Tag Archives: silver eagles

Major Silver Bounce – Can It Last?

The bullion bank gold cartel pulled out all of its stops last week in order take down the price of gold and silver. Particularly useful was selling by longs connected to fear over the week-long closure of China in observance of the Chinese New Year’s celebration (Year of the Rooster). Interestingly, last year gold was volatile during the Chinese New Year week off but traded sideways, not lower.

In addition, this upcoming week features the FOMC meeting and the January employment report. On average and in general, both of these events typically are accompanied by a take-down in the price of gold. On Friday, however, after the obligatory smashing of gold and silver associated with Comex options expiration (Thursday), gold snapped back sharply $9 from its Thursday low of $1181 and silver soared nearly 50 cents from its Thursday low.

Eric Dubin and the Doc invited me onto Silver Doctors’ weekly Metals and Markets Report to discuss the factors behind last week’s gold and silver trading activity and the reasons why gold and silver could turn in a better 2017 than 2016:

If you agree with the views in the above podcast, the Mining Stock Journal offers great junior mining stock ideas to help you take advantage of the next move higher in the precious metals sector. You subscribe using this link:   Mining Stock Journal subscription link.   As subscription includes all the back-issues and superior customer service.

Hi, i really like your mining stock newsletter. I am fairly new to the mining sector and i did start investing in last febuary pretty much at the lows  –  recent new subscriber “Thomas”

 

Upside Surprise For Gold And Silver In 2017

To date, the price of gold and silver have followed a very similar trading path that was taken by the metals in early 2016, with gold and silver bottoming in mid-December and staging a strong rally through mid-January.  Technically, as our Shadow of Truth guest Craig “Turd Ferguson” Hemke point s out, all of the stars were aligned for a take-down of the gold price using paper derivative gold.

These “stars” include:  January contract trading expiration, February options contact expiration, an “overbought” technical condition and the upcoming FOMC meeting and employment report next week.  ALL of these variables are factors which are used to help the bullion bank gold cartel take down the price of gold and silver using the paper gold derivatives traded largely without enforcement of the regulations in place in New York and London.

But now the market is set up for an upside surprise.  Contrary to recent “alternative facts” media reporting, India has continued consuming a lot of gold on a daily basis. This includes legal kilo imports, dore bar importation (subject to a lower import duty than kilo bars) and smuggling, the latter of which is estimated to be as high as 300 tonnes per year now.  The “authorities” in the media who track gold into India fail to account for dore bar flow and smuggling.

In addition, a favorite false narrative of the World Gold Council, Bloomberg and Reuters is that gold imports into China slowed down at the end of the year because of import restrictions put on gold by the Government.  Nothing could be further from the truth.  The “fake news” reports are based on imports into Hong Kong, which are publicly reported by Hong Kong authorities.  But a few years ago China began to allow gold imports through Beijing and Shanghai, which is not reported, specifically to obscure the true amount  of gold flowing into China.

But it’s easier to build a false narrative around easily observable data rather than look for the greater truths intentionally hidden from public purview.  As it turns out, nearly 100 tonnes of gold were delivered onto the Shanghai Gold Exchange on the last trading day before China closes shop for the Chinese New Year celebration.  Of course, if any of that gold flowed through Beijing or Shanghai, it would go unaccounted for by the entities listed above that only account for gold going from Hong Kong into China.

We at the Shadow of Truth are forecasting a better year for the metals in 2017 than in 2016. We invited Turd Ferguson on the show for lively two-part discussion of the factors that will drive the metals higher:

Part 1:

Part 2:

Essential Commodities: Gold, Silver And Popcorn

JBGJ regards Indians buying less gold as cash crunch bites primarily as evidence that FOBs (Friends of Bloomberg) are not in gold. If India’s domestic gold market was as weak as presented there would be a significant discount to the world price…In reality the Government has struck a shattering blow at the trust Indians have in holding wealth in any form accessible to the Authorities. When things finally unglue, India’s propensity to hold gold will probably be found to have risen – John Brimelow’s Gold Jottings report – LINK.

Yesterday’s sell-off in gold occurred after the Comex floor had closed for the day.  The period of time between when the Comex closes  – 1:30 p.m. EST – and the CME’s Globex computer system trading closes for about an hour – 5 p.m. EST – is one of the least liquid trading periods of the 23 hour, 5-day trading week.  It makes that period of time susceptible to manipulative price take-downs.

As it so happens, likely not coincidentally, Janet Yellen began speaking about monetary policy at 2 p.m. EST.  She stated that the Fed expects a few interest rate hikes per year until 2019.  Geez, that would take the Fed funds rate up to maybe 2%?  Of course, helped along the by the bullion banks, the hedge fund trading algos grabbed the soundbytes spewing forth from Yellen and concomitantly sold paper gold and bought dollars.  The dollar spiked up and gold was taken down to $1200.  It traded below $1200 overnight on the “fumes” of yesterday.

Gold, silver and the mining stocks have had a nice move from late December to now.  They will not go straight up.  Technically the sector was set up to be susceptible to trading activity related to Fed soundbyte propaganda like yesterday.   This is yet another buying opportunity.  Buy a little every month when the price gets taken down in the paper market. According to the Indian data presented by Brimelow, India is a huge buyer of gold below $1200.   China is a steady buyer regardless of the price.

The Trump presidency will usher in a period in which Orwell’s prophecies will shift into overdrive.  Popular mistrust of anything and everything Government will accelerate and Big Government’s attempt to counter-act this movement will take place in the form of intensified propaganda and a further reduction in  civil rights.  Along with this influx of political and media chaos will be an increasing distrust of fiat paper “fake” currency, which means the public will likely buy even more gold and silver than it did in 2016.  Note:  the U.S. mint sold a record amount of gold eagles in 2016.

In today’s episode of the Shadow of Truth, we continue our discussion of the precious metals sector, including some analysis of the gold / silver ratio:

Momentum Traders Shift To Gold And Silver

“All the reasons being advanced for gold’s rise this week were fully in place at the November 8th election. Perhaps the subsequent slump will eventually be seen as an aberration.” – John Brimelow from JB’s Gold Jottings Report – Contact link

The dollar went nearly parabolic after the election, along with the Dow and the S&P 500. The move was not supported by fundamental factors in any respect.  Rather, it was momentum-chasing game fueled by the empty promise of “hope.”  While “hope” is a valid emotion for those who believe in life after death, “hope” in the absence of valid fundamental factors can quickly turn into fear – the fear of losing money.

Bank of America released a survey of Wall Street “professionals” in which the respondents stated that the “long U.S. dollar” trade is by far the most overcrowded trade.  The dollar index has already retreated about 3.5% since the first of the year.  If the index breaks below 100, the current exodus from the long dollar trade could quickly turn into a stamped toward the exit.

On the flip-side of this is gold, which has rallied nearly 6% since late December, and silver, which has rallied 7.8% since its end of December low.   The fundamental factors driving gold vs. the dollar would be the continued surge in U.S. Treasury debt issuance; which has doubled in size over the last eight years, contracting economic activity notwithstanding the plethora of fake economic reports;  a rapidly expanding Government spending deficit; and a rapidly expanding trade deficit.

The quick-fix band-aid for Trump will be to implement a policy that attempts to push the dollar lower.  He tweeted as much earlier today.  The spike-up in gold is being attributed to that tweet.

But not so fast, fake news adherents.  50% of gold’s move occurred on Monday, while the U.S. was closed in observance of MLK’s birthday and well before the Trump tweet.  Mining stocks in Canada moved up sharply yesterday.   This tells us that there are other factors behind the move in gold besides the expectation that the dollar is going to sell-off.

One of the Fed Governors, Lael Brainard, gave a speech today in which she somewhat back-pedaled from the Fed threat of four rate hikes during 2017.  We knew this was coming.  Gold will begin to anticipate an “easing” of the Fed’s stance on monetary policy, likely to occur at the next meeting, especially in light of the December’s retail sales / consumer spending disaster.

As the dollar falls below the 100 level on the dollar index,  hedge fund algos will shift from buying dollars and selling paper gold to dumping dollars and piling back into paper gold. But that’s just for starters.  The Modi cash removal initiative has failed to put the brakes on Indian gold imports and China and Russia continue to inhale vast quantities of physical gold.   This will help infuse “substance” into the hedge fund-driven paper gold/silver trade.

On today’s episode of the Shadow of Truth, we chat about the factors that will drive gold, silver and the mining stocks higher this year, possibly in a move that will be bigger and longer than the move in 2016:

“Gold Is Money – And Nothing Else”

– JP Morgan on December 18, 1912 in testimony to Congress

Crush The Street’s Kenneth Ameduri invited to discuss why I believe the current stock market is the most overvalued in history.  We also chatted about the movement by western Governments to a digital currency system and, of course, the precious metals market.  It’s my view that the pullback in the precious metals sector that began in late July was over by the end of December.  I also believe that there’s good probability that the next move in the sector will be more powerful than the 2016 move.

You can listen to our conversation here:

If you want to have access to my proprietary precious metals market analysis and junior mining stock ideas you can subscribe to the Mining Journal with this link:  MSJ Subscription Link.   The subscription is email-based and new subscribers get all of the back-issues.  The next issue will be published Thursday this week and I have an extraordinarily intriguing high risk / high return, 10-bagger potential stock idea.

 

Fake Economic News + Overvalued Stocks = Recipe For Market Disaster

Think you know what will happen this year?  What would you have said to me on January 1st last year if I told you:  ” the S&P 500 would hit several new all-time years this year and Donald Trump will be elected President?”

Craig “Turd Ferguson” Hemke invited me on to his “A2A” webinar with his subscribers last week.  We had a spirited and (I think) entertaining discussion about abundance of fake economic news that permeates the financial media, the true state of the U.S. economy and the growing risks to the stock market.  And of course we chatted about precious metals an mining stocks.

And of course his subscribers had some interesting and thought-provoking questions. You can listen to our conversation here:  A2A with Dave Kranzler and you can access Turd’s webite here:  TFMetals Report.

Stewart Dougherty: Government Bail-Ins, Asset Confiscations And The Gold Sword Of Self-Defense

[Preface: In Part 1 of our report, “Goldman to Trump: Situation Assessment, Government Bail-ins and the Precious Metals Threat,” we inferred what Goldman Sachs’s second in command Gary Cohn might have said to President-elect Trump during their meeting on November 29, 2016. Cohn met again with Mr. Trump on December 2, 2016, and this time, we have inferred that he was accompanied by a second person. Here is Part 2 of our intuited, fictional report.]

Mr. Cohn: It is a pleasure to see you once again, Mr. Trump. I have been pre-empted. I was asked by important friends of our firm to introduce to you their envoy, Dr. Hugo Ehrlich. I can vouch for the fact that he represents extraordinarily powerful people with whom you will be working closely going forward. Let me turn it over to Dr. Ehrlich so he can explain.”

Dr. Ehrlich: “Thank you for meeting with me, Mr. Trump. Our time is short, so let’s respect it and get straight to business.

“I represent a global, privately held corporation known as Globanque. I doubt you have heard of it; we have a strict code of secrecy and silence. Globanque’s Directors would like to congratulate you on becoming president of the largest corporation in the world, the United States Government. Globanque, which owns the Bank for International Settlements and has meaningful stakes in numerous governments and other corporations, is also the majority shareholder of USG, Inc. Our friends at Goldman are intimately familiar with USG, Inc.’s ownership structure, because several years ago they helped Globanque acquire its controlling interest of your nation.

“While the Globanque Board does not wish to be disrespectful, a point of clarification is in order: the Directors would like me to note that the CEO and Chairman positions at USG, Inc. are distinct from yours, and that the executives are appointed by Globanque. The names of the incumbents are confidential, for reasons of optics and security. We doubt that the American people would understand why the two most powerful positions in what they mistakenly believe to be ‘their’ government are held by people whose names they have never heard of, and whose faces they have never seen. Perhaps in due course you can come meet your colleagues in Basel, and play a round of golf with them so you can get to know one another.

“If we were to portray USG, Inc. in geometric form, it would take the shape of a pyramid with a razor thin top and a very wide base. The base would represent the people, whom we ask to pay all the company’s bills. The middle would reflect the government staff who handle day-to-day logistics and the enforcement personnel who ensure the people don’t get out of line. And the top would represent the very few shareholders and cronies who control the corporation and make all the money. It is a fitting shape for USG, Inc., which happens to be the largest pyramid scheme civilization has ever known.

“In addition to being the largest corporation in the world, USG, Inc. is also the most profitable. You are looking at me quizzically, as if to say, “How can a corporation that is losing more than $1 trillion per year (as reflected by its deficits) be profitable? I’ll explain.

“While USG, Inc.’s deficits might look like losses, they actually represent dividends paid to its owners. Last year, the corporation had over $1,000,000,000,000 in deficits, which in fact were payments to Globanque and the other shareholders. The payments are made in many ways, including interest on the corporation’s massive debt; military contracts for contrived, enormously profitable wars; a broad variety of government contracts extended to cronies; so-called foreign aid which actually constitutes disguised payments to affiliates; and dozens of other ways to compensate insiders. USG, Inc. spends trillions of dollars each year, and no one really knows where all the money goes, even though the corporation does a good job of creating the impression that its accounting is accurate, which it is not.

“The deficits, in other words the shadow dividends funneled to shareholders, are funded by debt, which relentlessly rises at USG, Inc. The deficits and the debt increases move in unison. Dividends are extracted, and debt is injected. Forensic accountants would have a different term for this capital extraction; they would call it looting. Which is why forensic accountants are not permitted anywhere near USG, Inc.’s books. The corporation’s actions, just like those of the Fed and BIS, are completely immune from formal or actionable audit.

Over the past decade, more than $12 trillion dollars have been paid out by USG, Inc. in the form of dividends, making the shareholders extraordinarily wealthy. There has never been a dividend payout of this magnitude in commercial history. As you might imagine, Globanque spends a great deal of intellectual capital figuring out how to keep this trillion plus dollar game going. If USG, Inc. were to fail, it would be virtually impossible for Globanque to replicate it, and its earnings would be punished. Globanque’s Directors are not going to let that happen, if there is any way they can prevent it. If this means human casualties, so be it. They are people who do whatever it takes to win, with emphasis on the world whatever.

“There is a problem that concerns the Directors. There are unmistakable signs that the United States is approaching a state of what we call Peak Debt. While up until now we have had no problem saddling USG, Inc. with an ever expanding mountain of debt, and while we had planned on adding an additional $10 trillion of it during the next eight years or so, a faint but foul scent of debt revulsion seems to have seeped into the air.

“If we are not persistently able to increase USG, Inc.’s debt, it will become obvious that the company is bankrupt and that there is no viable means whatsoever by which to save it. USG, Inc. will have to be dissolved.

“The Peak Debt problem is compounded by the fact that in our view, the probability of a 2008/09-like financial crisis or worse occurring in the United States and beyond during the first two years of your presidency is close to 100%, which will hurt and possibly crush tax receipts. Therefore, there would be less money coming into USG, Inc. from taxes and debt issuance, a rabbit punch that would throw the corporation into a financial crisis.

“We have simulated in detail every possible response we might make when these problems manifest themselves. In the past, several temporary fixes were available to us, and we used them. But they were like bullets; they could only be shot once. Now, the ammunition box is empty, save for one remaining shell. Which is the outright confiscation of the people’s wealth in order to fund USG, Inc. and keep it alive; in other words, government bail-ins. We realize this measure is extreme and will be socially incendiary, but it is literally the only remaining option open to us next time around.

“The bad news for us, the dirty secret that must be kept a secret at any cost, is that as things stand right now, the people hold all the cards. The good news for us is that they don’t know it. If they were to understand and exert the financial power they possess, they could not only avoid the government bail-ins that are going to financially wound and ultimately impoverish them, but guarantee for themselves a level of financial freedom and personal well-being unmatched by anything they have ever before experienced. But they do not understand, at least not yet, and therefore they do not act. We need to keep it that way.

“The solution of which I speak is extraordinarily straightforward, and while it might sound simplistic, we at Globanque are almost certain it would work: for them, not us. All that the people need do is convert a portion of their digital fiat currency into precious metals. Now, while they still can. If they were to convert a mere 2% of their bank balances, roughly $200 billion, into gold, this would produce incremental demand of 167,000,000 ounces, assuming a price of $1,200 per troy ounce, which it won’t be for long. But incremental demand of that magnitude would obliterate supply, and prices would have to increase, possibly surge. This would convince many more people that it is a good idea to convert bank balances into real money. Which would lead to more buying, driving prices even higher. Ultimately, this could lead to a buying stampede, which is the exact last thing USG, Inc. and its fraudulent, exploitive banking system can withstand at this time. Such action by the people would deal a deadly blow to our strategy, which is to trap their money within the banking system, which we control, and keep it available for expropriation.

“We need to prevent the people from seeing the simple financial solution that is right before their eyes. It is vital that we keep them from moving their liquid assets outside of the banking system, either by withdrawing cash or purchasing precious metals. Accordingly, we have dramatically intensified actions designed to severely restrict or make it outright impossible for them to redenominate their liquid bank assets. The campaign is named “Operation No Exit,” and I will summarize some of its more important components.

“In Europe, we are radically expanding the definition of “cash” to include prepaid Visa, Eurocard, MasterCard and American Express cards, in addition to prepaid Merchant Gift Cards. Additionally, precious metals are being re-defined as cash. By including prepaid cards and precious metals under the “cash” umbrella, they will become subject to existing and soon to be broadly expanded controls. These cash equivalents will be confiscable on demand by authorities, with no probable cause other than suspicion of some kind of illegal activity or intent, which of course they can just invent.

“Prepaid cards present opportunity because we have rolled out and are perfecting a powerful technology known as ERAD: Electronic Recovery and Access to Data. ERAD devices enable us to swipe any prepaid card and determine its available balance. We can then instantaneously transfer that balance to the specific government bank account programmed into the ERAD terminal. The transfer is irreversible, so there is nothing the card holder can do about it.

“ERAD terminals also enable us to swipe bank-issued ATM, Visa Debit and MasterCard debit cards, determine the cardholder’s exact bank balance, and then seize that amount, in whole or in part. Banks’ daily withdrawal limits will not apply; they are superseded by ERAD. So we could instantaneously remove $100,000.00 from a cardholder’s bank account in one step, if the money were there. This is not a “future” technology, Mr. Trump; ERAD is already operational, and the technology improves every day. You can Google it, if you’d like.

“Several years ago, we expanded the Civil Asset Forfeiture program in the United States. This was a daring step, because CAF completely shreds the most basic and fundamental protections guaranteed by the Constitution. It is unique in that the victim, in other words, the person whose assets have been confiscated, is presumed guilty until they prove themselves innocent via an extremely complicated, specialized and costly legal process for which they themselves must pay. Which is often impossible for them to do, because in many if not most cases, the money they require to retain an attorney has been seized. Few attorneys will even touch a CAF case, due to its byzantine legal technicalities and hurdles, so those who will routinely charge $2,000 per hour or more. Most victims are therefore unable to legally fight for the recovery of the funds that have been stolen from them, resulting in a windfall for the seizing agencies. Which gives the agencies an increased incentive to further expand their CAF activities.

“We expected a strong backlash to CAF. But the fact is, there has been very little, other than from some of the victims. Certain courts have judged the method to be legal, which of course makes no Constitutional sense whatsoever. Those verdicts were only rendered because we paid or extorted judges hearing critical cases to legally ratify CAF. Given the unexpected success of CAF in the United States, we are rapidly expanding it throughout the west, particularly in Europe, where until now the practice has been illegal. CAF is a swift and efficient means by which to seize assets. It also enables us to zero in on specific targets, such as people we know to possess wealth.

“In 2013, we launched Operation Choke Point in the United States, a program that forced banks to summarily discontinue doing business with companies we wanted to cripple and shut down, including gun, ammunition and precious metals retailers. Unfortunately, the implementation of Operation Choke Point under Eric Holder was heavy-handed and sloppy, and it did generate some backlash. The Justice Department was forced to take a pause 18 months later, at least publicly. The program is still very much alive, and we are making the electronic processes more effective. Our objective is to be able to financially disconnect from the banking system and destroy any business that presents a threat to our agenda. If, for example, we cannot get gun control via the courts, then we can simply have the banking system impose it, by financially shutting down the dealers.

“In the United States, we have contracted with the Group of 30 to begin the process of demonizing and eliminating cash. Summers, Rogoff and Krugman are the principle spokespersons for this part of the campaign and we are paying them very well. They have all written articles, and Rogoff has written a book arguing that cash is a menace to society and that it should gradually be eliminated. They posit that drug dealers, terrorists and other undesirables use cash; therefore, it must be banned. There is literally no end to that kind of reasoning, which is exactly why we like to invoke it. By their logic, automobiles, gasoline and food should be prohibited, too, because drug dealers and terrorists drive cars and eat. The cash elimination campaign is based on Goebbels-style propaganda and demagoguery, but history proves that such techniques work, so we gladly use them even when the arguments are ridiculous. Currency elimination is a critical part of “Operation No Exit,” because it forces people to either spend their money, which produces tax revenue, or keep their money in banks, which are digital prisons that we guard and control, and that we intend to lock down when the time comes.

“The ECB is actively pursuing the cash elimination agenda in Europe. They have already stopped production of Euro 500 notes, and all existing Euro 500 notes are being segregated and destroyed if they are deposited into the banking system. Euro 200 and 100 notes will be eliminated next, then the 50s. Ultimately, there will be no cash in Europe. This goes for Australia and New Zealand, as well, where we are making gratifying progress. Control-freak bureaucrats are a Godsend to us.

“Sweden has actually stated its intention to be completely cashless within the next two years or so, which has been helpful to our agenda. We like to work with politicians and bureaucrats in smaller countries, because they can be bought off for less money than those in the bigger countries. We are having similar success in Uruguay, which is regarded as the “Switzerland of South America.” A lot of South American money finds refuge there, so it is an important country for us.

“Everyone knows about India by now. Modi was specifically instructed to conduct the Indian currency demonetization in a slow, methodical manner, as recommended in Rogoff’s book and as Draghi is doing it in Europe. Raghuram Rajan, former head of the Reserve Bank of India informed us that Modi was being pig-headed and would not listen. He wanted to be theatrical so as to look to the Indian people like a great crusader in a righteous cause. He is also a believer in the Politics of Envy, and told the phalanxes of poor Indians that he was rooting out the corrupt wealth of the rich. The hopeless love to hear that their oppressors are being taken down, even if what they hear is a lie. Rajan could not control Modi, so we airlifted him out of India and installed him at the BIS, as Vice Chairman. He will manage Indian recovery operations from there, and remains an important steersman for the overall agenda.

“By acting rashly and stupidly with his wholesale currency demonetization that has wreaked economic and personal havoc throughout India, Modi did severe damage to our cash elimination plans. His actions have provoked broad skepticism throughout the world about the risks of government-monopoly-controlled currencies and private, for-profit central banking systems. This has come at the exact wrong time. We need the people to have blind faith and confidence in fiat currencies and the banking system, because we need bank deposits to be at peak levels when we enact the government bail-ins. Time is already repairing the damage; it always does, as the memories of those struggling simply to survive are predictably short.

“Obama has immeasurably aided our cause by broadly expanding the provisions of the NDAA, which gives the U.S. government dictatorial powers over the people on any pretext whatsoever, even if the pretext is 100% fabricated to fit an agenda. If the American people actually took the time to read the NDAA, they would think they had been transported back in time to Stalinist Russia or Maoist China, but of course, they don’t take the time. They are too busy shopping, watching sports, gorging at all-you-can-eat buffets and texting mind-numbing gossip, which is exactly what we want them to do.

“We are rapidly introducing NDAA-like legislation throughout Europe, Australia, New Zealand, Canada and parts of South America. When the crisis occurs, we will be able to lock down much of the world in a matter of a few hours. Far too little time for the people to be able to react or protect themselves in any effective manner. We have financial interests in and influence with most of these governments, so progress is swift.

“In that our remaining time has grown short, it is not possible for me to go into detail about companion initiatives such as FATCA, Fusion Centers, FinCen, new financial disclosure requirements in Greece that will soon to be extended throughout Europe, FBARS, data collection and sorting projects such as Echelon and Prism, or any of the literally hundreds of additional steps we are simultaneously taking to convert to a 100% digitized economy fully subject to our control. But I can assure you that these efforts are synchronized, global and highly effective.

“Let me just say that the true purpose of the NSA’s Utah Data Center is to create an electronic dossier on all American citizens, with a particular focus on their financial affairs. The UDC will know exactly what assets they own and where, their earnings from all sources, their spending patterns, their medical condition, the medicines they buy and take, the foods they eat, their hobbies and travel patterns, their addictions, the social networks they use and what they say on them, the emails they send and read, the Internet searches they conduct, the people they call and text, the people they see, and in particular, anything they do that compromises them and makes them susceptible to special forms of extortion and/or control. The slightly longer term objective is for the UDC to be able to predict people’s behavior. In this way, we can neutralize targets before we expect they might go into action in some inimical way.

“For us, the UDC’s most valuable innovation is the ability to financially turn people off, as if they were table lamps, should that be in our interests. By digitally decommissioning them, we can render them helpless in a world where all transactions must be made electronically, and cash no longer exists. Imagine if none of your payment cards worked, and there was no other way to make payments; if you could not buy gas or food, pay your utility bills, or eat in a restaurant; if your bank suddenly had no record of you whatsoever; if you had been completely erased from the digitized system that is the only means by which to function in society? In South America, they have a reputation for physically “disappearing” the undesirables; we are going to electronically disappear them, which will be far more efficient and deadly.

“We view it as highly unlikely that citizens will act out if they realize they can be turned off, like table lamps, not just for an hour or a day, but forever if we so choose. Now you exist; now you don’t. Poof! Gone! This will be a critical power for us to have during the government bail-ins; we will make it clear up front that anyone who opposes them will be turned off. And that we will not reactivate them. In time they will starve to death. So what?

“The UDC is being replicated throughout Europe, where significant wealth has accumulated over the centuries, which we plan to seize. The UK and Australia, too, are moving fast to deploy UDC technology in their countries. So there is much progress on many fronts.

“As you can see, this is a massive, multi-faceted, globally coordinated project. We estimate that within three years, the infrastructure for a completely digitized economy will be in place throughout the west. But during these three years, we are at extreme risk that the people will figure out what is happening, and take steps to resist it. Which would be very easy for them to do at this stage, as I pointed out earlier in my comments. We want their money, but at this point, they could easily remove it from our grasp. We are doing everything possible to keep them financially blind.

“The only reason we have been able to make the full-spectrum progress we have made, without any meaningful popular backlash is that the vast majority citizens don’t see the overall agenda. They read about one thing we’re doing in one area, another thing somewhere else, another thing in yet another place. But they are discrete data points and sightings. The people are too busy trying to survive to sit down, put all the puzzle pieces on the table, and then assemble them into the complete picture. If they did, they would be stunned and angry. And they would take action. But they don’t see the picture, they just see little fragments of it, so we are able to push on. When they finally do see it, our system will be in place and it will be too late for them to do anything about it.

“That summarizes where we are, but there’s one last thing. Our friends at Goldman are an important “boots on the ground” resource in for us here in the United States. We rely on them regularly. We do think you should bring Gary on board. Let him do his work from the inside. We will all be able to move a lot faster that way.

“Well, my time is up. It has been a pleasure speaking with you, Mr. Trump. I need to get back to Teterboro for the return flight to Switzerland; the Falcon and flight crew await. Next time we meet, I hope we won’t be so rushed, and that perhaps we can have a nice meal and let our conversation take us beyond business. There is more to life. With that, let me thank you again and bid you farewell for now.”

Ehrlich approaches the office door, then turns. “Something I almost forgot to mention. In the spirit of what they believe is going to become an excellent friendship, the Directors authorized me to share with you an inside tip, something they almost never do. They wanted you to know that they are buying gold in the millions of ounces. They think you should be buying, too. And particularly your children, whom they respect. It will be a home run for them, given the magic of time. Feel free to tell your kids to take a look at gold, but don’t tell them anything about our meeting. Your first loyalty test, my new friend.” He opens the door and is gone.

Trump turns to Cohn and says, “I guess the good Doctor’s just said ‘You’re Hired.’ I’ll get the process moving right away. And Good God, I had no idea all of this was going on.” The men shake hands and Cohn leaves the office.

[Seven days later, Donald Trump announced that Gary Cohn would become Director of the National Economic Council of the United States of America, one of the most powerful financial positions in the world.]

Stewart Dougherty is the creator of Inferential Analytics (IA), a forecasting method that applies to events proprietary, time-tested principles of human instinct, desire and action. In his view, forecasting methods not fundamentally based upon principles of human action are unlikely to be reliable over time. He is a graduate of Tufts University (BA) and Harvard Business School (MBA), is a 35+ year veteran of the business trenches and has developed IA over a period of 15+ years.

Trump Fiddles While The United States Burns

If history is any guide, global changes of this magnitude mean that the entrenched systems run by central banks and Deep State politics are set to be destabilized on a level we may have not witnessed in our lifetimes, which means assets like bitcoin, gold, and silver could become the safe havens of choice for investors.  – Mac Slavo, SHTFplan.com

Mac’s comment above was in response to the news that First Majestic CEO, Keith Neumeyer, is prepared to join the legal battle being waged against the world’s largest banks for manipulating the gold and silver markets.   Good luck with that.

But even if the plaintiffs make some headway against the banks, this fight will take years to wage and it will likely do little more than provide some temporary relief from the financial market’s equivalent of pancreas cancer.

While the precious metals community engaged in a celebratory end-zone dance when Deutsche Bank admitted to malfeasance in its paper silver trading business, the insolvent bank coughed up a fine that was mere pittance of the billions it made over the years rigging the LBMA.

To make matters worse, JP Morgan was mentioned nowhere in Deutsche’s testimony.   JP Morgan has by far the largest silver vault on the Comex, with an alleged 82 million ozs in its custody.  The next largest is Brinks with 25 million.  I say “alleged” because it’s quite doubtful that a large portion of JPM’s reported holdings exists anywhere other than as an entry on its daily vault report.  Ask Germany about that…

JPM also happens to be the largest market maker in Comex silver futures, it’s part of the bank cartel that fixes the price of silver on the LBMA everyday and it’s the vault custodian of the alleged silver that is supposed to belong to the SLV trust.   Does it make sense that JP Morgan went unnamed in the Deutsche Bank confessional?   If that happens to pass your smell test then we would suggest that you blow your nose thoroughly and take another sniff.

With regard to the manipulation of precious metals, if you want to kill a snake, you have to cut off its head. Similarly, if you want to end precious metals manipulation, you need to destroy the BIS.  The directive and authority to manipulate the metals comes from the mother of all Central Banks.  JP Morgan is the BIS’ chief agent in executing the directive. Deutsche Bank was given explicit instructions to omit all references to JP Morgan from its superficial mea culpa.

Mac is correct in his assertion that systems run by Central Banks are becoming destabilized.  And he is correct in his implied assertion that this will lead to much higher precious metals prices.  Bitcoin?  Who knows?  Bitcoin is a de facto digital currency and thus yet another fictitious form of money with a computer system as its counterparty.

The problem is that as the destabilization process unfolds, the Establishment will fight back hard in an effort to maintain control.   This blow-back will be in the form of a further advancement toward Governmental totalitarianism. With the geopolitical and economic wheels beginning to fly off rails, at this point it’s fait accompli.    In today’s episode of the Shadow of Truth, we discuss the general systemic decay of the U.S. and Trump’s role as the modern day Nero:

“Buy” Signals Are Appearing Everywhere In Gold

The prediction I presented in the last Mining Stock Journal to subscribers about gold is developing even before the new year.

Although it seems like the precious metals sector has experienced another down year, the
HUI index is still up 48.6% from its 12/31/15 close and it’s up 65% from its low on January
19th this year.

The technicals in the gold market never been set up better than they are now for a contrarian move higher. On the assumption that gold closes on Friday lower for the week than last week, it will mark seven straight weeks in which gold has closed lower on a weekly basis. This has never happened before.

The premiums for physically delivered gold in China have never been higher. Egon Von Greyers, in Switzerland, reported in his latest King World News interview that there are reports that Swiss refiners have been paying a premium to buy gold. My suspicion is that the Chinese are willing to pay $30+ premiums to world gold in order to keep the supply from Swiss refiners flowing, which is why Swiss refiners are willing to pay premiums to acquire dore bars and scrap.

This illustrates the growing disconnect between the price of gold being paid by the markets in which physical delivery is a requirement vs. the price being paid by the paper gold markets (NYC, London) in which physical delivery (i.e. removed from the exchange and received into private hands) is highly limited, if not outright discouraged or considered a peculiarity.

The above analysis is an excerpt from the latest issue of the  Mining Stock Journal.  In thi s issue, I present several technical indicators which suggest gold is poised for a big move higher.  The mining stocks have been telegraphing this since late November – I detail this point in the MSJ

The MSJ is a bi-weekly subscription-based newsletter delivered to your inbox every other Thursday. The focus is primarily junior exploration mining companies, which have provided the best upside returns since January. Bloomberg featured an article – LINK – which explained that in-ground reserves at the large gold producers are dwindling. This will make small exploration companies with demonstrated gold/silver resource in the ground a lot more valuable going forward. You can access the MSJ here:  Mining Stock Journal Subscription Info.

I am a subscriber to both of your journals.  I just want to say “WOW” to this post on your site. Thank you for all your work.  As a financial professional of 28 years’ experience, I can tell you why there is no churn in your journal subscriptions. Your work is extremely sound and well done even in a massively manipulated environment.  – Kevin B.

New subscribers receive all of the back-issues (via email) plus a glossary of terms which help explain mining technicals.  The latest issue, released yesterday, has a junior explorer that has a proved resource on the largest copper-gold deposit discovered in recent years. This stock is worth at least twice it’s current market price based on the fundamental value of the deposit.

CONFIRMED: Big Banks Rigging The Silver Market

According to the plaintiffs, records surrendered by Deutsche Bank show traders and submitters coordinating trades in advance of a daily phone call, manipulating the spot market for silver, conspiring to fix the spread on silver offered to customers and using illegal strategies to rig prices.

“Plaintiffs are now able to plead with direct, ‘smoking gun’ evidence,’ including secret electronic chats involving silver traders and submitters across a number of financial institutions, a multi-year, well-coordinated and wide-ranging conspiracy to rig the prices,” the plaintiffs said in their filing. The new scheme “far surpasses the conspiracy alleged earlier.” – Bloomberg.com, December 7, 2016

Anyone who denies that gold and silver are manipulated either has not spent time examining the evidence or is financially incentivized to refute all allegations. In other words, they are either ignorant or willfully corrupt. This includes the entire universe of politically corrupt western Central Bankers and professionally criminal Wall Street bankers. But first and foremost it includes all three branches of Government.

Traders discussing on recorded lines ways in which to rig the silver market? Imagine that. Lost in the smoke of the latest revelations about the big bank silver market manipulation is the fact that Andrew Maguire presented evidence of this at JP Morgan over six years ago. Perhaps the most shocking aspect about the latest revelations is that JP Morgan was not cited in the Deutsche Bank court filings.

Although summarily dismissed by the Commodity Futures Trading Commission and mainstream financial conspiracy, JP Morgan has been the “ring leader” in the silver market manipulation scheme for years.

The latest revelations will never be accepted as truth until CNN or CNBC reports on them to “verify” for the zombie masses that the big banks are indeed corrupt beyond the imagination of “conspiracy theorists.” It will be interesting to see if this will lead to RICO prosecution, which it should:

RICO law refers to the prosecution and defense of individuals who engage in organized crime. In 1970, Congress passed the Racketeer Influenced and Corrupt Organizations (RICO) Act in an effort to combat Mafia groups. Since that time, the law has been expanded and used to go after a variety of organizations, from corrupt police departments to motorcycle gangs. RICO law should not be thought of as a way to punish the commission of an isolated criminal act. Rather, the law establishes severe consequences for those who engage in a pattern of wrongdoing as a member of a criminal enterprise

The threat of RICO was used to pry open the truth at Drexel Burnham in order to bring down what was, at the time, one of the biggest – if not the biggest – financial market corruption schemes in U.S. history.

The latest revelations are hard evidence that GATA has been right since 1998, when it was founded by Bill “Midas” Murphy and Chris Powell in order to document and expose the gold and silver market manipulation for the world to see. GATA’s evidence has been written off for over a decade as “conspiracy theory.” Now it is confirmed conspiracy truth. In fact, Murphy was banned as a guest on CNBC after he discussed gold market manipulation.

“Fake news?” Hardly. Proof is now in court documents. In today’s episode of the Shadow of Truth, we discuss the latest court documented evidence which confirms that silver market manipulation is standard operating procedure at the big banks who are supported by the taxpayers:

mining-stock-journal-header-borderUntitled