anything like that before in the bond market?

Cashin: Borderline, but not quite exactly.


Eric King: What was your take as the only two safe havens seemed to be the bond market and gold? In 2008 we saw the
gold market tumble as the global stock markets plunged, but now the new idea appears to be that maybe it's not such a good
idea to be short gold.
Cashin: Gold is a natural safe haven in times of crisis. When there is panic people tend to move toward gold and the dollar
but the flight to the dollar certainly did not happen today. But they sort of made that move by going into U.S. Treasuries.
Eric King: Have we seen the top in the stock market or do we have to wait a little bit?
Cashin: You have to wait a little bit. Tops are an evolving process, so we'll have to see. Stocks came back from the abyss
earlier today, so we will have to wait and see. If they take out today's lows over the next several days you could get a
cascade effect (of selling). I would advise the (KWN) readers to keep their eyes and ears on the oil price. If West Texas
breaks $80, we might have some problems.

Here Is Yet Another Frightening Prediction To End 2014


Today King World News interviewed a 60-year market veteran who made some absolutely frightening predictions as we head
into the end of 2014. He discussed what to expect in the major markets, including stocks and gold, and he warned that
despite the propaganda and recent stock market action, the West is literally destroying itself. Below is six-decade market
veteran Ron Rosens remarkable interview.
Eric King: Last week I highlighted the remarkable similarities between yourself and Richard Russell -- each of you fighting
in wars, studying markets for over six decades, having the exact same initials, growing up two blocks from each other, etc.. I
found it fascinating that the gold market turned almost precisely where you said it would at the same time your viral KWN
interview was released. The question people want to know is, whats next?
Rosen: After more than 60 years of watching markets, Eric, I can tell you that gold is no Titanic -- as the mainstream media
would have people believe. Gold is the ocean, and at the proper time every paper instrument and scheme devised by corrupt
governments and banks will sink below it. About the only thing these criminal bastards can do at this point is to briefly
penetrate the long-term uptrend in the gold market we featured last week, which is shown below.

But I can promise your global readers that any break of this level will be temporary in gold and it will ignite one of the greatest
and most historic bull runs the world has ever seen in any market....
To hear which company is the highest grade silver producer in the world
located in one of the most mining friendly countries and
offers investors massive blue sky click on the logo:
The chart below from the early 1970s shows the price of gold moving up nearly six-times in price in a matter of just a few
years.

I told you last week that the increasingly desperate Western central planners could not cross Mother Natures line in the sand
(featured in the first chart) without paying one hell of a price. The problem is that everything they have done up to this point
to go against the Natural Laws of markets guarantees we will see another depression. So, yes, things will not only get worse
from here, they will get much worse.
But when the next bull move begins, gold will very quickly more than double in price -- then the move will accelerate to the
upside. From that moment forward the worldwide economic truth about fiat money will become universal knowledge, and the
patterns of human behavior will once again dictate the price of gold. Unfortunately, the ensuing financial destruction and
misery wont be pretty for the governments or the people of this world, but thats the economic and monetary story of life on
earth.

Richard Russell - Here Is What Ive Learned After 90 Years


Today the Godfather of newsletter writers, 90-year old Richard Russell, shares what he has learned after 90 years on this
earth. The 60-year market veteran also covered gold, silver, deflation, Europe, Germany, the Fed, QE, the U.S. dollar and
much more.
Russell: The world situation is as complicated as Ive ever seen it. So lets try to make it simple. The world is in a state of
deleveraging and deflation. Europe is close to recession. Germany, the engine of the European economy, is stalling. China,
now arguably the worlds largest economy, is running out of gas. Brazil is slumping, as is Japan. The only economy in the
world that appears to have a strong heartbeat is the US. The great fear today is that the world may sink into a downward
spiral of deflation. The Central Bank of Europe would like to join the Fed in Quantitative Easing. But Germany, which is
terrified of inflation, will not stand for QE.

Thus it falls on the Federal Reserve to save the world from the terror of deflation. Will the Fed shut down QE as it claims? Or
will it reverse its schedule of ending QE by the end of this month? The Fed has already bought nearly $4 trillion of bonds in
its QE operations, and it hesitates to buy more.

The Fed meets tomorrow and Wednesday, after which we will discover what it intends to do. As matters stand now, the stock
market is almost motionless as it awaits the Feds decision. Gold bullion has backed off slightly, but the gold mining stocks
have been hit hard. The gold miners are cheap, hated and showing signs of stabilizing. Many speculators feel that the gold
mining stocks are selling like perpetual warrants and can be bought as long-term holdings. I think the stock markets
constructive action will encourage the Fed to shut down QE as promised. But it is only after QE is actually shut down that we
will know the rest of the story.

In the past, when threats of a QE shutdown were voiced, the stock market fell out of bed and bonds fainted. If that happens
this time, the markets and the economy will again be put to the test. Based on world deflation, I think QE4 will be badly
needed. This week, following the latest Fed meeting, should be quite a show.

The question of the day is whether the Fed will actually end QE or whether the Fed will continue its QE machinations into next
year. ...Therefore, the US dollar is widely held to be the only safe and healthy currency. Furthermore, its the US Federal
Reserve that has been chosen to save the world from the horrors of deflation. But will the Fed take on this mission? Will the
Fed continue to battle against deflation by creating oceans of new liquidity? Thats the question of the hour, month and the
year.

If the Fed continues to buy bonds in wholesale quantities, this increase in liquidity should soon take the Dow above its 200day moving average and propel gold over 1300. The Fed is terrified of the specter of deflation and will do whatever it takes to
hold off the forces of deleveraging and deflation. Europe is ruled by Germany, and Germany, due to its experience with
inflation, is dead set against the European Central Bank entering into Quantitative Easing. Thats where we find the world. Its
interesting that just 85 years ago, on October 24th, the stock market set off its first crash in the fateful year 1929. Ever since
then, the month of October has possessed a nasty connotation for those who follow the stock market.

For those who like their sleep, when times are frightening the move to cash makes sense. I agree, but at this point the only
cash or currency I trust are the currencies we call silver and gold. Trying to beat the market at this point is not amenable to
peace of mind.
According to Tuesdays New York Times, most of the hedge funds have had a miserable year and many have quit the
industry. From my standpoint and the standpoint of my subscribers, Ive elected to stand pat in the face of a hysterical stock
market. After 90 years on this earth, Ive learned that nothing is more important than peace of mind. No amount of money can
make up for night after night of fear and trembling. Thus, I have chosen the safety of the only tangible currencies

SILVER and gold.

James Turk - 2 Key Charts, Gold & The Destruction Of Money


With continued uncertainty in global markets, today James Turk sent King World News two incredible charts that readers
around the world must see, and he also discussed gold, the destruction of money and much more. Below is what Turk had to
say in this timely and powerful interview.
Turk: Even though the referendum for the Swiss Gold Initiative is still a month away, Eric, the battle there is already heating
up. The forces for sound money are lined up against those representing the status quo of central bank domination and
control, which has resulted in the financial repression plaguing the global economy....
The vote is clearly of importance to the future of the Swiss franc. But it also has important implications for gold. A yes
vote will increase golds visibility and lead to greater demand for physical metal. That in turn will increase the awareness of
the critical differences between physical gold and paper promises purporting to represent that they are as good as gold.

Of course they are not as good because a tangible asset is fundamentally different from some promise. So the gold price will
be impacted in a positive way by these developments. But a no vote will not hurt gold. The only thing a no vote will do is
doom the Swiss franc to the fiat currency graveyard. I have prepared two charts of crude oil prices to illustrate this
conclusion.

These are both base-100 charts, meaning they show relative changes in crude oil prices from the same starting point. Given
that the same standard is being measured, namely a barrel of West Texas Intermediate, these charts compare and illustrate
the purchasing power of these currencies.

So for example, the price of crude oil in terms of the British pound has risen 61 times since 1950. It is the worst performing of
these national currencies. The price of crude oil has risen 35 times in dollar terms. In other words, there has been more
inflation of the pound than the other currencies.
But note the red line showing the price of crude oil in terms of gold. It hasnt changed. Gold has preserved purchasing power
over the last 64 years. An ounce of gold today buys the same amount of crude oil it bought back in 1950.

While the euro and Swiss franc have preserved purchasing power better than the dollar and pound since 1950, we need to
take a closer look because the euro only began officially trading in January 1999. The above chart shows the German mark
before then, which was well managed by the Bundesbank and its policies that stressed the importance of sound money.

Further, the Swiss franc is now tied to the euro and its fate is dependent on that currency. So the following chart shows the
purchasing power of these same currencies since January 1999.

This chart doesnt look anything like the previous one and for good reason. The euro is being managed by the ECB, not the
Bundesbank. And the ECB does not follow the Bundesbanks sound money principles. It favors fiat currency and central
bank control, just like the Federal Reserve and the Bank of England. So the loss of purchasing power in the euro, dollar and
pound over the last 15 years has been similar.
So it is not surprising that the euro is losing purchasing power almost as rapidly as the pound and dollar. And the Swiss
franc is tied to the fate of the euro. That puts the Swiss currency and therefore the Swiss people in a disadvantageous
position. So a yes vote on the Swiss Gold Initiative will help turn the Swiss franc back in the right direction, which of course
is toward sound money.
There is one other important point to be drawn from these charts, Eric. Central banks repeatedly say these days that they
need to weaken their fiat currency in order to spur economic growth. But this conventional wisdom flies in the face of
historical experience.

The two strongest currencies from 1950 to 1999 were the German mark and the Swiss franc. Yet both of these countries over
that period of time had the strongest economies and lowest unemployment rates, meaning it is clear that sound money is
good for economic activity. So this view that weak currencies are needed is just more central bank hogwash aimed to
perpetuate the outrageous and unacceptable position of power they hold.

Every Swiss citizen should look at these charts before they vote. In fact, these charts are so meaningful, everyone can benefit
from understanding the important message they convey -- that gold is sound money and central bank fiat currency is not.

The purchasing power of fiat currency is continually eroded by central bank mismanagement until eventually confidence in
the fiat currency is totally lost, meaning people stop using it. At that point, the fiat currencys purchasing power is lost. The
currency has collapsed and becomes worthless. The dead currency then gets quickly buried in the fiat currency graveyard
while the same central bankers that killed it then try to float a replacement currency.

No one wants the economic and financial outcome brought about when a currency collapses, but there have been dozens
and dozens of fiat currencies which have collapsed. We can therefore learn from monetary history that the collapse of fiat
currency is inevitable. Hopefully the Swiss will make the right choice and vote in favor of the Gold Initiative and for sound
money.

Embry - Worlds Most Undervalued Asset (SILVER) & A Global Collapse

Today a man who has been involved in the financial markets for 50 years warned King World News that we are nearing a
violent change in the markets. John Embry, who is business partners with billionaire Eric Sprott, also discussed the endless
stream of propaganda from the mainstream media.
Embry: As you know, Eric, I was away for the past several weeks traveling in Europe. So to some extent I was spared the
day-to-day trading. Thus I was able to clear my mind and focus solely on the big picture -- what I call the true big picture -rather than the daily propaganda emanating from our so-called leaders, which is then parroted relentlessly by the mainstream
media....
In reality I think we are approaching the end of yet another epic failed experiment with fiat currency, except this time it is
many magnitudes of anything that has ever occurred in all of history. This is due to the financial innovation facilitated by the
staggering computing power.

The combination of unfathomable amounts of derivatives, algorithm programs, high-frequency trading, etc., has led to a
degree of leverage in the system which has never been remotely approached in all of human history.

We saw the first shot across the bow in the financial crisis of 2008 - 2009. But rather than approach the problem with some
attempt to address it head on, the central planners simply employed even greater use of experimental hyper-leverage with
exotic, massive, and unprecedented forms of QE, bailouts, and the like. This has led to even greater leverage, additional
malinvestment, and further economic deterioration, which is becoming more obvious by the day.

There can be no sustainable economic recovery given the massive quantity of leverage and debt in the financial system. If
interest rates truly reflected the gravity of the debt crisis in the West and the inherent risk in debt-based paper instruments,
the debt would not be serviceable and the West would simply default. Thus the Western central banks have maintained a
zero-based interest rate policy which has staved off the inevitable collapse, but I can guarantee you it has just made the
ultimate endgame materially worse.

Now, to reinforce this, economic statistics are being blatantly falsified, and all markets of any significance are being
aggressively manipulated. This has created a fairy tale atmosphere where there is absolutely no legitimate price discovery,
which is a basic tenet of capitalism.

As a result of the fairy tale atmosphere which has been created, the vast majority of the public is in a state of cognitive
dissonance. The public suspects that something is amiss, but because there is no palatable solution, they will force
themselves to believe in the fairy tale until it is far too late.
The central bankers relentless efforts to support paper assets such as stocks, bonds, etc., while suppressing the prices of
hard assets such as energy and precious metals, have forced the public into the wrong investments. Meaning, the price
action has driven them into the wrong asset classes. Thus, the wealth transfer, which is coming as a result of this, will be
truly historic and unprecedented. And if people are positioned wrongly at the moment of truth, I suspect that they will never
recover financially.

This is why KWN readers around the world must take advantage of the great opportunities being provided today. I thought
Robert Fitzwilson expressed it beautifully yesterday in his piece, and I totally support his views.

I would add that at

this point the most explosive and undervalued asset in the world is SILVER, and the current price
of silver will be seen as a mirage when this thing is all over.

Shocking Truth About What Is Happening Around The World


Today a 42-year market veteran spoke with King World News regarding the shocking truth about what is really happening
around the world. Below is what Egon von Greyerz, who is founder of Matterhorn Asset Management out of Switzerland, had
to say in this extraordinary interview.
Greyerz: Eric, Im looking at the latest round of rigging of markets by banks around the world. This has now led to fines of
over $4 billion for rigging the Forex markets. You have banks like Citi and JP Morgan paying $1 billion each. UBS is paying
$800 million and HSBC a bit less....

But thats just the latest Forex rigging and its probably only scratching the surface. We have also seen another $6 billion of
fines for LIBOR rigging. So far in 2014 we have seen $56 billion of fines by U.S. regulators against the banks. It seems
incredible that these enormous sums can be paid by the banks without the banks going under.
Its clear that rigging these markets must be very profitable because otherwise the banks wouldnt be able to pay those
incredibly large fines. The Forex market trades over $5 trillion a day. So clearly its been very fruitful for the banks to be very
active in manipulating currencies.
When you compare the $4.3 billion fines to the $5 trillion of daily trading, its nothing. But how has the banking industry
gotten so large? I remember in 1995 when Barings Bank went under because the bank lost over $1 billion on Japanese Index
futures. That put the UK financial system under tremendous pressure. That $1 billion almost collapsed the system. But
today we already have $56 billion in fines just for 2014, and no one blinks an eye.
How can this happen? Its simple: There has been a staggering amount of credit creation and money printing over the last
20 years. In 1995 total credit worldwide was around $30 trillion. Today its around $260 trillion. So thats a roughly 9-times
increase in the amount of debt outstanding. And since 2005, just 9 years ago, credit has more than doubled from about $125
trillion to $260 trillion today.
So the banks now have hundreds of trillions of dollars of money to play with. And if they leverage that up to 30-times, which
we know the banks do for their trading, were talking about quadrillions of dollars. This is why $56 billion in fines means
nothing -- its pocket money for them.
This is why we already see hyperinflation in the banking industry. This is also the first sign of the world starting the
hyperinflationary stage -- because of all that money creation. All of this money has gone into the banking system and we are
clearly seeing hyperinflation there.
We also talked about hyperinflation in Japan last week, and today the yen is at nearly 116 vs the dollar. The next stage is
probably a quick run up to the 150 level. This will lead to all other Asian countries devaluing their currencies by printing
money because they cant afford to have a strong currency against the yen. This would make them totally uncompetitive.
So there will be a lot more money printing and currency devaluations all over Asia. That will lead to the West being under
pressure because the West will then have deflation exported from Asia, and the West cannot survive with more deflationary
pressures from Asia. As you know, the West would totally collapse under its massive debt load with deflation. So the West
will not accept this.
The West will print as much money as necessary in order to debase their currencies, and this will also lead to hyperinflation.
Western central bankers wont like losing out in the currency race to the bottom, so they will print more than ever and that
will be the start of the final leg of the total destruction of the currency system.
Turning to the gold market, we have the upcoming vote on the Swiss Gold Initiative, and the president of the Swiss National
Bank is getting more and more desperate. He is now giving interviews every day talking about the dangers of the Swiss Gold
Initiative, and how bad it would be for the Swiss economy. But of course its not the Swiss Gold Initiative which is
dangerous, its the policies of the central banks -- including the Swiss National Bank -- that are dangerous.
The Swiss National Bank has already printed 400 billion Swiss francs in the last couple of years. This has been done in order
to buy risky assets and to keep the Swiss franc weak. It is a disastrous policy to align the Swiss franc to a weak euro and a
failed economic experiment like the EU.
The SNB president is also saying that speculators in gold as well as gold traders will benefit from this initiative. People buy
gold for wealth preservation, not speculation. And anyone speculating on this would only have a 50/50 chance, so I dont
expect much in the way of speculation. But the ones who would benefit from this initiative are the supporters of true money
as well as the Swiss people.
The question is: Will gold go up if there is a victory for the Yes campaign? It could be that a Yes vote would be a catalyst for
gold to rise, but in any case I think gold has turned and weve already seen the corrective bottom. So gold is going to go up
anyway.
But what is happening is the Euro/Swiss franc rate is now under pressure and it is at the lowest level since the SNB actually
pegged the franc to the euro. Its now creeping down to the 1.20 peg. To me that is a clear indication that the market sees a
win for the Yes vote. Since PayPal without warning blocked donations to the Swiss Gold Initiative, an alternative method of
payment has been set up. The PayPal donations that were blocked have been refunded. Donors can now pay by bank
transfer to a Swiss Post Finance account. Alternatively, Bitcoin donations are also accepted.

The Most Important Question about Gold and SILVER


Price Suppression, Answered!
(http://thewealthwatchman.com/the-answer-to-the-most-important-question-about-goldand-silver-price-suppression/ )
I was going to write on a different topic today, but I had someone ask me a question, prompted by an exchange hed read from a certain guru, Mr.
Martin Armstrong. The exchange was about whether or not gold and silver were being actively suppressed by banks and governments.
Armstrong continues to come against the argument of long-term suppression, but this shield brothers question is so crucial, that once I read it, I
knew I had to write on this topic immediately. It is becoming more and more important every day, for everyone possible to
understand why the manipulation is prosecuted and ongoing, even more than who is doing it or how.
The question basically goes like this, and Im sure youve heard it too by this point:
Why would the governments(and large banks who run them) care about suppressing gold and silver for the long haul? Theres not alot of cash to
be made in rigging these things perpetually, so why would the banking cartel choose to suppress silver and gold?
This question keeps coming up over and over, and the answer is so important that it bears repeating, especially since some newcomers to precious
metals are just now getting involved in this fight.
The number of voices out there still hilariously clamoring to defend the gold and silver markets as freely and fairly-traded and totally
legitimate are are shrinking faster than the real U.S. job market. It has now become apparent to all but the most willfully blind, that there are
serious, serious problems of price suppression within the precious metals futures trading space.
So lets address a few of Mr. Armstrongs actual words, but not before we clear something up first.
It Is Historical Fact
First of all, anyone whod deny that governments and banks couldnt or wouldnt suppress precious metals prices for very long periods of time, isnt
very savvy in the history department. After all, its barely half a century since Charles de Gaulle helped destroy the gold market riggers in the
1960s by taking delivery of vast tonnage of gold, on behalf of France, from the London Gold Pool. The London Gold Poolwas constructed by the
Anglo-American banking powers, to hold golds exchange rate down at a price of $35 per ounce.
Eventually they had to abandon this price fixing scheme, due to the tremendous loss of gold, but salient point remains: it is historical fact that
banks and governments have felt that it is within their own best interests, to suppress the price of gold. Theyve repeatedly demonstrated that
doing so for long periods(literally decades at a time), isnt really that difficult,when you own most of the worlds investment-grade gold.
This is elementary stuff, but another point I wanted to bring up, that nearly no one else mentions, is that the classical gold standard (and most gold
standards in general) by definition, is purely a long-term price suppression scheme.
Thats actually all a gold standard is!
It is a group of governments and bankers, who own gargantuan stockpiles of gold, all agreeing on a price which they think is fairly sustainable, in
which to either print currencies as a derivative of that stockpile of gold(in a worst case scenario), or in which to put a piece of gold in your hand(in
the best case scenario).
It doesnt matter what the gold standards rate of exchange is: whether $20, or $35, or $35,000 an ounce, if they all agree on the exchange
rate to peg gold at..then its not a freely and fairly-traded rate, and the people living under it will simply be eventual victims of another
generational, monetary scam, repeating the terrible cycle all over again.
That is why this Watchman opposes the gold standard! A gold standard, in our modern contexts, is nothing but price rigging, and price
suppression. It took me many years to get here, but several commentators, such as Mike Maloney have made me realize that a gold standard is just
a gigantic scam that allows those at the top of the money pyramid to grant their crushing pyramids of debt, a longer lease on life.
It affords all the power to those who deserve it least!
Im not for a gold standard, but for simply gold and silver in the hands of the people, trading freely against any other currencies(whether government
or private) in any form.
Period.
Armstrongs Points

With that said, lets take a look at part of a response that Mr. Armstrong wrote to a reader, when asked if the day would come where hed
acknowledge gold and silver price suppression:
Sorry that day will never arrive. It is pure BS used to sell the metals. Look at it this way. WHY buy something that can never rise if these stories are
true? It makes no sense whatsoever. I remain bullish long-term BECAUSE there is no such suppression. If there was, it cannot be a free market so
write it off.
The decline in the metals is in line with the global economy. Come on look at oil !!!. The metals will rise. They are NOT perpetually suppressed.
The time is just not right. What would the banks, who care only about the next quarters trading profit, keep the metals suppressed without profits to
pay regular bonuses? EVERY manipulation they have EVER done with the metals is to make fake rallies because they KNOW the gold promoters
will talk everyone into buying. To many reason flies out the window. This has become a religion to perpetually hold rather than trade. The
manipulators get to sell those rallies and make a fortune.

There is NO money for them to perpetually suppress the metals. If there is no profit, they are not there. Sorry. A manipulation stands out because it
is abnormal. The metals are in perfect sync with the global sectors of markets. Even the Platinum manipulation bribing Russian officials to recall all
platinum sent prices up. They need people to buy in order to sell the highs. You make 10x more in a short-sale at the high is less time than a buy and
hold for decades be it stocks or metals. That is HOW they make a fortune. Not by trickle down bear markets. They know the gold believers will hold
until they lose everything. They want the big bang for the buck and that comes with creating fake rallies.
Now, the more hardened vets among our shield brother camp, were probably going through those lines, laughing and punching holes in
each one. The number of mistakes and half-truths could rival the stars in the firmament, so Ill just restrict my rebuttal to a few of his more
important statements, Lets take a look at this one first:
I remain bullish long-term(on gold and silver) BECAUSE there is no such suppression. If there was, it cannot be a free market so write it off.
That is pure hogwash! Just because a market can be rigged for long periods of time, does not mean it will always be rigged. The London
Gold Pool(and the current Washington D.C./Wall Street/City of London gold pool), lost their multi-decade struggle because enough
folks caught onto their scam of putting too many claims upon each ounce in the vault.
This is exactly what is happening again right now.
You are watching history rhyme against its earlier stanzas. Washington and London are losing their fight to sustain a suppressed, dollar price of
gold, because the world(and anEastern Bloc of countries) has learned of their tricks,and is now rejecting fiat debt notes, called U.S. dollars, and
buying up too much gold(and silver) for the scam to continue.
The real reason to be bullish on silver and gold is the precise opposite of what Armstrong says! It is because the gold and silver markets are in
the last throes of a generational suppression scheme, that such an enormous opportunity in gold and silver exists. All price suppression schemes end,
and all scammers get outed in the end.
Lets see another point of Armstrongs:
The metals will rise. They are NOT perpetually suppressed. The time is just not right. What would the banks, who care only about the next
quarters trading profit, keep the metals suppressed without profits to pay regular bonuses?..There is NO money for them to perpetually
suppress the metals. If there is no profit, they are not there.
Ok, this point of Armstrongs is so sophomoric, so simplistic, and so colossally ridiculous, that I have a great deal of trouble believing that he
actually believes what hes telling others.
Armstrong is too smart to say something this stupid.
If you remember nothing else I say in this article remember this: the banking powers do not suppress gold and silver to make
fiat dollars directly..
Rather, they suppress gold and silver to make fiat dollars possible!

The banks dont suppress silver and gold to pocket a few of these:

But to prevent this:

It is precisely because the entire system is a Ponzi scheme, based upon the fraudulent notion that debt is money, and that debt is wealth, that the real
money and power have always been in having a lease from the entire world, to create the world reserve currency, and possessing the credit
rating that goes with it.
The real power has never been in pocketing dollars from miniscule trades(thats how a guppie thinks), but in being able to issue unlimited
quantities of them.
The banking, military, and political power that comes from having a system, owned entirely by central and bullion banks, is so vast, that its mindboggling.
In fact, the power and wealth that flow from it is so great, that human beings dont yet know where its limits are!
Case in point: the LIBOR scandal was a malevolent scheme that involved hundreds of trillions, hundreds of TRILLIONS of dollars, and
ended up transferring so much wealth to those at the top, that we still havent completely gotten to the bottom of it!
If these financial institutions can rig something that was larger than even global GDP, by orders of magnitude.then the pertinent questions remain:
What cant they rig?
What cant they steer?
What cant they suppress for their own sole benefit?
The answer is: nothing.
There is no market, no currency pool, and by extension.no group of people on earth, they cant exert a measure of control over.
All this fraud is possible, due to the collusion of the money powers that have taken control of the worlds currency systems, all of which are based
upon the cracked and fraudulent foundation of the U.S. fiat dollar standard.
This is one thing that Bix Weir is right about: without a game plan to rig and suppress the fiat dollars main competitors (gold and silver),
the currency cannot survive. Any central planner worth his salt, knows that you must first have a game plan to hold the prices of precious metals in
check, denominated in your currency(whatever that fiat currency is)..or the prices of both metals will escape you, and then confidence in your
currency itself will be destroyed.
This is why someone like Ted Butler (a brilliant man, whom I highly respect) has been so perplexed lately about why JP Morgan and Scotia Bank
continue to let the tech funds off easy in the gold and silver futures trading arena. He doesnt understand why the banks wouldnt just simply

refuse to sell their longs that they amassed when PM prices get too low. He has often wondered aloud why the banks dont simply hang onto those
longs and really, really make some big cash on the upswing.
Ted isnt thinking big enough.
The reason why they dont do that, is because its not chiefly about making cashbut rather making cash possible.
If silver did spike to say, $100 or $200 in a short space.yes, I suppose the big bank suppressors would pocket several billion dollars.but then
there would be a worldwide run on silver and gold(that isnt there), followed by a financial panic. The metals would fly to the stars, and the
US dollar, and the entire financial system built upon it..would cease to be.
Anyone who doesnt see this one point, is not rightly seeing or understanding what silver and gold are. They are not commodities. They are not
investments. They are money, they are currency.
Think about it, if you alone have the power to create dollars and extend credit based upon them, then you can finance whatever you want, to the
tune of whatever amount you want!
Ya want war? Well, just ask Miss Yellen at the Federal Reserve to print up some more goodies, and issue a little more debt to anyone who wishes
to buy it (locking in that debt at the lowest interest rates in history) and voila!
Perpetual trillions for your phony war on terror!
Ya want 50 million people on food stamps? Just print up some fresh Bennie bucks, and dole it out to the masses, as you pass the bill for it(with
interest) onto the backs of the tax slaves under your debt pyramid!
Ingenious!
Ya wanna rig key markets..like LIBOR, like housing, like forex markets, like equities, like commodities, like bonds? Simply congregate
enough large financial institutions together, build the best HFT trading platforms, make a few phone calls, send a few emails.and the world is your
oyster!
Literally!
For the banks to let the precious metals fly just to make some pocket change on the longs they hold, would be tantamount to killing the
goose that lays the golden eggs!
This scam has always been about protecting the illusion of the system as a whole, the full faith in the U.S. dollar. Fiat currencies are a religion, a
false one. It is mere belief that suspends them. Theyve always been, and will always be, confidence games, with emphasis on the Con.
Conclusion
This is a ridiculously truncated version of what I wanted to write, but you get the idea:
The contemporary, fiat currency system, which central and international banks constructed, is a model thats built upon the bedrock of systemic
fraud in multiple markets. The only way the system can continue is by constant expansion of currency and debt. The system has become so full of
rot, that it cant survive without fraud and constant rigging, especially of its perennial competitors: silver and gold.
The untold wealth and power these banks have amassed, comes from being able to steer world markets, whether currencies, or OTC derivatives, or
bonds, or commodities, or real estate, and none of that steering is possible without the fiat, debt-based currency system it rests upon.
The monetary system itself is where the money is, and that is why the Powers that Be are willing to spend several trillion dollars a
year suppressing silver alone! Even at a price tag that high, it is still well worth continuing.
A Ponzi scheme, which is built upon the erroneous notion that debt is money(which it isnt), and that debt can be a wholesome, moral
currency(which it cant), isnt a system thats long for this world.
No edifice can long stand without a solid foundation of integrity, and no ponzi scheme ever invented has possessed integrity.
As a castle built upon the sand, so is this monetary system, which is built upon the shifting sands of central planning, debt-pyramiding, and chronic
market-rigging.
The Tide is coming in, and will, thankfully, wash away every ill-conceived, wicked, and two-faced scheme of mice and of men
Your silver(and gold) purchases are a large part of that tide, which is eroding the fragile foundations of worldwide fraud!
Your actions are making their actions a most untenable proposition! Keep them up!
When enough of humanity chooses honesty over fraud, freedom over central planning, and sound money over debt slavery, then and only
then, will what is spoken in secret be shouted from the rooftops!
Only then will a better world be possible. Were on the cusp of this real break-through, of this real change in the consciousness of mankind.
It is such an exciting time to be alive, brothers! Yes, while perhaps a little unnerving at times, but what journey, what roller-coaster, what great
adventure would be complete without a few unnerving moments?
Dont give a second thought to their schemes viability.
It will perish with gusto!
The world monetary system, like a sand castle near the waters edge, was built by wealthy oligarchs, foolishly believing themselves to be gods. It
isnt the first time that oligarchs have played god, and it wont be the last, either.
Their precious scam theyve constructed, in the fullness of time, will wash away, and collapse under its own weight.
For its fate was sealed by its designers own folly and arrogance, before it was ever built

The U.S. National Debt Has Grown By More Than A Trillion Dollars In The
Last 12 Months
On September 30th, 2013 the U.S. national debt was sitting at $16,738,183,526,697.32. As I write this, the U.S. national debt is sitting
at $17,742,108,970,073.37. That means that the U.S. national debt has actually grown by more than a trillion dollars in less than 12
months. We continue to wildly run up debt as if there is no tomorrow, and by doing so we are destroying the future of this nation.
This is the greatest government debt bubble in the history of the world, but very few people seem to have any desire to do
anything about this anymore. We are literally gorging on debt.
When it comes to running up debt, a day of reckoning always comes eventually.
Just ask Greece.
The big question is how long our bubble economy can keep going before it finally collapses.
Someday this bubble is going to burst and then all hell will break loose.
Several signs have emerged recently that we are in fact starting to hit the wall now
The idea that the Obama administration has the budget deficit under control is a complete and total lie. According to the U.S. Treasury,
the federal government has officially run a deficit of 589 billion dollars for the first 11 months of fiscal year 2014. But this number is
just for public consumption and it relies on accounting tricks which massively understate how much debt is actually being accumulated.
If you want to know what the real budget deficit is, all you have to do is go to a U.S. Treasury website which calculates the U.S.
national debt to the penny. On September 30th, 2013 the U.S. national debt was sitting at $16,738,183,526,697.32. As I write this, the
U.S. national debt is sitting at $17,742,108,970,073.37. That means that the U.S. national debt has actually grown by more than a
trillion dollars in less than 12 months. We continue to wildly run up debt as if there is no tomorrow, and by doing so we are destroying
the future of this nation.
The chart that I have posted below shows the exponential growth of the U.S. national debt over the past several decades. Anyone that
would characterize this as under control is lying to you

This is the greatest government debt bubble in the history of the world, but very few people seem to have any desire to do anything
about this anymore. We are literally gorging on debt, and most Americans seem to think that it is just fine and dandy.
Perhaps that it is because we have never really experienced any serious consequences for going into so much debt yet.
But when it comes to running up debt, a day of reckoning always comes eventually.
Just ask Greece.
And the absolutely insane spending policies of this administration and this Congress are hastening the day when our day of reckoning
will arrive.
Consider the following facts
-The U.S. national debt has increased by more than 7 trillion dollarssince Barack Obama has been in the White House. By the time
Obamas second term is over, we will have accumulated about as much new debt under his leadership than we did under all of the
other U.S. presidents in all of U.S. history combined.
-The U.S. national debt is now more than 5000 times larger than it was when the Federal Reserve was first established in 1913.
-If the U.S. national debt was reduced to a stack of one dollar bills it would circle the earth at the equator 45 times.
-Right now, the United States already has more government debt per capita than Greece, Portugal, Italy, Ireland or Spain.
-In August, the average rate of interest on the governments marketable debt was 2.028 percent. In January 2000, the average rate of
interest on the governments marketable debt was 6.620 percent. If we got back to that level today, we would be paying well over a
trillion dollars a year just in interest on the national debt.

-At this point the U.S. government has accumulated more than 200 trillion dollars of unfunded liabilities that will need to be paid in
future years. In other words, we have made more than 200 trillion dollars worth of promises that we do not have money for yet.
Thomas Jefferson once said that the principle of spending money to be paid by posterity, under the name of funding, is but swindling
futurity on a large scale.
What we are doing to future generations is absolutely unconscionable. We are stealing trillions upon trillions of dollars from our
children and our grandchildren, and we are willingly consigning them to a lifetime of debt slavery.
I have said this before, but it bears repeating. If future generations get the chance, they will look back and curse us for what we have
done to them.
And shame on anyone that would dare to suggest that we should continue to run up more debt that future generations will be expected
to repay.
But government debt is far from the only massive debt bubble that we are dealing with as a country.
40 years ago, the total amount of debt in our nation (all government debt plus all business debt plus all individual debt) was sitting at a
grand total of about 2.3 trillion dollars.
Today, that total has grown to 59.4 trillion dollars.
As the chart posted below shows, our total debt bubble is now more than 25 times larger than it was just 40 years ago
If you were to take all forms of debt in our country and divide it up equally to each person, the average family of four would owe
approximately $735,000.
This is not anywhere close to being sustainable, but most Americans dont seem to care. They just continue to recklessly run up even
more debt.
However, there are signs that we are starting to hit a wall with all of this debt.
For example, an astounding 35 percent of all Americans have debts that are so overdue that they have been referred to collection
agencies.
Our nation has become an ocean of red ink from sea to shining sea, and the only way to keep the bubble from bursting is for the total
amount of debt to continue to grow much faster than the overall economy is growing.
Obviously this cannot happen indefinitely, and when this house of cards comes crashing down it is going to be absolutely horrific. For
much more on all of this please see my previous article entitled The United States Of Debt: Total Debt In America Hits A New
Record High Of Nearly 60 Trillion Dollars.
The big question is how long our bubble economy can keep going before it finally collapses.
It has gotten to the point where even some of the biggest banks in the world are admitting that what we have been doing is completely
and totally unsustainable. Just consider the following excerpt from a recent article by Joshua Krause
*****
Recently, strategists for Deutsche Bank released a startling study in regards to government debt. They decided to investigate
whether or not the bond market is currently in a bubble. What they found was, unlike previous eras, the past 20 years has seen no lag
between economic booms and busts:
It has long been our view that over the last couple of decades the global economy has rolled from bubble to bubble with excesses
never fully being allowed to unravel. Instead aggressive policy responses have encouraged them to roll into new bubbles.
This has arguably kept the modern financial system as we know it a going concern. Clearly there have always been bubbles formed
through history but has there been a period like the last 20 years where the bursting of one bubble has consistently led directly to
the formation of the next?
Essentially, our current system has been dying a very slow death. Its running out of steam.
*****
Sadly, most Americans have no idea that we are living in a giant debt-fueled bubble that has a limited lifespan.
Most Americans just assume that since the politicians tell them that everything is going to be okay that they dont need to be concerned
about any of this.
But every single day our debts get even larger and our long-term financial problems get even worse.
Someday this bubble is going to burst and then all hell will break loose.
It is just a matter of time.

BO POLNY: Gold Price Suppression Ends in 2014 with a Gold Spike!


Only the Resolute Bulls Will Be Left Standing to Experience a Moon Shot to $2000 in 2014!
Once all but the Resolute Bulls are wiped out, Gold and Silver will do an immediate price reversal and leave all who sold their
Gold and Silver standing empty handed as the new 7-year Gold Bull market cycle Breaks away and runs into the end of 2014
and beyond!
Gold will spike in 2014 and the big question is will the spike hit $1600, $2000 or is $2000 much too low a target?
Cycle analysis gives price direction, NOT exact price, so how high could the spike go?
Only God knows; but the Gold Price Suppression Game that holds Gold down comes to an end in 2014!
Dear Gold friends,
In July I wrote Only the Resolute Bulls Will Be Left Standing to Experience a Moon Shot to $2000 in 2014! It is now time to ask
yourself, am I a still a Resolute Bull? With Golds price drop the first 2 weeks of September, should I just give up on Gold?
Is Golds next stop still $2000 now that Gold broke through $1240 on September 11, 2014?

In response to many recent emails and comments, lets look at Golds last 3 cycle lows to possibly get some insight:
1.

In June 2013 Gold made THE Cycle Bottom at $1178, cycle analysis called this bottom within 2-hour, and at that time Gold
bashers were all screaming $1000 Gold next; it never came as Golds next cycle was up, not down, causing Gold to
rebounded as forecast making a $1434 top in August 2013.

2.

In December 2013 Gold made a higher degree low at $1181 and again the Gold bashers were screaming $1000 Gold next; it
never came as Golds next cycle was up, not down, causing Gold to rebound as forecast making a $1392 high in March 2014.

3.

In June 2014 Gold again made another higher degree low at $1240 and once again the Gold bashers were hard at work
screaming $1000 Gold next; it never came as Golds next cycle was up, not down, causing Gold to rebound as forecast
making a $1346 high in July 2014.

4.

Now on September 12, 2014 Gold dropped below the June 2014 low at $1240 and again the Gold bashers are, as expected,
still screaming $1000 Gold; and again it will never come!

In a May 14, 2014 New York Kitco Interview and forecast (click here to view), cycle analysis indicated Gold was expected to rise in
May/June and make a Top in June, then drop down in price making a Final Summer Low and in conclusion Spike and reach $2000
before year end. The May 2014 Interview stated a Final Summer Low would be a final entry point.
Summer is NOT officially over and a break of $1240 changes nothing in a cycle! Cycle analysis gives price direction, NOT exact price.
A possible low Price target is derived by calculations using a Fibonacci scale and a break of $1240 Gold is nothing but a break of a
Fibonacci price support line NOT Golds 21-year Bull Market cycle. So stating The historic Gold cycle dictates an end of summer
2014 low MUST remain ABOVE the June 2014 low at $1240 was an overzealous statement andmistake on my end and nothing more
and a Fibonacci support line break does NOT constitute breaking Golds 21-year Bull market cycle!
Once all but the Resolute Bulls are wiped out, Gold and Silver will do an immediate price reverse and leave all who sold their
Gold and Silver standing empty handed as the new 7-year Gold Bull market cycle Breaks away and runs into the end of 2014
and beyond!
So, is Golds next stop still $2000? Yes. Will Gold ever see the $1180 lows? Absolutely NOT!
$2000 Gold will be followed by many higher high price targets into the year 2021 when Gold is expected to reach $5000 minimum basis
new Fibonacci. Why $5000 and not $10,000 as stated in the May 2014 Interview? As stated above, Cycle analysis gives price
direction, NOT price; so is $10,000 still possible? Yes, but conservative new Fibonacci calculations show a minimum price target of
$5000, still a number anyone holding Gold would be very pleased with.
Will Gold hit $2000 in 2014? It is my personal opinion, now more than ever, that I believe Gold will spike in 2014 and the big
question is will the spike hit $1600, $2000 or is $2000 much too low a target? Remember Cycle analysis gives price direction,
NOT exact price so how high could the spike go? Only God knows; but the Gold Price Suppression Game that holds Gold down
comes to an end in 2014 and TIMING the coming spike is exclusive to subscribers!
These are the Final Summer Lows here and now. Whether you believe or not believe, that is your personal choice; but TIME will
expose the truth just as it has all three prior times Gold was on its lows starting in June 2013 and the $1000 Gold
prediction never came to be! A Gold and Silver spike is coming in 2014!
So, are you one of the Resolute Bulls? If so; when the Gold price suppression Game ends this year your patience will be greatly
rewarded with a Gold Spike the likes of which the world have never seen.
Thank you and all the best,
Bo Polny
Legal & Disclaimer
The above represents the opinion and analysis of Mr. Polny, based on data available to him, at the time of writing. Mr. Polnys opinions
are his own, and are not a recommendation or an offer to buy or sell securities and/or commodities. Mr. Polny is an independent
analyst who receives no compensation of any kind from any groups, individuals or corporations. As trading and investing in any
financial markets may involve serious risk of loss, Mr. Polny recommends that you consult with a qualified investment advisor, one
licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any
kind of a transaction with financial ramifications. Although an experienced analyst, Mr. Polny is not a Registered Securities Advisor.
Therefore Mr. Polnys opinions on the markets, stocks and commodities are his own and can not be construed as a solicitation to buy
and sell securities and/or commodities.

New BOMBSHELL Development in PM Manipulation Story


In September 2013, just 24 hours after Andrew Maguire went public with revelations of two actual JP Morgan whistle-blowers in the
silver manipulation case, the CFTC quickly and summarily closed what had been an ongoing, 5-year silver market investigation. In a
curious development, just two days later the chief investigative officer of the CFTC, David Meister, suddenly resigned his position and
left the agency. Case closed.
In this effort, I ask for the full participation of the SD community. If you have a few minutes and if youre tired of feeling helpless in the
face of the endless price manipulation, I beg you to read this post and then take action.
As most of you are aware, I was very optimistic in the summer of 2012. I was excited. It was hot. And I expected the summer to be
historic. It wasntand by the time the calendar flipped to 2013 I was dejected and suffering from Low-E.
(http://www.tfmetalsreport.com/blog/4413/low-e)
Then, in September 2013, just 24 hours after Andrew Maguire went public with revelations of two actual JP Morgan whistleblowers in
the silver manipulation case, the CFTC quickly and summarily closed what had been an ongoing, 5-year silver market investigation. In
a curious development, just two days later the chief investigative officer of the CFTC, David Meister, suddenly resigned his position and
left the agency. Case closed.
Fast forward to yesterday
Im on a conference call with Ned Naylor-Leyland out of London. The call was organized by David Morgan and it also included Andy
Hoffman and Chris Duane. During the call, Ned dropped a bombshell.
It had come to Neds attention that the CFTC Affair did not end in September of 2013. Nope. Not by a long shot. According to
Ned, Andrews lawyers had contacted a well-known and well-regarded financial journalist named William Cohan. Mr. Cohan then
reviewed all of the evidence that Andrew and the whistleblowers had provided to the CFTC. And heres the thingMr. Cohan has
apparently written a scathing article that fully summarizes the clear evidence of silver market manipulation. And what do
think has happened with that article? NOTHING.
It seems that both Mr. Cohan AND the mainstream financial media want nothing to do with the story and they are frightened or
otherwise afraid to publish it. Why? Well, I think you can imagine why.
Today, Ned typed up a summary memo and sent it over to Bill and Chris at GATA. So far, it has appeared on Bill Murphys
LeMetropole site. With his permission, it is reprinted below:
Within days of the CFTC Silver investigation finally closing in August of 2013, CFTC whistleblower Andrew Maguires
lawyers had contacted William D Cohan, a reknowned NY-based financial journalist, and had him sifting through the folders
full of detailed evidence regarding the use of the dark arts in the Precious Metals market. A month later (September 2013) I
was told that the mooted article had indeed been written and that it would be the biggest mainstream broadsheet in the US
within 2 weeks as an extensive editorial piece. Although I was excited by the direction this was moving, I vocally doubted that
it would happen and warned Maguire and his lawyers not to rely on any mainstream publication, as I felt they would likely be
all mouth, no trousers.
Around 6 months later (Spring of 2014) I was informed by a frustrated Maguire that the story had indeed been nobbled, by no
less than 4 different mainstream newspapers/publications since Autumn 2013, despite Mr Cohans stellar reputation. Cohan
has since confirmed the above nobbling to me, independent of Maguire and described his story and the clear cover-up that
has followed it as amazing and as a story that needs to be told.
Despite these positive responses from Cohan, both he and the New York based lawyers now refuse to publish the story,
thanks apparently to an argument over the publication or not of some minor details. I have accused both Cohan and the
lawyers of sitting on the pot without relieving themselves for a whole year, but received little back to reassure me that
anything material was happening.
I made the point that people need to know either the full story, or I would have to put what I know in the public domain, as I
am now doing. The importance of this Precious Metals manipulation story is that it proves regulatory collusion, cartel
behaviour and the breakdown of the rule of law in financial markets. In light of the current investigations into FX
manipulation by big banks, this story is so ripe it is bursting at the seams. All the details lie just out of reach and I am told
that William D. Cohan even spoke directly to ex-CFTC commissioner Bart Chilton, who expressed his belief that the Maguire
evidence was valid and that there had been some kind of cover up within the agency.
I very much hope that pressure will now be brought to bear on William D. Cohan to publish the article that he wrote a year ago
and is still sitting on; the suppression of this evidence and regulatory collusion is helping to keep this rig going. An
investigative financial journalist of repute has looked at the evidence, wrote a long and scathing editorial piece about what
happened (a year ago) and yet STILL we sit waiting for discovery or publication of his piece.
While nothing comes of this Precious Metals investors continue to experience real losses, something that is unacceptable to
me as an observer aware of the background story. I take no pleasure in naming and shaming in this way, and am heartened
that Cohan confirmed and corroborated Andys evidence, but now is the time for the pot to be filled and the perpetrators
flushed out.
If it takes intervention by a third party to set fires in order to get it out there, then so be it. At the moment the cynic would infer
that either the journalist or the lawyers (or both) are colluding to continually keep this most important of stories under wraps.
If this is not the case then they must drop the petty infighting over specific details and publish immediately.
NED NAYLOR-LEYLAND
Investment Director
Quilter Cheviot Investment Management
So, there you have it and this is where the collective effort of SD comes in.

The Silver Sentiment Cycle: Why Silver Will Rally for the Next 3-7 Years
In the early 1970s silver went from ho-hum to enthusiasm to wow, who would believe it could go to $6.40? After the
2008 crash silver went from going back to 5 bucks to enthusiasm to wow, who would believe it could go above $45?
As a reminder, after silver rallied to the then astounding price of $6.40 in early 1974, it crashed back to $3.80 and then traded
sideways for 2 years. Less than 3 years later it had briefly traded at $50.00, due to a combination of inflation, debt and deficits,
political issues, conflict with the USSR, fear, a market corner, and dollar weakness.
After rallying to another unthinkable price of nearly $50 in 2011, silver crashed to about $18.50.
In another 3 -5 years, perhaps in 2017 2019, I expect silver will have rallied to $50, $100 or maybe $300 or more, due to a
combination of multiple wars, unpayable debts, inflation, deficits, bailouts, bail-ins, massive money printing, inflationary
expectations, QE, potential hyperinflation, considerable fear, currency wars, counter-party risk, political issues, derivatives,
conflict with Russia, economic and dollar weakness, and the weakening or outright loss of the dollars global reserve
currency status.
We know that financial television (and others) expect (hope) the S&P to rally and silver to collapse, but we must remember who pays
the bills for financial television, buys the advertising, and supports the various fictions in our current economic and political
environment.
The fundamentals along with sentiment cycles suggest that silver will rally for the next 3 7 years.

Silver Prices: 1972 1979 :

Silver moved upward from about $1.40 in 1971, rallied to about $6.40 in March 1974, and fell to about $4.30 in August 1977.
The March 1974 peak took about 3 years and ended about 4.55 times its starting point.
The August 1977 low took another 3.5 years and fell about 33% from the peak price.

Silver moved upward from about $8.53 in October 2008, rallied to over $48 in April 2011, and fell slightly below $19 in
September 2014.
The April 2011 peak took about 2.5 years and ended at about 5.7 times its starting point.
The correction into the September 2014 low has taken about 3.4 years and declined about 61% from its peak.

Do you see the similarities? I have placed sentiment labels on both graphs.

Sentiment
1971 1977
2008 2014
Takeoff
1.40
$8.53
Bear Trap
2.50
14.70
Enthusiasm
3.50
23.00
Euphoria
4.50
29.00
Greed & Delusion 6.00
44.00
Bull Trap
3.80
27.50
Denial
3.90
26.50
Capitulation
3.80
19.00
Despair
4.15
18.70
What is Different This Time?
Probably not much! The patterns are similar, but the potential rally from present prices in 2014 looks like it could be even larger than
the 1977 1980 rally. Why? See below. In the early 1970s silver went from ho-hum to enthusiasm to wow, who would believe it
could go to $6.40? After the 2008 crash silver went from going back to 5 bucks to enthusiasm to wow, who would believe it could
go above $45?
As a reminder, after silver rallied to the then astounding price of $6.40 in early 1974, it crashed back to $3.80 and then traded sideways
for 2 years. Less than 3 years later it had briefly traded at $50.00, due to a combination of inflation, debt and deficits, political issues,
conflict with the USSR, fear, a market corner, and dollar weakness.
After rallying to another unthinkable price of nearly $50 in 2011, silver crashed to about $18.50. However, in another 3 -5 years,
perhaps in 2017 2019, I expect silver will have rallied to $50, $100 or maybe $300 or more, due to a combination of multiple wars,
unpayable debts, inflation, deficits, bailouts, bail-ins, massive money printing, inflationary expectations, QE, potential hyperinflation,
considerable fear, currency wars, counter-party risk, political issues, derivatives, conflict with Russia, economic and dollar weakness,
and the weakening or outright loss of the dollars global reserve currency status.
We know that financial television (and others) expect (hope) the S&P to rally and silver to collapse, but we must remember who pays
the bills for financial television, buys the advertising, and supports the various fictions in our current economic and political
environment.
Along with many others, I expect that silver will rally for the next 3 7 years.
Favorable for Silver Prices
More debt and more war
Congressional corruption
Weaker dollar
$10 gasoline
Considerable price inflation
Asian gold and silver purchases
Ukraine and Middle-East wars
Low congressional approval ratings
Amateur hour in foreign policy
Money flow out of bonds into silver
Money flow out of S&P
More restrictions on mining
Lack of exploration for new silver
Increasing energy prices
More fiscal insanity
More money printing

Unfavorable for Silver Prices


Fiscal sanity and peace
Congressional honesty
Strong dollar
$3 gasoline
2% inflation
Weak demand from Asia
Peace in our time
High congressional approval ratings
Strong foreign policy
Money flow out of silver into bonds
Money flow out of silver
Fewer restrictions on mining
Discovery of new silver deposits
Decreasing energy prices
A balanced budget
Back to a modified gold standard

I expect that silver will rally well over $100 in the next few years because most or all of the favorable and few or none of the
unfavorable items listed above will occur.
Does this month look more like another bottom in silver and another top in the S&P, or does it look like a new paradigm with
responsible leadership in the political and financial worlds, lasting employment, prosperity for all, declining debt, and a balanced
government budget?

Are you buying silver instead of bonds? Are you buying silver instead of S&P indexed
funds? Are you buying gold instead of earning 0.10% interest in your saving account? Are
you preparing for a financial future based on real assets instead of paper promises secured
by the integrity of politicians and bankers?

The Silver Noose is Tightening: Silver Recycling Plunging


This year some 900,000 oz of silver on average have moved into or out from these six warehouses on a daily basis.
The daily average movement of silver into and out from the COMEX silver warehouses at 900,000 oz is equal to 28% of total
world daily mine production. -Ted Butler
Over 1 in every 4 ounces of silver that planet earth will bring out of the ground this year, will be shuffled through the vast halls of
Comex warehouses. Over 1 in 4. The Comex system has gone from moving perhaps 1 million ounces of silver per week, to
moving nearly 1 million ouncesper day! In fact, in just the last two business days, the Comex has moved over a whopping 4
million ounces of silver!
As prices continue their descent for both gold and silver, its more important than ever to keep a clear focus on the
implications of this price action, not just for investors like us(which are obvious), but also for those trying to orchestrate it.
Its all a game of ounces in the end, for these banks, after all. They must bring enough physical metal to deliver on their exchanges,
both to investors, and to the industrial users. Theres no Plan B.
Since both sources of demand wont back off from their record level purchases, the bullion banks realize that they simply have to bring
even more product to market. Their backs are against the wall here. The moment the metal is not delivered to some large
customer in size, is the precise moment the end to this game will begin. Thats the Catch 22 of the situation though: the
banks want lower silver prices, yet the lower the price goes, the more threatened their constant source of supply becomes.
The banksters are Trapped Like Rats
Trapped Like Rats
As prices continue their descent for both gold and silver, I feel its more important than ever to keep a clear focus on the
implications of this price action, not just for investors like us(which are obvious), but also for those trying to orchestrate it.
Its all a game of ounces in the end, for these banks, after all. They must bring enough physical metal to deliver on their exchanges,
both to investors, and to the industrial users. Theres no Plan B.
Since both sources of demand wont back off from their record level purchases, the bullion banks realize that they simply have to bring
even more product to market. Their backs are against the wall here. The moment the metal is not delivered to some large
customer in size, is the precise moment the end to this game will begin. Thats the Catch 22 of the situation though: the
banks want lower silver prices, yet the lower the price goes, the more threatened their constant source of supply becomes.
Weve already seen how miners are hitting a wall, concerning the silver supply they can bring to market at these prices. Yet, other
sources are quite sensitive to price drops as well, some of which the average silver investor may not even know about.
Scrap it!
Sources like silver scrap and recycling are particularly vulnerable in this respect. In fact, last year alone, the amount of silver that
was produced due to recycling dropped by an enormous 60 million ounces, a drop of over 23% from the previous year. Via
the Silver Institute below, you can see just how large this drop was. It was such an immediate difference, that it became one of the
chief reasons for last years deficit.

upply of Silver to the Market


2012 2013
(Million ounces)
Mine Production
792.3 819.6
Above-Ground Stocks
260.0 199.7
of which scrap
252.6 191.8
of which hedging supply
of which ETF drawdown
of which Government Sales 7.4
7.9
Total Visible Supply
1,052.31,019.4
In light of the relentless plunge in silver prices, the plummeting amount of scrap silver that refiners were willing and able to
source caused an overall reduction in silver supply of over 33 million ounces. This is in spite of the mining industry bringing a
record number of ounces out of the earth last year!
The really crazy part about that reduction in recycling is that this all occurred at an average silver price in 2013 of $23.79!
Barring any huge price spike, from now until December, this years average price will be much lower than $23, considering the high
price for silver all year was a short spike up to roughly $21.60.
2014 Scrap Reduction?
Can you imagine what effect this will have on silver scrap supplies this year? Remember, everyone wants the best bang for their buck
in this process. There is a base level cost to refiners to even process the silver scrap, and turn it into industrial grade bars. If the costs
of the process cannot be met or justified by silvers price, then silver scrap wont be turned into new silver product. Its that simple.
The same goes as well though, for owners of silver jewelry or scrap. If you had old family jewelry sitting around, do you think youd feel
terribly motivated to go drive out to your local cash for silver store, and pawn your silver to them at the lowest price in 4 years?
Remember that these cash for silver stores only pay you a fraction of what the spot price happens to be. So you wont be getting
anywhere near the $19 per ounce that silvers currently resting at. Youre likely only to get between 50 to 80% of that $19
price! The market, both the refineries, and the silver owners at large, are acting very rationally by recycling alot less silver during
ridiculous price collapses, like the one being engineered right now.
Then chances are, youre just not gonna feel that compelled to go down to your local cash for metal store and get
hosed. Thats exactly what millions of others are doing as well: theyre waiting for sunnier days before bringing their silver to market.
By the way, I wonder: what would a dollar-scented air-freshener smell like?
Hmm. Narcotics, maybe?

Yeah, maybe thats why no ones made one yet


The Mindset Driving the Shortage
It may not appear like it at all, brother, but momentum is on our side right now.
What am I talking about?
For one thing, Im talking about the psychology behind huge price declines. An enormous price decline puts a great deal more
pressure on those doing the supplying, than those doing the buying. For those such as us, who know whats really going on,
were not afraid of what is happening right now. In fact, Ive been personally preparing for weeks to make another purchase, but I
havent just yet. Im waiting to see if JP Morgan can at least plumb the depths from the summer of 2013($18.18). Since were only 2%
away from that magic number, Ill sit tight just a bit longer.
Why? Because I can!
You see that? Were the ones who can wait. Most of you are able to wait as well. This is a buyers dream, and a sellers
nightmare. This great luxury of being able to sit, and buy at our leisure is our greatest weapon. Time is our ally here! Weve
got nothing but time in this equation, but please understand right now, these bullion banks do not!
With the average price in 2014 being somewhere in the $19 range, a whole $4 less than last year(when scrap reduced by 60
million ounces), Id be willing to wager a decent sum that this years scrap offering will be even less. It could be substantially less.
Think about all the trouble that Scotia Bank, JP Morgan, HSBC and friends, are experiencing in getting these refiners and miners to
bring enough precious silver ounces to market?
Thats just too bad, ya know? Let me also say at this juncture, that these guys doing the supplying are panicking right now.
I dont think so, I know it. Let me tell you why.
Frantic Silver Movements
Ted Butler is one of the original men who discovered this fraud in silver, and by the way, if you arent familiar with him, I highly
recommend that you bookmark his site, and read some of his older materials. Youll learn more from him in a few hours than you will
from other places in months.
Recently, Ted has been documenting something very peculiar in the silver market. In fact, hes pinpointed an indicator thats flashing
warning signs that something is terribly wrong in global silver stockpiles, and the silver supply chain at large. It has to do with
something called Comex Inventory Turnover. Let me explain.
Many of the worlds largest warehouses for silver are in the Comex warehousing and delivery system. These warehouses are located
mostly in New York City, and a few other parts north. Ted has mentioned for years, that in the olden days, hed rarely see more
than one million ounces move in and out of these huge warehouses in a weeks time to make deliveries.
Yet now? Well, allow me to let Ted explain it as only he can. This was written to his subscribers back in April:
For the past three years, I have commented on the turnover or movement in and out of the COMEX-approved silver warehouses. Prior
to April 2011, I had noticed no particular pattern in these inventories. Since that time, there has been a noticeable pattern of large daily
and weekly deposits and withdrawals of silver from COMEX warehouses. One of the most notable features is that it has been
confined to silver and not gold or copper. On average, there has been a 3 million ounce weekly turnover in COMEX silver
inventories over the past three years, or 150 million ounces on an annual basis. This week, the silver warehouse turnover hit over 8
million ounces, or 400 million ounces annualized, one of the largest in memory.
This silver warehouse turnover is no simple bookkeeping entry. It takes metal out of the warehouses and puts in on trucks, or
takes it off trucks and puts it into the warehouse. It involves trucks, insurance, warehouses, auditors and assorted
middlemen that track movements to the ounce. A typical truckload runs 600,000 ounces of silver or $12 million, an amount
that would be closely accounted for every step of the way. And it certainly costs money to move this amount of metal every day. I
cant say exactly why the turnover is so high. My best guess is that some type of large physical demand requires the movement. Isnt
that the same as tightness and a pending shortage? If I am close to right as to why this COMEX silver warehouse turnover exists,
there may be a pending physical shortage and a dramatic new price. -Ted Butler
Amazing! Weve gone from roughly 1 million ounces being shipped in and out per week, to three million ounces per week at that
point, and in one particular week, we had 8 million ounces get moved around in 5 business days! Do you realize how many
forklifts were required just to move that much silver?
Well, Watchman, that silver turnover is definitely impressive, but, I guess I dont understand. What does a quickening pace of silver
turnover have to do with the bad guys being panicked? Why do they care about how fast silver is moving? Theyre still making
deliveries arent they?
Excellent question! Yes, they are still making timely deliveries, but the reason that the fast turnover rate of silver in these warehouses
is such a big deal, is that it says, no, it screams, that deliverable silver is in dire shortage.
Think about it. If there was plenty of silver in the world to deliver, then many of those stockpiles would find a cozy home, as they did in
days past, and just wait patiently to be delivered. These silver stockpiles are not at rest. Theyre being shipped out as fast as
theyre being shipped in. If there were a host of other warehouses who were bursting with silver to deliver, you would not be seeing
this frantic movement of inventory.
All the silver within the Comex, is increasingly becoming all there is to deliver. Anywhere.
Whats even worse, is that Uncle Ted(as some of us know him) estimates that although the Comex warehouse inventory states
they have 180 million ounces within their vaults, only about 30 million of them are probably available to deliver in a moments
notice.
Please understand that this movement mentioned above is no outlier, either. This frenetic silver movement hasnt slowed down since
April. In fact, if the last few weeks are any indication, it seems to be getting even more frantic. Just 6 days ago(September 6th),
Mr. Butler had this to say about the silver turnover rate at the Comex:
Let me take another shot at trying to highlight why this COMEX physical turnover, unique to silver among all commodities, has
captured my attention. There are six COMEX-approved silver warehousesfour in the vicinity of New York City and two not that far
away in Delaware and Massachusetts. There is not a lot of silver mining or smelting occurring in this narrow area of the Northeastern

US, although this is clearly a hub for distribution and transportation. This year some 900,000 oz of silver on average have moved
into or out from these six warehouses on a daily basis.
Converting world annual silver mine production to the same five day work week as COMEX inventories are reported (800 million oz
divided by 250 days), the daily world mine production of silver comes to 3.2 million oz each business day. The daily average
movement of silver into and out from the COMEX silver warehouses at 900,000 oz is equal to 28% of total world daily mine
production, even though the world mines and refines silver in areas far from the narrow area where the COMEX silver
warehouses are located. -Ted Butler
Did you get that? Over 1 in every 4 ounces of silver that planet earth will bring out of the ground this year, will be shuffled through the
vast halls of Comex warehouses. Over 1 in 4. The Comex system has gone from moving perhaps 1 million ounces of silver per
week, to moving nearly 1 million ouncesper day! In fact, in just the last two business days, the Comex has moved over a
whopping 4 million ounces of silver!
Conclusion
The huge trouble in the mining industry, coupled with a cratering supply of silver in the recycling world, is a deadly combination for
those who wish to keep this silver suppression game going.
Demand for this amazing metal continues to grow exponentially, from both silver investors, as well as those who need silver for their
industrial products.
At what point will it end? Will it end when daily Comex silver deliveries hit 2 million? 3 million? 5 million ounces? Beats the
heck outta me! All I know is that theres a mathematically guaranteed end to this malevolent scam.
Its coming.
When it comes youll either be one of the heroes who held the line, and growing richer by the hour, or youll be cursing yourself
for being cut down by these banks, and tricked into selling out so close to payday.
Be the hero!

Stewart Thomson: Janet & Raj Stoke The Bulls!


The average gold bear already looks a bit like the wolf character from the fairy tale, The Three Little Pigs.
The wolf repeatedly blows hot bearish analysis air at the gold brick house, and the house just stands there, immovable.
Ive predicted that Queen Bankster Janet will begin raising rates by mid-year of 2015, and thats bullish for gold.
Heres why:
Submitted by Stewart Thomson, Graceland Updates:
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Gold is the ultimate asset, and I think both the bulls and bears are probably going to learn that fact, the hard way. The gold
bears view QE tapering and looming US interest rate hikes, as bearish for gold, and the bulls are sure gold is ready to soar
vastly higher.
One of the features that make an asset ultimate, is price stability. Unlike the bulls and the bears, I predict that gold is going to
trade sideways.
Please click here now. Double-click to enlarge. Thats the monthly bars chart for gold. Instead of flashing a crossover buy
signal, the key 5,15 moving average series has drifted into wet noodle mode. Thats not bullish or bearish for the gold price.
Its a neutrality signal. Most of my key technical indicators and oscillators are also drifting sideways.
The average gold bear already looks a bit like the wolf character from the fairy tale, The Three Little Pigs. The wolf
repeatedly blows hot bearish analysis air at the gold brick house, and the house just stands there, immovable.
Thats because the ultimate asset has arrived in the cost of production price zone, and demand and supply are balanced
almost perfectly.
To understand just how perfect that balance is, please click here now. Thats the latest forecast for global supply and demand
issued by Thomson Reuters GFMS.
Professional money managers follow these statistics with the eye of an eagle. Please click here now. Thats the same
supply/demand table, with my prediction of how the numbers really play out in 2015.
I think mainstream economists are over-estimating ETF outflows. As I write this sentence, the SPDR fund holds about 788
tons of gold. This year began with the fund holding about 798 tons, and I predicted that ETF flows in 2014 would be flat.
In contrast, the gold bulls predicted massive liquidity flows into gold ETFs in 2014, and most bank economists
predicted massive outflows. The bulls and bears were both dead wrong in 2014, and in 2015 theyre likely going to be dead
wrong again.
The next FOMC meeting starts today, and tomorrow there will be a press conference with Janet Yellen. Ive predicted that
Queen Bankster Janet will begin raising rates by mid-year of 2015, and thats bullish for gold. Heres why: The QE
program increased the money supply, but because Ben Bernanke never forced the banks to lend that money to waylaid
citizens and small business owners, money velocity continued to decline.
By increasing the size of the money supply while reducing velocity, the Fed was actually creating deflation, and pressuring
impoverished citizens to put their savings in junk bonds, to get meaningful income.
While Bens actions were distasteful, its all water under the bridge now. As Janet tapers QE to zero, the growth of
the American money supply is slowing down, and banks are beginning to make more loans. In 2015, I expect
velocity to turn up, and thats great news for gold asset enthusiasts.
Janets coming rate hikes will allow the banks to make large profits, by aggressively loaning out their QE-produced
booty. Twelve months from now, I expect to see a boom in bank loans that pushes money velocity sharply upwards.

15. At the same time as Janet begins raising rates, Im predicting that Indian central chief Raghuram Raj Rajan
begins cutting them in India. Ive called Raj the worlds smartest central banker, and thats probably a serious
understatement. Narendra Modi is pretty smart, but Raj is on a different level. I think Raj will oversee a gargantuan flow of
US dollars into India, as he cuts rates while Janet raises them.
16. By mid 2015, money could pour out of American stock markets and into India, like an institutional tidal wave on steroids. That
will make Indian citizens richer, and richer Indian citizens buy more gold. Also, the Indian current account deficit is already a
non-issue, and its mainly related to government purchases of oil, not gold. Please click here now. Raj is already pressuring
Narendra to cut fuel subsidies, and Narendra is feeling the heat.
17. In the short term, gold looks great. The traditional post-jobs report rally was probably delayed by leverage commodity index
funds that faced forced liquidation. Gold futures are held by these funds, to track the gold component in key commodity
indexes.
18. When the energy and food sectors sold off strongly, gold futures were likely liquidated as well, to meet margin calls. The
strong-handed banks appear to have bought most of what the funds sold, which is good news.
19. That liquidation appears to have run its course now, and the rally is underway. Please click here now. Thats the hourly bars
chart for gold. The bottom line: This asset is ultimate, and its moving higher!
20. To view the daily bars chart, please click here now. The further that price sits, below a sell-side HSR (horizontal resistance
and support) zone, the more that zone acts as resistance to upside action.
21. In this case, gold did not move significantly below $1242 on the recent decline, and that suggests gold has a good chance of
winning the battle to recapture this price zone.
22. The weekly chart looks superb. To view it, please click here now. The fight to recapture $1242 is not going to be a cakewalk,
but my weekly chart price stoker oscillator suggests the bulls will win.
23. Gold stocks are poised to dramatically outperform gold as it rallies. Please click here now. Junior gold stocks are favoured by
most of the Western gold community, and this GDXJ daily chart suggests they are poised to please.
24. Note the crossover buy signal in play today, on my price stoker oscillator at the bottom of the chart. While I expect gold to be
flat in 2015, GDXJ should rise above the recent $46 area highs, and hold those gains!
Special Offer For Website Readers: Please send me an Email tofreereports4@gracelandupdates.com and Ill send you my free Gold
Rumble In The Jungle! report. Barrick and Newmont have cut the fat from their balance sheets. In the battle for 2015 leadership, Ill
show you which stock is set to lead. Also, Im signing up new subscribers almost daily, for my dividends website. Investors want to be
paid to wait, and rightly so. If you want details on the payouts party, please send me an Email to stewart@gudividends.com and Ill
send you an introductory update. Thank-you.

Marshall Swing: Gold & Silver Attached to Upside Down Rocket- No


Major Upswing before Dollar Collapse
Silver and gold have an upside down rocket attached to them and they have been speeding downwards ever since they made
their highs in 2011 and 2012, respectively.
Never mind the fact they are spoken for and used up as soon as they hit the market, never mind the fact they are hard to
amass in great quantity, never mind the fact demand is high and production is steady.
What happens next is like the final act of a masterful play.
Look for this depressing scenario in the precious metals markets to continue for another 12 months and then, WHAM!!,
worldwide economic collapse- the commercials crash silver and gold, flip their short positions to long cashing in near the
bottom and stripping massive amounts of money away from the little people in the process (they always do).
I fully expect there to be some ups and downs before that worldwide economic crash.
I use no caution whatsoever in urging everyone to liquidate as much paper as possible and buy physical silver and gold at
these prices.
Yes, the depression is going to last another year but after that no one will be able to buy ANY PHYSICAL once the world wide
collapse is in full swing.
Time has a way of easing pain whether it is ones love life gone wrong or financial life gone wrong. I want to encourage anyone who is
holding silver bought in the $30s or $40s not to sell, if you can stand the pressure. The reason is the principles upon which you bought
are unchanged, unless you were stacking to make a quick buck (or playing the paper game and held onto longs you should have sold
long ago). Okay, so the part in parentheses is not encouraging! No one should ever buy precious metal after reading the hoopla of
commentators that constantly say metal is going to the moon.
Unless you are buying gold for a ring and jewelry for your wife or silver for your table, gold teeth, or bullion, it is the long term story that
is attractive to metal investors and that is they see the clouds on the horizon, they have done their research, they know how much gold
there is in the ground, they have read SRSrocco and know all about diminishing ore grades, and are confident in their decision to buy
at a price they can afford to watch go up or down because up and down the price will go. But, the day of reckoning is coming!
Silver and gold are the two most manipulated things on the planet (except for people who watch TV) and anyone with only one eye and
a calculator can see that. They are not out there stockpiling right and left as price slowly drops down. No, silver and gold have an
upside down rocket attached to them and they have been speeding downwards ever since they made their highs in 2011 and
2012, respectively.

Never mind the fact they are spoken for and used up as soon as they hit the market, never mind the fact they are hard to amass in
great quantity, never mind the fact demand is high and production is steady.
I had a long conversation with someone I admire greatly, recently, and when I told him that demand and supply had no angle or
presence in the silver and gold futures price markets, he literally was ready to pronounce me an idiot. I told him, go to corn, that is
pretty stable, just plan on drought for higher prices and lots of rain for lower prices, or something like that. Pretty easy market! He was
livid. The very idea that price is not controlled by supply and demand infuriated him and I was afraid a stroke or heart attack were on
the way.
Most people in this world want to believe that what they see on TV, particularly in the financial news, is above board, kosher, and as
solid, filling, and wholesome as moms homemade apple pie.
They want to believe when silver and gold price go down that no one is getting married anymore, Indians are not buying
jewelry anymore, that people are not getting cavities anymore so silver and mercury prices are dropping, that no one is
interested in American Eagles, that the economy must be so bad that no one is building anything electric or electronic and
silver is stockpiled by the million metric tons in warehouses all over the world, and countries are not buying gold anymore.
They want to believe all is right, or at least the same status quo, with the world.
They want to believe ISIS is merely a backyard Sunni creation that evolved from a mud puddle and sprung up because there are great
rains in Iraq and money grows on trees over there to fund war at its ugliest. They have no interest in the possibility that ISIS could be a
CIA/Mossad creation and they turn red with anger when you suggest the downing of the Twin Towers on 911 was not as we all
watched on TV and no they never heard about WTC7 the third tower that fell in the late afternoon that day and NO they do not want to
hear about it now.
There is a premium on Truth and those who are determined to tell it can pay a very high price.
Ridicule is everywhere for Truth tellers when the truth does not fit the norm.
Speaking of ridicule, I noticed some unusually complimentary comments on my article last week and I see some are awake and
listening with an open ear. I dont ask anyone to believe I preach the gospel on silver and gold. Time is the proof of the pudding and
will determine if what I say is the gospel, or not.
As far as what I say, I got it right several years ago after silver reached its high and I have rode this wave of ridicule right down to the
teens where I said it would go. But, that is just half the gospel, not the whole gospel
What I have been saying happens next is like the final act of a masterful play.
The basic story line is we keep playing this depressing scenario for another 12 months and then, WHAM!!, worldwide economic
collapse, the commercials crash silver and gold, flip their short positions to long cashing in near the bottom and stripping massive
amounts of money away from the little people in the process (they always do).
I fully expect there to be some ups and downs before that worldwide economic crash. Take a look at the 2 year charts I included on
silver and gold, chart back 1 year, and use your imagination.
Is gold going to $2,000 by the end of the year as some have suggested? I think not.
Could it? Yes, but only if there is a major, MAJOR, world event to strike fear in the hearts of everyone who has cash to put into the
paper casino. The FED might raise some interest rates but capital flows are not going to be bound by interest rates. That might
change where the capital flows, a little, but in the great scheme of things the capital still exists. I do not see a great war breaking out
with Russia over the Ukraine. I do not see some great affect caused by a bunch of nations gathering together to bomb ISIS. I do not
see a great affect even if 100,000 die from Ebola. The one thing that could create a huge rise in metal price is another stunning event
like 911 but I do not think the world elite powers that be are interested in that happening. It is my opinion that terror is engineered and
they have achieved their desired goal, namely the ability to marshal the military forces of the West and most of the middle East against
a band of well funded Sunni radicals, or so they say that is who ISIS is.
What I think they want is people to lose all faith and confidence in gold and silver as physical investment metal bullion, sell it, and put
their faith in the paper game and into government thereby giving government all the power it so richly craves.
Simple!
In silver, we see a broad slowing down of open interest totals changes this first period after the Labor Day weekend. There is 2,974
new contracts and we can see almost all of that on the aggregated report. Price is hardly changed in a week but since the COT period
it has declined at a slightly steeper pace. Volume is pretty thin since the COT week as well. It appears to me, the large speculators
are figuring out no matter how many new short positions they take they cannot force a price fall to reap the covering of shorts. That is
because the commercials control the puppet on strings from above and below the spot price.
In gold, we see almost 13,000 new contracts total open interest. Large speculator short gains slightly outweigh their long additions but
notice the long number in the commercials they pick up longs at a pace of 5 to 1 over shorts in the aggregated report. The small

speculators pick up an almost whopping 3,000 new short positions and that is a huge mistake unless they have sold since the COT
week going for small gains. They do not want to hold those shorts long enough to get trapped in a HFT long rally by the commercials!
In disaggregated gold, we have the producer merchant adding shorts and longs almost equally. It is no mystery they play both ends
against the middle. They can unleash those shorts causing quite a stir in volume then force price high via HFT, sell the longs, exact
the pound of flesh from the speculators and no one is the wiser. Unless
Youre a reader at SilverDoctors!
I use no caution whatsoever in urging everyone to liquidate as much paper as possible and buy physical silver and gold at
these prices. Yes, the depression is going to last another year but after that no one will be able to buy once the world wide
collapse is in full swing.
Stay thirsty for physical, my friends,

Marshall

Why I Believe Gold & Silver have been Massacred Since 2011
The intensity of the banks attacks on gold and silver prices have been long, drawn out, and merciless.
Since 2011, the banks have been hitting completely below the belt. They are are now All-in on their
efforts to cap gold & silver, because this time they understand: its for all the marbles.
Why have the precious metals been massacred since 2011?
The fate of the US dollar as global reserve currency hangs in the balance.
Fun and Games
Growing up, my brothers and I liked to roughhouse. We lived in the country, and had very large yards that were more than suitable for
running and scuffing each other up. Boys will be boys, and all! As we would wrestle, and all the tackling and clawing would escalate, I
can remember hearing my mother admonish us to stop, by saying. Well. Lets see if you can guess what she said to us! It was a
rather iconic line, that youre probably quite familiar with too. In fact, Ill say the first few words, and see if you can fill in the blanks: Its
all fun and games Im willing to bet, shield brother, that you finished that line either out loud, or in your thoughts, didnt you? Youve
probably heard it a hundred times, I know I have. Its all fun and games, until someone loses an eye. Have you ever wondered
where that phrase came from? Well, etymology is a tricky business sometimes, but it gets even trickier for whole phrases. The
only attempt at an explanation that I could find, came from a source who claimed this:
Its all fun and games until someone loses an eye is from Ancient Rome. The only rule in their wrestling matches was no eye
gouging. The only way to become disqualified in wrestling sporting events was to gouge or put an eye out..thus the quote.
The source is dubious at best, but whether or not that origin is true, the phrases meaning is unmistakable. There are times when
weve all acted badly, without thinking of the consequences of those actions, precisely because we dont truly believe those
consequences will happen. Oftentimes, people wont stop whatever ill-advised thing it is that they were doing, until something terrible
happens. Theres no question that in 2011, something terrible happened, which caused the fun and games for gold and
silver investors to be over ever since. Let me explain what I mean.
Business as Usual
For roughly 10 years, the banks and U.S. government rigged gold and silvers price in a long term fashion that could be called,
a managed, orderly ascent. In the early 2000s, theyd reached a point where supply and demand issues dictated a situation in which
the precious metals could no longer be held at $250 and $4 per ounce. The metals had to be allowed to rise, but that rise also had
to be orderly, so as not to excite too many folks about buying precious metals, while also not tipping off too many
others that the dollar was going into cardiac arrest. One look at this gold chart below, clearly shows that the price was given a
steady trend-line, which held as firm support for gold. This held true, especially since 2008, when a sharper uptrend was established in
golds chart. The price eventually broke out of that channel, and soared all the way up to $1,925, before the bullion banks sent
it lower again.

Likewise, silvers chart was held at bay as long as possible, until at last, a clear breakout was established in 2010.

This breakout tripled silvers price from roughly $18 to nearly $50 within 9 months. As you can see, from 2003, silver had been
in a steady uptrend which, though managed, was undeniably powerful and decisive. Then something happened, which I believe,
altered the gameplan of the market riggers.
The Mouse that Roared
As we all know by now, Washington D.C. suffers from a terrible, tyrannical desire to control the rest of the world (for the worlds own
good, of course). As if that wasnt enough though, D.C., for a good many decades has also been a trailblazer in all sorts of welfare
experiments on its home-front. This means that the politicians of the American Empire have been burning the candle at both ends, so
to speak.
After all, funding all these programs is a monstrously expensive undertaking. Its so expensive, in fact, that many sensible people over
the years, have stepped forward to warn the peoples of America, that D.C.s chronic binge of spending, borrowing, and printing
dollars was becoming a grave problem. Some like Ron Paul even warned that, if left unchecked, it would seriously undermine
the U.S. dollar, as well as the livelihood and prosperity of U.S. citizens. Such warnings were always shrugged off by folks across
the Potomac.
Thatll never happen, king dollar will always be king, and other nations will continue to buy U.S. debt, because, theyd hilariously
say, they dont have any other choice aside from U.S. debt, theres no other game in town.
On mid-July 2011 however, all that spending finally bore the bitter fruit that so many had feared, as the U.S. credit rating
agency, Egan-Jones, made the historic decision to downgrade U.S. sovereign debt from AAA, to AA+.
Showing clarity of thought, their decision brief stated the following:
Real GDP increased at an annualized rate of 4.0% in Q1 2011, following an increase of 3.5% rise in the prior quarter. Personal
consumption expenditures, exports, and nonresidential fixed investment contributed positively to growth during the quarter. Meanwhile,
imports rose sharply. In the March 2011 quarter, trade in goods and services resulted in a deficit of $562B, many because of the high
price of petroleum. However, the major factor driving credit quality is the relatively high level of debt and the difficulty in significantly
cutting spending. We are taking a negative action not based on the delay in raising the debt ceiling but rather our concern
about the high level of debt to GDP in excess of 100% compared to Canadas 35%. Nonetheless, since the USs debt is
denominated in dollars, a hard default is unlikely..Nota Bene: History has proven that defaults on domestic public debt do occur. In
fact, seventy out of three hundred twenty defaults since 1800 have been on domestic public debt (1). Egan-Jones does not view a
countrys ability to print its own currency as a guarantee against default. Additionally, Egan-Jones generally views cases of excessive
currency devaluation as a de facto default.
Surprisingly, many within the investment community simply dismissed this action from the Egan-Jones agency. They thought it was a
non-event. Even the intrepid www.zerohedge.com seemed to dismiss it at the time, saying:
If this downgrade had been performed by Moodys or S&P, or even France-owned Fitch, today would have been a bitter appetizer of
what is ultimately coming.
Yet at the time, I remember thinking that this was a significant action, and looking back, I believe it was the catalyst for a much
graver series of announcements about the dollar, and U.S. sovereign debt ratings that zerohedge warned about. That bitter
appetizer was coming sooner than anyone imagined.
The Shot Heard Round the World
At first, many ignored this roar from the proverbial mouse on the rating agency scene. D.C. certainly didnt seem worried, and why
should it be? After all, the credit rating agency (CRA) industry had been a sick joke for years.
Two of the Big Three CRAs which dominated the entire globe (Moodys and Standard & Poor), were American agencies, and had
always been counted on to defend every silly thing that the U.S. politicians had ever done. In fact, those two agencies alone
accounted for over 80% of the global market share.
What a racket! Its bad enough that D.C. has fooled the rest of the world into letting them keep their reserve currency all
these years. Somehow however, it has also convinced the world that they can be trusted with the duty of impartially judging
how stable and safe their own currency and credit is!
What would go wrong?
The modern CRA industry has been the ultimate conflict of interest, and an insult to investor intelligence.
The jig was up however, for the proverbial mouse had not only roared, but had stated itself in a way that was impossible to
ignore. For the first time in history, the U.S. government which had possessed the world reserve currency for over 70 years, had
officially had its credit rating seriously called into question.
This, of course, put pressure on the larger CRAs to put up or shut up, as their strained credibility was now on the line. Should they
follow suit in the wake of such an earth-shattering announcement? Or should they stay silent, and keep playing their Wall-Street/D.C.
apologist game for as long as they could?
On August 6th, 2011, the world got its answer, as Standard & Poor shockingly announced that they too would be cutting the
U.S. credit rating from AAA to AA+.
New Plan of Action
Predictably, the Fed and U.S. politicians publicly circled the wagons, telling investors worldwide that their credit rating was stronger
than ever, and that U.S. dollars and treasuries were still the place to be. Privately though, they were panicked, and livid with
rage. After all, it wasnt the CRA industrys job to do their job! It was their job to help Wall Street and D.C. continue this U.S.
treasury ponzi scheme for as long as possible. Now the CRAs had bitten the hand whod fed them, and things were getting critical.
Remember, at that time, Treasury debt levels had never been higher, yet all the while, interest rates on that debt had never been lower.
On the heels of this downgrade, some analysts had begun to muse that this carried the distinct possibility of raising Treasury
interest rates between 60 to 70 basis points over the medium term(or at that time, raising the 10 year about 25%). Remember,
the higher the interest rate, the more money that the U.S. government has to pay to borrow new money.
This debt downgrade meant that D.C. might be paying an extra $100 billion per year just to sustain their debt levels.

This wouldve spilled over, and put downward pressure on the U.S. Stock market, since it was being levitated by the Fed and D.C.
purchasing their own debt(quantitative easing). It wouldve also undermined trillions in pension and retirement funds, which had built
an industry upon the bedrock of stable and safe U.S. treasuries.
The entire financial and economic system, which had been built upon a giant pyramid of debt,(with the U.S. dollar at the top of the
pyramid) was at risk. If not dealt with, this tiny pebble falling down the U.S. Treasury hillside, would soon become a bond
market avalanche. The old rules of managing perception no longer applied. Drastic new steps had to be taken, immediately, to
safeguard the bond market, and to ensure that this embarrassment never happened again.
The U.S. government quickly sprang into action, with U.S. officials like Tim Geithner coming out of the woodwork to threaten Standard
& Poors president. Even folks like Michael Moore, got in on the action, and one-upped Geithner, by urging President Obama to
show some guts, play the dictator, and arrest the S&P president.
Though the S&P president had been forced out within two weeks of the downgrade, his head wasnt nearly enough. An example had
to be made, and the whip had to be cracked to get these uppity CRAs back in line. Shortly thereafter, D.C. unleashed the dogs of
war as the SEC brought a formal lawsuit against Egan-Jones, for daring to be a mouse who dreamed it could roar in the first place.
Since that time, the government has made sure, through brute force, threats of arrest, and litigious activity, that no other CRA would
actually do its fiduciary duty as a CRA.
One Last T to Cross
CRAs werent the only uppity things that had to be dealt with though. The managed ascent games that the Fed and bullion
banks had been playing in the gold and silver market for 10 years, were no longer working.
For you see, the moment the gold market opened after the S&P downgrade announcement, gold did this:

See that green hockey stick? Thats what the market thought of all the D.C. and Fed assurances after the debt downgrade. For the
next several weeks, gold went parabolic, as it soared from roughly $1660, all the way to a record $1925 per ounce! For the first
time in decades, the gold market rigging banks were unable to stem the tide moving into gold, and the moves became violent,
sometimes swinging as much as $100 in a single day. Only by great pains, and tons of extra gold high-frequency trading sales, coupled
with hundreds, if not thousands, of tonnes of gold leasing by the Fed and the Bank of England, over the last 3 years, was golds
explosive move stymied. While its true that silvers parabolic move had come a few months earlier, the evidence is overwhelming
that silvers move was caused by a developing shortage of deliverable metal, evidencing once again, that the old modus
operandi of a managed ascent in the precious metals market was becoming untenable.
Conclusion
Fun and games always continue til someone loses an eye. This occasion was more grave though, for this time the eye which
was lost, belonged to Sauron in his mighty towers in D.C., when the Egan-Jones mouse had forced the hand of much larger
forces than they.
It is my belief that since that time, precious metal markets have become a prime casualty in the war on truth, for this very reason.
The Fed and U.S. Treasury have realized that a gradual, managed ascent is no longer a workable strategy, if their policy of
maintaining the global perception of dollar and U.S. treasury strength is to be successful.
This is why the chartists and precious metals gurus, who consistently got price predictions right for 10 years, have now had egg on
their face for the last 3: the old rules of the game no longer apply, but theyre acting as if they still do.
The intensity of the banks attacks on gold and silver prices have been long, drawn out, and merciless. The banks have been hitting
completely below the belt. They are definitely rough-housing to the hilt, because this time they understand: its for all the
marbles. Further external forces, such as the Germany gold repatriation request, have only exacerbated the situation, and forced them
to double down on this new scorched-earth policy in gold and silver.
It is my firm belief that the Fed and U.S. Treasury now intend to prosecute these aggressive precious metal attacks until
doing so is no longer possible. There is a new game being played here, a new normal. It behooves us to recognize that fact,
and adjust our strategies and expectations to it.
Remember though, this is simply a game to them(and the stakes have never been higher). This new rough-housing game also has a
shelf-life. For like all other rough-housing games, it will only continue until D.C. loses their eye, the trouble is, theyve only
got one eye left!
At that point, the issuer of the worlds reserve currency will be truly flying blind.

Do you really want to be without gold or silver when that happens?


-Wealth Watchman

Jim Willie: The Crash Heard Round the World- Saudis to Reject USD
for Oil Payments
Putin kicked out the Rothschild bankers from his country. Putin interrupted the USGovt heroin trade supply routes out of
Afghanistan. Like Abraham Lincoln 150 years ago, the elite banker chambers wish to remove Putin and to suppress Russia,
but the sprawling nation has joined at the hip with China. Thus Russia cannot be isolated any more than a bear can be bear
hugged. The nation spans 12 time zones and is a top supplier of numerous important commodities. The Russia & China bond
is growing and will result in a marriage, the consummation being a baby called the Gold Trade Standard.
The King Dollar is being displaced, kicked off its throne. Its squire the Petro-Dollar is undergoing demise. The Ukraine War
is the USDollar Waterloo event.
The Saudi rejection of the USD in exclusive oil payments will be the crash heard around the world.
The marriage between the Saudis and Chinese is a process well along, with each month featuring yet another high level
conference. The Saudis will make the announcement in the coming weeks or months, as a genuflection before the Chinese,
with a hat tip to the Russians. Soon the crude oil price will be set by the Russia-China tag team, priced in Yuan. When the
Gold Trade Standard is entrenched, the diversification away from USTreasurys in the global banking system will become a
torrent. Bank system practices will follow trade payment practices. When installed, it will cause prosperity in the East and
havoc in the West.
The Crash Heard Round the World is coming. The USDollar will be rejected, and replaced by the Gold Trade Standard.
The byline should read MONEY VELOCITY HITS RECORD LOW, WHILE MONEY SUPPLY CONTINUES TO GO INTO ORBIT
SYSTEMIC FAILURE IS EVIDENT AS POLICY IS NOT STIMULUS AT ALL THE PRINCIPAL CAUSE FOR THE BREAKDOWN IS
MONETARY POLICY, WHICH IS STUCK IN PLACE.
The USFed monetary policy is killing the system, simply and boldly put. They call it stimulus, when the extreme accommodation is
actually just a backdoor Wall Street bailout combined with a pass on the USGovt debt discipline. No debt limit is enforced anymore, a
travesty. The United States is looking more like a Third World nation with each passing month, with colossal fraud, economic decay,
war and sanctions, and no leadership. The US Federal Reserve has ventured into very dangerous ground, putting hyper
monetary inflation as the installed policy, while making money free for the Interest Rate Swap machinery that operates the
derivative for maintaining the easy policy.So foreign creditors have largely exited the room, with no great entities to finance the
yawning annual $trillion debt. So derivative machinery is relied upon to maintain the absurd 10-year USTreasury (TNX) yield at 2.60%
without buyers. So asset markets like the US Stock Market go to monthly new high levels, despite the USEconomy mired in the worst
recession since the Great Depression. The visible piece is shopping malls with one third of stores shuttered, and the jobless rate over
22% in the real world without rose colored glasses. These conditions cannot be sustained, especially since the credit machinery is all
jammed. The big US banks are insolvent structures dedicated to the bond carry trade, where that same cheap money is used to invest,
often with leverage, in the long-dated maturity USTreasury Bonds. The banks serve the casino, not the business sector.
STUCK MONETARY POLICY
In no way can the current easy money policy be reversed, and put into a normal mode. In no way can the accommodation be tapered.
The entire Taper Talk is a lie, and always has been a lie. The Jackass called out the USFed last June and July, and was proved correct
by September. Since that time, the USFed has been lying vigorously and creatively. The Belgium Bulge showed itself as a $400+ billion
abscess visible to the world, hardly a real savings account by the small nation. It was either a Hidey Hole for USTBonds or else a
loading depot for BRICS sourcing of Gold bullion for their upcoming central bank. In no way can the enormous bond carry trades be
stopped. They are the only source of actual income for the big US banks. Their other source of narco funds money laundering.
Doing so would put the carry trade engines into reverse, forcing an unwanted Bond Convexity episode of leveraged selling of
USTreasury Bonds by the same large corrupted banks which are so clearly involved in the derivatives game. In no way can the USFed
hike rates, since their own outsized bond portfolio would register huge losses, only to gain ugly publicity. They after all bought the top in
bonds, and continue to buy the top in bonds every month that QE continues. They are the fools buying the asset bubble at the top. See
a parallel in Japan.

Red light warning signals are all over the place. The biggest in the Jackass view is the Failures to Deliver. We are told that the demand
for USTreasurys is huge by the market players. It might be moderate, but surely not huge, since savings is in shortage. When the
Interest Rate Swaps are applied, using 0% money into the machinery tubes, the result is an artificial demand produced to
purchase the same USTreasurys. The big US banks are required to follow through, or else to expose the entire sham game, a
veritable Ponzi Scheme. The banks are growing in resentment.However, not enough USTBonds exist in the operating bond market to
satisfy such outsized contrived demand out of machinery. The result is Failures to Deliver, the warning signal of a fabricated rigged
market. This Third World nation has fancy machinery indeed.
SMOKING GUN GRAPHS IN CONTRAST
The answer to the US bond riddle lies in corrosive ruinous effect of monetary policy, now in its fourth year. They said the 0% ZIRP
would be just for a few months, but they lied. The Jackass said in 2009 that it would be permanent. They said QE bond monetization
would be just for a few months, but they lied. The Jackass said in 2011 that it would be permanent. We were taught by central bank

mouthpieces for years that a little inflation is good, but a lot is bad. We were taught in economics classes that hyper inflation destroys
the entire system eventually, like in Third World nations. Yet QE (hyper monetary inflation) and ZIRP (free money) respectively
cause capital destruction with retired equipment and distorted asset prices with no reward to savers.
The two graphs show in clear terms that QE is not stimulus, and ZIRP is a wet blanket. Together they are causing economic collapse
with systemic failure. The Jackass words have sounded exaggerated and fantastic for years, actually since the Lehman failure, a basic
scuttle killjob done by Wall Street criminal banks in order to protect Goldman Sachs from sinking. The two graphs show a Money
Velocity down almost 4-fold while Money Supply is up 3.5-fold. You decide if it translates to systemic failure. Jackass says resoundingly
yes. This is broken US financial system and thus a broken USEconomy, the consequence of heretical injurious damaging monetary
policy. The greater tragedy is that it cannot be removed. Putting a halt to the QE monetary spigot means letting the financial markets
collapse, bond yields to rise, stock indexes to fall, carry trade to go into reverse, and consumer lending to dry up. So the QE spigot
continues in a slow death dispensing acid, rather than causing a sudden death.
The story sold on the highly corrosive and assuredly ruinous monetay policy is of stimulus. The only stimulus is for the big US banks to
continue recycling their worthless bond assets to the USFed as buyer of last resort. The USFed has been totally wrecked in the
process, a good thing since the HQ of the banking crime syndicate. The only stimulus offered is to the big US banks to continue with
carry trade projects instead of lending toward capital formation in the business sector. The big banks are able to keep the derivative
game going with free money, to maintain the Whirling Dervish platform of vaporous mass. The result has been a systematic assault on
capital. The USEconomy has entered a feedback loop of capital destruction, job cuts, and reduced activity. It cannot be stopped. The
results of much lower Money Velocity stands as screaming evidence of failure in monetary policy. The moribund activity
means capital is being ruined, not functioning, not producing the wanted output. The slower turnover in the USEconomy is not
from hoarding of cash. The participants are suffering a shortage of money, often struggling to survive. Putting money in mattresses is
an absurd concept when struggling to pay the rent and buy the food and pay the utilities. The beneficiaries of the easy money are the
big US banks. They are also suffering a shortage of money, since the derivative holes are acting like sewers to drain their capital. Their
capital ratios are not good, and the harsher Basel III rules have been delayed. No cash hoarding evident anywhere.
LOGICAL CONCLUSION
The logical end is systemic failure, USGovt debt default, war to defend the USDollar and the USTreasury Bond. The USDollar has
become the ticket that when refused, invites war. The USTBond has become the toxic element in the banking systems. The Western
chambers in the US, UK, EU refuse to liquidate the big banks and work toward the Gold Standard return. So the Eastern chambers in
Russia, China, and BRICS nations will pursue the return to the Gold Trade Standard with a growing alliance in support. They are
accumulating gold in volume.
The pathetic explanation is left as the final word, by the USFed. They are out of answers, out of policy solutions, and out of integrity.
The central bank franchise system has failed. The bankers are cornered, some being murdered. Others might be prosecuted. They are
the principal cause of the systemic failure, the other cause being the massive outsourcing initiatives over three decades and the
outsized USGovt social welfare state. The bigger principal cause of the systemic failure is the US War Machine, which has been
around longer than the debutante Fascist Business Model that made its introduction in 2002. Half the $17 trillion in USGovt debt comes
from war spending. They defend the indefensible USDollar, but also the narco business. As footnote, Russian President Vladimir Putin
committed two deeds that infuriated the Western bank cabal supra-national leaders. Putin kicked out the Rothschild bankers from
his country. Putin interrupted the USGovt heroin trade supply routes out of Afghanistan. Like Abraham Lincoln 150 years ago,
the elite banker chambers wish to remove Putin and to suppress Russia, but the sprawling nation has joined at the hip with China.
Thus Russia cannot be isolated any more than a bear can be bear hugged. the nation spans 12 time zones and is a top supplier of
numerous important commodities. The theme is a constant item in the Hat Trick Letter reports. The Russia & China bond is growing
and will result in a marriage, the consummation being a baby called the Gold Trade Standard. The attempts by the USGovt to
impose sanctions will result in the United States being isolated, another steady theme in the Hat Trick Letter.
The Federal Reserve published a report. It is laughable. They blame the public, the citizens, the victims. They talk endlessly of a
sluggish recovery like fools and charlatans. THE FOLLOWING IS RUBBISH AND FLIMSY. The StLouis Fed stated the following.
The issue has to do with the velocity of money, which has never been constant, as can be seen in the figure below . If for some reason
the money velocity declines rapidly during an expansionary monetary policy period, it can offset the increase in money supply and even
lead to deflation instead of inflation. During the first and second quarters of 2014, the velocity of the monetary base2 was at 4.4,
its slowest pace on record. This means that every dollar in the monetary base was spent only 4.4 times in the economy
during the past year, down from 17.2 just prior to the recession. This implies that the unprecedented monetary base increase
driven by the Feds large money injections through its large-scale asset purchase programs has failed to cause at least a one-for-one
proportional increase in nominal GDP. Thus, it is precisely the sharp decline in velocity that has offset the sharp increase in money
supply, leading to the almost no change in nominal GDP. So why did the monetary base increase not cause a proportionate increase in
either the general price level or GDP? The answer lies in the private sectors dramatic increase in their willingness to hoard
money instead of spend it. Such an unprecedented increase in money demand has slowed down the velocity of money. Rubbish!!
The surge of money killed capital!!
GOLD STANDARD RETURN

It is coming. It will be painfully slow in its return. It is the only answer, the avoided solution. As long as QE & ZIRP are in place, highly
destructive forces will remain at work, ruining capital within economic structures, distorting asset values in financial markets, leading to
gross misallocation of assets, and forcing the system into breakdowns under constant aggravated strain. The monetary policy cannot
remain in place indefinitely, since so destructive and disruptive. Time is not on the bank cabal side. The Eastern Alliance will
continue to work toward installation of the Gold Trade Standard. It requires and has successfully seen a growing boycott and rejection
of the USDollar in trade settlement. The Chinese RMB has been making important inroads to establish Swap Facilities that avoid the
USDollar in usage, while more RMB Hub sites are being constructed like giant pillboxes in the Global Monetary War.
The King Dollar is being displaced, kicked off its throne. Its squire the Petro-Dollar is undergoing demise. The Ukraine War is the
USDollar Waterloo event. The Kiev Regime fascist leaders have begun to bug out, the IMF $3.2 billion loan funds now gone missing.
The big Eastern energy deals are underwritten in Rubles and Yuan, no longer the USDollar, another recent correct Jackass forecast.
The Saudi rejection of the USD in exclusive oil payments will be the crash heard around the world. The marriage between the Saudis
and Chinese is a process well along, with each month featuring yet another high level conference. The Saudis will make the
announcement in the coming weeks or months, as a genuflection before the Chinese, with a hat tip to the Russians. Soon the crude oil
price will be set by the Russia-China tag team, priced in Yuan currency. When the Gold Trade Standard is entrenched, the
diversification away from USTreasurys in the global banking system will become a torrent. Bank system practices will follow
trade payment practices. When installed, it will cause prosperity in the East and havoc in the West.
The reaction by the USGovt and USFed will be full of intrigue and desperation. The USFed will be in overdrive with its interest rate
derivative machinery active, to prevent a US debt default event or a visible derivative event with another whale beached in full view.
The USGovt will be cornered into launching a new domestic currency, a Scheiss Dollar. The USEconomy will react in its own way, with
price inflation, supply shortage, and growing chaos with violence. The hint of what comes is seen in the devastating situation in
Venezuela, whose tragedy few are paying attention to. They are exporting their essential products (beans, rice, oil) in order to raise
hard currency and to prevent a domestic currency collapse. The same will be done in the United States. The early example of
exported essentials is of hayfeed for livestock, heading to China from US farms on a growing basis.
THE HAT TRICK LETTER PROFITS IN THE CURRENT CRISIS.
For over five years I have been eagerly assimilating any and all free information (articles, interviews, etc) that Jim Willie puts out there.
Just recently I finally took the plunge and became a paid subscriber. I regret not doing this much sooner, as my expectations were
blown away with the vast amount of sourced information, analysis tied together, and logical forecasts contained in each report.
(JosephM in South Carolina)
Not only have I seen many of the things you talk about in the public arena come to pass, but I have seen many of the things you say
repeated three months later by the other analysts. Congratulations! (MannyM in England)
Jim Willie is a gift to our age who is the only clear voice sounding the alarm of the extreme financial crisis facing the Western nations.
He has unique skills of unbiased analysis with synthesis of information from his valuable sources. Since 2007, he has made over 17
correct forecast calls, each at least a year ahead of time. If you read his work or listen to his interviews, you will see what has been
happening, know what to expect, and know what to do. (Charles in New Mexico)
A Paradigm change is occurring for sure. Your reports and analysis are historic documents, allowing future generations to have an
accurate account of what and why things went wrong so badly. There is no other written account that strings things along on the
timeline, as your writings do. I share them with a handful of incredibly influential people whose decisions are greatly impacted by having
the information in the Jackass format. The system is coming apart on such a mega scale that it is difficult to wrap ones head around
where all this will end. But then, the universe strives for equilibrium and all will eventually balance out. (The Voice, a European gold
trader source)

SILVER SQUELCHERS: Assassinate Silver & Gold To Bring In Fiat Money


The Pilgrims Society remains present at this moment behind the scenes and traces to conspirators active in the Crime of 73,
the Panics of 1857 and 1837, both United States Banks, and much more.
The path towards fiat is always the same: First, assassinate silver. Second, hit gold!
The path towards fiat is always the same. First, assassinate silver. Second, hit at gold! Recall in the first episode of this series we
documented the hostility of the N.Y. Clearing House Association to monetary silver.
Manufacturers Hanover was in on the frenzy to winnow silver coins out of the nations largest banking district in 1964 to 1967 for
shipment to the Treasury for processing into bullion to feed to the Silver Users association in order to routinely attack silver
pricesit was of course the same at J.P. Morgan under H.C. Alexander, at Chase under Pilgrims Society member George Champion,
and so through the other New York megabanks and the New York Savings Banks, also run by Pilgrims Society members.

Continuing with number 2 in this series, as we progress towards the present, we will consider another 15 Pilgrims Society members
from the leaked 1914 rosters. Unavoidably we will mention others significantly connected to them. Not all members of this nearly
unknown organization have been, or are, precious metals suppressors. The organization is concerned with many other spheres
medicine, science, diplomacy, the military and war industries, insurance giants, universities, big media, and far more.
This group remains present at this moment behind the scenes and traces to conspirators active in the Crime of 73, the
Panics of 1857 and 1837, both United States Banks, and much more. It can be anticipated that as they were in earlier times the
source of precious metals price and monetary suppression, that the ringleaders in this arena today are also members. Thats why its
important to maintain pressure on them to post rosters to public view. None of the nine rosters from bygone years were voluntarily
released.

Eric Sprott: Get Your Money Out of Banks and into Something Tangible
The most important factor right now is the physical shortage of gold. The declining amounts of
gold in Shanghai storage suggest we are getting close. So I expect something to happen in the
physical gold markets soon.
I probably have 70 or 80 percent of my portfolio in precious metals right now, and I believe thats
the right amount to have. Time will tell whether Im right or not
Since before the crash of 00, I have thought the banking system was susceptible to pressure. I
didnt want to have my money in a bank because I thought the banks could go broke very
quickly.
Fast forward to 2008 all the banks were essentially broke, as far as I could tell. The Fed came in
to support the banking system, which theyve now been doing for the past six years. And yet, there
has been essentially no improvement in capital ratios at the banks and the risk of putting
money there. In fact, you now lose money when you put it in the bank because of negative
real interest rates and you still take on the risks associated with the bank.
To me, its just totally ludicrous to put yourself in that position when you realize how levered
the banks are.
The time to get your money out of banks, & into something tangible is NOW.
In a recent call with Eric Sprott, founder of Sprott Inc., he said he was still buying physical gold -and planned to keep buying it for as
long as he could. The gold shortage that he talked about in our May interview is still there, and economically, things arent getting
better. When people finally decide they want to buy gold, there probably wont be any gold, he explained.
Nice to catch up with you again Eric. Where are you putting your own money now?
Well, Ive recently bought some gold and silver funds up here in Canada.
I probably have 70 or 80 percent of my portfolio in precious metals right now, and I believe thats the right amount to have.
Time will tell whether Im right or not.
Sprott stands for precious metals in a great way a large part of the value of our company depends on precious metals, and Im totally
committed to that.
Much as I find it unsettling what gold and silver prices do on a day-to-day basis, I am absolutely confident that precious metals will
prove the right choice in the longer term.
The moves that you can see in the stocks are almost unimaginable in other assets. Weve already had gold and silver stocks that have
put on three-digit moves this year. It feels like more of these moves could be coming.
When you look at more recent economic data, do you believe it still supports the gold thesis?
Since before the crash of 00, I have thought the banking system was susceptible to pressure. I didnt want to have my money in a
bank because I thought the banks could go broke very quickly.
Fast forward to 2008 all the banks were essentially broke, as far as I could tell. The Fed came in to support the banking system,
which theyve now been doing for the past six years. And yet, there has been essentially no improvement in capital ratios at the banks
and the risk of putting money there. In fact, you now lose money when you put it in the bank because of negative real interest rates
and you still take on the risks associated with the bank. To me, its just totally ludicrous to put yourself in that position when you realize
how levered the banks are.
A lot of people would contend that things arent that risky because we have this wonderful economic recovery going on. I think thats
mostly bunk there is no real recovery. Weve spent trillions and trillions of dollars buying bonds and weve taken interest rates to
zero, but we have very little to show for it. Certainly not any great recovery. I look at economic data like Caterpillars sales and
McDonalds sales which have been stagnant. Consumer confidence as reported by Gallup has been flat for 2 or 3 years.
90% of the US population hardly gets any wage growth and we have significant inflation. A great portion of that inflation comes from
what we call shrink-flation. You go to the store and buy a box of cereal, but your box has 20 percent less cereal than it used to have.
The price may be the same, but the fact is that for the same value, your costs are up 20 percent. Theres also the price of beef,
chicken, or pork or any kind of commodity that you want to talk about. Theyve all risen dramatically. The consumer is not better off; in
fact, hes way worse off today.

And I dont even know if he has felt the true impact of the healthcare costs, with the rate increases from various states. They always
seem to be double-digit increases. When your healthcare is already 20 percent of your expenses and youve got double-digit increases
in your healthcare cost, thats significant inflation. Its your whole wage increase, if you have any.
Then you also have a big problem in America with student loans. You have these huge handouts that people regard as free money but
ultimately results in a cost. It sustains an entire industry relating to education because the students keep taking on 50 or 100 billion a
year in new student loans. But you borrow and eventually you have to pay off those debts. Thats why you hear all these stories about
people who have to pay off these student debts but are in no position to pay them. This isnt good for the economy.
Why do I talk so much about the economy? Because if the economy doesnt turn around and we end up with either a slow economic
contraction, or if a black swan comes along and makes that contraction faster, it weakens the assets of the banking system. If you have
a 5 percent decline in your assets and youre highly levered, it means youll get wiped out. A 5% decline in the stock market is not an
unreasonable assumption. We have cracks in the housing market here and not just in North America. You have all these subprime
and auto loans that will come back to haunt us. Those loans are on the books of financial institutions.
There is a large list of potential black swans out there, whether its geopolitical stuff in the Ukraine, in China and Japan, or India and
Pakistan. Some government could find that it cant pay its bills and renege on its debts. There is also this whole Ebola thing in Africa.
This disease is described as out-of-control. The prime minister of Liberia had to sack some of his ministers because they all left the
country. If you were in Liberia, you would be leaving too. Many end up exporting the disease when they leave. If it starts showing up in
Western countries, the implications for the economy could be hugely negative.
Going back to the original thesis, I was concerned in 2008 with people having their money in banks and was saying they should own
gold and silver.
As for gold, my thesis has been going back to 2010 that there was more demand for gold than there was supply. Central banks
were surreptitiously making up for the shortage by supplying the market.
Demand from Asia is still strong. Trading on the Shanghai precious metals exchange is very robust, even if its been a little weaker
lately. We also have India sitting in the wings. They have this restrictive policy that is still impeding what would be huge amounts of
imports.
China has increased its purchases of gold by 1,000 tons per year over the last 5 years. This represents an extra 25% of demand in a
4,000-ton gold market. So why isnt the price of gold going up? That to me is about as bizarre as you can get. China also bought 18%
of the silver supply. Despite this new demand, the price of silver went down.
Last year, the ETFs made up for the shortfall, with around 900 tons of physical holdings leaving the ETFs. The market is only about
4,000 tons so thats over 20% of the market. This year, contributions from the ETFs are nearly zero, so if demand stays the same,
someone has to come up with the 900 additional tons of gold.
A lot of people agree the central banks have a major hand in this.
Whats your current outlook for gold?
The most important factor right now is the physical shortage of gold. The declining amounts of gold in Shanghai storage suggest we
are getting close. So I expect something to happen in the physical gold markets soon.
There are lots of people who are willing to support the Fed to play along with it. But of course, theyre all looking at the exits if the
game changes. I dont really think there are that many people who sincerely believe there is some strong recovery, or that there is
some plan thats going to solve the financial crisis.
The central banks continue to pile on debt without delivering results. I think that most people understand that. W ere seeing stocks
going higher while volumes are going down. Well, when you hit new records in the S&P, the Dow and the NASDAQ, youre supposed
to be seeing higher volume, not lower volume. That doesnt seem to make sense.
When people finally decide they want to buy gold, there probably wont be any gold. Im happy to own it and Im happy to
keep buying it.
P.S.: Not a subscriber? Sign up here to get free regular opinion from John Embry, Rick Rule, Eric Sprott and others (youll also get a
complimentary electronic copy of the Sprott Gold Book).
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Marshall Swing: Silver $17 Handle: BUY NOW. Period.


I have written several times previously my absolute BUY signal is $18 and below
We now have a $17 handle in silver.
If you have the ability to buy with all your cash then I fully recommend buying physical now and not
waiting a minute more for a lower price.
I highly recommend liquidating all equities, bonds, anything of paper value to buy physical silver right
now.
Dear SD Readers,
I have written several times previously my absolute BUY signal is $18 and below
We now have a $17 handle in silver.
If you have the ability to buy with all your cash then I fully recommend buying physical now and not waiting a minute more for a lower
price. Be happy where you buy it even if it does go lower. Rest in your knowledge, of the long term message, and Truth, of the metals.
We are below the previous 3 year low of $18.17
Gold is rapidly approaching its 3 year low of $1179.
These are totally and fully manipulated prices!
I fully agree with anyone liquidating all things paper and buying silver now.
I have written that while we know the eventual outcome of silver is probably $15 maybe even $12, or lower, it is only is a rapid decline
of hours, maybe minutes and no one should wait to try and time that bottom or anything close to that bottom.
I highly recommend liquidating all equities, bonds, anything of paper value to buy physical silver right now.
I only recommend remaining in equities to purchase physical metal if you have a very exact strategy to be in them until about June of
2015 then exit equities well before they reach their top and enter into physical metal at that time and wait out the worldwide economic
crash to come.
No one, including me can time bottoms in precious metals.
No one, including Martin Armstrong can time tops in equities.
And no one will be successful in doing either of those things in those respective markets next year, 2015.
As the date time frame of 2015.75 approaches the delusion to stay in equities and the delusion to stay away from precious metals will
grow stronger by the day.
Dont get sucked in to believing in the equity bull market of a lifetime only to have everything you have in paper ripped away from you
when they crash all the worlds markets next year. The equity bull market is there for one thing and one thing ONLY and that is to
attract every bit of real cash away from those who worked hard all their lives to get it and save it.
The reason they are doing this is to create pure government slaves in the one world government which follows the crash and the one
world currency that necessarily results from that crash.
I have written a little about those things.
Disclaimer: I have no current business interest in selling precious metals and do not in any way profit monetarily from anyone who
would agree and execute my personal buy call here and have no current business arrangement with SilverDoctors.com nor am I paid
or profit monetarily from my direct relationship with them.
I may choose to engage in a business selling metal in this next year but I have also written I will in no way take profit from that and any
profit will go to a worthwhile charity and I will be held to my word. I will not take profit off of warning people.
Call me crazy (and some will) but that IS the way is IS, for me.
My sole interest is in seeing people protect themselves from what IS to come.
With all sincerity and conviction,
Marshall

PM Fund Manager: When Manipulation Ends, Gold Will Snap


Higher Than Anyone Can Imagine
I honestly do not know the extent to which the western Sicilian Mafia-like elitists can continue their manipulation of the gold and
silver markets using unbacked paper gold/silver. No one really knows. I do truly believe that the action were seeing now reflects
extreme desperation by the Fed/DC to keep a lid on the price of gold using paper AND to keep a floor under the S&P 500. After all, its
not just the precious metals markets that are being tightly controlled. But thats where it starts (think: Exters Pyramid).
The instant they take their foot off the gold market, gold will snap higher than anyone can imagine. Along with that will be an
instantaneous release of all the information contained by the warning signal that a rising price of gold transmits about the total rot
and decay going on beneath the fabricated surface of our system.
Eventually these criminals will lose control of their ability to keep a floor under the SPX and a ceiling on the metals.
But I also am convinced that will be the point at which all hell breaks loose and the result will not be pleasant for anyone, even those
of us who are somewhat prepared for the inevitable.
Im sure this is why the U.S. Government is working overtime trying to create global military conflict and why it has re-invented the
war on terror.
My best, best-est advice is to just keep moving money into physical metals, keep your metals out of the hands of any custodians

(banks, brokerages, etc) and hope for the best by praying Im wrong about whats coming at us. Submitted by PM Fund Manager Dave
Kranzler, Investment Research Dynamics:
Hi Dave. I am a long time follower of your work.
Just reaching out for your opinion if you dont mind the intrusion. I made a decision back in 2005 to put most of everything except the homes
we have into metals. Been riding this monkey up and down but I feel like the guy in the twilight zone episode where everyone speaks another
language. Any advice for an amateur to stay the course?
My response: The most important aspect of this to understand and Im sure you do is that this manipulation and take-down of the metals is
being done almost entirely with Comex paper contracts. As long as they can keep printing paper contracts for which theyre never called on to
deliver, they can fabricate fraudulent gold and silver supply. As you know, when supply exceeds demand, price goes down. I watch and trade
the Comex everyday. And everyday, like clockwork, gold and silver start to sell-off in the last 30 minutes of Comex floor trading. There is no
better example of how manipulated and corrupt the Comex is. It would be equivalent to a baseball player getting a hit every time he went to bat.
As Im sure you also know, gold and silver drift higher on most nights when the Asian/Indian physical bullion markets are open. Thats where
the real market for precious metals is taking place. London is not only no longer the biggest physical bullion market in the world, it is now
predominantly a fraudulent paper-derived market from which most of the physical gold has been transferred from London vaults to the eastern
hemisphere buyers, who do demand actual physical delivery. In fact, as weve witnessed with this nonsense surrounding the gold/silver fix
system and the removal of GOFO/SIFO rate reporting, the London bullion market has evidenced itself to be at least as, and probably more,
corrupt than the Comex.
With that as a back-drop, I honestly do not know the extent to which the western Sicilian Mafia-like elitists can continue their manipulation of the
gold and silver markets using unbacked paper gold/silver. No one really knows. I do truly believe that the action were seeing now reflects
extreme desperation by the Fed/DC to keep a lid on the price of gold using paper AND to keep a floor under the S&P 500. After all, its not just
the precious metals markets that are being tightly controlled. But thats where it starts (think: Exters Pyramid).
The instant they take their foot off the gold market, gold will snap higher than anyone can imagine. Along with that will be an instantaneous
release of all the information contained by the warning signal that a rising price of gold transmits about the total rot and decay going on beneath
the fabricated surface of our system. One of the primary reasons they are executing a war on gold is because they know that if they were to let
the price go, it would completely undermine the dollar and they would lose the power of the dollars reserve status. Theyre going to lose it
eventually anyway but lets hope theyre not insane enough to start WW3 in their effort to keep it.
My bottom call a couple weeks ago was clearly wrong. But I wasnt wrong because Im wrong about the markets. Im wrong in my assessment
of the extent to which the people running our system are insanely corrupt.
Unfortunately, the degree of this corruption is crystal clear evidence of the degree to which our system is collapsing. Anyone who can not
recognize this is either ignorant of the facts or in complete denial.
Eventually these criminals will lose control of their ability to keep a floor under the SPX and a ceiling on the metals. But I also am convinced
that will be the point at which all hell breaks loose and the result will not be pleasant for anyone, even those of us who are somewhat prepared
for the inevitable. Im sure this is why the U.S. Government is working overtime trying to create global military conflict and why it has reinvented the war on terror.

My best advice and the advice which Ive been offering for about 12 years now is that if you want to
try and survive financially with whats coming, keep moving as much of your money as you can into
physical metals and into any supplies you might want when the system goes into actual failure. A lot of
people who are prepared for this just want the fireworks to start now so that a re-set can happen and normal life can resume.
Unfortunately, Ive come to the conclusion that the other side of whatever happens will end up being most unpleasant for everyone
regardless of how prepared they are.
I remember back in 2003, I was having a discussion with a colleague about what had already happened Enron, 9/11, the illegal Iraq
war, the fomenting housing/mortgage/debt/derivatives bubble, etc. You know, stuff that is mind-blowing to most people. My colleague
and I were unfazed at that point. But I remember we both agreed that we would see events unfold eventually in this country that would
blow our mind. I can truly say thats what Im seeing now.
Ill just end by saying that my best, best-est advice is to just keep moving money into physical metals, keep your metals out of the
hands of any custodians (banks, brokerages, etc) and hope for the best by praying Im wrong about whats coming at us.
Just enjoy what you can, as much as you can, while you can. Unless someone can summons up a country-wide popular revolution,
theres nothing we can do about whats going on in DC and NYC.

Shanghai Silver Stocks Continue To Fall As Silver Eagle Sales Explode Higher
As the manipulated paper price of silver heads lower, so are the silver inventories as the Shanghai Futures Exchange. The
silver stocks hit an all-time low today as the price of silver trades in the $17 range. At the peak, the Shanghai Futures
Exchange held 1,143 metric tons of silver. However, today only 7% of that record amount remains.
As we can see from the chart below, silver inventories declined from a high of 575 mt (metric tons) in February, to a low of 81
mt today.
From the SRSRocco Report:

Unless the Shanghai Futures Exchange starts depositing silver, warehouse stocks maybe totally wiped out within the next several
months.
U.S. Silver Eagles Sales Explode On Tuesday
When the U.S. Mint updated its figures on Monday, sales of Silver Eagles increased 700,000 to over 2.4 million. Then yesterday,
another 350,000 were sold for a total of 2,765,000 for the month. That is a BIG NUMBER and probably one of the highest single
day sales this year.

Total sales of Silver Eagles so far this year are 30,911,000. This figure is different from the one in the table above because the U.S.
Mint just updated their website to show another 35,000 sold this morning.
In addition, Gold Eagle sales in September are 45,800 oz and are tied with the second highest month (June) and will probably surpass
50,000 before the end of the week.
Buying Gold & Silver Are Long Term Investments
With the current precious metal sentiment lower than the bearish level in 2008, investors need to realize gold and silver are long-term
investments. Even though the Fed & Central Banks have been successful propping up the Stock and Bond markets, this is not a
sustainable business model.
Buying Gold & Silver will protect investors wealth when the POPPING of the greatest Ponzi Scheme in history finally arrives.

Standard & Poors Warns on Germany as Anti-Euro Political Party


Soars in Popularity
Standard & Poors has issued an extraordinary credit alert on the eurozone, one that deserves close attention.
It warns that the rise of Germanys AfD anti-euro party calls into question the euro bail-out machinery and queries the
pitch for any form of QE, stimulus that has already been pocketed and spent in advance by the markets

Alternative fr Deutschland is blowing across Germany like a tornado. The party won 12.6pc in Brandenburg
and 10.6pc in Thuringia a week ago, following its success in Saxony. It has now broken into three regional
parliaments.
Looks like things are heating up in Deutschland.
The German political party known as the AfD, or Alternative for Germany, first came to my attention a year ago. Upon
reading about it, I became so interested in this new party (it has only been around since early 2013) that I composed a
post titled: Anti-Euro Party in Germany Makes Significant Headway into Parliamentary Elections. Heres an excerpt:
German parliamentary elections are coming up on Sept. 22, and Chancellor Angela Merkel has a problem on her hands.
A euro-skeptical political party known as AfD is rising in the polls and could deny her Christian Democratic Union and its
coalition partners the majority they need to continue governing.
AfD, or Alternative for Germany, currently holds no seats in the Bundestag, and until recently it barely registered in publicopinion polls. But a survey released on Sept. 4 by the Forsa polling group showed it with 4 per cent supportjust shy of
the 5 per cent needed to win Bundestag representation. Peter Matuschek, Forsas chief political analyst, says the poll
may have underestimated the partys strength. Many supporters, he told Spiegel, are too embarrassed to admit that they
are planning to vote for the AfD, which wants Greece, Spain, and other crisis-hit countries to leave the euro zone, and
possibly break up the existing monetary union itself.
That was then, this is now. From Ambrose-Evans Pritchard at the UK Telegraph:
Standard & Poors has issued an extraordinary credit alert on the eurozone, one that deserves close attention.
It warns that the rise of Germanys AfD anti-euro party calls into question the euro bail-out machinery and queries the
pitch for any form of QE, stimulus that has already been pocketed and spent in advance by the markets.
It will force Angela Merkel to take a tougher line on Europe, and further complicates the management of the (already
dysfunctional) currency bloc.
The rating agency said it will henceforth monitor any sign that Germany is digging in its heels on EMU matters as it seeks
to head off this rising political threat. The report is written by Moritz Kraemer, head of sovereign ratings in Europe. He is
German. This is not an Anglo-Saxon analysis.
Alternative fr Deutschland is blowing across Germany like a tornado.The party won 12.6pc in Brandenburg and
10.6pc in Thuringia a week ago, following its success in Saxony. It has now broken into three regional
parliaments. The free market FDP is being systematically destroyed. Now AfD is ripping into the Left-wing base of Die
Linke as well.
Lets not forget the huge End the Fed rallies happening in Germany.
Looks like things are heating up in Deutschland.
In Liberty,
Michael Krieger

The Death Of The Derivatives Monster & Its Impact On The Precious Metals
The values of gold and silver would be substantially higher if it wasnt for the massive derivatives market. Americans have
no idea that the Derivatives Monster destroyed the ability for the market to properly value physical assets, commodities and
the precious metals.
Without the Fed & Cartel Bank market rigging, a Dow Jones of 6,000 would mean gold would hit $6,000 (at 1980 Dow-Gold 1/1
ratio) and silver would reach $272 (at 1980 Dow-Silver 22/1 ratio).
The financial markets today are riding on FUMES. There is no way telling how long the FACADE can go on, but with tensions
between the West & East increasing significantly, we may see fireworks sooner than later.
At some point, the BRICS will pull the plug on the GREATEST PAPER PONZI SCHEME in history,

making gold and silver

some of the best assets to own.


I would imagine very few people could state the total value of derivatives in the U.S. Banking Industry in 1990. Actually, I had no idea
until I did the research. Of course, I knew it was much lower than hundreds of trillions in Dollars held by the banks today.
If we look at the table below, we can see the total notional value of derivatives in the top 25 U.S. Banks. This data came from a paper
by the BostonFed.org in 1996 titled Derivatives Activity At Troubled Banks:

Adding up these 25 U.S. Banks derivatives holdings, we arrive at a paltry $3.28 Trillion in 1990. The bank with the largest derivatives
holdings during the first quarter of 1990 was Citibank with $767 billion. Amazing aye? The number one bank in 1990 didnt even hold
a $trillion in derivatives.
Lets compare this table to the Office of the Comptroller of the Currency Q4 2013 Report on U.S. Bank Trading and Derivatives Activity:

So, from 1990 total derivatives at the top 25 banks increased from $3.28 trillion to $45 trillion in 1998. As we can see, total derivatives
picked up significantly to reach a total $237 trillion by the end of 2013.
The majority of these derivatives (in red) are interest rate swaps. Thus, the U.S. Banking industry utilized the Interest Rate Swap
Market to destroy the REAL MARKET RATE OF INTEREST. By the banks artificially controlling the market rate of interest, they also
manipulate the REAL VALUE of goods, services, commodities and yes the precious metals.
Lets go back to 1980, when derivatives had a negligible impact on the market. In 1980, the price of gold and silver hit new highs. In
January of 1980, silver hit a high of $49 and gold reached $873, while the Dow Jones Average topped 893.
The chart below shows the Dow-Gold Ratio from this same time period. You will notice that in Jan 1980, the Dow-Gold Ratio was
nearly 1/1. The price of gold hit $873 and the Dow Jones was 893.

The Dow-Gold Ratio increased substantially until it peaked in 1999 at 44/1. In Jan 2000, the Dow Jones hit a new record high of
11,750. Here was the net result in the change from Jan 1980 to Jan 2000.
January 1980 Highs
Silver = $49

Gold = $873
Dow = 893
January 2000 Highs
Silver = $5.47
Gold = $291
Dow = 11,750
So, as the total of U.S. Bank Derivatives increased 1,150% ($3 trillion to $40 trillion) from 1990 to 2000, the majority of investors were
flocking into paper assets of all kinds. This had a profound impact on the markets. From 1980 to 2000, the Dow Jones increased
1,200%, while the price of gold declined 67% and silver fell 89%.
Even though the Fed and Central Banks can control paper prices, they cant print barrels of oil. When global oil production started to
peak , oil prices shot up substantially as competition increased.

The price of Brent crude increased from $25 in 2002 to $111 in 2011. The quadrupling of the price of oil severely impacted the prices
of all goods and services in the markets. As we can see from the chart, the price of gold increased with the price of oil, until it was
BUSHWHACKED by the Fed and Cartel Banks raid starting at the beginning of 2013.
This can be clearly seen by the Dow-Gold Ratio increasing from a low of 5.8 /1 at the end of 2011 to the nearly 14/1 currently.

The chart shows what the Dow-Gold Ratio would be using the 1980 1/1 ratio at the different Dow Jones Averages. I doubt the DowGold Ratio will ever reach 1/1 at the current valuation of the Dow Jones. However, it will when the broader markets finally POP and
head back down into the toilet.
We must remember, the Fed and Western Central Banks along with the Financial Industry have totally distorted the interest rate
market. Just look at the change in interest rates in the following countries since 2011. This is an excerpt from the article, Fraud By Any
Other Name Is Still A Fraud:
SOVEREIGN BONDS
US, EU Bond markets rates were effectively dictated by central banks
o During this massive rotation, US 10yr Treasury yield fell 55% from 3.67% in Jan to 1.67% in August 11 (currently 2.36%)
o June 11 Irish 10yr peaked 14.5%fell 87% til present (currently 1.78%)
o Oct 11 Italian 10yr peaked @ 7.5%fell 68% til present (currently 2.39%)
o Dec 11 Greece 10yr debt peaked @ 42%fell 86% til present (currently 5.62%)
o Dec 11 Portugal 10yr peaked @ 17.5%fell 83% til present (currently 3.02%)
o Jun 12 Spanish 10yr peaked @ 7.75%fell 71% (currently 2.14%)
However, BRICS interest rates were generally unchanged Jan 11 present
o Brazil 12.4% to 11.6%
o Russia 7.8% to 9.3%
o India 8.15% to 8.5%
o China 3.9% to 4.26%
o S. Africa 8.6% to 7.8%
The evidence is clear, the Western Central Banks created the GREATEST FINANCIAL SHOW ON EARTH by totally manipulating the
real market rate of interest. Many of the European countries that were ready to see a collapse of their bond markets, are now enjoying
10 year bonds at substantially lower rates.
How on earth did the Irish 10 year bond fall from a peak of 14.5% in June 2011, to 1.78% currently (at publish date of article)?? If we
compare the change in 10 year bond rates from 2011 (and 2012), the U.S.-European rates MAGICALLY all went down, while
most of the BRIC countries went higher.

This SLIGHT OF HAND by the Western Central Banks to manipulate their bond markets is not a sustainable business model. When
the collapse of the GRAND U.S. TREASURY MARKET finally arrives the value of gold and silver will skyrocket.
We have already seen the different prices of gold valued at the historic Dow-Jones Ratio of 1/1, so lets look at silver:

How many investors realized the Dow-Silver Ratio hit 22/1 in 1980? Even when silver hit a high of $49 in April 2011, the Dow-Silver
Ratio was nearly ten times higher at 248/1. I posted the different prices of silver compared to different levels of the Dow using the 1980
22/1 ratio.
Just when the price of gold and silver were about to BREAK-OUT at the end of 2012, after QE3 was announced, the Fed and Cartel
banks embarked on the policy of CRUSHING the precious metals.
The RED ARROW denotes the direction of the Dow-Silver Ratio if Western Central Bank manipulation of the markets did not
occur. Without the Fed & Cartel Bank market rigging, a Dow Jones of 6,000 would mean gold would hit $6,000 (at 1980 DowGold 1/1 ratio) and silver would reach $272 (at 1980 Dow-Silver 22/1 ratio).
The financial markets today are riding on FUMES. There is no way telling how long the FACADE can go on, but with tensions between
the West & East increasing significantly, we may see fireworks sooner than later.
Why should the BRIC countries that are experiencing higher (normal) rates of interest in their bond markets continue to allow the West
to get away with ultra-low rates? In addition, many of the BRIC and South American countries produce the lions share of the
worlds metals and commodities only to see their values plummet due to the manipulation of the paper markets by the West.
Lastly, the majority of Americans are totally DELUDED by the euphoria in the U.S. Treasury and Stock Markets. At some point, the
BRICS will pull the plug on the GREATEST PAPER PONZI SCHEME in history, making gold and silver some of the best assets
to own.

Silver & Gold Demand Explodes: Western Demand back with a Vengeance!
Its Back!
For the first time in months, Western investment demand in gold and particularly SILVER is raging like a lion thats just
escaped captivity!
Yesterday, while many were wringing their hands, and beside themselves about the massacre in the paper silver market, the
big players, the smartest guys in the room were busy buying nearly 24 tonnes of silver from the U.S. Mint!
Let me repeat that: the U.S. Mint alone sold another 765,000 silver eagles in ONE business day!
Take a look for yourself:
Surprise, surprise! After hearing the bobbing heads on MSNBC for the last several years, all denounce gold and silver as a giant
tombstone for your cash, we see that people are still flocking there now in droves. More precisely, for the first time in months,
Western investment demand is raging like a lion thats just escaped captivity!
These are the sales numbers for 2014, in silver eagles from the U.S. Mints website.
Silver
Month
(One oz. coins )
January
4,775,000
February
3,750,000
March
5,354,000
April
3,569,000
May
3,988,500
June
2,692,000
July
1,975,000
August
2,007,500
September
3,375,000
Pay careful attention to Septembers sales month above: 3.375 million oz of silver (or over 100 tons) in a month. Thats the largest
monthly sales figure of silver eagles since late Spring of this year. The pattern though, which isnt apparent in this chart, is that
most of this months demand has come in only the past two weeks!
See that ^ above paragraph, and that scratched out number, shield brother? I wrote that yesterday, on the last sales day of the
month, thinking that there was likely no way that theyd sell (or report) any more silver eagles in September.
Now, take a gander at the new number before you, which was updated just last night! LOL
September
4,140,000
Holy Silver Default, Batman!

Thats just amazing news, folks. Yesterday, while many were wringing their hands, and beside themselves about the massacre in the
paper silver market, the big players, the smartest guys in the room were busy buying nearly 24 tonnes of silver from the U.S.
Mint!
Let me repeat that: the U.S. Mint alone sold another 765,000 silver eagles in one business day!
Wrap your minds around this: in one day, that mint sold as many eagles as it used to sell in an entire month! Thats nearly 9
times as much silver as the U.S. even mined yesterday!
This is a prime example of why I actually embrace the downside moves now: its not so much that I can buy more silver(Im nearly
maxed out), its that the sooner the banks take paper silver to price levels that cannot possibly be delivered upon, the sooner
the crime ends, and our day can come. The longer they allow silvers price to rise, the longer they can actually keep their
price control over the silver we love.
$16, $15, $14 silver per ounce? *Laughs*
Please, Mistah Fox, please dont throw me in that briar patch!
Halfway through September, it looked as if silver eagles were going to put in another dismal sales month, as barely 1 million oz in sales
had occurred by mid-month.
What a difference two weeks makes!
In just the last two weeks, the U.S. Mint has produced roughly 3 million ounces of silver eagles, matching the demand of the previous
first 5 months of the year. To put that number into perspective, if that level of demand could hold, the U.S. Mint would produce
nearly 75 million oz. of silver eagles in a calendar year!
Its not hard to see why this demand has cranked into 5th gear, either. Just look at this chart for silver: feast your eyes on this
vintage, bullion bank, price-rigging masterpiece!

Wow. What a beautiful corridor of endless red candles, with nary a single relief rally in over 2 months! Thats exactly how youd
expect a raw material with a 100 million ounce supply deficit to trade in a free and fair market, wouldnt you?
Yup. Exactly like it. Mmm hmmm.
Its self-evident why the buyers have come out in force, too. They know a ridiculous bargain when they see one. The figures from the
U.S. Mint prove that Western silver and gold buying is still there, it just needed the proper price stimulant to exert itself.
This Watchman is just itching to pounce and attack, too! In fact, Ive been saving cash for several months now, waiting for the perfect
time to pounce on the enemy. Let me issue this warning though: I have a hard time believing that the banks would take silver this
low, only to give up at $16.79!
According to Ted Butler, JP Morgan as of last Tuesday, still had over 11,000 silver short contracts on its books. This is over 55
million ounces of silver, which, if the CFTC wasnt a co-conspiring buncha crooks, would still be at least 30 million ounces
over the threshold of the position limits that they attempted to establish several years ago.
All this to say: if the banks have come this far, why stop here? Theyve clearly managed to get the hedge funds to buy the Silvers
going lower! meme, so why not just push the pedal to the metal, and really throttle it?
Why stop at high 16s, when low $16s would allow another 2,000 or 3,000 short contracts to be covered?
Its highly likely that the very low $16s is coming in silver. A $15 handle and just below isnt out of the realm of possibility, either.
Just remember to repeat to yourself: The enemy owns the chart. The enemy is the chart.
If you embrace this realization, heart and mind, then when these lower candles happen, youll be able to gladly and calmly
step in, and skewer these guys with even more silver purchases(even if its only a couple of ounces).
Thats exactly what hordes of stackers are doing too, as report after report is coming in, of local coin shops being overrun by long-term
buyers, and even some newer buyers as well! King World News even had a report from a large precious metals dealer, who said that
one client had stepped in to buy 1 whole ton of gold, all by himself!
Mind-blowing stuff, think about this for a second. One ton of gold is an enormous purchase, and yetits really not that much. This
picture is one actual ton of gold, take a good look at it.
A pile of gold that size, right there, just cost that man about $40 million dollars. That would easily fit into most safes. Its still just not
that much, is it? Yet, its a large enough amount though, to make a splash in the tiny gold market.
Remember, the entire globe mines only about 2,400 tonnes of gold each year(minus China & Russia).if just roughly 2,500
individuals did what this buyer didthered big no gold left for anyone else! None. None for jewelry, none for coins, none for
central banks to buy, no more gold for the Chinese to swoop up: no gold for anyone! 2,500 people could clean out supply,
leaving nothing for the other 7 billion people on earth.
Speaking of gold, by the way, we wouldnt want to leave out the metal of kings in this equation.

Month

One
( oz. / #coins )

Half
( oz. / #coins )

Quarter
( oz. / #coins )

Tenth
( oz. / #coins )

Total
( oz. / #coins )

One
Half
Quarter
Tenth
Total
( oz. / #coins )
( oz. / #coins )
( oz. / #coins )
( oz. / #coins )
( oz. / #coins )
62,500
6,000
7,000
16,000
91,500
January
62,500
12,000
28,000
160,000
262,500
22,000
1,500
2,500
5,000
31,000
February
22,000
3,000
10,000
50,000
85,000
16,000
1,000
1,000
3,000
21,000
March
16,000
2,000
4,000
30,000
52,000
26,000
2,500
5,000
5,000
38,500
April
26,000
5,000
20,000
50,000
101,000
29,000
1,500
1,500
3,500
35,500
May
29,000
3,000
6,000
35,000
73,000
43,000
1,000
1,000
3,500
48,500
June
43,000
2,000
4,000
35,000
84,000
26,000
0
1,500
2,500
30,000
July
26,000
0
6,000
25,000
57,000
21,000
0
1,500
2,500
25,000
August
21,000
0
6,000
25,000
52,000
50,500
2,500
2,000
3,000
58,000
September
50,500
5,000
8,000
30,000
93,500
What youre looking at is a new September record for gold eagle sales. Thats more eagles sold than any other month in this
entire year, save for January.
You have to understand, the banks are desperate here. Their system is coming apart at the seams in Europe. Due to the suicidal
sanctions against Russia, due to the big players not receiving the new quantitative easing theyd expected.its putting
downward pressure on their equity markets, their bond yields(Germany, the largest powerhouse in Europe is selling sovereign debt at
actual negative yields, by the way), and their GDPs. Oh, and lets not forget the dozens of heroic secession movements in Europe,
which are threatening to break up the larger, more iconic seats of globalist power there.Speaking of which, thank God for Dr. Ron
Paul yesterday, who just gave secession a big boost, and made it more mainstream in the states. Its high past time that we
talked more about secession in the U.S. too.
The central and bullion banks are so beside themselves, as to how to save the European project(and their insolvent banking system,
which hinges upon it), that theyre going to body slam gold and silver futures traders until literally no one bothers to trade them in
London and New York anymore.
I know that doesnt make sense right now, but theres no other option for them. They just cant possibly let gold and silver fly at this
point, because theyd surely spike so furiously that the currency and bond markets would be a smoldering train-wreck within just a few
weeks!
At that point, generations of accumulated, ill-gotten power and wealth would be lost.
So, theyre choosing the only path left to them: extend and pretend by decapitating gold and silver, until it can no longer be done. Sure,
theyre losing tens of millions more ounces of silver(and gold) within the global supply pool, but at this point, it just doesnt matter
anymore, does it? Theyve already bet the whole farm(and lost big time), so taking out that 5th mortgage on it, really doesnt
make any difference at this point.
The lower they take the metal prices though, the closer theyre taking their precious system to the precipice of its own grave.
Conclusion
The gold market is not a large market, compared to the volume of global commerce, global derivatives, global pensions, etc.the gold
market is a drop in a vast ocean.
Which, by comparison, makes silver, a microscopic amoeba, compared to that tiny drop of gold, in that vast ocean!
Good luck delivering enough silver for us at $16, chumps! Good luck at $14! Good luck at $12!(Im laughing just typing that)
Come on, end this! You dont have the stones, banksters, to take this to zero, do you?
Give us every body blow you got, eggheads!
Every single one!
Month

You may own all the politicians, all the regulators, all the housing, all the debt, all the infrastructure, all the media, all the think-tanks, all
the universities, but very, very shortly
Humanity will own all the silver, and you will be nothing.
Youre not large and in charge, youre common criminals with overdrawn bank accounts!
Youre the dirt on our feet.
Youre nothing

New Gold Rush Cometh With Global Bond Market On Edge Of Cliff
The current U.S. bond market faces a liquidity cliff and looks like an asset bubble that could burst when interest rates
start to rise, according to the senior U.S. securities regulator. This is something we have been warning of in recent months.
The consequences of the bursting of the bond bubble would be rising interest rates, which would likely impact property and
stock markets and benefit safe haven gold bullion.
With the global bond market on the edge of the cliff, a new gold rush cometh.
Submitted by Goldcore:

Exters Golden Pyramid


Securities and Exchange Commission (SEC) Republican member Daniel Gallagher said over a year ago that the $3.7 trillion municipal
bond market may sufferArmageddon once interest rates climb.
The Fed has continued ultra loose monetary policies and debt monetisation for more than six years now. It has kept its benchmark
interest rate near zero since December 2008. The Fed already employed three quantitative easing rounds buying up bonds to help
stimulate the U.S. economy after the financial crisis.
The Fed maintains that the program will end this month and many investors expect the Fed to move to a tighter monetary policy.
However, we believe that if the Fed increases rates, it would likely lead to a sharp recession and possibly a Depression. It would also
likely lead to serious volatility in markets and the risk of a triple stock, bond and property crash.
There has been jitters in bond markets in recent days. PIMCO saw $448 million in fund outflows last Friday. Bill Grosss departure from
PIMCO to join Janus Capital Group is being blamed for some of the jitters but it may be that investors internationally are concerned
about over valuation in bond markets and heading for the exits before the stampede begins.
Given concerns about the crisis on global bond markets and indeed the wider financial system, it is worth remembering one of the
greatest central bankers of the modern era, John Exter and his insightful golden pyramid (see above and below).

John Exter is known for creating Exters Pyramid, also known as Exters Golden Pyramid and Exters Inverted Pyramid.
John Exter (September 17, 1910 February 28, 2006) was a highly respected American economist, member of the Board of
Governors of the United States Federal Reserve System, and founder of the Central Bank of Sri Lanka.
His golden pyramid allowed for the visualisation and the organisation of assets and asset classes in terms of risk and size. Exter rightly
believed that gold is the safest asset and therefore gold forms the small base as the most reliable value and the asset classes on
progressively higher levels are more risky.
The larger size of asset classes at higher levels is representative of the higher total worldwide notional value of those assets. While
Exters original pyramid placed Third World debt at the top, today derivatives hold this dubious honor.
Exter was highly respected for his great intellect and he also had all the mainstream credentials. He was Harvard educated, a Federal
Reserve economist, a member of the Council of Foreign Relations and quite unusually among mainstream insiders, Exter believed in
gold as money and a store of value.
He was a friend of the great Austrian economist, Ludwig von Mises. and debated the inflation versus deflation argument all the time
with von Mises.
Given the huge levels of government debt throughout the developing and developed world, global bond markets today are multiple
times bigger than they were in the 1970s when Exter created his pyramid.
In the event of another global financial crisis which we see as quite likely, capital will again flow from the riskier assets at the higher
levels of the pyramid into the base of safe haven gold. While bonds were the beneficiary of the last financial crisis, they may be the
nexus of the next financial crisis.
The stock of assets in the world today is multiple times bigger than it was in the 1970s and thus, gold appears very undervalued.
Should we see capital flight from U.S. and global bond markets, gold should see gains on a par with those seen in the second half of
bull market in the 1970s.

Many said that golds bubble had burst when it fell from $200 to $100 per ounce from December 1974 to August 1976.
Experts warned that gold would fall as interest rates rose. The opposite happened and as interest rates rose, gold rose more than 8
times in 3 years and 4 months, to $850 in January 1980.
History does not repeat but frequently rhymes.
GOLD IN Q4 CNBC SURVEY
Does the prospect of a sustained campaign against ISIS in the Middle East, possibly lasting years, boost the safe-haven case
for gold?
We believe it is likely to boost golds safe haven credentials and may lead to increased demand both in the Middle East itself and
globally.
This is particularly the case if the bombing campaign leads to a wider military conflict between Syria and Israel, Iran and Israel or a
combination thereof.
There is also the not inconsiderable risk of terrorism and a major act of terrorism in the UK, U.S. or elsewhere in western world.
A September 11 style event would quickly make market participants realise the importance of gold as a diversification in a portfolio.
This has been forgotten about recently due geopolitics failing to impact on asset markets and due to the outperformance of equities,
bonds and property.
It is worth remembering that gold was dismissed as a safe haven during a similar bout of irrational exuberance at the turn of the
century prior to September 11, the potentially never ending war on terrorism and the resumption of history.
It is also important to remember that gold was dismissed as a safe haven in the 2005 to 2007 period prior to the collapse of Lehman
and the global financial crisis.
The penny is slow to drop for more speculative market participants.
Has the Russia-Ukraine crisis shown us that gold simply is not the safe-haven that it once was?
It is premature to suggest that the Russia-Ukraine crisis shows that gold is not the safe-haven that it once was. The same thing was
said in the early stages of the credit crisis after golds initial falls when Lehman collapsed. Soon afterwards, gold again showed its safe
haven credentials over the long term.
Focussing on very short time frames and data sets can lead to erroneous conclusions.
Do Asian buyers start returning to the market, and do investor ETF inflows start picking up?
The death of the Asian gold market is greatly exaggerated, Asian buyers have already begun coming back to the market and the latest
data shows demand in India has picked up markedly and Chinese demand remains robust.
There is already evidence that demand has picked up significantly in India and China.

The worlds largest bullion buyer, China imported more gold in September than in the previous month due to demand from retailers
stocking up for the current National holiday.
In the last month, withdrawals from the SGE have totalled over 170 tonnes this suggests an annual rate of over 2,200 tonnes. The
physical volumes have been high this month compared to August. I would say imports could be at least 30% higher than last month, a
trader with one of the 15 importing banks in China told Reuters.
Meanwhile, demand in India the second biggest buyer of gold has also picked up significantly in recent days as the festival and
wedding season began in earnest.
How strongly correlated will gold be with the dollar in Q4?
The Dollar Index is testing the top end of its long established range. We believe this is largely a function of euro and other fiat
currencies weakness rather than dollar strength.
Before last weeks very slight fall, the dollar had risen for 10 weeks in a row, the first time for 40 years. It appears overvalued in the
short term and looks ripe for a correction.
Gold traditionally has a strong inverse correlation with the dollar. However, there have been bouts of dollar strength coinciding with gold
strength which saw gold rise sharply in euros, pounds and other currencies.
This is a possibility in the coming months.
More likely are competitive currency devaluations and currency wars. Central banks are unlikely to allow one currency to rise too
sharply versus another as it creates deflationary risks for the appreciating currencies economy.
A resumption of currency wars seems likely either in Q4 or in 2015 and in the coming years.

Where does gold average in Q4 vs. Q3?


Gold is likely to average $1,280/oz in Q4 from $1,207 today. Technical damage has been done and further consolidation may be
necessary but we see gold eking out small gains in Q4 prior to gains in 2015 and a resumption of the secular bull market or a second
bull market as happened in the 1970s.
MARKET UPDATE
Todays AM fix was USD 1,207.50, EUR 956.06 and GBP 751.03 per ounce.
Yesterdays AM fix was USD 1,214.50, EUR 960.99 and GBP 750.94 per ounce.
Gold in Singapore ticked lower from $1,214 per ounce to over $1,207 per ounce and gold remains weak and at these levels in late
morning trade in London.
Gold fell $0.80 or 0.07% to $1,213.80 per ounce and silver slipped $0.08 or 0.47% to $17.10 per ounce yesterday.

Gold in Euros 2 Years (Thomson Reuters)


It is important to note that golds falls continue to be primarily in dollar terms and that gold in euros and pounds has seen only minor
falls.
Indeed, gold in euros remains nearly 10% higher for the year and has risen from 876 per ounce at the start of the year to over 956
per ounce today.
Gold in British pounds has risen from 727 to 750 per ounce for a gain of 3.3%.

Gold in British Pounds 2 Years (Thomson Reuters)


Physical demand remains robust in Asia and we are seeing a pick up in western markets now too. Data from the U.S. Mint and Perth
Mint show that safe haven bullion coin buying returned in September as western demand increased.
The U.S. Mint sold over 50,000 ounces of American Eagle gold coins so far in September, its highest monthly sales since January. The
Perth Mints sales of gold coins and bars hit their highest in nearly a year in September. Sales of gold bullion coins and minted bars
rose to 68,781 ounces in September, their highest since October 2013.
The worlds largest bullion buyer, China imported more gold in September than in the previous month due to demand from retailers
stocking up for the current National holiday.
In the last month, withdrawals from the SGE have totalled over 170 tonnes this suggests an annual rate of over 2,200 tonnes. The
physical volumes have been high this month compared to August. I would say imports could be at least 30% higher than last month, a
trader with one of the 15 importing banks in China told Reuters.

Gold in US Dollars 2 Years (Thomson Reuters)


Meanwhile, demand in India the second biggest buyer of gold has also picked up significantly in recent days as the festival and
wedding season began in earnest.
Prithviraj Kothari, vice president of the India Bullion & Jewellers Association told the Reuters Global Gold Forum in an interview that
there is currently huge physical demand in India in every sector.
Indian demand may be double that of last year, he believes.
Gold ETF inflows are likely to resume as silver inflows have already done.
Speculators continue to sell paper and electronic gold while prudent buyers in China, India and elsewhere continue to accumulate
physical bullion.
This dichotomy can only last for so long before the powerful forces of actual physical demand in the small physical gold market lead to
higher prices.

Gold & Silver Finish Brutal Week Rolling Over into the Close- Will
Cartel Push Them Off the Precipice on Sundays Globex Open?
After a brutal trading week which saw silver close at 4 year lows and gold only $10 from summer 2013 lows, GATA Chairman
Bill Murphy joins the show discussing:

Silver closes under $17 & gold rolls over into the close- is a waterfall capitulation collapse coming on Sunday nights
Globex open?
Murphy explains why this is the Gold Cartels Final Campaign- The Biggest Move in the History of All Markets is
Coming (but at what level will it start from?)
Why havent the miners fought back? Murphy explains why the World Gold Council is against precious metals
miners
The Doc examines the gold & silver take-down from the perspective of the bullion banks- what is the ultimate gameplan?
Where will the pain end? Murphy explains why there is No such thing as oversold in a manipulated market, &
that This is an effort to completely decimate the gold & silver markets & industry by driving them into oblivion- the
banksters are attempting to corner the global physical and mining markets!
The Final End Game- Why the probability of a Grand Reset currency collapse is increasing

With gold breaking below $1200 and silver below $17/ozFriday, bars & coins are not the only silver products beginning to
show signs of shortages.
In the wake of Wednesdays confirmation by the CDC of the first official cases of Ebola in the US, the alternative health
industry has seen a run on COLLOIDAL SILVER, which has intensified after reports emerged that the US govt has placed
an order for 160,000 HazMat suits.
The FDA has actually begun targeting natural health manufacturers of products such as silver and essential oils and sent 3
warning letters to cease and desist just this week.
Need we say more?

Demand Explodes, Part 2: Chinas Coming for the Wests Gold


In the past 2 days, the U.S. Mint has nearly sold the entirety of the Silver Eagles sold in the month of July! This also stretches
the silver to gold sales ratio to 220 to 1 (if buffaloes are counted).
At a gold to silver ratio of 70 to 1, this means that in dollar terms, 3 times as much silver is being bought than gold!
I cannot remember such a beginning to a sales month in the history of the U.S. Mint.
And things are also heating up Across the Pacific.
Just as over here, things are getting very interesting in China on the silver scene as well
Heating up
Before we head to China, I wanted to note that things are getting white hot in silver. Just a day ago, I noted that1,150,000 silver
eagles had been sold by the U.S. Mint, in a single day, and that the day before, another 765,000 silver eagles had flown out the
door.
Yesterday the enormous volume of sales continued, as 500,000 more eagles broke free and nested in new homes. This is
truly astonishing.
In the past 2 days, the U.S. Mint has nearly sold the entirety of what was sold in the month of July! This also stretches the
silver to gold sales ratio to 220 to 1 (if buffaloes are counted).
At a gold to silver ratio of 70 to 1, this means that in dollar terms, 3 times as much silver is being bought than gold! I cannot
remember such a beginning to a sales month in the history of the U.S. Mint.
Heating up Across the Pacific
Just as over here, things are getting very interesting in China on the silver scene as well.
One look at this chart will confirm why:

Since the big price take down of silver through the $26 mark in the spring of 2013, the largest physical silver exchange in Shanghai
looks to be hanging on by the skin of their teeth!
Inventory has bungee-jumped(without a chord!) from over 40 million ounces, to roughly 2.5 million oz.
This is such a laughable small amount of silver for such a large bourse, that one has to wonder: why havent they altered the rules for
taking physical delivery yet?
After all, when such events have taken place in New York or London, when the market riggers are against the wall, thats exactly
what they do: they change the rules!

Perhaps Shanghai has not done so because the folks in China have no desire to distort silvers price, as those in NYC and
London do!
Perhaps, theyre simply going to let the market do its thing, and let the chips fall where they may.
Perhaps
The interesting thing in all this though, is that while the stockpile there continues to dwindle(and premiums continue to creep up), the
paper traders there are busy making paper bets that the premium wont fall, in the face of this demand!
It almost brings to mind various gamblers betting on a cock-fight as a steam roller closes in on them!
Many in the precious metal commentary sphere have been making the rounds, explaining why the Shanghai silver inventory
reduction is a very big deal, and of course, it could be. I have a difficult time believing that the bullion banks, who still can source
millions of ounces of silver via the SLV and the Comex, will not do so before Shanghai stocks go virtually to zero, but who knows!
All that we know is that silver is making big waves in China, and the Shanghai situation bears some close watching.
Golden Snacks
What about gold?
Unfortunately for our friends running the manipulation scam in the precious metals, the gold demand in China is even considerably
higher than the silver demand.
Many of us know last year that China alone accounted for 2,200 tonnes of gold demand, which clocks in at a ludicrous 90% of nonChinese/Russian gold-mining production.
A hoard equal to 90% of gold mined last year went to China.
Wait, it gets even better! Because, you see, not only is China sucking in nearly every last bar from the territory of others, it also
happens to be the worlds largest gold producer! In fact, last year, China mined an unparalleled 420 tonnes of gold from its mines.
This figure of 420 tonnes is such a staggering number for a years gold production, that we must give it some context.
First of all, that tonnage figure crushed the output of the next highest gold-producing country last year, which was Australia. Australia,
which had gotten comfortable being the top dog on the gold scene (since the South African gold decline), played 2nd fiddle, with 255
tonnes.
This means that China beat out the next highest gold producing competitor by 165 tonnes!
It means that China produced almost as much gold as the United States and Australia put together!
It means that China brought up as much gold in one year, as Taiwan, the worlds 14th largest gold holder, has in its entire reserve.
All that gold, produced in just four business quarters, is now held by the Mr. and Mrs. Wangs of the world.
Another Reason China is Doing This
But why bring all that gold out of the ground so.frantically? After all, that gold is lying there, its not going anywhere, why the rush to
bring so much up? Well, there is of course, another reason for this mining spree, as well as the demand, which weve already gone
over before, isnt there?
The Chinese know what must happen to the U.S. dollar, they know the time for action grows short, if theyre to avoid
playing a supporting role, once again, to the U.S. and Britain in the horrible new SDR currency system that D.C. and London
are trying to cook up.
No, China knows what the bankers want to do, and they arent going along for the ride. They want a better, more balanced system
of currency for themselves, and the only way they can get that system, is by creating and leading it.
The only way they can create and lead it, is by setting the stage for their currency, the Renminbi(or Yuan) to be internationally
accepted.
How do they accomplish that though? Ah, they accomplish it by owning and controlling all things gold, of course: its stock, its flow, its
pricing, everything. Gold(and silver) is the only sovereign capital which doesnt rely upon someone elses promise to pay, in
order to establish its value. Gold is not simply another currency, it is money.
Gold is value in and of itself: the ultimate sovereign asset.
And remember this, because its key: because the amount of physical silver in the world is literally nonexistent, in comparison
to the size of governments and world commerce, China then has no choice but to make gold the foundation instead of silver.
This is not a concern! This just means that silver is, and will remain, the poor mans game, until its true value is achieved. China isnt
stockpiling silver for reserves, but its not because they dont wish to, but rather because they cant. There simply isnt
enough of it.
2014 Demand
Yeah, yeah Watchman, thats great, we know about 2013s demand. This is 2014 though! You may think that Chinas gold buying will
continue, but CNBC said that Chinese gold demand was dead! Whaddaya say to that? First of all, I refuse to answer any question
containing the phrase, But CNBC said, as its an insult to my intelligence to do so.
Secondly, someone hasnt been paying attention.
Heres the truth: though China faced a series of converging factors(including a downward move in the Yuan versus the dollar, and a
rising gold price in early 2014), which slowed their gold accumulation by as much as 30%, those factors have now largely faded away.
As a matter of fact, for the last several months, since gold began its latest waterfall decline in August, China has been firing volley
after volley of enormous gold buys each week. Not only have they been buying more gold on a weekly basis than at any time since
February, their purchases seem to be only accelerating with each passing week.
Again, I ask you to never simply take my word for it, either. Here, take a look at the hard numbers for yourself.
As youll see, from the Chinese gold market analyst, Koos Jansen, they went from an average weekly gold demand of roughly 27
tonnes, to this:
In week 34 of the year, they demanded 46 tonnes. In week 36, they demanded 39 tonnes. In week 37, they demanded 41 tonnes.
In week 38, they demanded an amazing 50.3 tonnes! In that one week, China was, once again, buying up 100% of the available
gold that planet earth was producing. Boom!Mr. Jansen, who is not one for hyperbole, called the demand explosive and
astonishing. If he uses words like that, youd best sit up and take notice. Conclusion

In 2013, those who were paying attention, saw something historic: it was the year in which the largest amount of gold was
ever bought by a single country in such a short time frame. Period. Yes, other countries have accumulated more than China, but
they did it over many decades, or even generations.
A true gold mania had begun in China. A mania, which Song Xin, President of the China Gold Association, has openly stated, has a
long way to go: The state will need to elevate gold to an equal strategic resource as oil
That is why, in order for gold to fulfill its destined mission, we must raise our gold holdings a great deal, and do so with a
solid plan. Step one should take us to the 4,000 tonnes mark, more than Germany and become number two in the world, next,
we should increase step by step towards 8,500 tonnes, more than the US.
I encourage you to go visit the above link, and read the entire statement from Mr. Xin, in order to know exactly what the Chinese
authorities have in mind. It should scare the pants off any deluded doubter of what gold is, and what the future holds.
The world has never seen the like of what is happening right now. You are truly a witness to a real game-changer. As evenAlan
Greenspan recently noted:
If China were to convert a relatively modest part of its $4 trillion foreign exchange reserves into gold, the countrys currency
could take on unexpected strength in todays international financial system. It would be a gamble, of course, for China to use
part of its reserves to buy enough gold bullion to displace the United States from its position as the worlds largest holder of monetary
gold. If the dollar or any other fiat currency were universally acceptable at all times, central banks would see no need to hold any
gold. The fact that they do indicates that such currencies are not a universal substitute Whereas Simon, following the
economist Milton Friedmans view at that time, argued that gold no longer served any useful monetary purpose, Burns argued that
gold was the ultimate crisis backstop to the dollar.
The arch-druids and the bone-readers on MSNBC are dead wrong about Chinas gold rush being over.
Smaug is on the prowl, seeking whatever gold he can devour.
His size. tremendous.
His thirst, unquenchable.
His currency reserves, immeasurable.
He is coming for all the Wests gold, and he is going to get it. He wont be denied.
If youre foolish enough to be shorting gold(and silver) here, thank the bullion banks, take your cash and get outta Dodge,while you
still can.
The dragon is coming

BO POLNY: Triple Bottom a Prelude to Runaway Gold & Silver Bull Markets
Gold has placed a triple 2-year chart bottom at $1180 and will NOT break.
Gold sits on the rising support line from back from 2000 2001 when the Bull Market began.
Buying Gold today in the very low $1200 range is equivalent to buying Gold back in 2001 when it was $255.
All truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being selfevident. Gold at $2000 will be self-evident by the end of 2014, with the summer of 2015 an absolute certainty!
The Gold price suppression Game ends this year with a Gold Spike and a FINAL Top is coming for the US Stock Market with
no bottom until the year 2020! Dear Gold friends,
As the Titanic was sinking, the Band continued Playing! As Golds price sank down to low of $1190 Friday October 3, 2014 and closed
under $1200 the Band played the $1050 song even louder! Heck there were even some very prominent and respected Band member
playing the $650 Gold and $12 Silver Song!
Golds triple 2-year chart bottom at $1180 and will NOT break as stated in prior updates and reiterated again here.
GOLD

Gold sits on the rising support line from back from 2000 2001 when the Bull Market began. Buying Gold today in the very low
$1200 range is equivalent to buying Gold back in 2001 when it was $255.
Remember my May 14, 2014 New York Kitco Interview and forecast (click here to view), Gold cycle analysis indicated Gold was
expected to rise in May/June and make a Top in June, then drop down in price making a Final Summer Low and in conclusion Spike
and reach $2000 before year end. The May 2014 Interview stated a Final Summer Low would be a final entry point.

Since the May 2014 Interview, Gold when up starting early June, came into an early summer July top that turn into a washout low and
now SUMMER 2014 HAS ENDED!
On a side note, I cant help but comment on Alibaba after John Ings interview of October 5, 2014 on King World News (link click
here) where he states when we look at Alibaba trading at over 60-times earnings, this indicates that the massive rally in global
equities is close to the end. I did a Google search in Wikipedia on the definition of Alibaba just for fun and here is what I found Ali
Baba and the secret of a thieves den entered. What thieves den entered. Come-on!? Is this written by Hollywood? Take a few
minutes and review my post of August 9, 2014 titled The Coming Inflationary Spike & Deflationary Bear Market CYCLE that
Devastates the World! (link click here) and look at my DOW chart of August and compare to present time. How did the left shoulder
call turn out? A head formation on the US Markets is next.
Listen to the Band of Robbers playing the $1050, $1000, $650 Gold and $12 Silver song or be a resolute Bull and run for the lifeboats
buying Gold and Silver like theres no tomorrow? It is your choice here and now. The thieves den will be entered and a Runaway Bull
Market will follow. Listen to the Band and they will have done their job to intentionally rob you of your riches leave you empty handed
when $2000 arrives.
Gold is Gods money and it is the great equalizer of everything paper! As hard as it might be to believe seeing Gold priced at $2000,
remember blessed are they that have not seen, and yet have believed. All the negative and bearish comments from the Band are to
scare all the doubting Thomas of the world, and at this point that is nearly everyone.
In the end, just before the Titanic sank the Band stops playing; but it was too late!
Please remember all truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as
being self-evident. Gold at $2000 will be self-evident by the end of 2014, with the summer of 2015 an absolute certainty! The Gold
price suppression Game ends this year with a Gold Spike and a FINAL Top is coming for the US Stock Market with no bottom until the
year 2020!
I have posted Golds Cycle for public record these past 5-months since the May 2014 interview. Additional and further details on a
Gold / Silver spike and the Stock Market cycle top and price targets must remain PRIVATE out of respect to my subscribers.
I wish you and your family well in the days weeks and months ahead and ignore the band,
Bo Polny

BANKERS MANIPULATION OF GOLD & SILVER: Proof In The Demand Data


The Banking Cartel needs to keep investors away from buying gold and silver because they are the BLINKING RED LIGHT
that indicates something is very wrong with the financial system. To keep the public and investor demand limited in gold and
silver, the Banking Cartel is using price suppression tactics, including negative press via the financial networks.
While they may have won the recent BATTLE, they will certainly lose the WAR.
Those who see through all the SMOKE & MIRRORS will continue to acquire the precious metals even though many have lost
faith.
From the SRSRocco Report:
The Banker Cartel has a method to their madness in manipulating the precious metals and commodity markets. Lets just say,
the value of some commodities are controlled to move one direction while others, in another. This can clearly be seen when we
compare gold & silver versus oil markets.
Investors need to realize energy, especially oil overtook the role of gold and silver as the most vital source of wealth in the early
1900s. While its true that oil is burned and consumed the ownership or control of oil reserves allowed the WEST to
dominate the world in trade and finance.
A growing global oil supply allows the fiat monetary system to continue. As I have mentioned in many of my articles, the peak and
decline of cheap oil will be DEATH on the fiat monetary systemespecially the U.S. Dollar.
Most of the analysis on the precious metals is very focused and specialized. Sometimes, the most interesting results are found looking
in a much broader way. If we look at the following charts, we can see how the Bankers manipulated gold and silver, while allowing the
price of oil to remain high.
Here is a five-year chart of Brent crude. There are a few important aspects of this chart worth explaining.

First, the price of Brent moved higher in 2010 the same time as the precious metals, but remained flat after QE3 was announced at the
end of 2012. The price of Brent remained in relatively stable trading range ($110) up until June of this year.
Second, when Brent crude hit $125, it would peak and decline. This is due to the market cutting back on demand as the price
becomes too expensive. According to new analysis by Steve Koptis, called the Supply Constrained Model , the world cannot
afford expensive oil, so it cuts back on demand. Basically, as the price of oil moves too high, it negatively impacts economic activity.

Third, after the FEDs QE 3 program (end of 2012), the price of Brent crude fluctuated, but remained at $105-$110 until June of this
year. The price stayed in this range due to high demand. Now, if we look at the chart below, we can see the price of U.S. Crude oil
(WTI- West Texas Intermediate) versus demand.

This chart represents total of motor gasoline, #2 diesel, and jet fuel supplied by the U.S. petroleum industry. Total supplies peaked in
2010 at 574 Mgpd (million gallons per day), fell to an average of 553 Mgpd in 2012 and then increased a bit to 559 Mgpd in 2013 (data
from U.S. EIA Energy Information Agency).
Even though demand declined 21 Mgpd from 2010 to 2012, the average price of WTI Crude increased from $79.48 (2010) to
$94.05 (2012). The majority of the declines came from the motor gasoline category (shown in orange). In 2009, total motor gasoline
supply (consumption) was 363 Mgpd, compared to 349 Mgpd in 2013.
Some believe the decline in U.S. motor gasoline demand was due to increased fuel efficiency. While this sounds like a credible
reason that data states otherwise. This table is from the EIAs September 2014 Monthly Energy Review, reported data for the United
States (data found here on pg 27).

The first column represents fuel economy from U.S. light duty vehicles (cars and small trucks). U.S. fuel economy increased
significantly from 22.9 mpg (miles per gallon) in 2007, to 23.7 mpg in 2008. However, after the price of oil declined from a peak of $147
in 2008 to a low of $33 in 2009, Americans ditched the small economical cars for the larger SUVs.
According to the data, the average fuel economy in this category for 2012 was 23.3 mpg compared to the high of 23.7 mpg in
2008. If we combine the statistics for all motor vehicles, including large semi-tractors, overall fuel economy remained the same at 17.6
mpg in 2009 to 17.6 mpg in 2012.
Regardless, total U.S. petroleum product supplies (consumption) declined from 574 Mgpd in 2010 to 559 Mgpd in 2013, while the price
of U.S. WTI Crude increased from $79.48 to $97.98.
We must remember, OIL DRIVES the economy. In order for the U.S. SHALE OIL INDUSTRY to continue pumping out oil, it needs a
sustained HIGH PRICE.
Gold & Silver Demand Increase While The Price Is Manipulated Lower
While demand for U.S. oil products slightly declined (or remained steady) from 2009 to 2013, this was the opposite for gold and silver.
Lets first look at gold. Here is a five-year gold price chart:

We can see golds trend line is similar to the price of Brent crude until the end of 2012 when the price of oil remained steady, gold
declined precipitously.
The next chart is total global gold demand. From 2009, total global gold demand increased from 3,493 mt (metric tons) in 2009, to a
peak of 4,582 mt in 2011, and then a small decline to 4,416 mt in 2012. 2013 is a strange year because of the huge withdrawal of gold
from ETF stocks. According to the World Gold Council, a net 881 mt of gold was withdrawn from ETFs in 2013.

Many in the precious metal community speculated that the massive draw-down of Gold ETFs, was due to a shortage caused by huge
demand coming from the EAST (China) after the price take-down in the beginning of 2013. Supposedly, the Banking Cartel did not
have the physical gold to deliver into the market, so it raided the only available stocks found in the Gold ETFs.
If we assume this was true, then it only makes sense to add this 881 mt figure to the net total of 3,756 mt published by the World Gold
Council in 2013 for a grand total of 4,637 mt in global gold demand.

The World Gold Council deducts the 881 mt ETF withdrawal from demand to get that 3,756 mt figure. While this method might make
sense in a fair and transparent market, its ridiculous to use when the entire system is totally rigged.
Not surprising the five-year silver chart looks quite similar to gold:

Here we can see in the price of silver, follows the same trend change as gold. Silver was trading at $35 in 2012 (before QE3), and fell
nearly 50% in 2013just eight months later.
This next chart does not show total global silver demand because I believe the change in NET BALANCE was more important:

These figures came from the Silver Institutes website reporting data provided by Thomson Reuters GFMS (data here). How can the
global silver market suffer a 113 million oz deficit in 2013, compared to the 19 million oz deficit in 2011, while the price falls
more than $11??
According to the Silver Institutes figures, total global silver supply was 978 million oz, while total demand was 1,091 million oz
(including 10 mt of ETF and Exchange build). Where did the market find 113 million oz of silver to supplement the shortfall?
This is the TRILLION DOLLAR question.
Matter-a-fact, the total annual deficits from 2009 to 2013 equaled a staggering 372 million oz. Who supplied 372 million oz to meet this
silver demand? I believe this came from what is known as Implied Unreported Stocks that were over 2 billion oz in 1990 (data from
CPM Groups 2014 Silver Yearbook). This 2+ billion oz went to supplement the annual silver deficits over the past 3 decades.
According to data provided by CPM Groups 2014 Silver Yearbook, that 2+ billion oz of Implied Unreported Silver Stocks are now
nearly totally wiped out. I believe most of that silver went to feed the annual deficits and some made its way into the Silver ETFs.
Investors must realize that the Fiat Monetary Authorities will allow the price of oil to remain high because it is the foundation to
economic activity and growth. The Banking Cartels main focus in the oil market isnt to manipulate oil prices higher to make
profits, rather to allow HIGH COST oil to flow into the market. And high cost oil are Shale Oil and Tar Sands.
Without these two sources of expensive unconventional oil, Global GDP growth would have peaked and declined years ago. Thus,
putting a real KIBOSH in their control of the fragile fiat monetary system.. which needs a growing oil supply to survive.
The Banking Cartel needs to keep investors away from buying gold and silver because they are the BLINKING RED LIGHT
that indicates something is very wrong with the financial system. To keep the public and investor demand limited in gold and
silver, the Banking Cartel is using price suppression tactics, including negative press via the financial networks.
While they may have won the recent BATTLE, they will certainly lose the WAR. Those who see through all the SMOKE &
MIRRORS will continue to acquire the precious metals even though many have lost faith.

Non-Official Cover Respected German Journalist Blows Whistle on


How the CIA Controls the Media
I was bribed by billionaires, I was bribed by the Americans to reportnot exactly the truth.
- Udo Ulfkotte, former editor of one of Germanys main daily publications, Frankfurter Allgemeine Zeitung
Whether you want to admit it or not, CIA control of the media in the U.S. and abroad is not conspiracy theory, it is conspiracy
fact.
Submitted by Michael Krieger, Liberty Blitzkrieg:
Some readers will see this and immediately dismiss it as Russian propaganda since the interview appeared on RT.
This would be a serious mistake.
Whether you want to admit it or not, CIA control of the media in the U.S. and abroad is not conspiracy theory, it is conspiracy
fact.
Carl Bernstein, who is best known for his reporting on Watergate, penned a 25,000 word article in Rolling Stone after spending six
months looking at the relationship of the CIA and the press during the Cold War years. Below is an excerpt, but you can read the entire
thing here.
In 1953, Joseph Alsop, then one of Americas leading syndicated columnists, went to the Philippines to cover an election. He did not go
because he was asked to do so by his syndicate. He did not go because he was asked to do so by the newspapers that printed his
column. He went at the request of the CIA.
Alsop is one of more than 400 American journalists who in the past twenty-five years have secretly carried out assignments
for the Central Intelligence Agency, according to documents on file at CIA headquarters. Some of these journalists relationships
with the Agency were tacit; some were explicit. There was cooperation, accommodation and overlap. Journalists provided a full range
of clandestine servicesfrom simple intelligence gathering to serving as go-betweens with spies in Communist countries. Reporters
shared their notebooks with the CIA. Editors shared their staffs. Some of the journalists were Pulitzer Prize winners,
distinguished reporters who considered themselves ambassadors without-portfolio for their country. Most were less exalted:
foreign correspondents who found that their association with the Agency helped their work; stringers and freelancers who were as
interested in the derring-do of the spy business as in filing articles; and, the smallest category, full-time CIA employees masquerading
as journalists abroad. In many instances, CIA documents show, journalists were engaged to perform tasks for the CIA with the
consent of the managements of Americas leading news organizations.
Like any good intelligence agency, the CIA learned from its mistakes upon being exposed, and has since adjusted tactics. This is
where the concept of non-official cover comes into play. The term was recently described by German journalist Udo Ulfkotte, in a
blistering RT interview. Mr. Ulfkotte was previously the editor for one of Germanys main dailies, Frankfurter Allgemeine Zeitung (FAZ),
so he is no small fry.
Non-official cover occurs when a journalist is essentially working for the CIA, but its not in an official capacity. This allows both parties
to reap the rewards of the partnership, while at the same time giving both sides plausible deniability. The CIA will find young journalists
and mentor them. Suddenly doors will open up, rewards will be given, and before you know it, you owe your entire career to them.
Thats essentially how it works. But dont take it from me

YOU ARE 100% RIGHT ABOUT SILVER The Wealth Watchman


Despite the cartels vicious, criminal paper games, Silver & Gold demand has EXPLODED and Western demand
is back with a vengeance.
Judging by the past week of Silver Eagle sales from the US Mint the big players, the smartest guys in the room
were busy buying nearly 24 tonnes of silver from the U.S. Mint!
So the cartel can continue slaughtering the paper silver market, but they do so at their own peril as the inverse
reaction to their criminality is a RUN ON PHYSICAL precious metals in the United States and abroad.
In this MUST LISTEN interview with the SGTReport, The Wealth Watchman explains why you are 100% right
about silver. Despite the cartels vicious, criminal paper games, Silver & Gold demand has EXPLODED and
Western demand is back with a vengeance.
Judging by the past week of Silver Eagle sales from the US Mint the big players, the smartest guys in the room
were busy buying nearly 24 tonnes of silver from the U.S. Mint!

So the cartel can continue slaughtering the paper silver market, but they do so at their own peril as the inverse
reaction to their criminality is a RUN ON PHYSICAL precious metals in the United States and abroad.
In this MUST LISTEN interview with the SGTReport, The Wealth Watchman explains why you are 100% right
about silver. https://www.youtube.com/watch?v=4xiajkBuekU#t=260

PM Fund Manager Warns Another Banking Crisis May Be ImminentSomething Nasty is Going on Behind the Scenes (16/10/2014)
Something nasty is going on behind the scenes in the financial system that is not yet apparent.
Treasury futures opened in the early evening and the 10-yr traded down to 2.25%.
Something has the market incredibly spooked and I find it interesting that the U.S. Treasury Secretary and the UKs
equivalent will be running a big bank fail simulation test next week.
The movement in 10-yr Treasury yields AND the blatant smashing of the gold price since mid-July is exactly what occurred in
2008 before Lehman collapsed.
Is another TBTF mega bank on the brink of insolvency??
Yesterday I sent an email around to some colleagues in which I suggested that something nasty is going on behind the scenes in the
financial system that is not yet apparent. The bond market was closed yesterday but Treasury futures opened in the early
evening and the 10-yr traded down to 2.25%. This time last year the yield was 2.75%. Despite the jump in the SPX today, which
always happens on POMO Tuesday, the 10-yr is now down to 2.23%.
The improving economy/housing market does not hold up when the yield on the 10 yr is collapsing like this. This is not a shortsqueeze.
Something has the market incredibly spooked and I find it interesting that the U.S. Treasury Secretary and the UKs equivalent will be
running a big bank fail simulation test next week. The movement in 10-yr Treasury yields AND the blatant smashing of the gold price
since mid-July is exactly what occurred in 2008 before Lehman collapsed.
A friend of mine thinks it could be Citicorp whos in trouble right now. Interestingly, Jack Lew is a former Citicorp crook who was
inserted in the Treasury Secretary seat. Recall thatHenry Paulson former Goldman CEO was put in that seat ahead of
Goldman Sachs being bailed out in 2008. The parallels with 2008 going on right now are a bit spooky. But let the population
worry about an Islamic boogie man and a few cases of Ebola so they dont see whats really developing.
The hidden problem developing could well be this: Greek bond and stock prices plunge.
If Greece collapses, it will light the fuse that will trigger a bigger credit default swap counterparty derivatives explosion than occurred in
2008. Its no coincidence that the big banks just signed a new derivatives agreement that prevents any bank from unilaterally grabbing
collateral from a counterparty who defaults: LINK.
This agreement does not end the Too Big To Fail era like that article claims. This allows the Central Banks to determine which banks
get to fail and which banks get saved when the derivatives bombs start to detonate. This essentially legally ratifies the process that
determined the fate of Lehman and Bear Stearns and saved Goldman, JPM and Citicorp.
Nothing happens by coincidence in a system that is tightly controlled by a central organization. In this case, the Fed/ECB/U.S.
Government.

Stewart Thomson: Gold Surges While Stock Markets Implode


In late 2013, I predicted the Fed would taper all the way to zero in 2014, and suggested that taper would turn the Dow into a
wet noodle, while creating a rally in gold prices. Thats the opposite of what most analysts thought would happen in 2014,
and its exactly what has transpired.
The risk of a complete global stock market meltdown is growing now. The Feds number two man, Stan Fischer, has thrown
gas on the fire, by aggressively suggesting the Feds next move will be to raise interest rates.
Many investors are assuming the Fed can engineer another huge stock market rally with further easing.
Instead, what they could experience is something more akin to an economic ice age.
1. Its the dawn of another day, in the worst month of global stock market crash season. Long ago, I defined global stock
th
st
market crash season as the August 7 to October 31 timeframe.
th
2. Investors who fail to exit general equity market positions by August 7 each year take the reckless risk of watching most of
their holdings get completely destroyed.
3. Thats because historys greatest stock market crashes, including the 1929 wipeout, have occurred in the month of
October. Horrifically, many investors in the global gold community sold substantial amounts of gold stock at enormous losses
in 2013, and put the proceeds into global stock markets. My analysis shows that trend continued into August of this year.
4. In any asset class, the penalty paid for chasing price can be enormous. On that note, pleaseclick here now. Thats the
monthly chart of the Dow Jones Transportation Average.
5. The uptrend line is broken, and its become resistance rather than support. The 14,3,3 Stochastics oscillator, shown at the
bottom of the chart, is rolling over in an ominous fashion. If it declines under 80, a major crash could ensue.
6. Also, note the bearish change in my gold swingograms indicator. Ive circled it in red. Its been positive since 2012, and now
it is flashing a sizable sell signal. The trannies are in serious technical trouble, and they often function as a leading indicator
for the entire US economy.

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Please click here now. Thats a closer look at the trannies, using a daily chart. The August lows have now been penetrated, on
a closing basis. Sell-side volume is beginning to surge.
Americas industrial companies are also in trouble. Please click here now. Thats the daily chart of the Dow. The August lows
have also been penetrated, by yesterdays price action.
In late 2013, I predicted the Fed would taper all the way to zero in 2014, and suggested that taper would turn the Dow
into a wet noodle, while creating a rally in gold prices. Thats the opposite of what most analysts thought would
happen in 2014, and its exactly what has transpired.
The risk of a complete global stock market meltdown is growing now. The Feds number two man, Stan Fischer, has
thrown gas on the fire, by aggressively suggesting the Feds next move will be to raise interest rates. To view his latest
statements, please click here now.
In my professional opinion, the stock market has risen higher for the past 5 years on low volume, because US corporations
have borrowed money at low interest rates, and bought their own stock with that money. Higher rates will cook that golden
goose, like rice paper gets cooked in a blast furnace.
I think many investors are assuming the Fed can engineer another huge stock market rally with further easing.
Instead, what they could experience is something more akin to an economic ice age.
Please click here now. Thats the daily oil chart. As the caption says, the situation for the US oil industry could become truly
dire, as prices tumble. A hike in rates could push oil much lower. It could create a horrific implosion, of the only sector of the
American economy that has shown any real gains in wages.
The enormous debts carried by Western governments is making the Feds monetary easing tools ineffective. Unless
governments move aggressively (and quickly) to reduce their debts, the Fed may be quickly forced to discuss gold revaluation
with the US Treasury, and perhaps with other nations, including China.
While mainstream media focuses on the past rise in the US stock market, the reality is that gold-oriented China and India are
the only nations showing real economic growth, with low unemployment. This is a trend that I expect to continue not just for
years, but for decades.
Please click here now. This PDF document on the Shanghai Gold Exchange should be read thoroughly by all members of the
Western gold community. The Chinese government is clearly committed to increasing the amount of gold owned by Chinese
citizens, in a major way.
I own substantial amounts of stock in Chinese jewellers, and I also use them as leading indicators for gold prices. Thats
because jewellers are the closest link in the supply chain to the largest source of consumer demand for gold. I cover some of
these individual jewellers in my Graceland Juniors newsletter, and they look bullish.
Please click here now. Thats the daily gold chart. A week ago, I predicted gold would rally towards sell-side HSR at $1240,
and thats what happened. Its going to be a bit of a fit to surge towards $1270.
To understand why I think gold will trade at $1270, and higher, please click here now. Thats the weekly chart. Note the
incredibly bullish position of the price stoker (14,3,3 Stochastics) at the bottom of the chart.
The bullish technical position of gold is supported by great news about inflation in India this morning. To view that news,
please click here now.
The case to reduce interest rates in India is growing daily. Heres why thats important: Chinese citizens currently own about 5
grams of gold per person, compared with 25 grams per person in the West. The Chairman of the Shanghai Gold Exchange
has suggested that Chinese holdings, on a per capita basis, can rise to Western levels, and should be encouraged to do so.
I believe Indian citizen holdings can grow at about five times the already-impressive rate that Chinese holdings can grow
at, because Indians spend a substantially higher percentage of their income on gold than Chinese citizens do. A decline in
Indian interest rates can help boost economic growth, and hence boost gold demand enormously. The import duties are
meaningless now. No serious gold player in India cares about the duties, which means that no serious investor in the Western
gold community should care about them.
Junior gold stocks are the darling of the Western gold community, and I have some great news for all GDXJ enthusiasts.
Please click here now. Thats the daily GDXJ chart.
Note the beautiful buy signal generated yesterday by my gold swingograms indicator! I circled it in green. The last signal was
on the sell-side, in mid-July. My price stoker at the bottom of the chart has surged above the 20 line, also generating a buy
signal. The bottom line is that gold and silver are the ultimate assets, and now is the ultimate time to own the stocks that mine
them!

An Ebola Armageddon Could Trigger a Rebirth in Gold and Silver Prices


Could an infectious disease kill the monster that has been choking gold and silver prices for more than a year?
On the heels of a lively Sprott Precious Metals Roundtable discussion, The Gold Report caught up with investor Eric Sprott to
ask how a tragedy in Africa could impact the price of precious metals and mining stocks.
We also spoke to his Executive Vice President of Corporate Development John Ciampaglia about a new way to gain exposure
to gold.
The Gold Report:Deutsche Bank warned in a recent note that the Ebola virus could impact commodity markets, including gold and
cocoa, as it spreads to producing countries in West Africa, particularly Ghana and Mali. In a recent article titled Ebola, The Tipping
Point, you mourned the unnecessary loss of life and predicted 5% less global production next year than this year. Could a lack of
supply due to Ebola-related closures really cause the price of gold to rise?
Eric Sprott: There is already a shortage of gold and silver in the markets without a corresponding increase in the price. I wrote an
open letter to the World Gold Council questioning its data on China. If you believe the Shanghai Gold Exchange data, China consumes
more than 2,000 tons (2 Kt). In 2011, it consumed only about 1 Kt. In the last two years, China has bought an extra 1 Kt gold25% of
a 4 Kt market.
If any country came in and bought 25% of the oil market, the wheat market or the orange juice market, the commodity price would not
go down. Obviously, the physical gold market is not manifesting itself in the price changes. We also see that in silver. Last year, Indians
bought an extra 18% of the silver market, yet the silver price declined. Thats because the price is being run by someone who has
avoided the physicality of the market.
I hope the U.S. Mint will announce that it has to stop selling 2014 silver because the demand has picked up so much. Thats what I
expect the Mint to do if its running out of silver. It would be interesting if some of these futures players were to stand up and demand
delivery, because I dont think the Mint could deliver. Closing mines in Africa would just exacerbate the supply problem and cause
things to finally change dramatically to the upside in prices as people publicly acknowledge the fundamentals. Im really focusing on the
impact of Ebola on the demand side. The numbers suggest that Ebola will be difficult to contain.
The death rate is incredibly high and it is highly contagious. It has already spread to Spain and the U.S. Unfortunately, the powers that
be at the Centers for Disease Control (CDC) and the World Health Organization (WHO) have totally misunderstood and understated
whats going on. Four weeks ago the U.S. government magnanimously announced it will spend $22 million to build a 25-bed facility in
Liberia.
What would 25 beds possibly do in Liberia? Sierra Leone has already given up trying to treat people in hospitals. The country could
have 100,000 cases in just a few months. The CDC estimated that we could see between 550,000 and 1.4 million cases by Jan. 20 in
just those two countries. There arent enough hospitals or healthcare workers there to deal with those numbers.
TGR: You called the worlds response to the crisis nothing short of underwhelming. Do you think now that there have been cases in
the U.S. that the world health community will take it more seriously?
ES: Unfortunately, recent events have suggested that travel protocols, monitoring programs and hospital procedures are not working.
Its a mess of incompetence, and it goes back to central planners focusing on the economy and the stock markets and bond yields.
They forget about people and their response is wholly ineffective.
When Doctors Without Borders was screaming months ago that it needed more help, nothing happened. No one understood the simple
equation of numbers that if you let this thing go, youve lost control. We have certainly lost control in Sierra Leone and Liberia. The
Ebola virus doesnt know where the border is and the likelihood of it spreading to Ivory Coast and Ghana is very high. The jury is still
out on how the developed counties will do.
TGR: How will an explosion in the number of Ebola cases impact the global economy?
ES: Fear of travel and business disruption is definitely going to have an impact on a fragile economy already weakened by recessions
in Europe and Japan. An event like this could have serious negative repercussions because it changes peoples behaviors. If people
worried about the security of bank deposits start pulling their money out, they would logically want to shift to gold and silver.
All of a sudden, investors would come back into these markets and push the price up. No one is considering that. The natural
Armageddon of disease could cause a financial Armageddon and precious metals are the natural comfort play.
TGR: Do you think that the commodity markets have already baked that into the precious metals prices?
ES: No, they probably havent. Crisis-induced asset price weakness puts a terrible strain on the banking system and takes us back to
2008 when people realized they were better off putting money in gold and silver than propping up the banks. As a precious metals
investor, my biggest concern is what happened to the banking business during that crisis.

The Federal Reserve bailed out the banks, but never fixed the problem. The banks are still overleveraged and negative real interest
rates arent giving accountholders a reason to keep their money there. When people come to that realization en masse is when gold
and silver prices will return to where they should already be based on the fundamentals.
TGR: During your recent Sprott Precious Metals Roundtable, Chief Investment Strategist John Embry pointed out that the gold price
could go to $5,000 an ounce, but we would still see less gold coming out of the ground in the next five years because in the current low
gold price environment companies are depleting their mines through high grading and cutting back on exploration.
That means with or without a health crisis, gold mine supply will fall over the next five years, cutting supply and making existing mining
inventory more valuable. Sprott US Holdings CEO Rick Rule agreed that investors need to own the mining shares, but warned that not
all gold stocks are created equally. He pointed to the Sprott Gold Miners Exchange Traded Fund (SGDM:NYSE) as an example of a
basket of gold mining equities that are chosen based on qualitative company factors and not just market capitalization like most other
offerings. How are the companies chosen for that basket?
John Ciampaglia: Sprott Gold Miners ETF aims to track the Sprott Zacks Gold Miners Index, which is designed to identify large and
mid-sized companies with attractive investment merit. The Index selects 25 stocks from the investible universe whose historical stock
prices have high sensitivity to the price of gold.
The 25 companies are then ranked and weighted using two factorsrevenue growth and long-term debt to equity. Revenue growth
has been a strong indicator of production growth and the long-term success of a gold producer. The revenue growth screen is based
on quarterly revenue growth and measured on a year-over-year basis. Companies with the highest revenue growth scores are
rewarded with higher weighting in the Index, while slower growers are penalized.
A company like Randgold Resources Ltd. (GOLD:NASDAQ; RRS:LSE), which had revenue growth of 41% in Q2/14 compared to
the same quarter in 2013, is currently being rewarded in the Index. The Index also uses long-term debt to equity as a factor because
companies with higher debt levels tend to have weaker balance sheets, and interest payments erode profitability. A high level of debt
can also make a company more vulnerable in a downturn. For this reason, a company like Barrick Gold Corp. (ABX:NYSE), which has
a high debt ratio, is currently underrepresented in the Index.
Conversely, a company like Franco-Nevada Corp. (FNV:TSX; FNV:NYSE) is currently overweighted because it has zero debt. The
process is dynamic, which means that every quarter the Index rebalances its holdings to incorporate the latest company results into its
screening process. This ensures that companies with the highest factor scores are represented in the Index on a quarterly basis.
TGR: The Sprott Gold Miners ETF currently holds a mixture of company types at various stages of development. It includes royalty
companies like Silver Wheaton Corp. (SLW:TSX; SLW:NYSE), large caps like Goldcorp Inc. (G:TSX; GG:NYSE), along with
intermediate producers like Primero Mining Corp. (PPP:NYSE; P:TSX) and New Gold Inc. (NGD:TSX; NGD:NYSE.MKT). Then you
have the near-term producers like NOVAGOLD (NG:TSX; NG:NYSE.MKT).
What role does each of those company types play in the Index?
ES: You obviously want a cross-section. In this environment, the royalty companies seem to have done the best. They essentially have
almost zero cost. All they have is revenue. Now, the revenue goes down because the price of gold and silver goes down, but youre not
going to go broke. However people invest in precious metals I would like to stress what I said in the roundtable: People need to stay
the course. I think the returns can be very large if what should happen is allowed to happen in the physical market. I think it will happen
very shortly.
TGR: Thank you for your time, Eric and John.

Eric Sprott has more than 40 years of experience in the investment industry. In 1981, he founded Sprott Securities (now called
Cormark Securities Inc.), which today is one of Canadas largest independently owned securities firms. After establishing Sprott Asset
Management Inc. in December 2001 as a separate entity, Sprott divested his entire ownership of Sprott Securities to its employees.
Sprotts predictions on the state of the North American financial markets have been captured throughout the last several years in an
investment strategy article that he authors titled Markets At A Glance. Sprott has been widely recognized for his strategic insights and
his accurate market predictions over the years.
John Ciampaglia joined Sprott in April 2010 as chief operating officer. Ciampaglia has 18 years of experience in the investment
industry. Previously, he was a senior executive at Invesco Trimark; Ciampaglia was an active member of the firms Executive
Committee and held the position of senior vice president, product development. Prior to joining Invesco Trimark, Ciampaglia spent
more than four years at TD Asset Management, where he held progressively senior product management and research roles. He
earned a Bachelor of Arts in economics from York University, holds the Chartered Financial Analyst designation and is a Fellow of the
Canadian Securities Institute. Want to read more Gold Report interviews like this?

How Much Gold Is On Loan Worldwide?


We cant speak about the manipulation of the gold price today without understanding the derivatives market.
These products have never been tested in the real world and especially in adverse conditions as a major crash.
I have concluded that the next financial crisis will have derivatives at its core.
The 2008 crisis confirmed it to some extent. The next crisis will be much worse and it will also have derivatives at its core.
In the gold market derivatives are presently dictating to the physical market what the price should be whereas by definition,
as derivatives, they should be derived from prices set in the physical market.
By Dan Popescu, SRSRocco Report:
We cant speak about the manipulation of the gold price today without understanding the derivatives market.
Right after the crash of 2000 in the stock market I became alarmed by the exponential increase of derivative products but especially by
the complexity of those products. I am sure that if I asked one of those financial engineers who has designed those products to explain
their functioning and consequences in a bear market or, better yet, in a crash, he would be incapable.
We are familiar with derivatives in real life through cars. When we speak of the speed of a car we talk of a first derivative, while
acceleration, an increase of the speed, is a second derivative. But in finance we have gone well belong that to third, fourth and
even higher derivatives.
Those products have never been tested in the real world and especially in adverse conditions as a major crash. I concluded then that
the next financial crisis will have derivatives at its core. The 2008 crisis confirmed it to some extent.The next crisis will be much
worse and it will also have derivatives at its core. In the gold market derivatives are presently dictating to the physical market
what the price should be whereas by definition, as derivatives, they should be derived from prices set in the physical market.
The two diagrams bellow show an approximation of the size of the derivatives market supported by the real market but not its
increased complexity and opacity.

In a recent and excellent book on gold price manipulation, The Gold Cartel, Dimitri Speck explains how central banks and bullion banks
are manipulating the price of gold with derivative products in a very opaque way. Central bank accounting for gold is rather peculiar:
gold receivables and bullion still in their vaults are treated as a single line item in their balance sheets. This makes it almost impossible
for outsiders to ascertain how much of their gold is actually on loan. Central banks use inter alia the alleged need to protect the trade
secrets of their business partners as an excuse to avoid publishing the data. Dimitri Speck describes how, through a carry trade, gold is
loaned by the central banks and the proceeds invested in higher-yielding instruments in order to profit from the interest rate spread.
The borrowed gold must be first sold in order for the proceeds to be invested in fixed income instruments. Dimitri Speck says that, The
gold carry trade is, thus, a special type of business, the only important one of its kind, where there is an exclusive interest in falling
prices [of gold]. There exist barely any authoritative reports on gold carry trades. But there are dangers in a major financial crisis, as
we have witnessed in 1990 with the collapse of Drexel Burnham Lambert. When the investment bank went bankrupt it was unable to

fulfil its gold obligations to the central bank of Portugal. This is how Portugal lost the gold it had previously lent to Drexel without
collateral.
Dimitri Speck quotes also Alan Greenspan who in 1998 said Nor can private counterparties restrict supplies of gold, another
commodity whose derivatives are often traded over-the-counter, where central banks stand ready to lease gold in increasing quantities
should price rise. By saying this he spells out clearly that the central banks are lending out gold in order to keep the price from rising.
Nick Laird (Sharelynx.com), has prepared some very interesting charts on the gold derivatives market. In chart #1 we have the ratio of
total (all the gold ever mined) gold pool versus gold derivatives in tonnes which, as of March 2014, stood at 66:1 and, in chart #2, he
shows us the potential (central bank plus investment) gold pool versus total gold derivatives in tonnes, which was, as of March 2014, of
32:1.
The ratios have increased substantially since the beginning of the gold bull market from 10 to 66, for the total gold pool, and 5 to 32 for
the potential gold pool, showing a decrease in gold derivatives as price increased.
Dimitri Speck, in his book, The Gold Cartel, assumes that, as of 2001, there were about 7,000 to 8,000 tonnes of gold on loan and that
since then this amount has decreased. Therefore, he concludes that less gold has been put on the market in order to lower the price
than hitherto assumed (charts #3 and #4).However, he adds that since gold is an investment asset, in order to manipulate the gold
price, there exists a mechanism to influence the spot price through the futures market that in contrast to the situation in consumable
commodities that can exert a permanent effect on the decisions of investors by influencing the investment decision process.
Ultimately, it is expectations about prices that are being influenced.
Some commentators have said that as much as 100 times as much paper or digital gold is bought on commodities exchanges such as
COMEX, as there is traded in actual delivery of physical gold. What this means is that if all parties asked for delivery it would be
impossible for the warehouses and the short players to actually meet their obligations, and someone would be left standing out. Some
futures traders refute this argument by saying that COMEX only delivered a minute fraction of physical gold represented by this
exorbitant short position because no institution asked for substantial physical delivery of their long contracts. While it is true that less
than 1% of most commodity futures contracts are ever settled by physical delivery, in a financial panic this can change drastically and
fast. Those who today argue they understand the game and will not ask for delivery will, in my view, be the first in line with several
lawyers tryingto salvage as much as they can, ignoring what they have preached for years. This is human nature and we have seen it
play out several times when a catastrophe actually happens.
Those who have lived through the collapse of the Bretton Woods agreements and the run on the US gold reserves by world central
banks know how fast things can degenerate in a crisis and the snowball effect that it creates. I highly recommend you read Dimitri
Specks book, The Gold Cartel, to better understand the manipulation of golds price by central banks and bullion banks through gold
loans and futures markets.

The 252 Year Stock Market Blackjack 21 Recession/Depression CYCLE!


US Stock Market is headed down, & both Gold and Silver are headed MUCH higher and soon!
Will a Recessionary/Depression CRASH into 2016 occur to complete the game of Blackjack 21?
Submitted by Bo Polny:
This past week at Cambridge House International Silver Summit inSpokane, Washington I had the privilege of meeting and
speaking with both Robert Moriarty of www.321gold.com and David Morgan of www.Silver-Investor.com. During and after out speaking
presentations one thing was extremely obvious; regardless of how we personally came to our own conclusions about the US Stock
Market, Gold and Silver we all in the end came to the EXACT same conclusions.
Mr. Moriarty described it like this, if traveling from Los Angeles to Dallas there are hundreds of ways to get there but in the end we all
still end up in Dallas. It does not matter how we get there, it is that we all came to the same place/conclusion. What were the
conclusions? Very simple US Stock Market is headed down, & both Gold and Silver are headed MUCH higher and soon!
The 252 Year Stock Market Blackjack 21 Recession/Depression CYCLE!
Here is a part of my slide presentation on the US Stock Market and how is relates to Blackjack 21 going back 252 years!

The first Recession starting with The Currency Act of 1764

Were there other Recessions/Depressions other than those referenced above? Absolutely, but more that 90% all occurred within a
multiple of 7 years before or after any one of the dates above. However, there was ONE point in the 21-year cycle that the US Stock
Market had NO Recession or Depression and that was 1995. In exactly the beginning of January 1995 the Recession/Depression
cycle INVERTED and gave an Inflationary Rise to begin the FINAL 3 Cycles of 7 (21-years) for the US Stock Market into 2016, see
below. Each cycle of 7 years has a fixed 63 month (21 x 3 = 63) rise to mark a top! All 3 cycles of 63 months are now complete all
that remains is a Recessionary/Depression CRASH into 2016 to complete Blackjack 21!

Will a Recessionary/Depression CRASH into 2016 occur to complete the game of Blackjack 21? Remember this, the 21-year
Blackjack cycle has not failed in over 250 years and there is a quote from the bible one should never forget What has been will be
again, what has been done will be done again; there is nothing new under the sun.

What about Gold and Silver?


I leave you with this
W.D. Ganns Greatest Trade

The most money is made when fast moves and extreme fluctuations occur at the END of major cycles. A 3-year major corrective
Bear Cycle has just come to an END. So according to Gann the most money made is about to be made! With regards to my Price
Targets above.Never say never!

Heres what the financial system will look like in the future
In the Pharaohs day, gold was money.
Today, it might be even more important than ever.
As advanced as our modern civilization may be, weve been playing with fire for more than a century. Every single
experiment with unbacked paper money throughout history failed.
And though todays economists like to think that this time is different, our own experiment with paper money will share the
same fate.
Thousands of years ago whenever the Pharaohs of Ancient Egypt passed away, they were buried with all of their gold in a specially
constructed tomb.
The idea was to ward off thieves with booby traps and other perils so that these perceived demigods could enjoy their riches for
eternity.
It worked. In the case of Tutankhamen, his gold was untouched by both thieves and desperate government tax collectors for thousands
of years.
In the Pharaohs day, gold was money. Today, it might be even more important than ever.
As advanced as our modern civilization may be, weve been playing with fire for more than a century. Every single experiment with
unbacked paper money throughout history failed.
And though todays economists like to think that this time is different, our own experiment with paper money will share the same fate.
Its already moving in that direction. The bubble in fiat currency is now so large that it has simultaneously created all-time highs in
nearly every major financial asset class, particularly stocks and bonds.
Bear in mind that these are not tangible assets, but rather paper assetsnothing more than claims on promises made by others
(stockbrokerages, politicians, etc.)
So in other words, the explosion in the supply of paper money has created dangerous bubbles in paper assets. Funny how that works.
And at this point there are no good options remaining to gracefully end the experiment.
Any direction that central bankers go risks inflation, deflation, hyperinflation, or the collapse of financial markets.
If they print, they create inflation. If they dont print they get deflation.
If they print too much they get hyperinflation. And if they so much as utter the wrong word then financial markets go into a panic.
The situation has become so bizarre that were now seeing negative interest rates across Europe.
Central bankers are conspicuously trying to whip up confidence in their poorly capitalized banking systems.
And wealthy emerging markets are moving to build their own financial infrastructure that no longer depends on the West.
This is clearly a system on the slide. And its not the first time this has happened.
Throughout history there have always been major shifts in the global financial system.
Reserve currencies change. The way people engage in commerce changes. The rules of the game change.
This time is no different. And were currently experiencing the early stages of yet another historic shift.
No one can say for certain what the next iteration of the financial system will look like. But there are a few things we can say for sureToday, the US dollar, US government, and US central bank form the cornerstones of the global financial system.
But that game is quickly drawing to a close.
The rest of the world is sick and tired of the US arrogantly dictating rules for everyone else to follow.
Theyre sick and tired of the US going deeply into debt and pawning its bonds off to everyone else as risk free.
So its a safe bet that in the future, US paper money and debt is not going to be anywhere near as important as they are today.
Well also likely see a new system where banks are far less relevant.
All the technology and all of the resources already exist today to effectively eliminate the need for banks.
Decentralized crypto-currencies and transaction platforms already exist. You no longer need to hold your cash at a bank when you can
simply store it in the blockchain.
(This may sound esoteric, but consider that most currency is already stored in digital form. Your bank balance doesnt really exist
except in the digital world.)
You no longer need to apply for a home mortgage or bank loan when entire networks of peer-to-peer lending platforms exist.
For every function that a bank serves, there is technology today that does it better, faster, and cheaper.
Its time for these financial dinosaurs to hit the historical dustbin.
Again, this is a normal trend of history. The horse and buggy went away a long time ago due to changes in technology. So will fiat
currency and conventional banking.
Nothing is going to change immediately. But as Hemingway said, this trend will unfold gradually, then suddenly.
So it does make sense for now to consider your options now, particularly real assets like productive land, operating businesses, and
yes, gold.

A Signal of Coming Collapse


The Bank of Japan plans to buy 8 to 12 trillion per month. The government is selling 10 trillion per month in new bonds.
This is an astonishing development.
The Bank of Japan will buy 100 percent of the new government bond issuance.
When the central bank is buying all of the bonds issued by the government, this is a major sign of imminent collapse.
Collapse happens when it hits zero, if not earlier.
Submitted by Keith Weiner, Monetary Metals:

I proposed seven drivers of financial implosion in my dissertation. My recent writing has focused on two of them. One is the falling rate
of interest on the 10-year government bond. As interest falls, the burden of debt rises. Since the falling rate incentivized more and more
people to borrow, the number of indebted people, businesses, corporations, and of course governments is large. When the rate gets
to zero, the burden of debt becomes theoretically infinite.
In the US, the downward trend is still in a deceptively mild phase (though there was a vicious spike down on Oct 15 to 1.87%).
The rate on the 10-year Treasury is 2.3% today. In Germany, it is down to 0.82% and in Japan the metastatic cancer is much
closer to causing multiple organ failures, with a yield of just 0.46%.
Two is gold backwardation, which has also been quiescent of late. Although it is worth noting that with these lower gold prices,
temporary backwardation has returned. The December gold cobasis is over +0.2%).
I havent written much about a third indicator yet. What proportion of government bond issuance does the central bank have to buy? I
theorized that when the central bank is buying all of the bonds issued by the government, that this is another sign of imminent collapse.
I phrased it, as with the other indicators, as a value that is falling. Collapse happens when it hits zero, if not earlier. Here is what I
wrote:
the average amount of new Treasury bond issuance minus new central bank Treasury bonds falling towards zero (i.e. the central bank
is buying a greater and greater proportion of Treasury bonds issued).
Bloomberg recently published an article about the Bank of Japans announcement of a new bond-buying program. Bloomberg presents
two facts. One, the Bank plans to buy 8 to 12 trillion per month. Two, the government is selling 10 trillion per month in new bonds.
This is an astonishing development.
The Bank of Japan will buy 100 percent of the new government bond issuance.
Popular theory holds that a currencys value falls as the quantity issued rises. In this view, the yen falls as the yen supply increases.
While admittedly not scientific, here are graphs of the Japanese yen supply and the price of the yen in dollars from 1970 through
present.

The yen has been falling since 2012, but not because of its quantity. It has been falling because the market is questioning its quality.
One way to do this is to borrow yen, trade the yen for another currency, and buy an asset in that currency. This carry trade is
equivalent to shorting the yen. So long as the yen is falling, and the interest rate on the bond in the other currency is higher than the
interest rate paid to borrow the yen, this is a good trade.
What happens as the yen falls faster? Contrary to populist economics, its not good for Japanese businesses. However, it is a free
transfer of wealth to those engaged in the carry trade. They can repay the borrowed yen at a cheaper and cheaper cost. When the yen
goes to zero (which may take a while to play out), their debt is wiped out.
Thats what a currency collapse is. Its a total wipeout of debt denominated in that currency. Since the currency itself is just a slice of
debt, the currency itself loses all value. While on the surface it may seem good for debtors, its a horrific catastrophe. No one who
understands the human toll, the cost in terms of the lives wrecked (and lost) would look forward to this with anything but dread.
The objective of my writing is to try to prevent it from happening. We need a graceful transition to gold, not an abrupt collapse like
476AD. It may be too late for the hapless Japanese. I hope its not too late for the rest of the civilized world.

The Collapse Of U.S. Silver Stocks As Public Debt Skyrockets


Steve St. Angelo, SRSrocco Report
Monday, September 15th
The U.S. Empire is in real trouble. This is due to its idiotic business model of selling quality assets while acquiring
massive liabilities and debts. Of course, the U.S. Government realizes this is not a sustainable way to do business, but
at least for now.... we continue to have our Bread & Circuses, McDonalds & NFL Football for a bit longer.
Furthermore, Americans have no clue that the role of the U.S. Dollar as the world's reserve currency continues to
disintegrate each passing day as more countries elect to by-pass the Dollar and trade in other currencies... especially
the Chinese Yuan.
The Total Liquidation of U.S. Silver Stocks
One such asset the U.S. Government totally liquidated is its massive stocks of silver. In 1940, the U.S.
Treasury held 3,135,000,000 oz of silver. That's correct, 3.1 billion ounces. That is nearly four times the current
annual world mine supply of 820 million oz.
This figure is documented on page 64 in the USGS 1940 Gold-Silver Minerals Yearbook:

You will also notice that the U.S. held nearly $22 billion of the total $30.5 billion in world gold reserves. This was an
amazing 72% (approximately 20,000 metric tons) of total world gold reserves.
Currently, the United States supposedly has 8,000 metric tons of gold in reserve. Unfortunately, we have no way of
knowing how much gold is really there and if so, how many claims are on each ounce. Some analysts such as Harvey
Organ, believe the U.S. gold vaults are totally empty.
While it's nearly impossible to know how much public gold remains in the vaults of the U.S. Government, we have a
pretty good idea of its silver inventories.
This next chart shows the massive decline in U.S. silver stocks from 1940 to present. As you can see, silver stocks at
the U.S. Treasury declined from 3.1 billion ounces in 1940 to 7 million ounces currently. This is a staggering 99.99%
decline.

Now, if we look at the Red line on the chart, we can see the huge increase in U.S. debt. According to
the TreasryDirect.gov August release, the U.S. debt increased to $17.7 trillion. Compare that to the paltry $43 billion
of U.S. debt in 1940.

Interestingly, if we took the $43 billion (1940 U.S. debt) and divided it by 17.7 trillion (present U.S. debt), it would
equal 0.24% or a stunning -99.76% difference. Thus we have the following:
Change from 1940 to 2014
U.S. Silver Stocks = -99.99%
U.S. Debt Ratio = 00.24% or -99.75%
Looking at in a different way, the U.S. Treasury had $14 of debt on its balance sheet for each ounce of its silver
holdings in 1940, compared to $2.5 million of debt per ounce of silver currently. We can only guess if the U.S.
Treasury holds the 7 million ounces it shows on its books as it hasn't updated that figure since 2000. (figures come
from About.Ag)
U.S. Silver Production Falls More Than 50% Since 1940
Not only did silver stocks at the U.S. Treasury decline substantially over the past 70+ years, so did its domestic mine
supply. The United States was one of the largest silver producers in the world in 1940.

In 1940, the U.S. ranked second in the world by producing 69.5 million ounces of silver, while Mexico came in first at
82.6 million oz. Those were the good ole days when the United States manufactured and consumed the majority of its
own goods.
Today, we see a much different story. The United States is no longer a major producer of silver. In 2013, Mexico
remained the number one silver producer in the world at 170 million oz, while the U.S. fell to the ninth spot at 33.7
million oz. While Mexico more than doubled its silver production from 1940 to 2013, the U.S. did the opposite,
suffering a 51% decline.
Why should the United States produce silver when Mexico and South American countries can do the hard work while
the U.S. Federal Reserve can print all the Dollars it needs? Come on, this is no-brainer.
The Dow Jones-Silver Ratio
As the Fed and U.S. Treasury work hand in hand to prop up the Stock and Bond markets, the paper prices of gold and
silver are manipulated lower. This can be seen by the change in the Dow Jones to silver ratio from 1940 to present.

According to historical data taken from Stockcharts.com, I estimated the Dow Jones averaged 140 in 1940, while the
market price of silver was $0.35 an ounce (Kitco.com). Thus, the Dow Jones-Silver Ratio was 400/1, compared to the
lofty 912/1 presently.
If we apply the same Dow Jones-Silver Ratio of 400/1 in 1940 to the price of silver today, it would equal
$42.43. Of course, the current price of silver is $18.61 due to the Fed and member banks siphoning its monetary
liquidity in the U.S. Dollar-Bond-Stock Ponzi scheme and away from real assets such as gold and silver.
You see, this is a strange irony, because this wasn't always the case. If you look at the table above you will see the
U.S. Govt. silver price of $0.71 in 1940. Even though the world market price of silver was $0.35, the U.S. Congress
approved on July 6th, 1939 the purchase of domestic silver mine supply at $0.71 an ounce.

So, back in 1940 when gold and silver were money, the U.S. Govt. stepped in and INCREASED their value
to maintain the monetary system. Here we can see, that Congress approved for the U.S. Treasury to purchase
silver from its domestic mine supply at twice the market rate ($0.35 to $0.71).
What a difference today aye? First of all, Congress (except for a few like Ron Paul) today has no clue what money is.
Secondly, the Fed and member banks are SUPPRESSING the price of gold and silver to maintain the last vestiges of
the sinking U.S.S. Dollar
Matter-a-fact, two-thirds of the primary silver miners in my group stated losses during Q2 2014. Again, who gives a
RAT's AZZ about the silver miners when you have the world's largest printing press?
Getting back to the Dow Jones-Silver Ratio, if we took the U.S. Govt. controlled price of silver in 1940 at $0.71, the
Dow Jones-Silver Ratio would be 197/1.Taking that ratio and applying it to the current price of silver, it would
equal $86.15 today. Which means, if the world was a better place and we had the Fed and Treasury on the side of
REAL MONEY, the price of silver would be closer to the crazy $100 figure that most of the Silver Bears state as
"INSANE."
Unfortunately, this isn't the case as the U.S. Government liquidated 99.99% of its silver inventories and the majority
of its gold reserves. In return for pawning off the greatest hoard of Gold & Silver on the planet, the Fed now
holds $4.4 trillion of worthless crap on its balance sheet, $2.4 trillion in U.S.Treasures Miseries and $1.7
trillion in MBS, Mortgaged Lacking Securities.(figures from federalreserve.gov August 2014 Report)
Then of course we have the $17.7 trillion in the "Official" stated debt of the United States. This doesn't include all the
social welfare programs and all the off-balance sheet garbage.
I am simply amazed at the lack of character and insight of the walking dead analysts on Wall Street. This is also true
for the BOZO's who think they are providing a service by commenting on precious metal blogs about the merits of
owning U.S. Dollars and highly inflated stocks-bonds.
While it's true that the gold and silver market have taken a lot of punishment over the past several years, there's a
good reason China, India and Russia continue to add to their gold hoards.
The day will come when an AVALANCHE of countries getting out of the Dollar will finally destroy its
value. Unfortunately, the majority of Americans holding on to paper assets will be the last to know when this occurs,
while precious metal investors saw it coming..... much later than they anticipated.

COPPER vs SILVER MANIPULATION: The Tale Of Two Metals


Steve St. Angelo, SRSrocco Report Monday, September 22nd
While its true that the entire financial system is rigged today, some markets are manipulated more than others. This
is certainly true for the precious metals particularly SILVER. This metal is the whipping boy of the Fed and Cartel
Bullion Banks. Most would believe its impossible to manipulation a metal for decades it isnt.
Especially, when the overwhelming majority of the publics funds have been funneled away from commodities or
physical assets and siphoned into the biggest Ponzi Scheme in history. You see, the manipulation isnt just
HAMMERING the paper price of silver during the slimmest trading periods of the day thats just a small part of i.
The largest area of manipulation is in the WHOLESALE PACKAGING OF LIES* by the Fed, Cartel Banks
and MSM stating that paper assets such as 401ks, Retirement-Insurance Funds, Stocks, U.S. Treasuries are
wealth, when in fact they are huge liabilities. (* term coined by James Howard Kunstler).
If the public realized they had invested in the biggest ponzi scheme in history, there would be a stampede out of
paper assets and into anything tangible. This would create a SHOCK-WAVE around the world as fiat currencies would
implode and the value of commodities and physical assets would skyrocket.
Getting back to the metals, if we look at the two charts below, we can see just how much more of a beating silver has
taken compared to copper:

Copper hit a peak of around $3.90 in March 2012. After all the QE3 was siphoned into the Stock & Bond Markets via
the Feds most favorite Banks, copper was hit hard as it declined 22% to a low of $3.04 today.
Poor Copper. Well, if you think copper was hit hard, lets look at silver. Silver went from an average high of
$35.50 in March 2012 to a staggering low of $17.50 today.
A whopping 51% DECLINE.
If you thought the primary miners were losing money at $19-$20 how bad is the hemorrhaging at $17?
As you can imagine, I get a handful of readers who send me emails stating that Silver is a garbage metal and its only
worth $10 bucks because that is the average CASH COST of the primary silver miners. If I had a Silver Dollar for
every time I came across that nonsense. I could retire.
The world has been BAMBOOZLED to believe in a FAIRY TALE, a DELUSION, and a PONZI SCHEME that will
all end badly. The real value is in assets that hold wealth. Paper assets today are mostly future liabilities.
For the price of silver to fall 51% compared to coppers 22% SOMETHING FISHY THIS WAY BLOWS.
Why? Because silver suffered a 103 million oz structural deficit last year, while Copper still had plenty of warehouse
stocks in reserve. The world continues to consumes its remaining cheap above ground silver stocks as if there was no
tomorrow.
At some point, the LIGHT will go off and the world will wake up to the fact that GOLD & SILVER are stores of value
and not stupid pieces of metal regurgitated by the NITWITS on the financial media.
Unfortunately, there wont be much silver to go around at this point. and there LIES THE RUB.

An open letter to the mining industry


Below is a letter I plan to send to each producing mining company and precious metals mutual fund that I own
personally. Gold and silver prices have been diluted by paper contracts to the point where no money can be made
producing gold and an industry loss producing silver. Years ago, Rob McEwen of Goldcorp decided to withhold the
sale of gold production to be held in their treasury until prices were higher. THIS is exactly what needs to be done
now as a counterbalance to the unbacked paper contracts being sold to depress prices. The COMEX and naked shorts
need to be starved for metal, the strong demand is doing this slowly while the mining industry could do this very
quickly.
Please, copy and paste the below and sign with your name to any producing mining companies you have
investments in. Also, do the same for any gold mutual funds you may own and ask the money manager to contact
their holdings with this same letter. Government has an incentive to keep metals prices down and the lapdog
regulators are allowing it to happen. Price manipulation is illegal, if the authorities will not fix it, hopefully the
industry itself has sense enough to finally do something!
Regards,
Bill Holter
-------------------------------------------------------------------------------------------Dear Sirs, I am a believer in hard money and an investor in both the metals themselves and various mining shares,
your company being one of them. As you well know, hard times have hit the producers of both gold and silver. Gold
and silver prices have been forced down, capital, either debt or equity is very scarce for our industry and share prices
are back to the levels they traded at when gold was under $400 more than 10 years ago.
Much evidence has been uncovered by GATA (Gold Anti Trust Action committee) over the last 15 years showing how
gold and silver prices have been suppressed and continually manipulated yet we've heard not a sound from the
industry itself. Many mining concerns pay dues each year to the World Gold Council which at the very best seems to
be an antagonist to gold and silver. I know of no other industry which does not promote their own product nor
protect it from outside and malicious pricing practices, this needs to change and the most logical catalyst is from
within the mining industry itself.
The industry as a whole is mining gold at best at a breakeven and silver at a very substantial loss. It makes no
sense at all to expend labor and capital to lose money, especially when your product is a finite resource and will not
ever replenish. If working harder and digging more ore was an answer then I would be cheerleading the machines,
the fact is, the more that gets dug up in the current environment the more money is lost and precious ore wasted.
The facts are well documented that global demand is and has outstripped supply of gold and silver for many years
...yet the prices are dropping. Your "product" is being diluted by paper sales of "representative metal" while the
board of directors do nothing at all. Actually, the mining industry itself is aiding the suppression scheme by delivering
metal. Years ago Rob McEwen of Goldcorp withheld production from the market and held gold in their treasury for
use at a later date and higher price. Why doesn't the industry as a whole collectively do this? Yes I know, fixed
expenses must be paid but if mining ore is done at breakeven or a loss, why not stop mining ore? Or at least only
bring to market what is necessary to fund operations.
Either discontinuing operations or withholding metal from the market on an industry wide scale will break the backs
of the speculators for lack of deliverable metal. This needs to be done industry wide but can only start one company
at a time, why not our company? Why do we deplete our ore and not receive fair value for our capital and labor?
Paper gold and silver contracts without any product behind them are "pricing" our product, the government is happy
with this as it allows them to print freely and have lower interest rates than otherwise would be available. The
regulators have turned a blind eye, we have only ourselves to rely on and collectively depend on.
Whether this proposed action is taken or not remains to be seen. Shortages of metal will occur sooner or later as
physical demand and backwardation will eventually take the metals higher in price by multiples. Many companies will
not be in existence within a couple of years unless those with the fiduciary responsibility to protect our companies and
investments ...also protect our product from fraudulent dilution. It is time to stand up and be counted now, later may
be too late and will carry liability with it.
Best regards, _________ .

Just $50 Million of Silver Left, Thats It?


OK, Ill go on the record. I believe it has commenced also known as the big one, Global Meltdown III, or the
END GAME, take your pick. Not that it necessarily means the world will implode tomorrow; but soon
perhaps, verysoon. Yes, TPTB will do everything in their power to defer this inevitability by utilizing whatever
bazookas remain in their arsenal of money printing, market manipulation and propaganda. Of course, it is our

strong view that the propaganda leg of this tripod is broken; as frankly, its difficult to believeanyone truly believes
any part of the world is or will shortly be recovering.
As we wrote yesterday before the market plunged we believe 2008 Is Back With One Temporary Exception.
That exception is PPT/Fed/ESF control over financial markets, which is decidedly waning as well; objectively, on the
verge of being overrun in numerous segments. Global equities are plunging; and as PPT operatives can only control
major indices, the vast majority of non-index included stocks are doing far worse. In the U.S., key indices
like homebuildersare breaking down badly, whilst trading volume has surged and the trend toward speculating on
risky companies has decidedly reversed. After a quarter century of observing markets, I know ugly warning signs
when I see them, manipulation or not; and this is what they look like.
As the calendar turned from the low volume, highly manipulatable summer to the angst-ridden Fall, collapsing
economies from West to East, and a simultaneous commodity crash have catalyzed fear-driven flight to the
liquidity of the dollar and Treasury bonds despite their utter worthlessness. Thus, our May 2014 prediction of the
most damning proof yet of QE failure i.e., plunging rates despite a so-called recovery was soundly validated.
As was our January 2013 view that the final currency war was underway, yielding intense Central bank competition
to debase currencies. The resulting, wildly volatile currency movements are exactly what we described in last
months single most bullish precious metals factor imaginable; and as we espy the ramifications of this scorched
earth monetary policy including widespread global social unrest; it becomes clearer each day that the end game is
not only inevitable but perhaps, imminent.
Today is yet another Cartel key attack event, in this afternoons FOMC minutes publication. Consequently, the
Fed desperately attempted another New Hail Mary Trade, by goosing Treasury yields in the mornings wee hours.
However, it has already reversed, and as I write at 11:00 AM EST, the 10-year yield sits at 2.34%, just three basis
points from late Augusts 52-week low of 2.31% when the Fed painted the tape by goosing yields ahead of the
September 18th FOMC meeting. And thus, as the PPT, Fed, Cartel, MSM and every other manipulation organization
prepares to spin last months FOMC meeting in which, absolutely Nothing! incrementally hawkish was said as
bullish for stocks and bonds and bearish for PMs, not only are U.S. Treasury yields near all-time lows but those of
the entire world. Yeah, the market will believe the Fed intends to raise rates amidst an abysmal global economy,
plunging stock markets and a financial system poisoned with a cancerous, irreversible debt addiction. To that end,
Yahoo! Finances top story this morning is FOMC minutes loom large for markets.

Which brings me to todays very important topic of the pink elephant in the room we have long discussed. Which
is the futures exchanges and ETFs set global gold and silver prices particularly Western ones like the COMEX and
LBMA, given that Easterners buy the vast majority of the worlds physicalmetal. And more importantly, how
can anyone believe such exchanges are legitimate when so little metal is purported to back them? And particularly so
for the financial worlds Achilles Heel, silver; where no more than a two billion ounces exist above ground the
large majority of which are in vaults like Miles Franklins at Brinks Montreal, never to see the light of day.
For example, the COMEX, where naked shorting algorithms yield trade volume at least 100x greater than the amount
of metal supposedly settled; a measly 66 million ounces of silver, worth just $1.1 billion, is the entirety of the
registered inventory available for purchase. There are 1,500 billionaires on the planet and hundreds of thousands of
wealthy institutions capable of taking out this miniscule amount. And yet, it never seems to get bought. Heck, in
April 2011, when the industry essentially sold out as silver prices soared toward $50/oz. prompting the Cartel to
execute the infamous Sunday Night Paper Silver Massacre were to believe the measly 26 million ounces of
purported COMEX inventory wasnt taken out? Yeah right!
Next, we have the London OTC markets which, as I learned on David Morgans Masterminds call last week have a
comical lack of transparency regarding the amount of metal actually delivered. According to David, who will be
participating in Miles Franklins Silver All Star Panel Webinar next Thursday, there is essentially zero data regarding
London OTC inventories. And thus, in the city where the gold fix was recently dismantled due to rampant
manipulation in the words of the President of Germanys BaFin, the equivalent of the U.S. SEC and CFTC, worse
than LIBOR were told to take the word of the worlds leading financial criminals that metal exists. Then, of
course, we have the SLV ETF administered by none other than the worlds largest paper silver short, JP Morgan. Its
inventory has never been and never will be audited, but were to believe it somehow amassed 350 million ounces
of silver, nearly 20% of the aforementioned incredibly illiquid global supply in just eight years time. And better yet,

in doing so, the price only increased from $11/oz. to $17/oz., when the cost of production is closer to $25/oz.? Yeah,
if you say so.
But most damning of all is the paltry $50 million of silver inventory supporting the worlds largest silver delivery
mechanism, the Shanghai Futures Exchange. Actually that number was as low as $40 million last week, when a scant
80 tonnes of inventory were available for purchase compared to a slightly higher 95 tonnes today.

SRSRocco Report
According to SFE data, nearly 1,000 tonnes have been withdrawn since April 2013s alternative currencies
destruction paper raids; depicting in crystal clear manner, an all-out panic for physical metal. This gibes perfectly
with similar data as Indian silver demand despite onerous tariffs hit an all-time high in 2013; as did North
American demand, given record high silver bullion sales at both the U.S. and Royal Canadian Mints. And FYI, as the
paper price continues to be attacked on the COMEX, Indian demand is on pace to match 2013s record levels as are
silver sales levels at the U.S. and Royal Canadian Mints!
Equally amazing is that this is occurring simultaneous with last months launch of the SFEs International Board,
enabling tens of billions of international investment into Shanghais physical-only gold and silver contracts. How
much more powerful of a statement of looming shortage as we experienced in 2008, 2011 and 2013 can be
witnessed than the gaping difference between said tens of billions of potential investment and a measly $50 million of
inventory?
In real markets, of course, the vultures would have long ago smelled blood and taken out the inventory. And thus,
we have the sneaking suspicion that not only some, but most of the purported inventories are non-existent from the
fraudulent COMEX, LBMA and SLV to the so-called honest SFE. Surely, some supply is available; but compared to
explosive global demand, we find it hard to believe this meager declining supply will be able to keep up much
longer. Thus, we strongly believe the days of key attack time raids like this mornings at EXACTLY the 10:00 AM
close of global physical PM markets, with interest rates near their lows and stocks plunging (except the Dow, which
coincidently erased its losses ahead of the FOMC minutes publication) are nearing their longawaited permanent end.

And when this inevitability unfolds, if you havent secured your share of the metal actually in existence
particularly silver you may never get another chance. Or at the least, anywhere near the current Cartel-subsidized
prices.

Silver arbitrage?
Silver closed last week under $17 for the first time in 4 years. Maybe we have in store another "event" like 2008,
2011 or 2013 where the "price" gets forced down which explodes demand to a point where shortages again show up?
I have written several times before how a shortage should never ever show up in any real market if prices crash
because of "selling". If real silver were in fact being sold then the market would be awash in silver and no shortage
could exist. ...The last 3 episodes there were severe shortages which is your proof that it was not in fact real metal
being sold, only paper contracts representing metal, this logic is not arguable.
I have written several times regarding the high and growing open interest in the COMEX silver contracts. It is my
belief the Chinese via proxy are the longs and will at some point call for delivery. I was "reprimanded" by a very
famous commodities trader telling me that the open interest was high only because of "spread trades". Spread trades
only amount to 23,000 contracts which if subtracted would still leave us with 150,000 contracts or more of silver, still

historically high. Something is just not right, the open interest in gold is near multi year lows while silver touched 6
year highs last week, "spreads" do not explain it.
I have also argued that both silver and gold have seen concentrated sales where 50% or more of global production is
dumped within 24-36 hours which in a real market where real metal trades, could not ever happen. Who could have
this size of metal and who would sell in a fashion to destroy their own price even if they did? The answers of course
are no one, and no one. I get it, hedge funds are momentum traders and pile on in whatever direction any commodity
is moving but gold and silver have now had access trades open lower or unchanged in 106 out of the last 110 trading
days. This is a statistical impossibility. So it is what it is, but what does it mean, and what has silver trading way
below the cost of production now unleashed?
The U.S. produces about 33 million ounces of silver per year, the mint has already sold 34 million ounces through
October 2nd. Think about this for a moment, this is just mint sales alone. The entire U.S. production has been eaten
up by the sales of coins alone, what of industrial demand such as solar, technological and medical demand...which
over time will only grow with each newly discovered use? During just the first 2 days of October, the mint sold 1.65
million ounces, this action does not square at all with investors panicking and selling silver. My guess is if the price
continues to be hit on COMEX we will again see a 2 tier market where premiums are quite large (over paper prices)
for the actual metal and the wait times for delivery again begins to expand with outright shortages existing. I believe
the question is going to arise "what really is the price of silver", is it the COMEX price or the price to actually procure
real silver? On the other side of the globe in Shanghai, silver stands now in full backwardation, this argues for scarcity
rather than plentiful supply.
COMEX may very well "price themselves out of the market" if they push their hand much further. Think about it, what
would $12 silver on the COMEX mean if real silver was trading at $18 or even $24 in Shanghai? Would the December
longs have any choice whatsoever but to arbitrage the price discrepancy? Buy it on COMEX and ask for delivery
...then sell it in Shanghai and deliver the metal as is required by their law? It is this situation which will eventually
drain whatever inventory is left in the COMEX (and SLV) in my opinion.
I will leave you with a comment sent to me by a reader with a little of my own tweaking. He said ..."I buy silver with
fake money for 20% less fake money than they can mine it for. Will I win? Ask any child able to grasp the concept
and they can answer that!". Think about what he is saying here? He is describing COMEX to a tee, they trade
nonexistent silver back and forth maybe 100 times or more than is actually produced globally ...and THEY set the
price. What will happen when one day the premium to purchase real silver rises $2 or $3 while the COMEX contract
drops $1 or more. What will a 2 tier market do? It certainly will not create confidence in paper pricing versus cash and
carry. The danger as I see it is COMEX may now be pushing their hand too hard and too far ...as the Shanghai
exchange now exists as a potential check and balance to paper pricing. If COMEX moves the price too far from where
the cash price trades, they will effectively arbitrage themselves out of inventory, out business and out of confidence.
Time will tell. Regards, Bill Holter

Things That Make You Go HmmUS Banks Financial Leverage


Ratios Go Parabolic
Hyperinflation and hyper-deflation are just two different forms of the same phenomenon: credit collapse. Arguing which of the two
forms will dominate is futile: it blurs the focus of inquiry and frustrates efforts to avoid disaster.
The Feds leverage ratio (total assets to capital) now stands at just under 80x. That compares with Lehman Brothers
leverage ratio, just before it went bankrupt, of just under 30x.
Sometimes a picture really does paint a thousand words:
Submitted by Tim Price, Sovereign Man:
When sorrows come, wrote Shakespeare, they come not single spies, but in battalions.
True. And Jeremy Warner for the Daily Telegraph identifies ten such sorrows in his ten biggest threats to the global economy:
1) Geopolitical risk;
2) The threat of oil and gas price spikes;
3) A hard landing in China;
4) Normalization of monetary policy in the Anglo-Saxon economies;
5) Euro zone deflation;

6) Secular stagnation;
7) The size of the debt overhang;
8) Complacent markets;
9) House price bubbles;
10) Ageing populations.
Well start with point #7: the size of the debt overhang.
Since this was never addressed in the immediate aftermath of the Global Financial Crisis, its hardly a surprise to see the poison of
debt continue to drip onto all things financial.
ALL German government paper out to three years, for example, now offers a negative yield. Investors must pay rent to the German
government in order to buy its debt.
This has implications. And much of the rest of Warners threats are inextricably linked to this debt overhang.
Point #8: Complacent markets? Check. (Though stocks have lost a lot of their nerve)
Point #9: House price bubbles? Check. Since the monetary policy response to having too much debt in the system has been to slash
rates and keep them at multi-century lows, its hardly a surprise to see property prices in a bubble. Again.
Point #5: Euro zone deflation? Check. This is less of a threat to solvent consumers, but deadly for indebted governments.
Point #4: Pending normalization of monetary policy in the UK and US? Check.
This threatens the integrity of the credit markets. And its worth asking whether central banks could possibly afford to let interest rates
rise and risk bankrupting their governments.
We saw one particularly eye-catching chart last week, via Grant Williams, comparing the leverage ratios of major US financial
institutions over recent years (shown below).

The Feds leverage ratio (total assets to capital) now stands at just under 80x. That compares with Lehman Brothers leverage ratio,
just before it went bankrupt, of just under 30x.
Sometimes a picture really does paint a thousand words.
And this, again, brings us back to the defining problem of our time: too much debt in the system.
In a recent interview with Jim Grant, Sprott Global questioned the famed interest rate observer about the likely outlook for bonds. Grant
responds:
Im not sure what a bear market would look like, but I think that it would be characterized at first by a lot of people rushing through a
very narrow gate.
Grant was also asked if it was possible for the Fed to lose control of the bond market:
Absolutely, it could. The Fed does not control events for the most part. Events certainly will end up controlling the Fed. To answer your
question yeah. I think the Fed can and will lose control of the bond market.
As we have written on innumerable prior occasions, we wholeheartedly agree. What will drive pretty much all asset markets over the
near, medium and longer term is almost entirely down to how credit markets behave.
The fundamentals (again, take one look at the chart) are utterly shocking, as are the implications.
And let us not confuse the prognosis by arguing over the diagnosis.
As Professor Antal Fekete writes in his Monetary Economics 101: The real bills doctrine of Adam Smith
Hyperinflation and hyper-deflation are just two different forms of the same phenomenon: credit collapse. Arguing which of the two
forms will dominate is futile: it blurs the focus of inquiry and frustrates efforts to avoid disaster.
Tim Prices monthly Price Value International investment service is designed to provide safe investment advice and education, as
well as actionable recommendations as to where investors can deploy their capital without taking an unnecessary amount of risk in
an environment of corrupt central bank and government policies.

PRIMARY SILVER MINERS: Losing Nearly $3.00


For Every Ounce Of Production
Steve St. Angelo, SRSrocco Report

Thursday, November 13th

With more than half of the primary silver miners financial results for the third quarter finally out, the group is now
losing nearly $3.00 an ounce at the current market price of silver. We can thank the Fed and Bullion Banks for
rigging the paper silver price well below the estimated average break-even for the primary silver miners.
Before I provide my data from the silver miners in my group, I want to discuss the debate on PRECIOUS METALS
MANIPULATION. There seems to be a demarcation now between those who are more traders and the group that
adheres to fundamentals. While I admire anyone who can make a profit paper trading the precious metals, I find it
quite interesting how several of the well-known names find it amusing to BASH those in the fundamental BUY & HOLD
CAMP.
I look forward to hearing if either Doug Casey or Dan Norcini finally admit that MANIPULATION has and is taking place
in the precious metal markets as evidence is now surfacing. According to the Zerohedge article, A Clear Attempt To
Manipulate Fixes In The Precious Metal Market:
Swiss regulator FINMA said on Wednesday that it found a clear attempt to manipulate precious metals
benchmarks during its investigation into precious metals and foreign exchange trading at UBS.
The behaviour patterns in precious metals were somewhat similar to the behaviour patterns in foreign exchange,
FINMA director Mark Branson said in a conference call with journalists.
He said that as UBS has precious metals and foreign exchange desks under combined leadership, it was not surprising
to find similar behaviour.
But we have also seen a clear attempt to manipulate fixes in the precious metal markets.
And then we had this just a few days ago also from ZeroHedge, Another Conspiracy Theory Bites The Dust:
UBS Settles Over Gold Rigging, Many More Banks To Follow:
Sadly this too conspiracy theory just was crushed into the reality of conspiracy fact, when moments ago the FT
reported that alongside admissions of rigging every other market, UBS always the proverbial first rat in the
coalmine, to mix and match metaphors- is about to settle allegations of gold and silver rigging. In other
words: it admits it had rigged the gold and silver markets, without of course admitting or denying it did so.
Even though these banks are starting to provide evidence of precious metals manipulation, the real market rigging
is the funneling of Americans funds into the paper retirement market that reached $24 trillion in Q2
2014, according to the Investment Company Institute.
I spoke about this in an interview found here, The Coming Collapse of The Global Paper Ponzi Scheme:
Americans continue to funnel a percentage of their income into the biggest Financial Ponzi Scheme in history. The
manipulation of the metals on the exchanges is a very small part of controlling Americans into staying
into this system. Because, as you know, a Ponzi System continues to need further income, further
inflows, for it to sustain itself. Its in the best interest for the Fed to keep that system going. That to me is where
the majority of this bamboozling or brain-washing is taking place.
So, I highly doubt Mr. Casey or Mr Norcini will admit that MANIPULATION is taking place in the precious metals
markets, even though evidence is now coming out. However, it doesnt need to be proven. Why? Because the peak
and decline of unconventional oil production, will destroy the valuations of most paper assets.
When investors realize they are holding onto increasingly worthless paper assets in a falling peak oil environment,
they will be forced to move in physical assets such as gold and silver to protect wealth. If we just had a fraction of
the $trillions sitting on the sidelines head into the precious metals or the mining shares, we could see
values higher than any imagined. What would happen to the values if the PUBLIC finally got PRECIOUS METAL
RELIGION??

Primary Silver Miners Now Losing Nearly $3.00 For Every Ounce Of Production
If we look at the chart below, 7 of the 12 primary silver miners in my group had an estimated break-even of $18.50
in Q3 2014. With the current price of silver at $15.70, this would be a net loss of $2.80 an ounce on
average.

However, we must remember, these seven miners are some of the lower cost producers. Once we factor in the
results for the remaining companies that are the more marginal producers (higher cost), this $2.80 loss per ounce will
probably be higher than $3.00.
Furthermore, you will notice that only one primary silver miner is making money at the current price of silver. This is
Tahoe Resources. Tahoe is an exception because it is mining 5+ million ounces of silver a quarter at a
staggering 550+ grams per ton. There isnt another primary silver mining company on the planet producing silver
in this fashion. Thus, Tahoe is an exception to the rule and can produce silver at a much lower cost than any
company in the group.
As I mentioned above, when the remaining primary silver companies release their Q3 2014 results, I believe the
estimated break-even will rise towards $19.00 (higher than the $18.50 preliminary figure from the first seven in the
group).

An Open Letter to Mining Company Executives


Jim Otis
Friday, November 14th
Please accept my sincere condolences on the continuing suppression of metal prices. As a stock holder in your
company, I share your concern that an unrelenting environment of depressed metal prices will inevitably cause
damage to your mining company. I will not insult your intelligence by dwelling on the long term solution that you are
so very well aware of (i.e., reduce mining output at low prices, both as a way to pressure prices higher, and as a way
to conserve your precious in ground resource for times when prices are more favorable). Instead, I hope to suggest
short term tactics that could help to restore higher prices.
Convert a paper problem into a physical solution
You do not need me to tell you how intensely painful it is when a few traders dump a huge amount of paper metal
short sales into the futures market, frequently at times when there is little volume, so the paper dump results in
maximum price reduction. When the objective of those traders is to reduce the price, their dumping approach is
certain to work. No doubt, those traders expect to make profits by being allowed to buy back their short positions at
lower prices as longs panic and sell at a loss. That dumping plan by traders who have essentially unlimited resources
to sell huge quantities of paper futures contracts would be an invincible way to make immense profits, except for a
small detail. The futures contracts they sell in huge numbers require delivery of real physical metal if they are not
closed out prior to the delivery time. Mining executives can exploit that weakness by refusing to sell discretionary
physical metal during the month or so before delivery notices are issued. For example, miners could withhold from

the markets all physical metal that they have timing discretion over until after the delivery notices are issued. By
withholding discretionary sales during the month before delivery notices are issued, and by telling potential buyers for
the following month to take delivery of futures contracts instead, mining companies could transform the earlier losses
(caused by dumping huge amounts of paper futures) into gains as the traders who were betting they could sell short
and then cover later are forced to buy at increasing prices because they do not have the metal required for delivery.
Then the miners could sell into higher prices (after delivery notices have been acted on) the physical product they
withheld from the market over the previous month. By focusing on withholding physical sales during the month
before delivery, mining executives can press the short traders by constricting their supply of metal to deliver while
encouraging buyers to take delivery from the futures exchange. Note that this approach only considers discretionary
sales. Sales required by contract should be completed. When negotiating contracts or extensions for the future,
however, mining company executives may want to consider time windows in which they retain flexibility about when
they are required to deliver product.
Dividends payable in physical
Another approach that could be used by mining companies who pay dividends to shareholders is to offer the stock
holder an option to receive dividends in the form of physical bars or coins made from the metal the mining company
produces. That would increase the price of the stock in two ways. First, more shareholders would buy the stock
specifically for the opportunity to receive real metal as dividends, especially if the cost of that metal was near the
wholesale cost of the metal produced by the mining company. Second, bears who sell the stock short would need to
obtain the appropriate physical metal needed to match the dividend those short sellers would be obligated to pay.
Dividends delayed
If metal prices drop below the actual cost of production, then the mining companies that pay a dividend could stop
that payment, and divert the funds into buying futures for delivery. By taking delivery of very low cost metal from
the futures exchange, mining companies would make it more risky for traders to bet short on the metals, and would
increase the value of the company for shareholders.
Share information with shareholders
Mining company executives are encouraged to share information about their tactics with their shareholders, either by
email or prominent notices on the company web page. There is no need for one company to try to influence the
actions of another company. Other mining companies will learn about the tactics that executives tell to their
shareholders, and then the other mining companies can decide for themselves if they want to do something
comparable. Hopefully, it is not yet illegal for mining companies to decide when to sell their product, and to
communicate information with their shareholders. However, if any portion of this open letter contains anything that
borders on anything illegal, then all readers are encouraged to ignore that portion. Readers may, however want to
forward the legal portions of this message to their favorite metal mining company. With enough focus on delivery of
physical, we may be able to loosen the death grip a few very large traders have on the metals markets.

The Most Prescient Statement Ever Made


Andrew Hoffman

November 17, 2014 - 4:19pm

Major, major tremors in the global financial system; and ironically, the epicenter of the Big One may well be
Switzerland. This tiny nation, most famous for its neutrality, is on the front line of the Gold Wars; and as we wrote
in yesterdays call to the Swiss, its eight million people have the opportunity to slay the evil banking Empire with
just four million or so votes. Then again, the best things often come in small packages; and the worst, too,
like, Cyprus a nation of just one million, which itself caused momentous shock waves. Heck, the lowly Florida
Marlins, owned by Darth Vaders sports world equivalent Jeffrey Loria, are about to pay Giancarlo Stanton following
one fantastic season $325 million permanently shattering the cost structure of professional sports to the detriment
of millions of unsuspecting fans. Ill get to the most prescient statement ever made momentarily; but beforehand,

want to discuss why my initially planned title was you cant make this stuff up featuring, in our mind, the peak
hubris of this, the final chapter of historys greatest emperor has no clothes story.
In doing so, I must start with the ramblings of St. Louis Fed President James Bullard, who yesterday reversed his
stance on delaying QE, following the past months historic PPT market goosing in doing so, telling us all we need to
know of the Feds true mandate. That is the explanation of his change of heart is what makes this foolishness
moment so poignant in citing higher inflation expectations over the past month.
Higher inflation expectations? Really? Is he referring to the fact that since the Dow Jones Propaganda Average
bottomed on October 15th at essentially thesecond he said a logical juncture at this point is to delay the end of QE
the price of oil has collapsed from $81 to $74, whilst gold has plunged from $1,250 to $1,140; silver from $17.50 to
$15.00; and the CRB commodity index from 274 to 266, whilst the dollar index surged from 84.5 to 88.0? Equity
rally and all, the benchmark 10-year Treasury yield of 2.32% is essentially at a 17-month low excluding the
October 15th liquidity vacuum; whilst the broad Treasury market price structure suggests inflation expectations
have materiallydeclined. Better yet, despite the rigged consumer confidence index having risen to a seven-year
high yesterday to a level last seen at the peak of the 2007 bubble, despite collapsing retail sales; inflation
expectations were reported to have hit a 12-year low. Again, we cannot emphasize enough that the Fed could not
care less about the economy, as its sole mandate has become the support of the equity markets that the 1%
dominate replete with relentless propaganda justifying such strength.
Meanwhile, amidst Bullards higher inflation expectations hallucinations, the Eurozone reported a whopping 0.2%
increase in third quarter GDP in yet another blatant example of book cooking to report the technical avoidance of
recession. The MSM actually crowed about the bullishness of the unexpected increase from 0.1% in the second
quarter but from the other side of its mouth claimed Eurozone GDP and inflation show why Quantitative Easing is
becoming more certain. In other words, Bullards increased inflation expectations were nowhere to be seen in
Europe which reported a miniscule 0.4% annualized CPI increase in October, near multi-decade lows.
Actually, my favorite post Euro GDP propaganda pieces were Bloombergs German-French rebound helps keep
Euro-Area expanding and CNBCs claim that investors breathed a sigh of relief based on such data, highlighting
fictional strength in of all places, Greece! Regarding Germany, its GDP expanded by just 0.2% (according to its
fudged numbers), whilst France surged 0.3%, as its credit rating was downgraded, no less. And as for Greece,
perhaps its GDP did in fact rise by a measly 0.7% following a cumulative 23% plunge over the past six years.
However, given its near record26% unemployment rate; imminent sovereign default (yielding surging bond yields and
plunging equities); and oh yeah, riots in Athens whilst such bullish data was published, well take the under on
0.7%.
That said, as noted above, I rapidly changed todays focus after watching the mornings dramatic reversal of the
precious metals market supposedly due to a Deutschebank report that contrary to recent SNB-led propaganda, the
yesses have a narrow but clear lead of 44% to 39%; and moreover, there are reasons to believe factors could be
favorable for the amendment. We certainly agree that a yes vote is wildly bullish for precious metals which
frankly, could permanently destroy the gold Cartel. However, the fact that the reversal occurred at exactly 10:00 AM
EST i.e., key attack time #1, on a Friday, no less with this momentous vote just two weeks away, has us
believing far bigger forces were at play.
Last night, we were treated to yet another vicious paper raid at 12:30 AM EST the seventh in the past 10 days,
right amidst the Japanese lunch break. And for the fifth time since the U.S. Mint suspended Silver Eagle sales due to
an historic demand surge, silver prices were utterly attacked, whilst no other markets materially budged. And this, as
gold and silver backwardation increased further to its highest level since 2001!

Thus, when prices turned on a dime at exactly 10:00 AM EST, we clearly were intrigued; ultimately, taking silver up
more than 4% and more importantly, gold above the $1,183 triple bottom level of the past two years. The 10year Treasury yield plunged to nearly 2.3%; and of course, the Dow was not allowed to materially decline. However,
the days big story was gold and silvers surge out of the blue which Zero Hedge attributed to a dollar dump.
Really? The dollar indexs 0.1% decline from 87.67 to 87.53 is considered a dump? Let alone, with the Yen
collapsing to a new seven-year low of 116.3/dollar?

In other words, while we do not know exactly what happened at 10:00 AM EST, we are quite sure it was not rote
algorithm trading. Perhaps it was the Deutschebank news; or perhaps, an overwhelming realization that the
chasm of destruction we wrote of last week between rigged PM markets and the reality of surging
demand and plunging production had simply become too wide. However, in our minds, the global physical demand
surge which yesterday, was powerful enough to overcome equally powerful papersuppression is focused as much on
escalation of the aforementioned gold wars as anything else. And no, were not just speaking of Switzerland
but China,Russia and the rapidly growing anti-dollar bloc. Switzerland may indeed prove the flashpoint, but the entire
world is on the verge of financial mutiny as exemplified by yesterdays comments from the leader of Italys Five
Star movement, Beppe Grillo in claiming we are not at war with ISIS or Russia, but the ECB.
War indeed a word that is creeping into the worlds collective financial consciousness as exemplified by one of our
most relevant articles to date, the final currency war we discussed two years ago. And what better place to segue
to our primary topic as the most prescient statement ever made may well have emanated from Ferdinand Lips, the
late Swiss banker and ardent GATA supporter, who in 2002 wrote Gold Wars: the Battle against Sound Money, as
seen from a Swiss Perspective.
Yesterday, I read this MUST READ article of the history of Switzerlands de facto gold standard, including the evil
machinations of SNB bankers to circumvent it. In it, we learn that in 2002, Ferdinand Lips asked
Is the SNB on New Yorks leash?, saying that In my opinion, the once strong, proud and independent SNB has been
degraded to an Off-shore Branch of the U.S. central bank (the Federal Reserve) and reports directly to Alan
Greenspan and his cohorts in New York.
--Zero Hedge, November 14, 2014
Next, he validates what we have been writing of for years; in my case, coinciding exactly with my entry to precious
metal investments and commentary in 2002
It is a given that the Swiss gold sales will help New York money center banks to survive a bit longer. It will help them
manipulate the gold market.
Zero Hedge, November 14, 2014
And last but not least, the most prescient statement ever made again, from the days of yore of 2002
But, golds time is still to come. If the SNB does not stop its sales, Switzerland will have to buy back its gold one day
but at a higher price.
-Zero Hedge, November 14, 2014
And one more comment, as the Miles Franklin Blog joins the burgeoning global movement to defeat the spawn of evil
that are Central bankers on November 30th. Apparently, the SNBs deputy governor at the turn of the century, when
the Francs gold de-linking coup was executed Jean-Pierre Roth inadvertently made comments that could prove
the straw that broke the camels back for indecisive Swiss voters. Back then, when the Franc was 40% backed by
gold, he argued that a 20% backing was more appropriate, as 20% makes a great deal of sense from a
diversification point of view, and meets our constitutional obligation to maintain gold reserves.
Well Jean-Pierre, now that the Francs gold backing has been reduced to a measly 7%, following the dishoarding of
1,500 tonnes at roughly $350/oz.; and the Franc is down 16% in the three years since the Franc was pegged to the
Euro; do you still believe 20% gold backing is a good idea? I know you have benefitted greatly from unprecedented
currency debasement, given you sit on the boards of some of Switzerlands largest public corporations, serve as a
governor of the IMF, and Chairman of the Bank of International Settlements (is this guy evil, or what!). However, the
vast majority have not, which is why Switzerland nearly passed a $25/hour minimum wage referendum earlier this
year, care of the massive inflation unleashed due to your policies.
To conclude, no more than 1% of the world realizes the importance of November 30 th today. However, dont be
surprised if the 99% are well aware shortly thereafter; which is why NOW is the time to protect your assets with
precious metals.

Hyperinflation in the U.S.?


Dr. Jeffrey Lewis

November 14, 2014 - 9:50am

WAR is a racket. It always has been. It is possibly the oldest, easily the most profitable, surely the most vicious. It is
the only one international in scope. It is the only one in which the profits are reckoned in dollars and the losses in
lives.
-General Smedley Butler, USMC
Let me issue and control a nation's money and I care not who writes the laws.
-Mayer Amschel Rothschild (1744-1812), founder of the House of Rothschild

A good friend and fellow reader sent me the following note:


Hello Jeff,
Recently I have been discussing with my cousin, who collects paper currency, which holds better value: gold/silver
coin, or paper currency.
I must admit he does have an admirable collection of German marks from the start to finish of their hyperinflation.
He has notes arranged by year in pages of a photo album.
As I flipped through the album pages, one can almost "FEEL" the pressures of the ensuing inflation. The album starts
with 1,000 mark denomination that starts to escalate in value to 10,000 marks, then 100,000 marks in the following
pages.
As inflation started to ramp up the denominations got larger; into billions of marks. Eventually, the government
couldn't print currency fast enough, the next album pages showed notes printed only on one side.
As hyperinflation set in, printing currency on one side was not enough to meet demand, so they took old issues and
stamped the face of the bill in red ink with more ridiculous amounts. Just before the collapse, the last issues had
incredible numbers.
To be fair, my cousin trades paper currency and does not hold it for investment purposes.
He does have a high turnover, so I guess small gains over many trades probably make it a profitable venture for him.
However, for long term value, I disagreed with him that paper currency at the turn of the 18th-19th century (for
collection purposes) was just as valuable as coinage with precious metals.
I disagreed on that point, so decided to make my case on this point.
I went on the internet and picked 1928 as a reference year, when the U.S. had a $20 gold coin in circulation, as well
as a $20 gold certificate. I found the current price for both and results obtained in an attached file and sent that to
my cousin.
The gold coin was worth $1200.
The $20 gold note was listed at $215. I will have to see what he says.
Ehor Mazurok, author of "The Shape of Things to Come?:
An Economic Forecast to 2065:
We may not see the paper version of what most buried in their visceral memories. But it will be no less dramatic. No
less disintegrative. An electronic affair, to be sure. Better controlled, easier to enforce. Yet, arising from the same
ancient cause.
And we measure nearly 50 million Americans on food stamps, as we approach the peak years of baby boom
retirement; a generation in which social security and retirement savings are synonymous.
Health care costs continue to surge in nominal terms as well as cultural, as the falsely funded power of the food and
drug industry begins to be felt by our federally funded sick-care programs as we go from one boom and bust cycle,
each more violent than its predecessor, while the interval shortens.
And there is only one solution: Do something. The most powerful own the printing presses, or call it whichever
euphemism you want. But by any name, it is owned by the most powerful.
It is a printing press capable of creating an unlimited amount debt-based, currency, or credit to fulfill promises; the
false promise of social security benefits and the false sense of security; in the midst of perpetual war.
The great implementation will come via the alphabet soup of revolving door agencies created to inflict "regulations",
written and researched by the wolves themselves. These are the foundations for government transfer payments and
the conflagration ignited by:

Declining domestic economic production


Debt to GNP beyond 100%
Near total monetization of budget deficits
Rising money supply
Increasing monetary velocity
Yes. It's true what the deflationists say...
Money is not exchanging places in a more notable sense. Banks are not lending. Yet, the average person sees
inflation all around them. Digital money is turning. It goes unnoticed as a mainly a harmless insignificant side effect.
The true turnover is not unmeasured. Officially, there is none. It is the real movement of money.
The transactions of 'everyman' are like the wake of a mosquito floating atop an ocean of currencies and derivatives.
But, above all, like the government-banking centric, as the massive amounts of liquidity are called in to save it from
itself.
The foundation for collapse is already well established. Hyperinflation is fluid process. It is a becoming. A great
tsunami dislocating, destroying in that sense it is already here. Now is the time to act.
For yourself, which is for everyone.
Don't wait for velocity. Don't wait for the surface tension to break. Don't wait for the tsunami.

The Dow And S&P 500 Soar To Irrational Heights Meanwhile The
Ultra-Wealthy Rush To Buy Gold Bars
Did you know that the number of gold bars being purchased by ultra-wealthy individuals has increased by 243 percent so far this
year? If stocks are just going to keep soaring, why are they doing this? On Thursday, the Dow Jones industrial average and the S&P
500 both closed at record highs once again. It is a party that never seems to end, and there are a lot of really happy people on Wall
Street these days. But those that are discerning realize that we witnessed the exact same kind of bubble behavior during the
dotcom boom and during the run up to the last financial crash in 2007. The irrational exuberance that we are witnessing right now
cannot go on forever. And the bigger that this bubble gets, the more painful that it is going to be when it finally bursts. Those that
get out at the peaks of the market are the ones that usually end up making lots of money. Those that ride stocks all the way up and
all the way down are the ones that usually end up getting totally wiped out.
To get an idea of how irrational the markets have become, all one has to do is to look at Twitter.
Would you value "a horribly mismanaged company" that is less than 10 years old and that has never made a yearly profit at 31 billion
dollars?
Well, that is precisely how much the financial markets say that Twitter is worth at this moment.
Even though Twitter will probably never be much more popular than it is right now, it continues to bleed money profusely. On a GAAP
(generally accepted accounting principles) basis, Twitter lost an astounding 145 million dollars during the second quarter of 2014...
Twitters GAAP net loss totaled $145 million, up from $42 million a year ago. On a GAAP basis, Twitter lost $0.24 per share. Investors,
however, were not expecting Twitter to be profitable by GAAP measurements, so the loss isnt too much of a drag.
Why would anyone want to invest in such a money pit?
Here are some more disturbing financial numbers about Twitter from David Stockman...
Currently, Twitter (TWTR) is valued at $31 billion.Thats 18X revenue, but the catch is that the revenue in question is its

lifetime bookings over the 18 quarters since Q1 2010.


When it comes to profits, the numbers are not nearly so promising! For the LTM period ending in June, TWTR booked $974 million of
revenue and $1.7 billion of operating expense. That why NM shows up in its LTM ratio of enterprise value to EBITDA. It turns out
that its EBITDA was -$704 million. In fact, its R&D expense alone was 83% of revenues.
Of course the truth is that Twitter should be able to make money.
And it probably would be making money if it was being managed better.
The following is what Silicon Valley venture capitalist Peter Thiel said about Twitter on CNBC the other day...
"It's a horribly mismanaged company probably a lot of pot-smoking going on there."
But because Twitter is a "hot tech stock" investors are literally throwing money at it.
And there are many other tech companies that have similar stories. Off the top of my head, Snapchat, LinkedIn, Yelp and Pinterest
come to mind.
Fueled by the quantitative easing policies of the Federal Reserve, U.S. stocks have enjoyed an unprecedented joy ride.
However, as David Stockman recently told Yahoo Finance, the subsequent crash is likely to be enormously painful...
"I think what the Fed is doing is so unprecedented, what is happening in the markets is so unnatural," he said. "This is dangerous,
combustible stuff, and I dont know when the explosion occurs - when the collapse suddenly is upon us - but when it happens, people
will be happy that they got out of the way if they did."
The behavior that we are observing in the stock market simply does not reflect what is happening in the economy overall whatsoever.
In many ways, U.S. economic fundamentals just continue to get even worse. Small business ownership in the United States is at an
all-time low, the labor force participation rate is the lowest that it has been in 36 years, and the U.S. national debt has grown by
more than a trillion dollars over the past 12 months.
But on Wall Street right now, there is very little fear that the party is going to end any time soon.
The following is how Seth Klarman recently described the market complacency that he is seeing at the moment...
To put it a bit differently, writer and investor John Mauldin is right when he says that there is a bubble in complacency. Fear has
effectively been banished. The members of the Fed know it. Stock traders who chase the market to new highs almost
daily know it. Implied volatilities (and realized volatilities) are historically low (the VIX Index recently hit a seven-year low), and
falling. The Bank for International Settlements recently cautioned that financial markets are euphoric and in the grip of an aggressive
search for yield. The S&P has gone over 1,000 days without a 10% decline, according to Birinyi Associates. Dutch and French 10-year
government bond yields are at 500 and 250 year lows, respectively; Spain, 225 years. Spanish debt yields were recently inside of U.S.
levels.
But as Klarman also observed, just because "investors have been seduced into feeling good" does not mean that this current bubble is
any different from what we witnessed back in 2007...
Its not hard to reach the conclusion that so many investors feel good not because things are good but because investors have been
seduced into feeling goodotherwise known as the wealth effect. We really are far along in re-creating the markets of 2007,
which felt great but were deeply unstable when shocks started to pile up. Even Janet Yellen sees pockets of increasing

risk-taking

in the markets, yet she has made clear that she wont raise rates to fight incipient bubbles. For all of our sakes, we really wish she
would.
Meanwhile, the ultra-wealthy are making moves to protect themselves from the inevitable chaos that is coming.
For example, the Telegraph recently reported that sales of gold bars to wealthy customers are up 243 percent so far in 2014...
The super-rich are looking to protect their wealth through buying record numbers of "Italian job" style gold bars, according to bullion
experts.
The number of 12.5kg gold bars being bought by wealthy customers has increased 243 percent so far this year, when compared to the
same period last year, said Rob Halliday-Stein founder of BullionByPost.
"These gold bars are usually stored in the vaults of central banks and are the same ones you see in the film 'The Italian Job'," added
David Cousins, bullion executive from London based ATS Bullion.
Do they know something that we don't?
The ultra-wealthy are able to stay ultra-wealthy for a reason.
They are usually a step or two ahead of most of the rest of us.
And any rational person should be able to see that this financial bubble is going to end very, very badly.

5 U.S. Banks Each Have More Than 40 Trillion Dollars In Exposure


To Derivatives
When is the U.S. banking system going to crash? I can sum it up in three words. Watch the derivatives. It used to be only four, but
now there are five "too big to fail" banks in the United States that each have more than 40trillion dollars in exposure to derivatives.
Today, the U.S. national debt is sitting at a grand total of about 17.7 trillion dollars, so when we are talking about 40 trillion dollars
we are talking about an amount of money that is almost unimaginable. And unlike stocks and bonds, these derivatives do not
represent "investments" in anything. They can be incredibly complex, but essentially they are just paper wagers about what will
happen in the future. The truth is that derivatives trading is not too different from betting on baseball or football games. Trading in
derivatives is basically just a form of legalized gambling, and the "too big to fail" banks have transformed Wall Street into the largest
casino in the history of the planet. When this derivatives bubble bursts (and as surely as I am writing this it will), the pain that it will
cause the global economy will be greater than words can describe.
If derivatives trading is so risky, then why do our big banks do it?
The answer to that question comes down to just one thing.
Greed.
The "too big to fail" banks run up enormous profits from their derivatives trading. According to the New York Times, U.S. banks
"have nearly $280 trillion of derivatives on their books" even though the financial crisis of 2008 demonstrated how dangerous they
could be...
American banks have nearly $280 trillion of derivatives on their books, and they earn some of their biggest profits from trading in
them. But the 2008 crisis revealed how flaws in the market had allowed for dangerous buildups of risk at large Wall Street firms and
worsened the run on the banking system.
The big banks have sophisticated computer models which are supposed to keep the system stable and help them manage these risks.
But all computer models are based on assumptions.
And all of those assumptions were originally made by flesh and blood people.
When a "black swan event" comes along such as a war, a major pandemic, an apocalyptic natural disaster or a collapse of a very large
financial institution, these models can often break down very rapidly.
For example, the following is a brief excerpt from a Forbes article that describes what happened to the derivatives market when
Lehman Brothers collapsed back in 2008...
Fast forward to the financial meltdown of 2008 and what do we see? America again was celebrating. The economy was booming.
Everyone seemed to be getting wealthier, even though the warning signs were everywhere: too much borrowing, foolish investments,
greedy banks, regulators asleep at the wheel, politicians eager to promote home-ownership for those who couldnt afford it, and
distinguished analysts openly predicting this could only end badly. And then, when Lehman Bros fell, the financial system froze and
world economy almost collapsed. Why?
The root cause wasnt just the reckless lending and the excessive risk taking. The problem at the core was a lack of transparency. After
Lehmans collapse, no one could understand any particular banks risks from derivative trading and so no bank wanted to lend to or
trade with any other bank. Because all the big banks had been involved to an unknown degree in risky derivative trading, no one
could tell whether any particular financial institution might suddenly implode.
After the last financial crisis, we were promised that this would be fixed.

But instead the problem has become much larger.


When the housing bubble burst back in 2007, the total notional value of derivatives contracts around the world had risen to about 500
trillion dollars.
According to the Bank for International Settlements, today the total notional value of derivatives contracts around the world has
ballooned to a staggering 710 trillion dollars ($710,000,000,000,000).
And of course the heart of this derivatives bubble can be found on Wall Street.
What I am about to share with you is very troubling information.
I have shared similar numbers in the past, but for this article I went and got the very latest numbers from the OCC's most recent
quarterly report. As I mentioned above, there are now five "too big to fail" banks that each have more than 40 trillion dollars in
exposure to derivatives...
JPMorgan Chase
Total Assets: $2,476,986,000,000 (about 2.5 trillion dollars)
Total Exposure To Derivatives: $67,951,190,000,000 (more than 67 trillion dollars)
Citibank
Total Assets: $1,894,736,000,000 (almost 1.9 trillion dollars)
Total Exposure To Derivatives: $59,944,502,000,000 (nearly 60 trillion dollars)
Goldman Sachs
Total Assets: $915,705,000,000 (less than a trillion dollars)
Total Exposure To Derivatives: $54,564,516,000,000 (more than 54 trillion dollars)
Bank Of America
Total Assets: $2,152,533,000,000 (a bit more than 2.1 trillion dollars)
Total Exposure To Derivatives: $54,457,605,000,000 (more than 54 trillion dollars)
Morgan Stanley
Total Assets: $831,381,000,000 (less than a trillion dollars)
Total Exposure To Derivatives: $44,946,153,000,000 (more than 44 trillion dollars)
And it isn't just U.S. banks that are engaged in this type of behavior.
As Zero Hedge recently detailed, German banking giant Deutsche Bank has more exposure to derivatives than any of the American
banks listed above...
Deutsche has a total derivative exposure that amounts to 55 trillion or just about $75 trillion. Thats a trillion with a T, and is
about 100 times greater than the 522 billion in deposits the bank has. It is also 5x greater than the GDP of Europe and more
or less the same as the GDP of the world.
For those looking forward to the day when these mammoth banks will collapse, you need to keep in mind that when they do go down
the entire system is going to utterly fall apart.
At this point our economic system is so completely dependent on these banks that there is no way that it can function without them.
It is like a patient with an extremely advanced case of cancer.
Doctors can try to kill the cancer, but it is almost inevitable that the patient will die in the process.
The same thing could be said about our relationship with the "too big to fail" banks. If they fail, so do the rest of us.
We were told that something would be done about the "too big to fail" problem after the last crisis, but it never happened.
In fact, as I have written about previously, the "too big to fail" banks have collectively gotten 37 percent larger since the last
recession.
At this point, the five largest banks in the country account for 42 percent of all loans in the United States, and the six largest banks
control 67 percent of all banking assets.
If those banks were to disappear tomorrow, we would not have much of an economy left.
But as you have just read about in this article, they are being more reckless than ever before.
We are steamrolling toward the greatest financial disaster in world history, and nobody is doing much of anything to stop it.
Things could have turned out very differently, but now we will reap the consequences for the very foolish decisions that we have
made.