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Bill Fleckenstein: Hold Tight To Your Gold

Tyler Durden's picture




 

Submitted by Adam Taggart of Peak Prosperity,

The bond market is an accident waiting to happen.

 

When the bond market finally does crack, it is going to be one epic nightmare that is going to make 2008 and 2009 seem like a picnic. It will be a different kind of a crisis; but it will be an enormous crisis. These people that are bullish about stocks and bonds and the bond market, they do not understand anything.

 

We will hit a moment in time where there will be a rapid acceleration of the perception that people are being cheated via inflation by these money-printing policies. Why Americans seem to think there is no inflation just because the CPI says so, when their checkbooks every day ought to tell them there is, I cannot explain that. But there will be a change in psychology, and there will be a massive stampede into gold here and everywhere else around the world, because it is the only way you can protect yourself against these policies.

Pity the wise money manager these days. Our juiced-up financial markets, force-fed liquidity by the Fed the other major world central banks, are pushing asset prices far beyond what the fundamentals merit.

If you see this reckless central planning behavior for what it is - a deluded attempt to avoid reality for as long as possible - your options are limited if you take your fiduciary duty to your clients seriously. 

Bill Fleckenstein of Fleckenstein Capital has a difficult time seeing other assets to own besides the precious metals. There are confidence bubbles in stocks, bonds and the fiat currencies that will break - not may, but will -  and when they do, he sees no safe harbor for investment capital save gold:

If you saw the stock bubble coming in the late 1990s, why did you see that? Because you could see what the Fed was doing and the response people were having and the misallocation of capital and all the problems that that was going to lead to. If you saw that coming, you could not buy stocks. Your only real choice was to do nothing or short stocks. Shorting stocks is tricky, but those were the responses.

 

Fast forward to 2008; if you saw an even worse and more problematic real estate bubble, again, you could buy stocks or you could short them. You could not buy real estate if it was difficult to short list it. What were the proper responses?

 

Well, in the interim of those two, you also could have the response to buy gold, because we knew what the central banks’ response was going to be.

 

Now here we are today. If you understood those problems, you cannot buy stocks, because they are only up because of money printing. You cannot really short them, because it is so hard to fight that money printing.

 

The financial world has never existed like it does today. Where the Bank of Japan and the Fed are printing the enormous amounts of money that they are, and so is the Swiss National Bank, then let us not forget, there are dollar pegs all over the planet.

 

Whether it is in Asia or South America. So there are lots of places where they are also stimulating, printing money. So we have never been here before. There is no chance they are going to get the genie back in the bottle.

 

Maybe you can short stocks now because they are about to crash; I do not know. You cannot really short the bond market yet. But you ought to be able to buy gold. These policies will continue until the bond market croaks. In the interim, you ought to be able to make money in gold.

 

Now the gold market has been under pressure  for like 18 months, and we had a huge break off the top in September of 2011 when Bernanke did not do QE2 when they thought he would. Now we just had an immense crack after having had, for a year and a half, central banks go hog wild. I cannot believe that there is not going to be an enormous rally, prospectively, in the gold market, once it stabilizes and starts flying higher. It is going to go one hell of a lot higher, I think.

 

I just do not know whether we have a train wreck in the bond market first or somehow gold goes into orbit first. It is hard to play a step forward on this, but what we do know is that we have never seen this before. It is guaranteed to shred the purchasing value of current currencies over time, and what exactly it takes to change psychology, I really cannot predict. We will just have to see what it is.

He sees the recent takedown in gold as engineered and short-lived, a tactic perpetrated in the paper markets while it still can be. But he sees a day soon where the physical bullion market will reassert itself as the primary driver of the price of gold and silver, and the corrupt manipulation suppressing PM prices finally is no longer possible.

In the interim, don't let the current battery in price shake you loose of your PM positions, as it's designed to do.

Click the play button below to listen to Chris' interview with Bill Fleckenstein (28m:26s):

 

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Mon, 04/22/2013 - 20:39 | 3486104 Croesus
Croesus's picture

Don't worry, I'm holding plenty tight.

 

The Ponzi players guarantee an inevitable flight into Gold. The more they drop the price, the faster "The Real Gold" disappears.

"Vote with your Oz.'s" <- Each one you buy, is a vote against these turkeys.

 

Mon, 04/22/2013 - 20:43 | 3486132 Supernova Born
Supernova Born's picture

Cling, bitchez!

Mon, 04/22/2013 - 20:49 | 3486143 tsx500
tsx500's picture

FORWARD bitchez !

Mon, 04/22/2013 - 20:57 | 3486156 strannick
strannick's picture

Zerohedge. All gold, all the time. Gotta love it.

Goldbugs, the new radicals. Buying one ounce of silver is worth $23 times any Occupy sit in.

Eric Sprott makes Che Guevera look like Uncle Remus

Mon, 04/22/2013 - 21:07 | 3486171 Supernova Born
Supernova Born's picture

Commies and socialists hate gold/real money.

Mon, 04/22/2013 - 21:32 | 3486212 TwoShortPlanks
TwoShortPlanks's picture

I predicted yesterday that the Gold take-down was driven by Central Banks deciding to [progressively] close-off all Gold Leasing Contracts at maturity (no renewal). Therefore, the physical must be repaid by the BBs, to the CBs....but from where? I believe this intent was given by the CBs to the BBs about 3-4 weeks ago. http://www.zerohedge.com/news/2013-04-21/so-who-sold-all-gold-jpms-own-version

You think the squeeze is tight now...LOL...you haven't seen anything yet. Try to imagine a Gold Market where Central Banks are scrambling to repatriate their Leased Gold as well as a Retail Market hell-bend on buying physical...it won't happen...THEN, try to cope with the prospect of the general public - fuelled by MSM - getting into the market.

China's dramatic buying increase tells me that the cliff hidden in the horizon is now under the horizon and is clearly visible. Last one to the bridge is a rotten egg!

Gold: 1 gram, per year, per man, per-haps!

Tue, 04/23/2013 - 05:07 | 3486368 TwoShortPlanks
TwoShortPlanks's picture

This is what panic smells (looks) like. http://blogs.wsj.com/moneybeat/2013/04/16/goldman-sachs-keep-shorting-gold-go-long-natural-gas/

This is Goldman Sachs in the act of market manipulation via MSM, to pull down the Gold price in order to shake the tree and free-up some physical (unallocated), so that they may buy that physical and repatriate the Central Bank Leased Gold.

Unfortunately for Goldman, fortunately for stackers, they must do this over-and-over again, as they more than likely must unwind hundreds if not thousands of Tons of paper without readily available underlying physical supply.

Good luck with that Blankfein...you too Dimon...coz I can hear the creaking of the rope already!
http://www.guardian.co.uk/uk/2012/may/12/roberto-calvi-blackfriars-bridge-mafia

Tue, 04/23/2013 - 07:51 | 3487097 TwoShortPlanks
TwoShortPlanks's picture

DING-DING-DING-DING, JACKPOT!

"A person that I know with significant deposits in one of the primary Swiss banks, in allocated gold, wanted to take out his gold and was just refused on the basis of directives from the central bank....They told him the amount was in excess of 200,000 Swiss francs and the central bank had instructed them not to do it because it has to do with anti-terrorism and anti-money laundering precautions"
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/23_Sinclair_-_Swiss_Bank_Just_Refused_To_Give_My_Friend_His_Gold.html

This is THE trigger I've been waiting for.

Central Bank Orders = Bank For International Settlement Orders = United Nations/IMF/World Bank Orders = Gold Heist Cyprus Style.

If this is legit.....Get. The. Fuck. Out. Now!

Tue, 04/23/2013 - 05:09 | 3487099 Bearwagon
Bearwagon's picture

Jump, you fuckers!

Mon, 04/22/2013 - 22:37 | 3486458 Croesus
Croesus's picture

@ TwoShortPlanks:

+1,000,000!

Very good insights in your post from yesterday. (Recommended reading for Gold Bugs, if you haven't seen it yet!)

http://www.zerohedge.com/news/2013-04-21/so-who-sold-all-gold-jpms-own-v...

Last one to the bridge isn't going to get a chance to cross it. The edge of the cliff is definitely in sight.

I do have an unresolved question about the recent developments in Gold:

Was the takedown in Gold a bold gambit on the part of the banksters (drop the price, hoping to scare the weaker-hands out of their positions?), OR Was the takedown in the Gold price done to deliberately cause a global flight into physical?

The Future Market for Physical Gold = All of the passengers on the Titanic, trying to pile into 1 lifeboat, all at once.

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2012...

 

Mon, 04/22/2013 - 23:19 | 3486595 TwoShortPlanks
TwoShortPlanks's picture

@ Croesus...Cheers!

Yes, the door is closing and once it's closed only one at a time can fit through the window...big line-ups to come!

To answer your question; I can't say for sure. I just believe all the pieces fit together much better if the Take-Down was in response to the Central Banks demand for repatriation of Leased Gold. This can be either at maturity or it may be written in the Lease Contract that the CB has the option to call the physical back at any time, with notice. THAT, would explain the narrow time-line Goldman was playing with.

I believe Goldman needed to scare-out physical. I also believe they had a helping hand from within Merc Exchanges, as there was a lot of Unallocated Gold movement prior to the Take-Down. Levels of desparation are always proportional to levels of fear.

I cannot [now] envisage a case where a deliberate Take-Down was perfrmed in order to create a Run into physical....why would Goldman do that? That's not in the best interests of the CBs, the BB, the Markets, or even the Gov.

I smell desperation in Goldmans' highly visable actions and words to the MSM, and the only thing Goldman and JPM fear would be the Central Banks.

If I'm correct in the CBs stance on Leased Gold contracts, then the physical squeeze will now be from above and below (CB & Retail).

Mon, 04/22/2013 - 23:25 | 3486617 strannick
strannick's picture

The bond crackup of 2013 is going to make 2008 look like 2007.

Bond debt of bankrupt governments, or gold suppressed by corrupt banks. Pretty simple.

Tue, 04/23/2013 - 03:31 | 3487008 StychoKiller
StychoKiller's picture

All the bit-players around the World might have drained around 20 tonnes of Au this go-round, the Trillion-$ question is how much Au does China have AND precisely WHEN they gonna announce that the RMB is knocking the $ out of reserve status?

Tue, 04/23/2013 - 08:09 | 3487344 Croesus
Croesus's picture

@ TwoShortPlanks:

On one level, it makes absolutely no sense for anyone connected to banking to "smash PM prices, with the intention of causing a flight into physical". However, it wouldn't be the first time "someone set fire to their own home, in order to collect on the insurance money".

I look at the derivatives mess that's clogging up their books. There's no way to clear it, so why not:

a) Kill the bank

b) Bail-in the Depositors

c) Use depositor money + good bank assets, as new bank capital.

 

 

 

 

Tue, 04/23/2013 - 09:07 | 3487567 DosZap
DosZap's picture

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/KWN_DailyWeb.html

 

So much for GUARANTEED ALLOCATED PM accounts.If these guys screwed him, imagine what the  smaller schumcks will do.We already know 99% of all ETF's will never deliver phyz, they all have a "fine" print cluause that allows them to settle in cash.

If you don't hold it, you don't own it.

Mon, 04/22/2013 - 22:32 | 3486441 El Oregonian
El Oregonian's picture

Unless they own it...

Mon, 04/22/2013 - 23:11 | 3486591 angel_of_joy
angel_of_joy's picture

Commies and socialists hate gold/real money.

Commies, socialists... and morons !


Mon, 04/22/2013 - 21:05 | 3486189 BC6
BC6's picture

Huh? Where have u been, there was a bombing in Boston FYI.

Mon, 04/22/2013 - 21:14 | 3486205 Charles Nelson ...
Charles Nelson Reilly's picture

I don't think you listened to the podcast, it was Bill Fleckenstein not Sprott. Do recommend I liquidate my stack and buy 30 year treasury notes? You seem to have it all figured out.

Mon, 04/22/2013 - 21:45 | 3486294 San Diego Gold Bug
San Diego Gold Bug's picture

It is always easy to spot the poor guys on this site............Strannick............

Mon, 04/22/2013 - 22:59 | 3486553 Bay of Pigs
Bay of Pigs's picture

I have no idea why people are junking him. He's huge gold and silverbug.

Mon, 04/22/2013 - 23:05 | 3486564 akak
akak's picture

Strannick and I had a long-running thread in the Kitco gulag of a forum mocking Jon Nadler, turning his anti-gold "daily reports" upside-down into pro-gold "daily retorts".  It was a hoot!  (Until I got banned for being too outspokenly anti-Nadler).

Strannick is a good guy.

Tue, 04/23/2013 - 07:14 | 3487240 JOYFUL
JOYFUL's picture

"banned on Kitco"...

badge of honor.

Phuck yu...Yknot2K!

Tue, 04/23/2013 - 06:54 | 3487197 duo
duo's picture

Smart people said Enron, Worldcom, and Lucent were great investments.  They are all at 0 now.

Mon, 04/22/2013 - 21:12 | 3486204 JackT
JackT's picture

Until tomorrow and then only for a short time.

Mon, 04/22/2013 - 21:51 | 3486313 San Diego Gold Bug
San Diego Gold Bug's picture

9,000 silver Eagels in stock at Libertycpm.com as of close of business today.  Libertycpm.com

Mon, 04/22/2013 - 22:49 | 3486499 Godisanhftbot
Godisanhftbot's picture

 All gone now.  ZH readers bought it all.

Mon, 04/22/2013 - 20:58 | 3486154 DJ Happy Ending
DJ Happy Ending's picture

Bill has always had good insights but his timing is horrible, especially with the dot com bubble.

The time Joe Battapaglia made his eyes well up and almost cry on CNBC after getting his ass handed to him wasn't endearing either.

Mon, 04/22/2013 - 20:45 | 3486138 msmith9962
msmith9962's picture

What about using TMV.  Any opinions on owning that to short the bond martket?

Mon, 04/22/2013 - 21:31 | 3486256 zorba THE GREEK
zorba THE GREEK's picture

If I hold it any tighter it will melt in my hand.

Mon, 04/22/2013 - 20:34 | 3486111 MFLTucson
MFLTucson's picture

Look at the thin after hour’s market now, the criminals are at it again with the paper gold fraud and deceit!  Gold down when there is none to buy! lol!  These people suck!

Mon, 04/22/2013 - 20:36 | 3486122 fonzannoon
fonzannoon's picture

Dude get over it. It's falling apart and they know it.

Mon, 04/22/2013 - 21:08 | 3486186 CClarity
CClarity's picture

I think gold will be what sets off the great inverted pyramid of derivatives into the cascading calamity of collapse. Signs showing up now with divergence between paper and metal gold. Gold will be where the best signal wobbles forth first. Then stand back and watch CDSs, fiats,, electronic bank ledgers and derivatives of almost every ilk simply vaporize!

Mon, 04/22/2013 - 21:15 | 3486211 disabledvet
disabledvet's picture

Bill you need a haircut. Well...unless you've already gotten one of course. natural gas is up over 100% in just over a year. there's no problem making money in the commodity space...as with everything else it's just a question of "buy low sell high." again you will never hear me say "start shorting." First Solar stands out as a good old fashioned "rip you short face off trade." Apparently so is Netflix. GE has gotten clocked on its earnings news...but this is after a solid pop on a massive asset sale with Comcast. Obviously i feel like i've missed out on a major rally since January...still haven't done a "reverse triple lindy with a full twist from the stationary board" but i'm really not happy as a "long everything" who was a raging bull in this space but a few months ago. we shall see of course but my personal view is that there is nothing standing in the way of what's left of the US and Japanese based banks, the East Asian Sovereign Wealth funds and "the usual assortment of millionaires and billionaires" from pushing this market...and a recovery...forward. if i had invested in my "zero recovery in real estate" thesis i'd be dead right now. same goes for my disdain for high yield. even zero yield is now exerting "the squeeze" and with little to no inflation, a dollar that bottomed almost a year ago, serious deflation in the materials space and a continued flood of investment dollars into the USA and i think you have the makings of an albeit "long hard slog" and anemic but still a recovery. it will be interesting to see of Chairman Bernanke is reappointed. My personal view is that he should be...it's nothing short of miraculous that US based borrowing rates are as low as they are...although my personal view is that this is as much driven by events (Arab Revolt, Fukushima, EU disintermediation) as anything the Fed is in fact doing. Indeed i think a good argument can be made that what the Fed is doing is in fact a Treasury function...although it has obviously been far from market unfriendly. not saying "don't keep stacking" of course. it's just my view that "the bad guys" are stacking TONS of gold right now...not just a "few ounces here, few ounces there." among many other assets of course....

Mon, 04/22/2013 - 22:03 | 3486350 Taint Boil
Taint Boil's picture

 

 

Paragraphs - use them .... they're good.

Tue, 04/23/2013 - 04:44 | 3487080 natty light
natty light's picture

TLDR

Mon, 04/22/2013 - 20:38 | 3486125 Croesus
Croesus's picture

@ MFL Tucson:

 

Don't let 'them taking the price down' get you down! All it means is that physical disappears at an even faster rate. They are checkmated into a corner now.

Mon, 04/22/2013 - 20:40 | 3486130 The Fonz...befo...
The Fonz...before shark jump's picture

Dtc should chill Gld and Slv etf trading because of fraud...

Mon, 04/22/2013 - 21:02 | 3486178 DJ Happy Ending
DJ Happy Ending's picture

I thought gold traded nearly 24x7 and there is no concept of after-hours, especially with globex?

Tue, 04/23/2013 - 06:55 | 3487201 Urban Redneck
Urban Redneck's picture

Who watches channel 77 at 2am?

And to actually get to 24hrs x 5 days a week you need to go an off-off-market exchange (channel 583 on your digital box)

And if you really want 24x 7 you need the whole package of basic, digital, satellite plus an antique teletype and two cans connected by piece of string...

 

Mon, 04/22/2013 - 20:34 | 3486112 Stanley Lord
Stanley Lord's picture

I like Bill.

Mon, 04/22/2013 - 20:36 | 3486121 Lost Wages
Lost Wages's picture

"Hold tight to your gold." I clutch all my valuables against my chest 24/7, while rocking back & forth, waiting for armageddon.

Mon, 04/22/2013 - 21:03 | 3486181 New_Meat
New_Meat's picture

does your "clutching" result in a "happy ending?"

Inquiring minds wish to know!!!

- Ned

{actually, none of us around these here parts gives a particular fuck what you do}

Mon, 04/22/2013 - 21:27 | 3486247 jimmytorpedo
jimmytorpedo's picture

I alternate the rocking with some pacing and mumbling.

Mon, 04/22/2013 - 21:32 | 3486257 Abi Normal
Abi Normal's picture

At least you are upright and rocking, I am in a fetal position sucking my thumbs!

Tue, 04/23/2013 - 02:16 | 3486939 MsCreant
MsCreant's picture

Boom!

There you can relax now.

Armageddon is over wrought. Nature creates, sustains, and destroys. Compost fetilizes the soil so that the new seeds can grow in fresh nutrition. The system is holding back it's poo and needs to take a big dump. It is hurting the rest of the system until it does so. 

Black hole sun, won't you come, and wash away the rein? Or is that reign?

Mon, 04/22/2013 - 20:40 | 3486129 perelmanfan
perelmanfan's picture

I've never heard one person provide an explanation of how QE can stop without destroying the economy - yet if it continues, it will also destroy the economy. The difference - ending QE causes destruction immediately and makes fixing blame simple. Continued QE pushes the reckoning into the indefinite future - a time when, each politician believers, I'll be long gone. So they choose option 2, as they have dozens, hundreds of times throughout history.

Mon, 04/22/2013 - 21:17 | 3486217 Poor Grogman
Poor Grogman's picture

Proessor Fekete comes close with his missive urging a return to the gold standard and opening the mint/s to gold and silver.

Basically he is saying that to prevent total collapse gold and silver must be "bought out of hiding" and mobilized as money once more, to do this he says the mints should be opened for private gold to be "coined" with only some seigniorage charged.

The next step would be to change/scrap legal tender laws and thus allow economic freedom to flourish once again.

This of course is about as likely as rocking horse shit, but worth mentioning anyhow.

Mon, 04/22/2013 - 20:44 | 3486135 Magnum
Magnum's picture

Relative to other commentators, Flecks doesn't do a lot of public interviews but when he does it's spot on correct and always timely.

Mon, 04/22/2013 - 20:57 | 3486165 cheetahbaby
cheetahbaby's picture

Where's the pud??? CB

Mon, 04/22/2013 - 21:01 | 3486177 SqueekyFromm
SqueekyFromm's picture

For all the Gold Bugs, I wrote this poem last night here. This is the latest revision. I hope all the SANE, non-Gold Bug people here enjoy it!

 

PWNED

Quick, Maw! Hock the trailer!
And hock the pickup, too.
Gold is 18 hundred,
So, let's buy an ounce or two.

And when it hits 10 thousand,
Oh, how we'll swell with pride!
Sell it off, pay back the loan,
And buy a double-wide!

Paw, it's Fred, the pawn shop guy.
He's says a payment's due.
Should we sell an ounce of gold,
Or maybe even two???

Nope, it's 16 hundred now,
We need to buy the dip.
Hock the shotguns, and the dog,
We'll wait and sell the rip.

Paw, it's Fred, the pawn shop guy.
Another payment's due.
Should we sell an ounce of gold,
Or maybe even two???

Nope, it's 15 hundred now,
A sure sign to invest!
Let's go get a paycheck loan,
I think that's what is best.

Paw, it's Fred, the pawn shop guy,
And the loan girl, Betty Lou.
Should we sell an ounce of gold
Or maybe even two???

Nope, it's 14 hundred now,
So let's stick out our necks.
We'll gamble on the rally,
With some insufficent checks.

Paw, it's Fred, the pawn shop guy,
And Betty Lou's on hold.
They're mad about the hot checks.
Pretty pleeease, let's sell the gold???

Nope, it's 13 hundred now,
It's got to take off soon.
Nowhere left to go but up.
A rally to the moon!

Paw, it's Fred, the pawn shop guy.
Our trailer has been sold.
Betty Lou has garnished us,
You've got to dump the gold!

Maw, the stuff is selling
For 8 hundred bucks an ounce.
Cross your fingers, hope and pray
We get a dead-cat bounce.

Paw, it's getting serious.
The Sheriff's at the door.
He says we have to clear out.
Oh please sell it, I implore!

Maw, I can not sell the gold.
The price could not be worse.
I thought I had the Midas touch.
I did. . . but in reverse.

. . . .

Paw, this cardboard box, it leaks.
The sidewalk's awful cold.
I'm about to starve to death,
Too bad we can't eat gold.

Maw, I know just how you feel.
My pillow is a log.
I miss my shotgun, and my job.
I really miss my dog.

I miss my trailer, and my truck.
I can not be consoled.
All I have to keep me warm,
Is a stupid chunk of gold.

Time for me to dump the gold.
I got insider tips,
About an opportunity
Investing in TU-LIPS.

Squeeky Fromm, Girl Reporter

Mon, 04/22/2013 - 21:17 | 3486196 otto skorzeny
otto skorzeny's picture

awesome-ZHers have a hard time grasping commodity deflation. get david allen coe to put it to music and it's the perfect country-and-western song -just add something about trains,prison and gettin' drunk.

Mon, 04/22/2013 - 21:10 | 3486202 Supernova Born
Supernova Born's picture

Sell shotgun?  Yeah, right.

Poem sucks a double barrel.

 

 

Mon, 04/22/2013 - 21:14 | 3486206 JOYFUL
JOYFUL's picture

Jon Nadler, post sex-change.

Mon, 04/22/2013 - 22:16 | 3486388 akak
akak's picture

Nadless was always at least half-way there already, so no great surprise.

Mon, 04/22/2013 - 21:41 | 3486287 Abi Normal
Abi Normal's picture

Sorry I don't read tripe!  Especially from a 12 year old little girl, who is wet behind the ears...on your way back to HuffNPuffCompost dot com, K!

Mon, 04/22/2013 - 21:49 | 3486310 otto skorzeny
otto skorzeny's picture

how do you know it's tripe if you didn't read it-newbie?

Mon, 04/22/2013 - 22:29 | 3486393 Abi Normal
Abi Normal's picture

For calling gold bugs insane is why...maybe not me directly, but the insinuation is there, and I won't read it, pure and simple!  She should not be poking fun at people who have a lot riding on what is going on, that is my position.  I see people getting hurt by lies and manipulation, just for doing the right thing and hedging, so making fun of people like that doesn't sit well with me.  I guess it also hits close to home as I am teetering financially right now as well.  Call me thin skinned at the moment I guess.

Mon, 04/22/2013 - 22:41 | 3486482 ether
ether's picture

She's too stupid to defend her simplistic positions, so she posts cutesy fucking poems to add some spunk to her idiocy.

 

She should go back to Tumblr.

Tue, 04/23/2013 - 05:17 | 3487105 Mr. Hudson
Mr. Hudson's picture

It was funny as Hell. You're taking this gold thing too serious. Invest in food.

Tue, 04/23/2013 - 05:59 | 3487138 akak
akak's picture

But you can't eat it!

Oh wait ....

Tue, 04/23/2013 - 07:16 | 3487243 JOYFUL
JOYFUL's picture

Monsanto rulez!

Tue, 04/23/2013 - 16:40 | 3490101 Diogenes
Diogenes's picture

Don't forget the toilet paper! You can't eat it but you can wipe your ass with it! You will need it if you buy all that food!

Mon, 04/22/2013 - 22:18 | 3486394 FieldingMellish
FieldingMellish's picture

Gold is not about getting rich, its about keeping what you have. Financial reset is inevitable to anyone who has worked "inside" and gold is the only asset with zero counterparty risk.

Tue, 04/23/2013 - 05:07 | 3487094 Mr. Hudson
Mr. Hudson's picture

Dr. Goldflakenstein just said in this here article on Zerohedge that you can make lots of money in gold. I think goldbugs use that term "it's a hedge against inflation" to sooth their shattered nerves.

 

 

Tue, 04/23/2013 - 08:09 | 3487381 FreeNewEnergy
FreeNewEnergy's picture

Don't forget silver, the "gentleman's gold," which is currently at something like a 60-1 ratio with gold when the long trm average is somewhere between 12 and 16 to one.

When the SHTF - soon, very soon, I believe - silver will be the preferred currency of most people as gold is pricey and difficult to break down into manageable pieces for exchange.

Silver? A 90% pre-1965 quarter may be worth $10, $12, $20; a pure silver eagle something along the lines of $60-$90, maybe more. Those are numbers with which the general population can deal.

Buying food or tires or a gun with a Krugger will be a difficult transaction, though gold will be great for real estate (Wanna sell that house? I'll give you ten one-ounce gold coins, pal.) and other high-value items - art, cars, etc.

Mon, 04/22/2013 - 23:28 | 3486638 Vooter
Vooter's picture

Zyklon-B. Make it a double.

Mon, 04/22/2013 - 21:03 | 3486179 gimli
gimli's picture

Bill's hair beats Bart's hands down. He's got my vote.

Mon, 04/22/2013 - 21:06 | 3486192 ebworthen
Mon, 04/22/2013 - 22:59 | 3486544 Godisanhftbot
Godisanhftbot's picture

1) 'The gold price' saw its biggest fall in 30 years — a
7.5 standard deviation event. To put that into the
proper perspective, I'll hand things over to Howard
Simons of Bianco Research:
(Bianco): As the odds against such a move are on the
order of 20 trillion to 1, it had a lower probability of
occurrence than randomly selecting a specific $1 bill
out of a pile of singles representing the US National Debt.(See image, left.)

 

This is pretty well proof enough that these are clueless swine.  I guess the Bitcoin selloff was also 20 trillion to one.  Lots of those around these days.

 

Tell ya what's 20 trillion to 1.  A gold bug admitting they have a fetish and that when and if it hits the fan, they will be no better off than holders of fiat.

Mon, 04/22/2013 - 21:12 | 3486195 DavidPierre
DavidPierre's picture

 

Hank Fellerman

GATA's good friend ...

 

These past few months have been the most extraordinary period of the bull market that began fourteen years ago when gold bottomed at $250/ounce. The behavior I’ve observed along the way illustrates the best and worst of what people are capable of.

The best is exemplified by those associated with GATA. Bill and Chris lead the roster. GATA have accomplished a lot by bring to a worldwide audience the true state of the gold market. The conferences you sponsored on three continents featured the smartest people in the gold arena. Given their intelligence, obvious sincerity and righteousness of their cause, I can’t think of a comparable series of meetings in the last twenty-five years. These conferences did such a good job of educating people that they changed the world in ways large and small.

I remember that a speaker at the first conference that was held in South Africa said he’d recently had breakfast with a famous analyst who said the Bill Murphy and his followers had done something remarkable. GATA had so badgered and bothered CEO’s and Boards of mining companies that hedging gold had become socially unacceptable. It just wasn’t worth the hassle.

This famous mining analyst credited GATA with the demise of hedging.

GATA’s message had a better reception in foreign lands than in the US. In Communist and formerly Communist countries where the media and governments are more interested in new ideas than in the Land of the Free, many people were convinced and then invested in gold and silver as a result.

A lot of villains came to light. One is Peter Monk, founder of Barrick Gold Corp. Bill Murphy and Peter Monk have had a very contentious relationship since about 1999, with Bill criticizing most everything Monk did and stood for. After fourteen years Barrick is a wreck and Monk is out. At the beginning of 1999 Barrick stock closed at $16.28 (adjusted for splits and dividends). On April 20, 2013 Barrack’s stock had only risen to $18.17, an increase of less than $2/share over fourteen years. Under Monk’s rule shareholders got screwed. Obviously, Bill was completely right and Monk was completely wrong.

Dennis Gartman wins the prize for the Biggest Fool in America.

On numerous occasions he’s said that if gold bugs stopped wasting their time on this trivial pursuit and devoted their efforts to something worthwhile, like cancer research, that cancer would soon be cured. I assure you, if Bill Murphy, Chris Powell, Hank Fellerman, Eric Sprott, John Embry, James Turk and all the other GATAites dropped everything and became cancer researchers that cancer would still be there. That Gartman believes otherwise shows he has bad judgment.

GATA’s mission, as I formulate it, is that we should have honest government and free markets in gold and all other goods and commodities. Manipulating the gold market involves the government lying about its gold holdings and dealings in the markets. It also means insiders steal from miners, investors and their families and the communities they live in. By manipulating gold and silver the insiders steal from innocent people who don’t have a lot of resources to begin with.

Gartman and his crowd probably don’t quite understand what the fuss is about lying and stealing. There is an old document call the Ten Commandments. A copy is available for review on Google. One Commandment deals directly with the issue of stealing while telling lies is frowned on by two other Commandments. I suspect the reason for Gartman’s rage at GATA is that he and his subscribers are contemptuous of anyone who takes that crap seriously. It’s just not part of their world.

The media in general, including the Wall Street Journal, Associated Press, New York Times, Washington Post, television news programs, Public radio and television, and Bloomberg with all its tentacles, aid and abet this manipulation by their silence. The question here is whether the employees know about the gold manipulation and say nothing or just don’t know. If they know and say nothing they are dishonest. If they don’t know they are stupid. In my opinion, they are smart enough to not know what they are not supposed to know. In the comedy Hogan’s Heroes, when the trap door opened Sergeant Schulz said, "I know nothing, nothing!" Of course, Schultz was facing a transfer to the Russian Front so he can be forgiven his discomfort at being put on the spot. Modern "journalists" only have to choose between their jobs and their integrity, and the former always wins.

Conservative Republicans and Liberal Democrats are equally corrupt. While they differ on minor issues, at the core they are the same.

For the last six months gold has been under relentless assault. Midas documented the process. If the Gold Cartel are able and willing to keep this up the COMEX price will drop back to $250/ounce in about one year. The politicians, bureaucrats and bankers who comprise the Gold/Banking Cartel are motivated to drive down gold, in minor part, because a rising price contradicts their contrived story about economic recovery. Things are terribly bad behind the scenes. Their end game might look like this:

1. Drive gold and silver as low as possible.

2. Insiders buy vast amounts of gold and silver for their personal and corporate accounts.

3. The same entities buy shares in beaten down gold and silver producers.

4. Close the banks and force "bail-ins" by depositors. That way depositors—sorry, unsecured creditors of banks, get near-worthless common stock in reorganized banks.

5. As the FDIC has only $25 billion to cover $10 trillion in insured deposits, once the insurance is exhausted the unhappy happy holders of the remaining $9,975,000,000,000 are shanghaied into becoming bank shareholders.

6. This will be accompanied by a stock market collapse. All pension funds and other retirement accounts will go broke. The Feds may well nationalize them. At that point, Federal Government will own controlling interest in almost all public companies. Russia faced this situation after the fall of the USSR. The Yeltsin government "privatized" state owned enterprises by selling them to cronies at barging prices. This resulted in the rise of the Oligarch class. Think of how many properties Warren Buffet will own after this is done.

7.The monetary system resets with some tenuous connection to gold.

The America that emerges after this is over will be a lot different from the America that we know.

Point #2 may be the key to this.

According to Jim Sinclair, the Wall Street elite, through the Carlyle Group, has bought vast amounts of physical gold and silver for their personal accounts. So while the bullion banks may be short gold and silver the executives of those firms own bullion. This means the government will not seize gold and silver. It would be bad form to have hundreds of Federal SWAT teams across the USA breaking into thousands of homes to arrest people who own a few Gold Eagle coins when insiders flaunt their new wealth rooted in gold.

Why is the Gold Cartel doing this?

Imagine the Mafia was under the protection of the Federal Government. That is how the American government and financial markets operate. It is a de facto criminal enterprise that uses the law to benefit insiders at the expense of innocent people. I’m not sure that these insiders are all that smart. The character Tony Soprano wasn’t well educated but he was very smart. That is how he stayed one step ahead of the IRS and FBI. Those associated with the Gold Cartel are not as smart as Tony, no matter how may degrees they have from Ivy League colleges. Rather, they are powerful. People like that eventually become arrogant, petty and cruel. They eventually mistake their power to compel obedience with virtue.

The politicians, bankers and bureaucrats who rule the USA want to present a respectable face to the public at all costs. No meaningful reform is possible as that would expose them as corrupt and despicable people. For some years now the actions of the Gold Cartel have been directed at hiding their long running crimes from the American people. They smashed gold to keep up the façade that America is a nation under the rule of law and governed by honorable folk. In other words, they don’t care what harm they do to millions of people, just that they appear respectable.

If Tony Soprano ran things he would not have smashed gold from $1,900 to $1,300. Smart as he is, Tony would have recognized it as a crime too far. Driving paper gold this low makes the Gold Cartel vulnerable to the physical market. From reports Americans are buying physical gold and silver at a rapid rate. However, Americans are a small factor in the PM markets. Foreigners will determine the future of the price of gold and silver.

The Gold Cartel has made the USA vulnerable to the actions of foreign governments and individuals. Their buying will break the paper market and expose the criminal foundation of the US dollar. When that happens the Feds will still be able to print all the dollars they want but those dollars won’t buy so much. If Washington wants to fight a war Congress will have to raise taxes to pay for it. To sell bonds the Treasury Department will have to pay a market rate of interest. Up until now, Americans have thought of themselves as special. When foreigners break and expose the Gold Cartel that conceit will end.

Sometimes reference is made to the damage the Gold Cartel is doing to people in the developing world.

If someone hits a rough spot in America it may mean your daughter has to transfer from Yale to a state school. Of course, that would be an occasion for tears and little humiliation, but it won’t kill her. However, if you are miner in South Africa or Bolivia and already live near the edge, loosing your job because of low gold/silver prices would be a more serious matter. If you are on the edge and then fall lower your daughter could die due to a lack of things money can buy—like food and medical care. If the Gold Cartel had never existed and gold sold for $3,500 and silver at $250, much of the developing world would be vastly more prosperous. It is almost certainly the case that the actions of the Gold Cartel have led to the premature deaths of millions of the most vulnerable people in the developing world (primarily children).

Foreigners won’t let them get away with it much longer.

In the future GATA will be studied as the classic example a small group of people using the Internet to create genuine reform. Subscribers to Le Metropole Café, sometimes called hardcore gold bugs, comprise the GATA Army. After fifteen years of writing, calling, reaching out and recruiting, the Cafe has a following of only 2,500 people around the world. Given that this earth is occupied by 7.2 billion and there are 310 million Americans, GATA’s following is the equivalent to about 100 Americans.

 

It is this tiny group that the mass media in the United State is afraid to engage.

GATA will prevail

http://www.lemetropolecafe.com

 

 

Mon, 04/22/2013 - 21:18 | 3486222 Bay of Pigs
Bay of Pigs's picture

It's Peter Munk, not Monk, and he is a vile disgusting human being.

Barrick and JPM were the original poster children for fraud and corruption in the gold market.

Mon, 04/22/2013 - 21:38 | 3486272 JOYFUL
JOYFUL's picture

Bill Murphy and Peter Monk have had a very contentious relationship since about 1999, with Bill criticizing most everything Monk did and stood for. After fourteen years Barrick is a wreck and Monk is out.

Barrick is indeed "a wreck"...but Peter "Clairtone" |MUNK| was never more than the bobble-necked front man for the nexus of evil which came together over the remains of the Ollie North era to feast upon the spoils of guns for oil...n other stuff. BusheyBandit Numero Uno, Adnan "Kash Hogg" the arms dealer, the usual chop shop and drug laundering bankers and a few other hidden bad guys formed Barrick with a Canuckistani ConMan at the helm to compliment the work of JPM in price suppression of the miners sector and create a workable flow through for their Afghan Flower Delivery Service and Black Gold gambit...

No ecomium for the work of wasting Barrick can be complete without mentioning Blanchard of Norleans...that GoldGuys suit against Barrick in a US Court not yet fully on board with the new Imperial President Imperium of the present moment turned the tide forever against the bespoke bullies...and exposed the tip of the fully integrated iceberg of FED\WALLSTREET\PHONYMINERS Dual-CitiizIned KOSHERKARTEL KAPITALISM to the light of day.

GATA is good, but golden holders buying with both paws in the current pause before blast off should consider a tip o the tinfoil hat towards the Blanchard Boyz...who continue the fine tradition of free enterprise tradin which the Kenyan is so eager to snuff with his socialist Kambodian Killing Fields eKonomics.

Mon, 04/22/2013 - 22:18 | 3486396 Scro
Scro's picture

Too many words.

Tue, 04/23/2013 - 04:02 | 3487033 JOYFUL
JOYFUL's picture

too few brain cells?

try e-bay

Mon, 04/22/2013 - 22:29 | 3486436 XitSam
XitSam's picture

"It would be bad form to have hundreds of Federal SWAT teams across the USA breaking into thousands of homes to arrest people who own a few Gold Eagle coins when insiders flaunt their new wealth rooted in gold."

Nonsense. First, the public will never find out that the elite didn't get raided. Second, government and the elites won't care if anyone found out, after all they're elites and who cares what the proles think. Third, it makes good videos for the elites to watch. Fourth, it keeps the proles on edge and in line. Fifth, more gold for the elites.

Tue, 04/23/2013 - 08:53 | 3487519 DosZap
DosZap's picture

"It would be bad form to have hundreds of Federal SWAT teams across the USA breaking into thousands of homes to arrest people who own a few Gold Eagle coins when insiders flaunt their new wealth rooted in gold."

O T, but tell that to families in 17 blocks of homes that were FORCED from their homes, at M4 Point, and ordered/and screamed at, to put their hands on their heads and then to go to a waiting cadre of more LE to frisk them.

For what?, looking of one 19yr old dumb ass. 4th Amendment rights out the window,and a minimum of 20+ SWAT, and LE going door to door.

Tue, 04/23/2013 - 04:07 | 3487037 Supernova Born
Supernova Born's picture

Gartman is a fool, but it is in Yen terms so he is actually...let me do the exchange rate calculation...shit, he is an even bigger fool in Yen terms.

Tue, 04/23/2013 - 04:09 | 3487038 akak
akak's picture

LOL!

 

(In pound terms, of course)

Tue, 04/23/2013 - 06:44 | 3487191 goldenbuddha454
goldenbuddha454's picture

Brilliant and spot on! Nothing more needs to be said.

Mon, 04/22/2013 - 21:17 | 3486215 OutLookingIn
OutLookingIn's picture

Simple. Bad money (fiat) drives good money (gold) into hiding. (hoarding)

Paper fiat will be 'spent' before people use their gold.

Just keep watching the gold and silver premiums being charged. They are climbing higher.

The REAL fiat price of gold and silver, will be much higher then the LBMA paper spot price.

We are beginning to see this divergence happen now, in real time. Eventually no one will want to 'sell' gold.

Mon, 04/22/2013 - 21:25 | 3486242 hannah
hannah's picture
Bill Fleckenstein is still around....?
Mon, 04/22/2013 - 21:41 | 3486288 RebelDevil
RebelDevil's picture

Yup. I sometimes listen to him on KWN.

Mon, 04/22/2013 - 21:25 | 3486243 de3de8
de3de8's picture

At the risk of being skewered, need help understanding the claims that gold and silver Eagles can be purchased from any number of named dealers/ sellers for prices waaaay below U.S. Mint website prices. Does this mean that they buy at discount or reselling, or both?

Tue, 04/23/2013 - 08:03 | 3486464 XitSam
XitSam's picture

You mean the proof coins in individual units that the Mint sells? Proofs always cost more. For uncirculated sales, the Mint sells monster boxes to a very limited (about 5) set of wholesalers who then sell to other dealers, coin shops, etc.  (corrections welcomed)

Update: This article in Coin World says there are 13 purchasers for silver eagles. There is a different, smaller number for gold eagles.

Mon, 04/22/2013 - 23:44 | 3486655 bardot63
bardot63's picture

The US Mint does not sell bullion gold and silver Eagles to the general public.  The mint sells collector coins to the general public, at a high 'collector' premium.  These are sometimes specially packaged, sometimes proofs, etc.  Collector coins are not the same as rare coins. Rare coins become rare coins down the road, when they are found to be rare. What you are seeing is high collector coin prices at the mint.  Bullion coins are sold only to a dozen 'primary' dealers, who then fan them out to other dealers, who fan them out to retail customers.  You can't buy a monster box or a roll of Eagles from the mint unless you are one of the dozen giant coin dealers on the list.  Sometimes the bullion coins become rare coins, again, when they are discovered to be rare because of some glitch in strike, or a small number made that year (1996) or for some other discrepancy.  The mint charges a premium on silver bullion Eagles to the primary dealers of two or three bucks, depending, which is passed on to retail customers in addition to the dealers profit margin.  

 

Tue, 04/23/2013 - 07:07 | 3487226 de3de8
de3de8's picture

Xsam and B63,
Thanks for the education. Two more ques,
1. Are the bullion coins close to spot fm the USM?
2. My purchases over the years of proofs good choice vs. above, ignoring the general increase in the value of gold yr over yr?

Tue, 04/23/2013 - 08:36 | 3487453 XitSam
XitSam's picture

The Mint is allowed by Congress to make a profit on bullion coin sales. 

Proofs? Did you buy them as numismatic items or as bullion? Probably both, right? In my experience of anything collectible and in a normal free market, condition is everything. This is anything but a free market.  When gold is $10K the future premium may be +$150 or zero $ or +$600. Not worth worrying about the price in FRNs. Good G:S ratio now, got silver?

Tue, 04/23/2013 - 12:48 | 3488725 de3de8
de3de8's picture

XSam,
All proofs with lots of silver (proofs) too. All in the fancy packaging. Purchased for Numismatic and store of wealth.
Always thought combining the pm with artistic quality, could not go wrong.
Again thanks for the education!

Tue, 04/23/2013 - 12:49 | 3488726 de3de8
de3de8's picture

XSam,
All proofs with lots of silver (proofs) too. All in the fancy packaging. Purchased for Numismatic and store of wealth.
Always thought combining the pm with artistic quality, could not go wrong.
Again thanks for the education!

Tue, 04/23/2013 - 09:06 | 3487442 DosZap
DosZap's picture

#

Mon, 04/22/2013 - 21:45 | 3486300 MxBonanza
MxBonanza's picture

Interesting article from Grant Williams.

He says that during the gold's waterfall on Friday, there was a "computer glitch" and It was not possible to BUY and take advantage of the gold plunge. The only options were sell or short gold.

Who knows if what he says is true. I would not be suprised.

Rigged casino anyone?

http://tinyurl.com/chpgcp4

Mon, 04/22/2013 - 22:47 | 3486493 Mr. Magoo
Mr. Magoo's picture

Who cares!!! The way I see it is the paper market is completely decoupled from the real worth of gold and silver. We will really find out when there is none left to buy @ 1500 or 28 an OZ. He that has the most paper at the end LOSES

Mon, 04/22/2013 - 23:37 | 3486666 Luke 21
Luke 21's picture

Fleck is the man.

Tue, 04/23/2013 - 00:07 | 3486736 Notarocketscientist
Notarocketscientist's picture

If gold stocks really are depleted then guess what is coming next (after the manipulated crash fails to scare people out of PM - and in fact scares them in)...

Guess what the Fed is gonna do next......

Are you gonna agree to sell your PM to them?

Tue, 04/23/2013 - 02:31 | 3486954 Jack Napier
Jack Napier's picture

Only if they pay me in real money, har har.

Tue, 04/23/2013 - 00:17 | 3486760 orkoSvalbard
orkoSvalbard's picture

Update on Canadian Jr. Miners availble @ the Mining Muppet:  http://miningmuppet.blogspot.com/2013/04/still-here-still-sober.html

Tue, 04/23/2013 - 01:10 | 3486849 dunce
dunce's picture

Gold bugs are created by scalawags and scoundrels in govt. Most office holders are lower forms of life that could not find a position of responsibility in the private sector. Obama and nearly all his appointees are prime examples. They claim they rejected corporate centers of profit, but they are the rejected.

Tue, 04/23/2013 - 02:29 | 3486951 Jack Napier
Jack Napier's picture

Give up your love for money, and there is no fear in fighting the Fed. The eventual outcome will be profitable for the shorts, and those profits will be in dollars worth next to nothing that are locked to prevent withdrawl. Nothing to fear since they will steal it all in the end. Only metals will be left standing.

Tue, 04/23/2013 - 05:01 | 3487088 Mr. Hudson
Mr. Hudson's picture

: "In the interim, you ought to be able to make money in gold."

??? If money collapses, how do you "make money in gold"? Why would you want money?

 

 

Tue, 04/23/2013 - 06:18 | 3487155 Mediocritas
Mediocritas's picture

Recently I was in that part of the world so I stopped in for a little shopping at the Perth Mint. Well worth a visit if you're ever in Perth (although why would you be if you're not into either water-sports, mining, or over-valued everything?). It's been a little while since I physically visited the Mint and a few things have changed since I was last there. The shop renovations have helped reduce the poky-maze feel, adding new rooms and cabinets with greater accessibility and spaciousness. A little cafe has been opened in the shop where you can kick back over a coffee and admire some treasures.

Some comfortable high-value client rooms have been opened but the bullion trading booths retain the dingy style of old and had a long queue. While I watched, an old guy who looked a little like a bum dressing up for Sunday service dropped a wad of cash on the counter (about $70k) and ordered 50 kangaroos. Looks can be deceiving. Another middle-aged guy who looked like a bank clerk concluded his transaction and exuberantly pronounced how happy he was to be rid of paper money and be holding something with true physical value. Looks can be deceiving. Others in the line started commenting along similar lines. These are totally normal people, many families with little kids, getting it. When the hell did this happen? It's encouraging.

It really wasn't that long ago that I'd visit the mint and find a bunch of staff standing around looking bored. On occasion I'd be the only client there. Times are changing.

Security has been beefed up substantially, which is good to see. In the past I'd load up and feel a bit insecure about the fact that the only security on display was an old guy standing at the door with a hook for a hand, half melted face and a limp, who wanted to know your zip code when you came in the door (no I'm not joking).

The biggest change of all is that the place is absolutely packed with Chinese tourists. They're everywhere, blocking the gates, sitting on the steps, taking pictures in the garden, arguing in the shop with (mostly Asian) shop-workers who are fluent in Mandarin. Most of the Chinese tourists have come with intent to buy. These are Chinese with money, accompanied by subservient Western driver / translators. I'd estimate that around 20% of the products in the shop have a Chinese theme and all the bullion coins offer a Chinese calendar themes (year of the snake).

I wandered around the shop and picked up a few trinkets for family in Europe before meeting with an agent for the serious stuff. Surprise, surprise, all of my usual bullion products were out of stock (I've never experienced that before at the Perth Mint). The agent was apologetic as I walked out of there with a paper promise to deliver some time in the future. 

The 75k bum and the anti-fiat wolf-in-sheep's-clothing also walked out of there with paper promises.

Only one time have I ever experienced across the board shortages in the past and that was in early 2009 when the sky was falling down and everyone with any sense was loading up the truck with bars. The Perth Mint is usually a very reliable supplier. Something's brewing...

Tue, 04/23/2013 - 07:05 | 3487222 goldenbuddha454
goldenbuddha454's picture

IMO, from what I've read, the paper PM market is similar to the derivatives CDS market in that there is no basis of reality for the numbers being insured or guaranteed.  In unwinding the large PM paper contracts, atleast (or one would hope) there is the actual physical presence of something to purchase in its stead, albeit a whole lot less than contract guarantees.  If insurers of the CDS contracts were to attempt to unwind their contracts before default, how would they go about doing that?  Can they do that? IE... Hypothetically speaking, if Italy were to look like it was not going to be bailed out anymore by the EU and they triggered a "credit event", how would the CDS market anticipate that and how would it play out?  How would markets react?

Tue, 04/23/2013 - 07:19 | 3487247 Slightly Insane
Slightly Insane's picture

This ponzi scheme has been well known for these past 5 years?  Ask yourself, why haven't we entered into a rapidly accelerating crash of the economy?  First, the Fed has all the cash.  The Government controls the subsidies, taxes, and regulations.

Let's say that "stocks and bonds are set to crash" .... the Fed moves in and purchases all that "shit" to maintain price stability.  Let's say ... you think you see inflation (it's there all right), the Fed with the PPT controls the Futures market (on paper anyway) .... and they suppress prices through shorting (at a loss, but it's just paper right?).  They maintain price controls by playing with subsidies (backdoor cash). I think they have decided to control precious metals ownership through excessive taxation.  Long Term Capital Gains on PM's is 30%.  You will not see that the Government has lost it''s battle on the assault of PM's until the divergence between physical and paper is extreme, and you see people advertizing selling it to you for 200% or 300% of paper value .... then sure as shit, the Government will enforce more confiscatory taxes on the selling of Gold which will drive the price down.  They will require you to "register" your Gold.    If they can move you to a strictly "digital currency" then they can control most of the value of the commodity.  These guys in government have all the tools, and own the propaganda.  This is 1984 on steroids.  Any perceived crash will be dealt with by throwing dollars at it.  The game will be over when our trading partners say "no deal".  By then China will have all the cards.   You are being stripped of your wealth bit by bit.

Tue, 04/23/2013 - 12:16 | 3488554 Herdee
Herdee's picture

I'm a fan of Nick Barisheff who is President of Bullion Management Group,he is also an author and speaker.Also check out his BMG BullionFund and BMG BullionBars.

www.bmginc.ca

Do NOT follow this link or you will be banned from the site!