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Gold And Silver Continue To Scaling The Wall Of Worry
At the beginning of this week, almost every so-called gold market analyst was predicting a wash-out in precious metals because of the huge bullion bank short being reported in the COT report. A few of us believe that character of the market has changed and paper market price manipulators are losing traction – for a lot of reasons.
This week shows that the banks covered a portion of their shorts and the hedge funds and little guys sold down longs and increased their shorts. This information may be largely irrelevant. Interestingly, in data I’ve parsed and presented in a previous blog post, the beginning of two of the best gold/silver rallies since 2001 occurred at a time when the bullion banks held their biggest short position in gold futures (expressed as a ratio of total open interest).
The latest issue of the Mining Stock Journal was released last night. In it I discussed the use of JNUG (the 3x junior mining stock index ETF) and I explain why we could be on the cusp of the best move yet in the sector. And of course I present a remarkably undervalued junior mining company (a royalty company) in which insiders bought a boat-load of shares in January and now control over 30% of the equity. You can access the MSJ here: Mining Stock Journal.
A subscriber had an interesting question that is a common question I get currently: I really enjoyed this latest edition of your newsletter. I find myself getting less and less nervous about a price smash as it feels that the powers that be can no longer stem the tide of reality. One question I do have is whether you think a massive asset deflation event (similar or greater than 2008-09) will have a negative or positive impact on the shares
My reply: I think there’s is going to be a collapse in all “assets” that have been inflated in price by the use of debt: housing, NYSE stocks, bonds, etc. That is different than general price deflation. We may see a LOT more money printing as the Fed/Government attempts
to prevent a debt-driven asset collapse. This will could drive the price of necessities up a lot. But this will really fuel the entire precious metals sector, especially the junior miners which have proved gold/silver/poly-metallic deposits. (click in image to enlarge).
Any asset valuation collapse because of debt implosion will act like a heavy dose of Viagra on the value of mining stock shares. Look at what happened in the 1930’s to stocks like Homestake Mining when the Dow was crashing. When the initial stock plunge occurs, the miners might correlate lower for a bit but then they’ll do a life-style changing moonshot.
Gaping Holes In The Government’s Retail Sales Report For April
“We are not counting on the consumer to spend more,” Chief Executive Terry Lundgren said Wednesday. With saving rates high, wages growing and employment data steady, Macy’s executives were at a loss to explain why consumers weren’t spending in its stores. “We’re, frankly, scratching our heads,” said Chief Financial Officer Karen Hoguet.
The facts to do not fit the assertions above. The savings rate in this country is not “high” and wages are not growing. The Government may be reporting a high savings rate and growing wages, but that’s merely a product of statistical fiction. Note in the graph to the 
right (click to enlarge) that rate growth in outstanding credit card/revolving credit is accelerating. This stands in direct refutation of the “high savings rate” narrative served up by the propagandists.
If you are not getting paid any interest on your bank balance, you will not spend it. If you don’t have money in the bank BUT it’s easy to get credit, you will borrow to spend. The reports coming from retailers suggest that borrowed money is not being spent on discretionary purchases. This can only mean that the middle class is now buying groceries and gasoline using credit card debt.
Does anyone believe the April retail sales report? Really? I told my business partner yesterday that I was expecting a “blow-out” rigged retail sales report for April. Why? Because I was willing to think like a criminal and imagine what I would do, given the plethora of horrific big chain Q1 financial reports and the avalanche of retailers filing for bankruptcy or liquidation during Q1.
Macy’s and Kohl’s reported unexpectedly poor Q1 numbers, missing Wall Street’s expectations badly. CNBC blames the numbers on “unseasonably cool months in March and April.” It’s a convenient excuse that does fit the facts. Nothwithstanding this, the Government statisticians seemed to have not found any issues with weather affecting sales. The discrepancy between the level business activity reported by the country’s largest corporations and the Government grows wider with each passing month.
According to the Government statisticians, retail sales popped up 1.3% over March. Somehow Obama’s worker bees seemed to find retail sales in places not reported by any actual retailer. The big drivers were gasoline, auto sales and apparel. While its true that gasoline sales probably increased, this was a function of price of gasoline rising appreciably – i.e. inflation. It’s certainly not reflective of an uptick in economic activity. Auto sales increased in April vs. March, but Wards reported today that auto industry is taking a big chunk of production down this month. Apparel? Seriously? After the long line of retailers that reported horrible first quarter results and significantly revised the outlook
Macy’s reported comparable sales down 6.1%, Kohl’s comp stores down 3.9% and traffic down 5%, Nordstrom’s same store sales down 1.7%. These numbers are complete disaster from a retailers perspective and they reflect the fact that the middle class is quickly running of room to borrow money on credit cards and home equity loans. This is going to translate into an cliff-dive in economic activity that I believe is hitting now.
Nondiscretionary spending on health, insurance, education and housing has taken an extra 4% out of personal-consumption expenditures in 2015 compared with 2000, according to Craig Johnson, president of consulting firm Customer Growth Partners. That has reduced the discretionary spending available for traditional retailers by $500 billion–more than the combined annual U.S. sales of Wal-Mart Stores Inc. and Costco Wholesale Corp. LINK
In perusing the details in the retail sales report, which is prepared by the Census Bureau, it would appear that sales of autos and auto parts drove the number, which could be partly down to the increase in the number of auto parts discounts available nowadays. The Fed and the Government have targeted auto sales and housing with printed money and the highly permissive availability of credit in order to manufacture the appearance of economic growth. At some point there will be a tipping point at which the default rate soars on all this new auto, credit card and mortgage debt created over the past five years. I believe the system has crossed that Rubicon and it will become quite evident over the next several months.
I would also argue that the precious metals market has “sniffed out” this reality, which is why the Fed/banks are finding it impossible to push the price of gold/silver any lower than the levels we have seen this week. Hang on, if you are long the precious metals sector it is going to be a fun ride. The Mining Stock Journal can help you pick out the junior mining stocks that have the potential to create life-style changing wealth. At the very least these stocks will protect from the malice of disastrous Fed and Government policies. You can access the MSJ using this link: Mining Stock Journal. New subscribers will receive the latest issue released last night plus the back-issues dating back to the March 4 debut.
China: The World Better Take Notice
The U.S. media has taken its propaganda game to stunning levels. The reason is that the majority of the population – at the least the majority of those who even bother to make an attempt at staying apprised of current events – will believe anything it reads in the newspapers or hears/sees on on tv. Put it on an CNN and it’s true (Note: CNN and MSBC are inter-changeable).
There’s a pathetic core viewership for Fox News and CNN, respectively, who manically lap up the drivel fed to them by those two networks. For those audiences, anything a show host or guest on either those two channels asserts is received as “The Word.”
Ironically, if you remove the Christian proselytizing from Fox, you get CNN/MSNBC. Sometime in the latter years of the Bush 2 Government, I believe in sympathy with the incessant promulgation of pro-military propaganda (CNN Headline News is now similar to a State radio broadcast from the Third Reich), the previously left-leaning CNN and MSNBC transformed into Neoconservative yellow journalism soundboards.
Lost in transmission on those to networks is the fact that, contrary to his impassioned campaign promises in 2008, Obama’s Government has become an international Department of Defense-sponsored killing machine. But “this just in,” those “wars on terror” being fought all over the globe are technically illegal.
I saw a news item in CNN this morning which reported that the military officials who were polled preferred Hillary Clinton over Trump. That was no surprise to me. Lurking beneath her phony smile and the circus tents fashioned into dresses which attempt to hide her growing obesity (but can’t hide her cankles) is a crazed war-monger. Her true posture on war makes Hitler look like a pacifist. But those are facts conveniently left out of the media’s narrative.
Turning to China, the media reporting on China’s economic and financial condition is nothing less than stunningly fraudulent. The “Economist” has predicted economic doom in China fifty-seven times in the last couple of years. In perusing the business news reports, one would get the impression that China’s debt problems dwarf that of the United States. But nothing could be further from the facts.
China’s sovereign-issued debt is $5.4 trillion – or about 50% of its GDP. The U.S. Government debt outstanding is $19 trillion – or 107% of GDP. Government plus private sector debt in China is roughly 260% of GDP (Govt + corporate). Note that in China the citizenry does not have debt but they do have a 50% savings rate. At last glance, total private sector plus Government debt in the U.S. is 340% of GDP. These debt numbers that do not include the underfunded pension problem in the U.S., which adds about another 10% to the total debt outstanding.
One last point worth mentioning. China’s Government “balance sheet” includes about $3.4 trillion in currency reserves, not including its gold holdings. The U.S. “balance sheet” has about $38 billion in currency reserves and likely does not own any gold. The citizens in China use a significant portion of their savings to buy gold and silver. U.S. citizens largely own big credit card and auto loan balances and no gold or silver.
The Shadow of Truth hosted Jeff “our eyes and ears on the ground in Beijing” Brown for discussion about what is really transpiring currently in China economically. You will find some very interesting, if not stunning revelations, in what Jeff has to report.
Gold And Silver Are Being Bought On Every Manipulated Hit
In real terms, most international fiat currencies could come to be near valueless when measured against gold and silver…And of course that climate will cause the utter collapse of the global stock markets, not to mention impact most severely our societal stability; all as direct consequence of the delusionary monetary practices employed for decades. – Safewealth newsletter
Sell please. I’m buying. There’s a lot of analysis out there with highly flawed assumptions. The biggest problem with this analysis – Seeking Alpha link – is that the author assumes the Fed will raise interest rates. That won’t happen until the entire is system is forced into a reset from a collapse. The Fed knows this and has no interest in hastening that reset.
Just like the continuous threat of raising interest rates, there’s been a continuous threat of 
“gold is overbought, too many longs, market is going to cliff-dive at any moment” like this article pouring forth (click to enlarge image). Where was this story-line when gold was being hammered daily as if the market was trying to dig a hole to China for the price of gold?
The gold net long is “stretched?” That meme is now quite tired. Put it to sleep please. Analysts with a longer track record in this sector than the author of the above article have been instilling the “net long” fear into the market for nearly three months now. Where’s this overbought sell-off?
They key to finding profit opportunity is to think outside the box. Based on my findings, there is a lot of institutional cash on the sidelines waiting to buy into the pm sector on any pullback. That’s why the metals have popped after that manipulated take-down on Monday – a takedown fueled by the “net long is overstretched” commentary that littered the airwaves last Friday after the COT report was released. (click image to enlarge)
This market has been surprising everyone to the upside and will continue to do so. At some point the lemmings who blindly soak up the “market is overbought” fairy tale will be running to catch the train. That’s when the real fun begins.
Currently gold is behaving similarly to the way it behaved back in 2003 when it was trying
punch through $400. The “overbought” garbage was permeating the media back then just like now. In fact, Robert Prechter issued a call for gold sell off to $50. How’s that call look? Shortly thereafter the market blew through $400 and eventually hit $1900. I would suggest that the author in the article linked above was not around back then and thus has no context for what is happening now. (CLICK ON THE IMAGE TO THE RIGHT TO ACCESS IRD’s MINING STOCK JOURNAL)
World’s Most Speculative Mania?
The western media – especially any mainstream U.S. news source – has made it a habit to blame the world’s problems on Russia and China. The U.S. economy is aces – when the U.S. stock market drops it’s China’s fault.
Bloomberg published a report yesterday which presented China’s commodities futures market as the world’s most speculative mania:
What started as a logical bet — that China’s economic stimulus and industrial reforms would lead to shortages of construction materials — quickly morphed into a full-blown commodities frenzy with little bearing on reality. Bloomberg News
But let’s put China’s commodities trading frenzy in the context of the stock that I estimate is the biggest corporate Ponzi scheme in U.S. history:
AMZN trades at a trailing GAAP p/e of 562x. I use the term “GAAP” here quite loosely because there’s GAAP and then there’s Jeff Bezos GAAP. It trades at 23x book value, 30x tangible book value and 40x EBITDA. Bezos claims that AMZN threw off a couple billion in “free cash flow” for Q1. Yet, if this is a provable fact, how come AMZN’s cash balance declined $3.4 billion from the the end of Q4 2015 to the end of Q1 2016? Someone is not telling the truth…
It did not hit me until this morning (this was well before the Zerohedge article reporting a similar concept later in the day) that the reason the SEC and Congress do not open an investigation into Amazon’s accounting is because Jeff Bezos owns the Washington Post. That’s a very powerful weapon to dangle in front of a Washington, DC politician or bureaucrat.
AMZN stock hit an all-time high today because some chode from a Wall Street bucket shop issued a “buy” with a price target of $1,000. The analyst did not have any specific fundamental reasons for why the stock was worth $1,000/share. But then again, I’ve never seen anyone besides this blog and a few others attempt to hold these Wall Street hand-puppets to any reasonable degree of accountability.
The Bloomberg article references the the Dutch Tulip bulb mania of the 1600’s and the internet bubble of the late 1990’s in the U.S. when referencing the frenzied activity in the Chinese futures markets. How convenient for Bloomberg to overlook that the fact that the greatest investor fraud of all-time is domiciled right here in America.
Yes, I suppose just like Bloomberg’s assertion that Chinese commodities futures “started off as a logical bet,” at time in its infancy as an online book reseller Amazon’s stock was a logical bet. But fueled by Fed money-printing, regulator-enabled fraudulent accounting and extreme investor greed, Amazon stock is the embodiment of a financial system that is completely corrupted to the core.
The Latest Short Seller’s Journal: The Greater Fraud Contest
The stock I feature in the latest issue of the Short Seller’s Journal was down 3.5% today. The company’s revenues are highly correlated with the GDP, which is going negative rather quickly. This stock easily has another $20 of downside by the middle of the summer, which would be another 33% from here.
Icahn has always been one of the shrewdest investors out there. I doubt he’s betting on anything less than a 35-50%% decline. The SPX could drop 50% tomorrow and still be overvalued. Based on historic GAAP accounting and historical valuation metrics, the S&P 500 is intrinsically worth 500-800.
I am working to determine whether TSLA or AMZN is the biggest stock fraud in the history of our markets. Both companies aggressively implement the same business model: charge the end-user (buyer) a price below the all-in cost of getting the product from the factory floor to the customer’s possession for the sake of generating revenues.
AMZN stock has run up $72 to $673 (Friday’s close) since its earnings were reported last Thursday. The Company continued with the same highly misleading accounting in Q1 2016 and the misleading presentation of its numbers that I layout in Amazon.con. AMZN burned through OVER $3 billion in cash during Q1 2016 despite making the claim that it generated $5 billion of free cash flow.
Of all propaganda-promoting publications, the Wall Street Journal featured a story last week which outlined the ways in which Elon Musk (TSLA founder) moves around cash among TSLA, Space-X and Solar City, depending on which entity recently raised money and which entity needs money. Pure Ponzi scheme.
TSLA is now down over 6% from when I originally recommended shorting it on March 27, despite the fact that SPX is slightly higher. I reiterated the recommendation in last week’s Short Seller’s Journal issue – it’s down 17% since then.
The S&P 500 is getting ready to roll over again and edge off the cliff. It’s not a question of “IF” but a matter of “WHEN.” In the latest Short Seller’s Journal I present three great short ideas, including a not well known company who’s revenues are highly tied to GDP activity. This stock could easily shed $30 over the next 3-6 months. Subscribers to the SSJ gain access to the Mining Stock Journal for half-price (and vice-versa). You can access the SSJ by clicking here: Short Seller’s Journal.
Rigged HFT-Driven Paper Trading Drives Gold Lower Today
I want to preface this commentary with the “proviso” that I have no idea how violent to the downside this attack on the precious metals will get. No one does. It could end today; it could end at the 50 dma (approx $1,248 on the front-month paper gold instrument traded on the Comex); it could go all the way down to the 200 dma. Even the banks who are driving this activity have no way of knowing.
I am using every step down in gold to move more money into my BitGold account. The 
account functions almost like a checking account. You get assigned individual kilo bars or interest in a kilo bar when you move money into the account. You benefit to the upside when gold shakes off the intervention and moves up again. You also can get a Mastercard that lets you access the funds easily. The best part is that BitGold operates outside of the Central Banking system. Click here – BITGOLD – or on the image to the right to get started.
Gold began selling off as soon as the Globex Comex computer system opened for the week 
Sunday evening (6:00 p.m. EST). But the distinctive “waterfall” price plunges did not begin until about 30 minutes after the open of the Comex floor trading at 8:20 a.m EST (Click on the image to enlarge). This trading pattern is characteristic of the paper bombs the bullion banks throw at the market in order to trigger the stop-losses set by the hedge funds. The trading is mostly computer-based. Trading volume was light compared to the spike up on Friday after the jobs report, which makes it easier for the banks to plunge the market.
Note: if anyone wants to learn about the mechanics involved in “plunging” the markets, read “Reminiscences of a Stock Operator” by Edwin Lefevre. It’s the unofficial biographical accounting of Jesse Livermore. It’s a must-read for anyone who wants to understand the extent to which the current market is rigged. The only difference between now and the 1920’s is that now the Central Banks are directly behind the activity and they are driven by an entirely different motive than that of Jesse Livermore.
Speaking of the jobs report, the most idiot attribution for the sell-off in gold comes from Investing.com – LINK – which “informs” us that gold futures fell overnight because “investors viewed Friday’s jobs data as less disappointing than first thought.” I don’t really know how to respond to that assertion other than to question the author’s relative level of intelligence.
This is an HFT computer algo attack operation. They have a problem with the physical market. I surmise that it’s worse in silver than in gold. Gold is now only 1.4% away from a 50 dma “correction.” The 50 dma has been pretty good support. There’s a good possibility that the 50 dma will “stop” the sell-off. If not it will drop pretty quickly to the 200 dma. Either way, the only way to take advantage of this is to add to positions with every “step function” price plunge lower. The market sentiment levels per Marketvane and the HGNSI are still not even remotely close to levels that indicate a contrarian sell-off is likely.
In fact, if anything, the continuous flooding of anti-gold propaganda from the media and Wall Street convey a sense of desperation from the powers that be that derive their “power” from an ability to control fraudulent fiat currency.
Is A Precious Metals/Mining Stock Sell-Off Imminent?
Silver is up 25% YTD through last Friday. I have not checked every commodity and stock index, but if silver is not the best performing asset YTD, it’s in the top three. What’s more remarkable is that this move has occurred despite vociferous anti-gold/silver propaganda flooding from Wall Street and the media.
The current “meme” is that the large net short position by the bullion banks against the large net long position of the hedge funds has set the market up for another predictable price raid by banks. I do not know if the banks will be able to pull it off yet again.
Depends on whether or not the hedge funds have stop-losses set that the banks can smash with enough paper to trigger them or whether the hedge funds will keep buying the paper that the banks print. In the past, it gets to a point at which the hedge fund computers start selling and the banks can successfully attack the stop-losses. that’s what causes the waterfall drops.
Up until now every attempted price raid since February has been met with aggressive buying, especially in the junior miners. Too be sure, the banks – under the direction of the Fed under the direction of the BIS – are getting geared up to take another run at taking down the price of gold/silver. Whether or not they will be successful is another matter. There is a lot of cash on the sidelines which recently exited the stock and high yield bond markets and is looking to pile opportunistically in the PM sector.
Craig “Turd Ferguson” Hemke invited me on to his A2A Podcast Show last week. We engaged in a lively discussion about the precious metals and a lot of other timely issues which will affect the markets. You can listen to the podcast by clicking here – TF Metals Reprot – or on the image below. Download as an MP3 here: LINK
Non-Farm Payroll: Economy Is Collapsing
The Government’s “non-farm payroll” report – aka “the employment situation” – reported an alleged 160k jobs added to the economy in April. I am loathe to even discuss this fairy-tale report out of disdain for ascribing any legitimacy to a complete work of fiction. It is mind-blowing to me that economic “experts” like Mark Zandi jump on the financial market propaganda networks and attempt to conduct a serious discussion about the numbers (I remember when Zandi was a mediocre analyst for Moody’s – he was hack then and he’s a bigger hack now).
Having swept aside those reservations I want to point out that, of the 160k jobs 
allegedly added to the economy in April, the Government whipped up 233k jobs from its “birth/death model” statistical plug metric (click image to enlarge). Without this fictitious numerical addition to the overall report, the economy in April lost jobs (the 233k number is pre-seasonal adjustments so it’s not mathematically correct to subtract 233k from the 160k, but it is correct to infer that the pre-birth/death number was negative).
The birth/death model is the Government’s estimate of the number of new businesses that were created in April net of the number of businesses that closed. There’s not really words available that can describe the absurdity of the B/D model. I’ll let the reader scan through the numbers in the graphic above to decide whether or not – in the context of every other economic report released in April – if the economy produced enough new businesses to affect the amount of hiring reflected in the Government’s report.
Ironically, Goldman Sachs has raised its forecast for the U.S. non farm payrolls (NFP) on Thursday, expecting the employment report to crush expectations with a number closer to 250,000. This is despite the fact that Goldman itself has slashed its payroll this year, cutting its fixed income division employment by 10%. It’s just amazing how fraudulent the entire U.S. system has become. It would be interesting to see the motivation behind Goldman’s highly misleading research reports, specifically the bank’s jobs forecast and its interminable forecast of sub-$1000 gold.
Please recall that when gasoline prices were falling the story-line pitched by Wall Street was that it would create a big bounce in consumer spending. This big bounce never materialized per retail and restaurant sales reports over the last several months. But also notice that Wall Street and the financial media market promoters are dead silent on the effect that higher gasoline prices will have on the consumer.
The non-farm payroll report with the birth/death model job additions stripped away – i.e. significant job losses in April – is likely the accurate reflection of the level of economic activity in this country. This assessment is reinforced and confirmed by the number of recent bankruptcies in the retail and energy sectors. The 16% plunge in rail traffic during April reported by the Association of American Railroads further confirms this assessment – LINK. Rail carload traffic reflects the level of business activity at the manufacturing and wholesale distribution level of our economy. If activity in that sector is collapsing, it means that retail demand in every sector of the economy is collapsing. Housing is next…
Did The Fed Signal The Inevitability Of The Next Banking System Collapse?
Like a Mafia Don protecting his “family,” the Fed is implementing another layer of “protection” from collapse for the Too Big To Fail Banks. This latest deal will prevent bank counter-parties from pulling collateral from a collapsing bank. The installation of this law is a warning signal that the global banking system is barreling toward another devastating financial collapse.
The cover story for this scheme is that it will prevent another “Lehman” event from taking down the entire financial system. But it wasn’t Lehman, per se, that caused the 2008 collapse. Bear Stearns lit the fuse, Lehman was selectively thrown into the explosives mix and AIG/Goldman sprayed napalm into the explosion.
My source for this information of this is this article from Bloomberg: More Fed Protection For Big Banks. I had to read the article carefully a few times to fill-in between the lines, as Bloomberg kept referencing the new rule as a “proposal” and either white-washed or misrepresented the facts.
The new rule will prevent the TBTF bank counter-parties from taking their collateral away from the bank when the bank is collapsing. When a fund enters into a derivatives trade 
with a bank the fund is required to put up collateral, generally in the form of Treasuries. The bank is then free to hypothecate that collateral, or make use of it for its own purpose. But if the bank collapses and the fund is in a “winning” position on its derivatives trade with the bank, it’s in the fund’s best interest to withdraw its collateral. The new Fed rule will prevent this. The rule extends beyond derivatives, to securities lending agreements and repo transactions. But the truth is that this Fed rule is aimed squarely at derivatives.
The implementation of this new regulation, at best, extends the bail-in concept to TBTF “big boy” counter-parties, like hedge funds, insurance companies and pensions. The 
wellspring for this new banking rule is the Financial Standards Board, a key policy arm of the BIS. The FSB is the entity that drafted the bail-in regulation, which has been largely implemented in Europe. Bail-in regulations are now methodically being installed in the U.S. banking system.
In its essence, this “collateral freeze” regulation will eventually morph into a de facto bail-in mechanism and serves the purpose of transferring wealth from the banks’ counter-parties to the banks. At the very least, this collateral freeze regulation adds yet another layer of moral hazard into the banking system, as banks are incentivized to underwrite even riskier derivatives transactions with knowledge that the risk of collapse is further minimized.
Interestingly, this new law is “asymmetrical.” If the bank fails, it gets to keep all counter-party collateral locked-up. But if the bank’s counter-party fails, that counter-party has no ability to freeze the collateral it put up with the bank. The bank has possession of that collateral. This is what happened in the MF Global collapse, where JP Morgan seized all of MF Global’s collateral, at the detriment of MF Global’s customers. At the time JPM’s move was illegal but the judicial system looked the other way.
While the funds doing derivatives business with these banks will suffer irreconcilable damage from the new rule, at the end of the day, it will be the investors who have their money with hedge funds, insurance companies and pension funds that will bear the greatest expense of this de facto bail-in law. That would be you, the public. Once again the public gets screwed by the financial system in a way that is being enabled by the Government.
The only way to protect yourself from this is to remove as much of your wealth from financial custodians as possible. Not only is the new regulation a clear warning bell of another financial collapse coming, the Fed and the Government are making it even easier to trap your wealth. The financial system is one giant roach motel – you can check-in but eventually your money will never check-out.