Wednesday, January 22, 2014

"It's gotta be close".


"It's gotta be close".



The title "it's gotta be close" is a direct quote from John Embry.  For those of you who don't know John, he works side by side with Eric Sprott and is probably the pre eminent mind when it comes to mining companies.  "It's gotta be close" was John's response to Glenn Beck's video release a week ago.  You see, Glenn Beck as I mentioned this past week would sometimes "go there" but never really "get there" as far as gold was concerned.  Yes he has promoted gold for a few years but never ever until the last year gotten into the "crazy conspiracy theories" that gold's price could actually be manipulated.  This would have been "too far off of the envelope" for him...but he has now jumped in feet first and no matter what he says or wants you to believe, he is "mainstream".

  But why now?  Because, as John said, we gotta be close.  "Close" as in the entire suppression scheme blowing up sky high so that anyone and everyone can see and know what has been going on for years.  The revelations are piling up "bigger and faster" than ever before.  In just the first 2 weeks of 2014 we have heard from Germany 4 times regarding gold.  On Jan. 5th they said that they have received 37.5 tons of the 87.5 that they had expected.  Now it turns out that only 5 of those tons came from the NY Fed and the bulk from Paris.  They claimed that this 5 tons was re refined in the U.S....then a week later they changed their mind and said that it was refined inside of German borders.  Let me put this 5 tons in perspective for you, the Fed lent out over $17 trillion to banks and financial institutions back in 2008 to "save the world" (over half to foreign institutions) yet we can only muster up less than $250 million (with a measly "m") worth of gold that was supposedly being safe kept...did we "lose it"?  Sell it?  Lease it?  Something is VERY wrong here.  Do you realize that the Fed conjured up this $17 trillion within a month's time while we can only send $250 million worth of gold over the course of an entire year?  Doing the math in my head, the Fed lent out 68 Thousand! times more in cyber credits than the real money they sent back to its owners.  The German people should be screaming bloody murder, the American people should wake up and understand this.  The stage is set for a buying panic..."it's gotta be close"!

  This past Thursday, Bafin's president Elke Koenig claimed that "gold price manipulation" is worse than the LIBOR manipulation.  Let me also put this in perspective for you, "Bafin" oversees the German banks, brokers and insurance companies, everything financial if you will.  An equivalent of  "Bafin" in the US would be the supervisory arms of the Fed, the SEC, NASD, CFTC, FDIC and state insurance regulators ALL rolled up into one.  The statement by Ms. Koenig was huge and loud if you were actually listening because she is not some secretary or middle manager.  She is the president of Bafin!  You can bet the ranch that she did not make this statement off the cuff, lightly or by mistake.  Think of the far reaching ramifications of a statement like this?  Just on her words alone a buying panic can get started because she has now lent credence to us "conspiracy (fact) whackos" and everything that we've been saying.   This is the equivalent of Ben Bernanke, Mary Jo White, Frank Zarb, Gary Gensler and Sheila Bair all making a joint statement that "gold's price is manipulated".  But wait there's more!  Deutschebank announced Friday that they will no longer participate in the "London fix" and will market their "seat".

  Another little tidbit yesterday was Koos Jansen's revelation that China imported 79 tons of gold for the week.  Yes, for the WEEK, not month!  This would amount to a run rate of 320 tons for the month or close to 4,000 tons for the year compared to global production of 2,200 tons (ex China and Russia).  Then we add in to this mix another big bleed from COMEX registered inventories which still seem to have some December deliveries left...with February less than 2 weeks away.  Feb. if you recall delivered some 40 tons last year...COMEX only sits on 11 tons currently and some of this still needs to settle December!

  So, I guess you could say that Germany is "stuck"!  They now fully realize that their gold is gone and they will never get most or all of it back.  Why else would Bafin's president make her statement?  Why else would Deutschebank give up their seat at the London fix.  I would also like to add in one more "voice" to the mix.  Bill O'reilly last week said and I quote "If the Feds do not stop the wild spending, the dollar will collapse.  That means that all of your savings, investments, your home and everything else will blow up before your eyes".  The video can be seen here .

  I and many others have spoken and written about all of this for years on end but we were and are "tiny voices".  Maybe you are a liberal and you scoff at conservatives Glenn Beck and Bill O'reilly waving the danger flag .  But, maybe you deep down know that "something" is wrong but don't know what it is.  Maybe you have acted to protect yourself and family, maybe you haven't yet.  I would say to

you that "time" is now VERY short! Do what you need to do and do it today, not tomorrowor next week or next month because your ability to do so very well may no longer be available.  No matter what Beck and O'reilly say, they truly are "mainstream" and their voices get heard.  Elke Koenig is not "mainstream", she is "official" which means that we have also now gotten "official warning" that this baby is being detonated.  And, the Chinese are doing what they do...buying gold, lots and LOTS of it!  As I started this piece by quoting John Embry, "it's gotta be close"!  Regards,  Bill H.

Mega default? They don't care!



Forbes has reported of a potential (probable?) "mega default" out of China.  They even tell us "when", Jan. 31st and "who", China Credit Trust company. 


This is hardly "mega" anything as it's only in the $500 million ballpark...but it is a "thread" that if pulled on hard enough or long enough could spread like an infection.  I must admit, when I saw the headline my interest piqued only to see the actual meat not even being a ham sandwich.

  If you notice in the article, this debt (trust) came about as a loan to a coal company and the author speculates that 12% or there abouts is the interest rate...I would urge you to take a broader view.  The broader view being "this is China".  Their economy is hugely leveraged and they have built, rebuilt and over built.  They have even built entire cities that are empty.  I'm not talking about sparsely populated, I'm talking about empty as in NO ONE lives there!  Are they crazy?  Or stupid?

  No I don't think so, follow this through.  They have accumulated stockpiles of copper, lead, zinc, etc. etc. not to mention gold...for free!  They have built bridges, highways and even complete cities...for free!  Free?  Yes, I'll explain in a moment.  They have worked, produced and "traded" to accumulate "dollars" over the last 10-15+ years at a pace not even seen by the U.S. in the late 1800's and early 1900's.  It has been a marvel to watch.  They have as I mentioned also accumulated gold.  They have probably now accumulated a stack that rivals what the U.S. supposedly has (had).  And yes, much of the building and "business" was performed (or funded) by the use of credit, crazy amounts of credit!

  So how does this make them any better off than any other country in the world if their financial system collapses just as fast or even faster than the West?  I believe that going all the way back to August 1971 that they "knew".  They knew that when we went off of the gold standard the "end game" was then carved in stone.  I believe that they completely knew where this would all end a paper heap collapsed into a black hole of zero value.  So what did they do?  They "played the game".

  They played the game and "helped" the U.S. go bankrupt by funding their debt needs.  They also "built"...for their own future.  You see, the Chinese look 100's of years to the future rather than to the next "quarter".  I think that they fully knew that "when everything is worth nothing"...they would "have something".  "Something" as in a brand new infrastructure.  Infrastructure that the West can only marvel at.  Who cares about the banking or financial system?  Who cares if everything paper collapses..."we'll just start a new one"!

  Do you see?  They now have a modern country and it only took 10-15 years to build it (not to mention the small problem of poisonous smog).  They knew that the financial system would ultimately come down so why should they go through a "re boot" to the system with rickety bridges and grass huts?  Not only have they "modernized", they have also provided themselves with a place at the table...the HEAD of the table when it comes to currencies.  They have in my opinion accumulated more gold than any other country in the world now has.  They have created their own future and one that is bright because they have "money" (gold) while the West was "spending their past". 

  Will China just skate through a financial collapse...and one that may even start from an internal default?  No, of course not but they are not looking at next year or the next 3-5 that it will take to pick up the pieces, they are looking out for generations to come!  I have absolutely no idea "what" the event will be that turns the financial system upside down because there are just too many choices to pick from, I do suspect however that it will not be something "huge" and will be missed by most for several days.  The Chinese however don't even care "what" it is because it doesn't matter.  What matters is that their work is done, they have built infrastructure, modernized production, signed trade deals for the raw materials necessary for the future and accumulated "cash".  Crazy or stupid?  No, they have outsmarted the world while we watched...while they "helped us help them"!  The last 10 or 15 years of work is viewed by the Chinese as virtually "free" when set alongside the next 100-200 years!  Regards,  Bill H.



J.B. Slear, early this morning:

(courtesy JBSlear/Fort Worth Trading Company)

Is the ratio in Silver and Gold much wider than the 100 to 1??
Tuesday, January 21, 2014 6:10

The US Dollar is under the support mode this morning with the trade at 81.480,  up 11.8 points and at its top.   No reasons for the rise except that eastern parts of Europe are in riot mode along with the assassinations of an IMF official and 4 UN controllers in Afghanistan.   Not a good reason as far as we’re concerned.   Treasuries are under the support mode as well but seem to be losing that price fix because of the sellers continuing to liquidate into support.   Energy Sector is now trading higher with Crude Oil up 24 cents taking back the losses accrued in yesterday’s partial trade with the price now at $94.81 with the rest of the group following close behind along with another winter storm coming to the east coast.   Gold is down again,  after all,  you can’t have it go higher just because a German Central Banker claiming that Gold is being manipulated and is the biggest conspiracy in the history of man now can we?   The trade now stands at $1,245.50,  down $6.50 and $1 off its low.   Silver is down as well with its trade at $19.975,  32.9 cents lower and one penny off its low as well.   Bitcoin,  the only gauge that cannot be manipulated,  continues to climb with the trade now at $960,  up $5 from yesterday’s quote and within a trading range of $981 and $931,  as more and more are getting out of the system any way they can!   Grains are mostly lower with Bean Oil and Wheat the only exceptions,  Softs are evenly mixed with Coffee and Cocoa trading higher,  Sugar and Cotton trading lower and the Live Stock Sector remains closed till 9:10 AM Chicago time.   Never worry about the Stepford Wives look on the Paper Markets.   It no longer has any real economic reality support with the exception of the Working Group of Banks that do nothing but support the price regardless of the damage it does and the now complete lack of integrity and data might have to support it.   In short,  the damn things keep climbing when all hell should be breaking lose to the downside!   Going back to Precious Metals for a moment,  I called in on the Patrick Timpone Radio show with his guest Andrew Gause (a currency historian of very high caliber) on One Radio Network where we talked about the events surrounding Silver and Gold and the manipulations.   ( )   We both understand the draining of precious metals from the Comex exchange yet are confused as to why the prices keep going lower with part of their support mechanism being removed.   But then Andrew brought up something that has been bothering me since.   He said one of his sources thinks the ratio of 100 pieces of paper to every real contract of (1) Gold is being expanded and could be up to as much as a 400 to 1 ratio.   In a closed system,  this could not happen,  but knowing how these banks work (illegally, or in total secrecy),   why couldn’t this be the answer to their approach to keeping the prices of precious metals down?   With 80% plus of the products gone from the Comex warehouses since April of last year,  the CMEgroup no longer guaranteeing the Comex inventory count,  the constant buying from Asia,  their (Singapore and Hong Kong) opening up of the warehouses that promise open disclosure,   and the total lack of trust of the USA’s government both within and without,   why not?    Open Interest doesn’t seem to be waning,  and from my understanding,  when a bar of Gold leaves the warehouse,  it’s supposed to remove 100 pieces of paper from the exchanges hands but we don’t see the reduction of paper at all,  only the product.   Now the CFTC and the NFA have more egg on their face, because a German Central Banker admits the manipulations,  yet they’ll sit there ideally by as the events come to conclusion collecting their incomes and choosing not to see anything.   The real answers will come in time and most likely when the bank vaults are completely empty.   What can we do as individuals?   Take delivery of Silver and Gold and get it out of the system before China and India take it all with the approval of the western banking system!   It’s time for the bullies of finance to get their comeuppance.   In closing,  keep your Precious Metals and Bitcoins close,   get out of the system,   and as always … Stay Strong!!

1 comment:

  1. Sorry boys, but the bad guys are still in control. You're going to see gold and silver collapse over the next 12 months along with the stock market. Gold under $900 and silver under $12 by years end. You can count on it!