247Bull.com Editor: The vast majority of people still don’t understand what is really happening behind the headlines about currency wars, open-ended asset purchases, rising deficits etc. What’s really going on is the slow but inevitable collapse of the fiat (paper) money system – an experiment that has been running for more than 40 years. Precious metals expert David Morgan, author of The Morgan Report, explains that “this is a huge battle. It’s the battle between the real money story and the fictional money story. It’s been played out again and again throughout monetary history but it’s never been played out in a global manner as it is right now. That is why it is so fundamentally important for everybody to understand what’s going on.” Fiat currency systems have been tried many times before but every fiat currency since the Romans first began the practice in the first century has ended in devaluation and eventual collapse. There have been 34 hyperinflations in the last 100 years – most of which took place in the 20th century with fiat currencies – and it’s not only the currency that collapsed but also the economy that created it. Crucially this is the first time that no currency on earth is backed by anything more tangible than a politicians promise. Ultimately the battle to preserve your wealth comes down to a simple question: would you rather hold something of real value or would you rather hold worthless paper?
The propaganda has turned openly laughable. On the popular major financial news networks, the recent decline in the so-called Gold price has prompted quite the parade of clowns on the ship of fools to trumpet nonsense. The widely published and posted Gold price is dominated by futures contracts, and thus is corrupted as meaningless. The entire global financial structure is crumbling before our eyes. The gang of central bankers has applied their monetary policy for four and a half years since the implosion of Lehman, Fannie Mae, and AIG. The first is dead, while the second has transformed into a sanctioned subprime lender again, and the latter is a sinkhole. The deceptive messages are shrill, acute, and motivated from desperation. The West cannot solve its problems, hardly properly described as a financial crisis anymore, under the current framework bound to the fiat paper currencies. The global monetary war is heating up notably. The heavy liquidity has caused unfixable distortions in every conceivable bond market niche. The new and better debt devices have been exposed for their shams. The leading central bankers lost their credibility long ago. The weakness is as broad as it is deep, a reliance upon paper wealth and paper structures and paper contracts, during a time of zero bound interest rates and unfettered hyper monetary inflation to cover the debts. Almost no foreign US Treasury Bond buyers exist anymore. The US has become Weimar Amerika, a fascist enclave.
More than a crisis, it is more accurately described as a collapse of a corrupt inequitable monetary system, and a desperate defense by the major Western bankers to preserve their power over nations and their governments, alongside a vile vicious violent attempt by the United States to maintain its privilege as owner of the vast US Dollar counterfeit machinery, as controller of vast banking pillars of paper columns, and as commander of a vast military. Leave as a footnote the massive blossom of financial crime, well known to students of fascist business models. The list of US leaders with Vatican slush fund bank accounts is long. The list of big US banks under lawsuit or investigation is long. The prosecution cases against big US banks tossed under the rug for past multi-$billion frauds is long. The list of big US banks caught in narcotics money laundering is long, each punished by roughly 1/30-th of a penny per dollar involved. The list of regulator cases that run interminably against big US banks without any action for chronic commodity violations is long. The list of defense contractor fraud and appropriation violations is long, none even prosecuted. The United States has earned a reputation as a lawless land in the eyes of a great many nations and corporations with multi-national reach. The global shun has not just begun, it is well along. Case in point. In Tokyo,Ireland, and Toronto, the US$100 bill is routinely rejected by banks for deposits under the pretext of broad counterfeit. Also, Amazon checks are rejected in Italy and Germany for deposits.
TWIN TOWERS BUILT OF BUBBLES
The asset bubbles that require better focus are the US stock market and the US Treasury Bond market. Each has run close to its limit on bubble power, no longer operating as buoyant or of reliable viscosity. The stock and bond markets suffer from a Weimar dependence, as Reich Finance has quietly woven into the entire US bond and monetary fabric. In numerous previous articles bearing the Hat Trick Letter brand, discussions and evidence have been produced that demonstrate a heavy dependence upon the Interest Rate Swap derivative contract for keeping the long-term US TBond yields low. There is no conceivable flight to safety, a fascist battle cry ripe with propaganda and disinformation, intended to support the US$-based financial structures. With new supply from US Govt debt pouring onto the table, with rollover of matured US Govt debt pouring on the table, with absent foreign buyers of US TBonds exiting the same table, with unresolved $1 trillion debt festering without political solution sitting on the table, the long-term US TBond yields should be over 7% and truly near 10%, since the United States is Greece times one hundred. So naturally the Interest Rate Swap derivative must be relied upon to keep US interest rates low. The US TBond asset bubble is the final bubble before the US Govt debt default and the global rejection of the US Dollar itself. Gold serves as a strong viable reliable protection against the US TBond asset bubble. Hence the propaganda directed against Gold by the official media. The powers that be are scared, since the system is collapsing beneath their feet. Or as my great gold trader source likes to say, they are shoveling feces from under their feet.
The US stock market is more an open sore with pus, since the US Economy is plagued by a powerful recession better described as a deepening depression in its middle stages. The Dow and S&P 500 stock indexes are pushing record highs at a time when the many sectors of the US Economy all uniformly in reverse, all suffering, all cutting jobs, all experiencing distress to profit margins. No better evidence exists of Weimar dependence than an economy in depression while major stock indexes register record highs. Roll out the electronic wheel barrows. The dissonance is loud and clear. Even the public is displaying signs of cognitive dissonance, a remarkable and new phenomenon. They smell a rotten market held up by false pillars. The Working Group for Financial Markets operates under the cover of the Exchange Stabilization Fund, run by the vast expanse of the US Dept Treasury. The primary activities of a department named with treasury in the title are to manage multi-$trillion debt and to rig the financial markets. Witness Reich Finance. In 2010 and 2011, the big factor exposed was flash trading, the hyper-active algorithms that comprised over 80% of NYSE stock volume in trades. The private retail investor has largely vanished. In 2012 and 2013, the big factor to be exposed has been US Govt secretive support for stocks, with direct lines from the US Federal Reserve. If and when, unless and until the US stock market falters badly, the US population will be stirred and motivated for action, as the people object to lost wealth, phony wealth, and new found poverty. They will pursue Gold & Silver in new regiments and armies.
REICH CLAIM OF GOLD BULL MARKET END
A few years ago, the personal response was often anger at deceptive stories promulgated on the mainstream financial news networks. They are less news nowadays, more Wall Street and US Govt promotional platforms with a public address speaker system. No longer is the reaction laced with anger and outbursts at the television set. Instead, the personal response has turned into laughter and amusement. This week, after profound declines in the corrupted paper Gold & Silver prices, the Bloomberg and CNBC paid shills have actually stated that the gold market has suffered a tarnish, that the gold bull is likely dead. They state their three well researched reasons, which deepened the laughter and heightened the amusement. They repeated their segments with shill message. Their harlots spoke without breaking a smile or revealing their obvious compromise in integrity.
The Reich Finance motivated media maven talking heads stated that 1) other asset classes are better performing than Gold. What plain rubbish! This might be true for COMEX gold and for mining stocks. Obviously, if the US Dept Treasury with the ES Fund and the US Fed with its channels through JPMorgan offices support the stocks and bonds, then all other asset classes not Reich sanctioned will appear to be worth less. However, the truly worthless assets are those stocks and bonds supported by the printing press with Weimar nameplate. Remove the props for stocks and bonds, and remove the suppression for Gold & Silver, and the major stocks would drop 30% in 30 days, and major bond yields would rise to 5% in 30 days, and the Gold price would rise 30% in 30 days, and the Silver price would rise 50% in 30 days. Reich Finance sponsors major Dow stocks and US Treasury Bonds with corrupted money and unending propaganda messages. Both are at nosebleed levels, far in excess of true value.
The Reich Finance motivated media maven talking heads stated that 2) improved economic data divert investments away from Gold. What plain rubbish! The national Gross Domestic Product flirted with 0% in Q4, even after lifted by the typical routine 5% to 6% adjustment lie. The US Economy has been stuck in a powerful recession of at least 4% to 5% decline each year since 2008, with no sign of escape. Each 1% lie on price inflation translates to a 1% lie on growth. Americans have been so bombarded by economic mumbo jumbo garbage, that they no longer know what inflation is anymore. Numerous measures reflect distress and backsliding in the national economy, from the broad ISM indexes (manufacturing, service) to the numerous Fed business indexes (like Philly Fed, Empire Fed, Richmond Fed, etc) to the sector indexes (like retail, banking, home sales, etc). For several years the aggregate data pushed out by the US Govt office elves has been in conflict with the components that comprise the aggregate. In other words, the majority of retailers publish distress signals, while the US Govt stat rat clowns post national retail growth figures. The whole does not equate to the sum of the parts. Even the supply chain shows direct signs of interruption, long a Jackass forecast which has finally begun to show itself. See the Wal-Mart shelves, and the Apple inventory. It could be China at work.
The Reich Finance motivated media maven talking heads stated that 3) lower consumer price inflation has undercut the Gold demand as a hedge. What plain rubbish! My focus has been directed to Shadow Govt Statistics to note the very consistent CPI rate between 8% and 11% for each of the last several years. They produce defensible reliable factual estimates on a variety of economic statistics, free from bias, which for a trained statistical analyst is very easy to identify. With the nonsensical CPI claimed at 2% to 3% in managed style by the US Govt clowns, the inflation lie has been a steady 5% to 6%, in conservative terms. Ironically, of the many people contacted over the years who invest in the acceptable US stock sectors like technology or media or retail or banking, they tell me that they do not believe the US Govt published statistics on CPI (inflation) or GDP (economic growth). When pressed on their justification for stock investments therefore, they all say the same thing. These statistics are all they have to work with, everybody reacts to the same statistics, and it is all ok. When informed about Shadow Govt Statistics, many enlightened have heard of them but do not act on their information.