SoT Market Update: As The U.S. Tries To Destroy The World, It Will Destroy Itself

Except for its western hemisphere lap-dogs and chattel, the U.S. “defense” strategy has been the implementation of a highly “offensive” (in both senses of the word here) policy of military and economic antagonism. What unfolding of events in Syria and Venezuela are just two examples.

As the U.S. Ponzi scheme continues to unravel, the Government’s attempt to control the markets intensifies. The primary stock indices (Dow, S&P 500, Naz), which are currently more overvalued than at any point in U.S. history, seem impervious to any sort of sell-off, no matter how atrocious the economic news. The stock market has been “miraculously” bullet-proof from the most recent Fed official threats to hike interest rates in two weeks.

Conversely, the price of gold, has been subjected to paper gold price slams nearly every day since the Federal Reserve’s Club of Thespians released their latest sequel to “Game Of Rate Hikes.” It’s like “Chuckie” in the “Child’s Play” series – the storyline just won’t die.

The current manipulated pullback has taken gold down about 7% since the “Game of Rate Hikes” was released about two weeks ago. India has been dormant as a gold buyer since March 1st, activity seems to be stirring based on the latest ex-import duty premiums. Smuggling into India has picked up considerably this week – LINK. Similarly, buying in China per data from the Shanghai Gold Exchange has been stimulated by the lower price of gold.   In fact, deliveries onto the SGE have surged this week and the open interest now sits at 720 tonnes, which is likely a record.

The only result that will end up being accomplished by the U.S. intervention in the gold market will be a further transfer of real wealth from the U.S. populace to the Chinese. Thank you may I have another? Rory Hall and I discuss these issues in our latest “Market Update” series from the The Shadow of Truth:

John Embry: An Explosive Move In Silver Will Dwarf The Move In The Late 1970’s

I  can make the case, Dave, gold and silver may never have been cheaper than they are at the bottom in this cycle compared to the amount of money, and particularly debt, in the world. So, to me, this move we’ve had so far this year is, it’s like a rounding error. – John Embry, Shadow of Truth

It’s becoming more apparent on a daily basis that the Federal Reserve is attempting to exert complete control over the markets.  The Federal Reserve operates from its NY Fed trading base in conjunction with the  U.S. Treasury’s Exchange Stabilization Fund, which operates in the same building as the NY Fed.   So much for the notion that the Fed operates independently of the Government.

But it’s not just the markets. It’s becoming more apparent to more people that same cadre of insider elitists who are rigging the stock market also do their best to rig the political process.  This is exemplified by the fact that the SEC announced yesterday that it is investigating the accounting methods of Alibaba.   This is eyebrow-raising because it’s quite obvious that Alibaba’s chief competitor, Amazon.com, has been engaging in fraudulent accounting practices for over two decades.

Oh, I forgot to mention that Amazon CEO Jeff Bezos owns the Washington Post.  This is the perfect political hand grenade with which to threaten the DC politicians and political appointees if they were to start probing around Bezos and his enormous business Ponzi schemes.

This insider DC establishment did its best to derail Trump’s attempt at assuming the Oval Office throne.  But the fact that Trump set a record for Primary popular votes  made it next to impossible for the elitists to plausibly justify perverting the Republican convention nomination process with one of its lap-dogs like Romney or Rubio.

On the other hand, it looks like Hillary’s three decade crime spree is finally starting catch up to her. Something happened behind “the scenes,” because all of a sudden the State Department’s Inspector General decided that Hillary broke the law.  This is the first time in Hillary’s history that any official entity has held her accountable for a list of crimes that date back to her days as an attorney and the State of Arkansas’ “First Lady” (I use the term “Lady” very loosely).    Even MSNBC was on her case today.   Some group of unidentified insiders who operate at a level above Hillary have decided she’s not the one  to be their Oval Office pawn.

Meanwhile, the precious metals sector has sprung back to life after a 5-year period of an unabated manipulated price-thrashing of gold and silver.   Despite Goldman Sach’s incessant plea for $800 gold, the yellow dog ran from $1050 in mid-December to just over $1300 by the end of April.  A 24% rise in 4 1/2 months.  In the same period of time, silver ran up nearly 31%.  The mining stocks, per the HUI index, ran up just over 130% since January 19.   If the general stock market or any of the fast-moving sectors made moves like this, the meat with mouths on CNBC etc would be doing naked cartwheels on air every morning.

Rory Hall (The Daily Coin) and I hosted John Embry for a lively discussion of what is happening, why it’s happening and what might happen:

Physical Gold Is Money – Everything Else Is Someone Else’s Liability

When you own gold, it’s money that you own. Everything else circulating around here is currency – you don’t really own it. The cash you have in your pocket is Federal Reserve Notes [meaning you possess a liability of the Federal Reserve and your spending power is exposed to counterparty risk]. The money you have in your checking account is a liability of the bank where that money is deposited. But when you own physical gold, it’s money that you own. Your are not dependent on someone else’s ability to make good on that money when you want to spend it.   – James Turk on The Daily Coin

The U.S. populace has been methodically trained over the last 100 years, since the erection of the Federal Reserve, to believe that Federal Reserve Notes – otherwise known as U.S. dollars – represents a wealth asset.  But it’s just the opposite:  it’s a liability of the Federal Reserve backed by the “promise” of the U.S. Government.  How much value do you place in that “promise?”

Even more insidious is the notion that “money” in a checking account belongs to the person who made the deposit.  In fact, your money sitting in any bank account is no longer in your ownership.  You have ownership of an unsecured liability issued to you by the bank.  The bank takes  your money and “hypothecates” it – or lends it out.   If the bank loses that money and can’t honor its liability to you because enough loan counterparties defaulted and the bank is insolvent, you will never receive the full value of the bank’s debt obligation.  Welcome to the new world of bail-ins.

But gold in your possession does not have that problem.  Rory Hall of The Daily Coin interviewed James Turk about a new type of non-bank banking service called Bitgold.  He discusses the unmitigated advantages of using Bitgold vs. a traditional bank account.

I have moved U.S.Government electronic monopoly money from my checking account into my  Bitgold  account every day this week, including today. I don’t have the funds required to buy a 1oz. bullion coin everyday, but BitGold allows me to accumulate .9995% gold grams. This is bona fide allocated gold.  I look at this manipulated take-down of the gold price as a gift from the Fed because it enables me to purchase more Bitgold gold every day the dollar price of gold declines.  When the dollar price of gold moves back up, my Bitgold account will increase in value.  That does not happen with dollars sitting in a checking account.  They just sit there like a Pet Rock, earning no interest.  If the bank becomes insolvent, the Pet Rock has no value to me.

I want to make it clear that I’m not an affiliate or associated with Bitgold and do not get any ad revenues from Bitgold for the display link at the top (although I’m sure I could if I requested it). I just really believe in the service and I think anyone can benefit from moving their digital bank credits out of the global Central Banking system and in to Bitgold. I receive a 2% “bonus” if someone uses the links on this site to sign-up for Bitgold and everyone who opens a new account that is funded receives a 5% bonus.

I had an in-depth conversation with the CEO several weeks ago and when I find the time I am going to share my analysis of the with the subscribers of my Mining Stock and Short Seller Journals.

If you own gold, you have money – If you don’t own gold, you have a problem

The “Markets” Are A Total Farce: Stocks Pushed Up – Gold Pushed Down By The Fed

I described the other day what a circus the inter-FOMC meeting periods have become.   One by one Fed clowns appear to describe an economy at full employment and threaten us with another one-quarter of one percent Fed Funds rate hike. Since this process has started last Monday, the S&P 500 has been flat but gold has been taken down methodically  about $80, or 6.7%.   The mining stocks as represented by the HUI have been dropped 12% from their high last week.

Yesterday the circus took on a new dimension.  SF Fed John Williams was once again out promoting rate hikes this year and even more rate hikes next year – LINK.  St Louis Fed clown Bullard was out yesterday pontificating that low rates  for too long could be risky – LINK.  You don’t  say, James?  Is he referencing the nominal .25% Fed funds rate since  lat e 2008?  OR is he referencing the negative real interest rates since well before 2008?  To which measure of interest rates are you are you referencing, James?

They both made some insane assertions about “full employment” in the economy.  Does that mean that anyone who wants to be a bartender or barista can find gainful employment?  But what about the 38% of the population that is no longer counted as part of the labor force?   A large majority have given up looking for work because it’s easier and pays better to soak off the taxpayer via Social Security Disability, Welfare and Student Loans.

Everyone knows that the true unemployment rate is over 20%.   This is based on applying the way the Government calculated unemployment in 1980.  We still have the issue of data collection and “massaging.”  The economy is far from healthy and the flow of economic reports from private sector sources, including regional Feds, continue to reflect an economy that is deteriorating down the level of economic activity in 2009.

The Fed needs to promote the idea of rate hikes in order to show consistency in policy with its narrative of “full employment, tight labor market conditions and an improving economy.”  Just as important, it reinforces the Fed’s ability to manipulate the price of gold.

The source of frustration for many of us is that higher rates correlate with lower stock prices and higher gold prices.    Days like today in the markets are difficult to watch because it’s driven entirely by false propaganda and direct intervention in the market by the NY Fed/Exchange Stabilization Fund.

While days like today may be painful to watch, the truth is that since the Fed began bashing gold with rate-hike drivel starting last Monday, the S&P 500 has not moved higher despite days like today which make it feel like the stock market is poised to hit an all-time high.

When the Fed pushes down the price of gold with paper during NY Comex floor-trading hours, take advantage of it by buying some physical gold or silver.

I have moved U.S.Government electronic monopoly money from my checking account into my  Bitgold account every day this week.  I don’t have the funds required to buy a 1oz. bullion coin everyday, but  BitGold  allows me to accumulate .9995% gold grams. This is bona fide allocated gold.

I want to make it clear that I’m not an affiliate or associated with Bitgold and do not get any ad revenues from Bitgold for the display link at the top (although I’m sure I could if I requested it).  I just really believe in the service and I think anyone can benefit from moving their digital bank credits out of the global Central Banking system and in to Bitgold.  I receive a 2% “bonus” if someone uses the links on this site to sign-up for Bitgold and everyone who opens a new account that is funded receives a 5% bonus.

I had an in-depth conversation with the CEO several weeks ago and when I find the time I am going to share my analysis of the with the subscribers of my Mining Stock and Short Seller Journals.

The US government is a crazed criminal enterprise that is pushing the world to nuclear war

Dr. Paul Craig Roberts sent this article around prefaced with the title above yesterday.  I didn’t pull it up until today but, coincidentally, a good friend/colleague of mine and I were having a discussion about the various ways in which the neocons and their defense company crony CEOs are using militarism to skim billions in taxpayer money.    People don’t connect the fact that the first Gulf War was fought under George H. Bush and the second attempted Gulf War was conducted under George Herbert’s mildly retarded son.

Dick Cheney played a prominent role in both wars.   He was George Herbert’s Secretary of Defense during the first military money-skimming excursion was executed and, obviously, the de facto Commander in Chief during the Iraq War.  Billions were skimmed off the fat defense contracts handed out to Cheney and his cronies.  Does everyone remember Haliburton charging extortionate prices for supplies and fuel to the military?  Not only were there no adverse consequences, the contracts to Haliburton continued to flow.

There’s an entire of web of “technology and equipment” supply companies littered around DC’s beltway that are controlled by guys like Cheney and Rumsfeld and their cronies who run the Department of Defense and the big defense contractor companies.  Most of them are private, which makes even easier to hide the cash flows.

Dr. Roberts is right, DC is one big criminal enterprise.  What’s frightening is that these people will go to any lengths to continue stealing money and amassing power.   Currently Russia and China pose a grave threat  – not to the citizens of the U.S.  but to the hegemonic power enjoyed by U.S. elitists since Bretton Woods.

While the narrative gobbled up in fear by the couch potato arm-chair tank drivers watching Fox News and CNN all day long is that Russia is provoking the U.S., the truth is the exact opposite:

Russia has not seen such a major military buildup close to its borders since 1941 when the Third Reich sent the Wehrmacht to conquer the Soviet Union, Professor Stephen F. Cohen said in his recent interview on The John Batchelor Show, referring to NATO’s increasingly assertive strategy in Eastern Europe and the Baltics.

“We have been watching for nearly a month a steady buildup of American and NATO forces along near Russia’s borders – on land, on sea and in the air,” he said. “There has been nothing like this on Russia’s borders, such an amassing of hostile military force, since the German invasion of the Soviet Union in 1941.”

Here’s the link to the article:  The U.S. NATO Amasses Hostile Military Forces On Russia’s Borders.