Monday, 23 April 2018

Michael Pento: Worldwide Debt Default? You Better Believe it


The yield curve will invert, leading to a shrinking of the money supply, and a recession later this year, Michael Pento of Pento Portfolio Strategy tells Silver Doctors. 

He says bonds currently are the “most mispriced assets in the history of the world.” He sees a world wide default on debt coming. 

The stock market is also in trouble. There is a confluence of events coming in the fall that will lead to a bear market like we haven't seen in a decade. How can small or medium investors navigate the coming crises?


Saturday, 21 April 2018

John Rubino: Here's Why the U.S. Dollar Can't Save You


Thomas a member of the FSN community asked us a question about the viability and future of the US Dollar. While the dollar might be the best looking horse in the glue factory, it's still headed for the glue pot of history. If all fiat currencies are going down, you need to look elsewhere to protect your wealth and your future.


Thursday, 19 April 2018

Keith Neumeyer: Gold is Ready for a HUGE Run Higher


Keith Neumeyer, the Chairman of First Mining Gold and CEO of First Majestic Silver joins me to discuss the ongoing manipulation of the precious metals by the big criminal banks, JP Morgan's record physical silver hoard and the fact that gold appears poised to move far higher in the near future.

- Source, SGT Report

Wednesday, 18 April 2018

David Stockman: Deflation Depression & Financial Armageddon


Former Reagan White House Budget Director David Stockman sees deflation, depression and financial Armageddon. Stockman says, “In the bond market, I don’t know any other way to describe it, It’s uncharted territory, and we have never been here before.

The house of cards is so shaky and so fragile right now that there is the risk of the proverbial black swan event. We don’t see something coming. It shocks the system. 

It triggers a panic, and the panic soon envelops itself and descends into some sort of doom loop. That could very easily happen.” Stockman says, “Gold and silver are the only safe investments to have you can’t be safe in the stock market, and you can’t be safe in the bond market.”

- Source, USA Watchdog

Tuesday, 17 April 2018

Are We On The Verge Of A Silver Crunch?


Silver supply has not yet peaked, and the range-bound trading pattern is due to excessive supply above ground, not below it, according to Johann Wiebe, Lead Metals Analyst at Thomson Reuters. 

In an interview with Kitco News, Wiebe said that on the demand front, the biggest drivers last year have been industrial, specifically solar energy and electric cars. "On the solar side, we definitely see continued, strong demand, going forward, driven by China" said Wiebe.

- Source, Kitco News

Monday, 16 April 2018

Ron Paul Warns of Tariffs and Rising Economic Storms


Ron Paul talks about what it might take to restore the U.S. economy to the egalitarian income distribution as it was before the 1971 removal from the gold standard.

- Source, Jay Taylor Media

Friday, 13 April 2018

John Rubino: Who's Afraid of a Little Trade Dispute?


John Rubino says that the trade wars are coming to Walmart near you, or are they? Another example of the Art of the Deal. There will never be a trade war. This is just pure posturing. So be merry and buy some electronics, everything will be fine. Remember the cycles create the news, not the opposite. When in doubt, count your Bitcoin, or what’s left of it anyway. The only thing to fear is bankruptcy, and even that isn’t so terrible.


Thursday, 12 April 2018

Keith Weiner: Slaves to Government Debt


Picture, if you will, a group of slaves owned by a cruel man. Most of them are content, but one says to the others, “I will defy the Master.” While his statement would superficially appear to yearn towards freedom, it does not. It betrays that this slave, just like the others, thinks of the man who beats them as their “Master” (note the capital M). This slave does not seek freedom, but merely a small gesture of disloyalty. Of course, he will not get his liberty (but maybe a beating).

Today we do not have slavery, but we are shackled nevertheless. Savers are forced to use the government’s debt paper as if it were money. Most are content, but one says “gold will go up.” He does not expect a beating (but maybe a price suppression).

The slave cannot escape from his bondage, until he stops thinking of the brute as “Master” with a capital M. Freedom does not come from a little show of resentment. So long as malcontent slaves are content to limit themselves to petty disobedience, the Master is content that his rule is absolute. Freedom first takes an act of thinking. One must see the brute for what he is.

Today’s investor cannot escape from the bondage of the Federal Reserve, until he stops thinking of the dollar as “Money” with a capital M. So long as malcontent investors are content to limit themselves to betting on the dollar-price of gold, the Federal Reserve is content that its rule is absolute. Freedom takes an act of thinking. One must see the dollar for what it is.

The slave must stop using the brute’s whip to tell him what’s good and what’s bad. The investor must stop using the Fed’s credit paper to tell him what’s up and what’s down.

We continue our hiatus from capital destruction, to treat the topic of central bank concern with the price of gold. Last week , we said:

“We have said that the central banks care no more about the price of gold than they care about the price of antique Ferraris. Next week, we will drill deeper into why.”

In light of the above, we say that the central banks care not about the price of gold any more than they care about the price of a 1955 Ferrari or a 1945 Chateau Mouton Rothschild . Stocks, real estate, antique cars, wine, and gold are just different chips in the casino. They all have the same purpose, to convert the asset buyer’s capital into the seller’s income. Central bankers call this the “ wealth effect ”, and it’s an important way that they attempt to increase GDP as they manage our economy.

Let’s consider the two main arguments offered to bolster the belief that a higher gold price will lead to the gold standard, and hence the end of the Fed’s power. These explain the purported motive for why the central banks want to suppress the price of gold (we have already proved that they are not).

There Isn’t Enough Gold

Have you ever been in a discussion of the gold standard, and someone blurts that, “we don’t have enough gold for a gold standard!” There is a stock retort, given so many times, that we could recite it by rote.

“Any amount of gold is sufficient, it’s just a matter of price.”

Back when an ounce of gold traded for about 250 of the Master’s Notes, even the most defiant investors had a hard time picturing that in about a decade, the same ounce would trade for eight times as many of the Master’s now-debauched Notes. Back in 1999, some would have thought that surely gold will circulate as a medium of exchange, even at a lower price than that.

Yes, in 2011, the price did hit nearly 2000 Master Bucks. Gold did not circulate. Not only did gold not circulate, it was not close to circulating. Not only was it not close to circulating, there was not even a hint that it would ever circulate.

This is a curious environment in which to assert that the Master fears a higher price, on grounds that gold would replace His Paper when its price is sufficiently high.

There is no mechanism for high price to cause circulation. If anything, a much higher price creates an additional disincentive. If you trade away your gold, that is considered to be a sale of gold at the current price. The higher the price, the greater the loss due to tax.

Let’s use an extreme gold price because it provides a clear example: the price shoots up to $101,300. So nearly everyone has bought it $100,000 cheaper. Any sale of gold has a $100,000 capital gain. If your marginal income tax rate is 45.6%, then you lose $45,600 to tax, which is about 45% of the gold’s value. Unless you’re starving and need food, most people will decide it’s better to keep the gold.

And it should be obvious that if the price of gold quickly skyrockets to $100,000 that is not a gain in gold but a collapse of the dollar. The gold owner is not richer, the dollar owner is (much) poorer. This will not cause gold to circulate.

Tax aside, a high price does not cause gold to circulate because the obstacle blocking gold circulation is not a too-low price. This may sound like a tautology, but it’s not. What we are saying is: first understand the problem, then propose the solution.

The problem is that we all earn our incomes in dollars. We don’t have gold, unless we buy it. To buy gold you incur a loss, as you must pay the offer price. If you trade the gold for merchandise, the merchant must sell it to cover the cost of goods, rent, payroll, debt service, etc. He will sell at the bid price. The round trip loss is a significant disincentive.

Not to be confused with a nascent gold standard, there will be some use of gold in an environment where the gold price is rising predictably. In this case, just like with bitcoin, people will happily buy gold, wait for a bit, and sell it when they want to buy something. But this is not a use of gold (or bitcoin) as medium of exchange. This is using it as a free purchasing power machine. Other speculators are giving you their purchasing power, when they buy your gold (or bitcoin). They fork over their wealth, in the hopes that the next speculator will give them even more wealth later. Speculation is a process of conversion of one party’s wealth into another’s income, to be spent.

There will be an event tomorrow (March 26), which has been trumpeted by the usual suspects recently. They believe that the dollar will die. On March 26, the Shanghai exchange begins trading an oil futures contract. Now oil producers will be able to sell their oil forward and buy gold forward. Thus, they are effectively selling oil for gold. With no need for the dollar, the dollar bubble will be pricked and the dollar will go away.

There is only one problem. They don’t want gold for their oil. If they did, they would have been doing this trade since 1974 in New York. The fact that they haven’t demands an explanation. We will get back to that in a moment.


Wednesday, 11 April 2018

The Deep State Is On The Move, Countermoves In Place, Prevent At All Costs


The investigation into FISA, the pedophile ring and everything is moving very quickly now. The US and NK are having talks behind the scenes. NK has not fired a missile or detonated a nuclear weapon. 

A false flag has been staged in Syria, right after Trump announced Troops are coming out of Syria. The war is being pushed by the deep state. Q drops additional intel, war is being pushed, the deep state sends a message, countermoves are being planned and implemented.

- Source, X22 Report

Tuesday, 10 April 2018

As Volatility Spikes, Here’s What Could Be Ahead for Gold and Silver

The shift from low to high volatility in the markets is on. And almost by default, that’ll include gold and silver, since they’re inversely correlated to stock markets most of the time.

We’ve already seen this at work. The S&P 500 fell 2.2% on April 2, and in response, gold rose 1.2% and silver 1.6%.

It’s more than just a daily phenomenon, though; any prolonged wave of uncertainty that hits the markets will push investors into gold. What’s happening on a small scale now will play out on a much bigger scale when sentiment shifts, especially in regard to our monetary system .

And when gold and silver volatility really ratchet up, it’ll be a lot of fun, as you’re about to see.

First, here’s a snapshot of the daily price movements in gold and silver since the year the last bull market peaked:


A few things stick out. You’ll first notice that gold and silver have rarely had a daily move greater than 5% over this time period. Further, volatility has decreased. Prior to 2018, gold’s average daily movement was 0.5%, and silver’s 0.8%. For the first three months of this year, however, those averages were almost halved.

You also see confirmation of what most of us already know: Silver’s volatility is usually greater than gold’s. Here’s a couple of the more dramatic examples: On May 13, 2011, gold rose 1.1%, but silver soared 11.4%. And on April 15, 2013, gold fell 9.2%, while silver dropped 14.1%.

But silver is not always more volatile than gold. In the chart above, silver's price movements were bigger 71.5% of the time—meaning gold’s were bigger 28.5% of the time. And the two metals don’t always go the same direction; gold rose 0.26% on December 2, 2008 (not shown), while silver declined 5.05%.

Exceptions aside, silver will continue to be more volatile than gold, especially on days when developments impact the markets unexpectedly.

So, if volatility really starts to ratchet up, what kind of levels might we see?

What High Volatility in Gold & Silver Look Like

The best example comes from what has been, so far, the greatest precious metals bull market in modern history.

The following chart shows the daily price movements of gold and silver from January 1971 through December 1980. Check it out.



Monday, 9 April 2018

Wolf Richter: The Era Of The Fed "Put" Is Over


To all those investors expecting the Fed to step in to backstop the recent weakness seen in the stock market, Wolf Richter warns: The cavalry isn't coming. 

After years of force-feeding too much liquidity into world markets, the central banking cartel is now aware of the Franken-markets it has created. 

And now with a new head at the US Federal Reserve, and soon at the ECB, central bankers have shifted their priority from supporting asset prices to now actively engineering lower prices. 

They just don't want prices to drop too far too fast. Of course, the big question is: how much control do they really have? The situation may very quickly get out of their hands.

- Source, Peak Prosperity

Sunday, 8 April 2018

Gold and Silver Update: Subprime Mortgages Return...


This week we discuss the market movements of gold, silver, platinum, palladium, and the ratios between those assets. The Chinese tariff news created waves in the equities markets but ultimately they have rallied up past their initial declines. The US Dollar index saw a small movement upward as did oil...

- Source, McAlvany Financial