Beiträge von bullionbulls

Old Lie Returns In New U.S. Jobs Report

...This brings us to May. By now, everyone has heard the “surprising” bad news: the BLS announced ‘only’ 69,000 net “new jobs” for the month. However, what the BLS hid from the Sheep was that it added 204,000 more fantasy birth/death jobs. Instantly that jobs-gain of 69,000 becomes a jobs loss of 135,000 – before the BLS has engaged in its two monthly “revisions”, where 10’s of thousands more fantasy-jobs will be erased.

With one more revision to come for April, and two ahead for May, what we see is already bad enough. In just April and May we already see more than ¼ million lost jobs in the U.S. economy. Understand that this is still just the tip of the iceberg when it comes to BLS deceit. I’ve already mentioned that it also uses “seasonal adjustments” as another means of inventing vast numbers of fantasy-jobs each year. But just as the U.S. government uses a vast array of “adjustments” to falsify its inflation numbers, it does the same with employment.

How many jobs has the U.S. economy really lost in April and May? When did the job-losses really begin? Was the U.S. economy ever producing positive jobs-growth during this mythical “recovery”? No one but a handful of strategically-placed members of the U.S. government (and the omnipresent Wall Street “insiders”) know the real answer to those questions.

Many continue to scoff at my unflinching dismissal of the “U.S. economic recovery” as nothing but a propaganda myth. The numbers strongly support my position. Ask the BLS itself where most of the U.S. jobs-growth has come from during this supposed recovery, and without hesitation the BLS will point to the “robust U.S. manufacturing sector” – where it claims most of these fantasy-jobs have originated.

Here’s the problem: since the start of the U.S. “recovery”, U.S. energy consumption and even electricity consumption has collapsed. So great has this collapse in energy consumption been that the Wall Street Journal recently trumpeted the news that the United States – the world’s great energy glutton of the past century – was now a “net energy exporter”...

Full commentary: http://www.bullionbullscanada.…rns-in-new-us-jobs-report

The Three Trends Which Rule The Precious Metals Market, Part III

At the beginning of this series I acknowledged that there was considerable analytical overlap among the three trends I would discuss and explain. In Part II, readers saw how the imminent Flight out of Paper will be a direct consequence of the excessive money-printing we are seeing today, along with maintaining artificial/fraudulent prices on the bankers’ paper currencies. Creating a massive imbalance today will lead to an exodus of capital tomorrow.

Similarly, in Part III we will see how the long-term destruction of the supply chain for the gold and silver markets is also a consequence of excessive money-printing. However, while the Flight out of Paper will be a direct consequence of excessive money-printing, the destruction of the precious metals supply-chain is an indirect consequence of excessive money-printing – along with price suppression.

The dynamic here is as simple as it is irrefutable: low prices cause high prices. What has caused the 10+ year bull-market for gold and silver, where prices have begun to move toward their fair market value? It was the 20-year bear market, where both the price of gold and the price of silver were driven well below the cost of production for approximately 90% of the world’s gold and silver mines.

Obviously the lower prices went, the fewer miners would/could choose to remain in production. So at precisely the same time that extreme/artificially low prices for gold and silver were stimulating more demand, those low prices were also destroying supply. The inevitable result was the collapse of inventories.

In the typical short-sighted manner in which the banking cabal operates, they had an “answer” for the collapse in mine-supply: dump their bullion onto the market. Thus to temporarily shore-up inventories (i.e. the metal immediately available for sale) the central banks emptied out their stockpiles of bullion, dumping thousands of tons of gold and silver onto the market over those years.

This brings us to the year 2000, and the turning point in the bullion-manipulation game. The supply/demand fundamentals for gold and silver had been warped to such an extreme that the price of gold and silver began rising even while the bankers were continuing to dump 500 tons of gold per year onto the market – the most extreme gold-dumping in all of human history...

Full commentary: http://www.bullionbullscanada.…us-metals-market-part-iii

The Three Trends Which Rule The Precious Metals Market, Part III

At the beginning of this series I acknowledged that there was considerable analytical overlap among the three trends I would discuss and explain. In Part II, readers saw how the imminent Flight out of Paper will be a direct consequence of the excessive money-printing we are seeing today, along with maintaining artificial/fraudulent prices on the bankers’ paper currencies. Creating a massive imbalance today will lead to an exodus of capital tomorrow.

Similarly, in Part III we will see how the long-term destruction of the supply chain for the gold and silver markets is also a consequence of excessive money-printing. However, while the Flight out of Paper will be a direct consequence of excessive money-printing, the destruction of the precious metals supply-chain is an indirect consequence of excessive money-printing – along with price suppression.

The dynamic here is as simple as it is irrefutable: low prices cause high prices. What has caused the 10+ year bull-market for gold and silver, where prices have begun to move toward their fair market value? It was the 20-year bear market, where both the price of gold and the price of silver were driven well below the cost of production for approximately 90% of the world’s gold and silver mines.

Obviously the lower prices went, the fewer miners would/could choose to remain in production. So at precisely the same time that extreme/artificially low prices for gold and silver were stimulating more demand, those low prices were also destroying supply. The inevitable result was the collapse of inventories.

In the typical short-sighted manner in which the banking cabal operates, they had an “answer” for the collapse in mine-supply: dump their bullion onto the market. Thus to temporarily shore-up inventories (i.e. the metal immediately available for sale) the central banks emptied out their stockpiles of bullion, dumping thousands of tons of gold and silver onto the market over those years.

This brings us to the year 2000, and the turning point in the bullion-manipulation game. The supply/demand fundamentals for gold and silver had been warped to such an extreme that the price of gold and silver began rising even while the bankers were continuing to dump 500 tons of gold per year onto the market – the most extreme gold-dumping in all of human history...

Full commentary: http://www.bullionbullscanada.…us-metals-market-part-iii

The Three Trends Which Rule The Precious Metals Market, Part III

At the beginning of this series I acknowledged that there was considerable analytical overlap among the three trends I would discuss and explain. In Part II, readers saw how the imminent Flight out of Paper will be a direct consequence of the excessive money-printing we are seeing today, along with maintaining artificial/fraudulent prices on the bankers’ paper currencies. Creating a massive imbalance today will lead to an exodus of capital tomorrow.

Similarly, in Part III we will see how the long-term destruction of the supply chain for the gold and silver markets is also a consequence of excessive money-printing. However, while the Flight out of Paper will be a direct consequence of excessive money-printing, the destruction of the precious metals supply-chain is an indirect consequence of excessive money-printing – along with price suppression.

The dynamic here is as simple as it is irrefutable: low prices cause high prices. What has caused the 10+ year bull-market for gold and silver, where prices have begun to move toward their fair market value? It was the 20-year bear market, where both the price of gold and the price of silver were driven well below the cost of production for approximately 90% of the world’s gold and silver mines.

Obviously the lower prices went, the fewer miners would/could choose to remain in production. So at precisely the same time that extreme/artificially low prices for gold and silver were stimulating more demand, those low prices were also destroying supply. The inevitable result was the collapse of inventories.

In the typical short-sighted manner in which the banking cabal operates, they had an “answer” for the collapse in mine-supply: dump their bullion onto the market. Thus to temporarily shore-up inventories (i.e. the metal immediately available for sale) the central banks emptied out their stockpiles of bullion, dumping thousands of tons of gold and silver onto the market over those years.

This brings us to the year 2000, and the turning point in the bullion-manipulation game. The supply/demand fundamentals for gold and silver had been warped to such an extreme that the price of gold and silver began rising even while the bankers were continuing to dump 500 tons of gold per year onto the market – the most extreme gold-dumping in all of human history...

Full commentary: http://www.bullionbullscanada.…us-metals-market-part-iii

The Three Trends Which Rule The Precious Metals Market, Part II

In Part I, readers were presented with a list of the three trends which overwhelm all other factors and fundamentals in the gold and silver markets. The first and most dominant trend – the grossly excessive printing of (worthless) paper currencies – was explained to readers in detail.

Through elementary logic, we established that no rational investor would choose to hold these worthless paper currencies, rather than opt for humanity’s 5,000-year old safe havens: gold and silver. Specifically, with all our governments explicitly engaged in the monetary policy known as “competitive devaluation”, only an idiot would hold an asset where the producers of that asset are trying to drive its value to zero as rapidly as possible.

As I discussed in the first installment, the other two dominant trends are directly and/or indirectly derived from the first trend: the gross misallocation of capital, and the long-term destruction of the supply chain. I will focus on the second of these trends in Part II.

Here it is important that readers are aware that we are discussing two separate-and-opposite dimensions to this misallocation of capital. On the one hand, Western investors currently hold only roughly 1/10th the amount of gold and silver that they have normally held on an historical basis. In other words, at the point in time where Western investors should be choosing to hold more gold and silver than at any time in history they are instead holding less gold and silver than at any time in history.

Then there is the second and opposite misallocation. These zombie investors are not only loaded up with $trillions of our (worthless) paper currencies; they are also holding $10’s of trillions in bonds, issued by hopelessly insolvent Western debtors – and denominated in those same, dying fiat currencies. Here clueless paper-holders must step back and take a look at history.

In the 1,000 years since China began humanity’s experiments with these worthless, paper (“fiat”) currencies; the paper has a perfect record: it always goes to zero. Meanwhile, we are equally well-advanced along the road to another regular, economic event in our collective history: what I call a “bond-burning party” – where insolvent debtor governments simply erase all of those bond debts, leaving bond-holders with a big, fat nothing.

These bond-burning parties have more commonly been known throughout history as “debt jubilees”: one or more governments collectively or unilaterally decreeing that their bond debts no longer exist, and thus the “bonds” themselves become nothing but an inferior brand of toilet paper. They are regular events in history, but naturally most Western readers are totally unfamiliar with this common (and inevitable) historical trend...

Full commentary: http://www.bullionbullscanada.…ous-metals-market-part-ii

The Three Trends Which Rule The Precious Metals Market, Part I

It is bad enough watching the talking-heads of the mainstream media undermine the precious metals sector with their insipid and invariably flawed analysis. However, what is positively infuriating is when these drones manage to influence the market through parroting “fundamental” factors which (at present) are simply irrelevant.

Understand that in normal markets (and normal market conditions) that there would/should be a host of variables which influence the precious metals market – as with any other market. However, what has been completely lost in all the white-noise coming out from the mainstream media is that conditions have literally never been less normal.

Specifically, not only our markets but our entire economies have been perversely warped through pursuing (or simply allowing) the most extreme policies, and the most extreme behavior in our markets in all of history. These extreme policies, and the extreme behavior they have spawned now totally drown-out all other factors, even many of the most basic elements of supply and demand. Indeed, the ultimate proof of the cluelessness of media drones (and the mainstream “experts” who feed those drones) is the fact that none of them have even the slightest awareness of how economic fundamentals have been skewed in such an extreme and flagrant manner.

The purpose of this piece is to identify the three policy/behavior trends in our economies and markets today which either subsume any other factors, or simply render them (at the moment) irrelevant with respect to gold and silver. Understand that because the second and third trends are derivatives/consequences of the first trend that there will be considerable overlap here, so readers are encouraged not to become side-tracked by issues of semantics. Those three trends are:

1) Excessive money-printing

2) Gross misallocation of capital

3) Long-term destruction of the supply chain

Excessive Money-Printing:

There is simply no other single dynamic in the global economy today (and specifically Western economies) which comes anywhere close to the significance of the utterly insane monetary policies which Western governments have allowed to take place. Indeed, so dominant have these forces become that no one (not even our governments themselves) find it the slightest bit noteworthy that the Money-Printers (i.e. the privately-owned cabal of Central Banks) now absolutely dictate economic policies to our (supposedly) sovereign democracies...

Full commentary: http://www.bullionbullscanada.…ious-metals-market-part-i

Europe’s ‘New Austerity’ – The Cheesecake Diet

Austerity has failed. You won’t see that in any of the headlines from the media propaganda machine, and for a very good reason: our intellectually bankrupt governments have no “Plan B”.

The evidence of the colossal failure of Friedman Austerity is both abundant and unequivocal. Greece was an insolvent economy in steady decline when its own “austerity” was commenced. After two years of austerity it was totally bankrupt, and the economy had been so completely destroyed that even after defaulting on 75% of its debt further default already seems inevitable. Austerity transformed an economic decline into one of the most rapid economic collapses in modern history.

Then there is the UK. It began its austerity campaign shortly after Greece, but its own economic collapse is proceeding on schedule. Its monthly budget deficits continue to widen, with the UK government recently reporting its largest one-month deficit ever for the month of February. Given that the entire raison d’etre of austerity is to shrink deficits, that statistic alone is proof of the complete and utter failure of UK austerity.

However, as an added “bonus” the UK’s people also get to watch their economy being destroyed through this economic masochism. Today the UK government announced the collapse in UK retail sales. Sales plummeted 2.3% in April from March. But keep in mind that number excludes inflation. Factor in double-digit inflation (thanks to “competitive devaluation” and endless “QE”), and the actual rate-of-collapse approaches 40% when expressed as an annualized number.

What was the explanation given by the mainstream media for this austerity-induced collapse in the UK retail sector? It rained in April. Yes, that must have been it. UK residents were unprepared for April showers. Perhaps they all lost their ‘brollys’?

Meanwhile, the newest member of Europe’s Austerity Club, Spain, has already announced that it will miss its 2012 deficit target, and that it will exceed its 2013 target by at least double. More austerity. More total failure...

Full commentary: http://www.bullionbullscanada.…erity-the-cheesecake-diet

Deutsche:

Europas "neue Sparpolitik" - The Cheesecake Diät

...Sparpolitik ist gescheitert. Sie werden nicht sehen, dass in keinem der Schlagzeilen aus der Medien-Propaganda-Maschine, und für einen sehr guten Grund: unsere intellektuell bankrott Regierungen keinen "Plan B" haben.

Der Beweis für die kolossale Versagen der Friedman Austerity ist beides reichlich vorhanden und eindeutig. Griechenland war ein insolventen Wirtschaft im stetigen Rückgang, wenn ihre eigenen "Spar" begonnen wurde. Nach zwei Jahren der Enthaltsamkeit war es völlig bankrott, und die Wirtschaft war so vollständig zerstört, dass auch nach Verzug auf 75% seiner Schulden weiter standardmäßig bereits scheint unvermeidlich. Austerity verwandelte einen wirtschaftlichen Niedergang in einer der rasante wirtschaftliche Zusammenbrüche in der modernen Geschichte.

Dann gibt es im Vereinigten Königreich. Er begann seine Strenge Kampagne kurz nach Griechenland, sondern ihre eigenen wirtschaftlichen Zusammenbruch verläuft plangemäß. Seine monatliche Haushaltsdefizite weiter zu erweitern, mit der britischen Regierung vor kurzem berichtet seine größte einmonatige Defizit jemals für den Monat Februar. Da die gesamte Daseinsberechtigung von Sparmaßnahmen, um Defizite schrumpfen, ist diese Statistik allein Beweis für die vollständige und vollkommene Versagen der britischen Strenge.

Doch als zusätzlichen "Bonus" des britischen Leute auch lernen zu sehen, dass ihre Wirtschaft zu ökonomischen Masochismus durch diese zerstört. Heute hat die britische Regierung kündigte den Zusammenbruch in UK Einzelhandelsumsätze. Umsatz sank um 2,3% im April ab März. Aber bedenken Sie, dass die Inflation Zahl ausschließt. Faktor im zweistelligen Inflationsraten (dank "kompetitiven Abwertung" und endlosen "QE"), und der tatsächlichen Rate-of-Kollaps nähert sich 40% bei einer annualisierten als Zahl ausgedrückt...

Volle kommentar: http://translate.google.com/tr…erity-the-cheesecake-diet

Jamie Dimon: Born-Again Banker?

As we watch the absurd melodrama surrounding JP Morgan’s multi-billion dollar “trading loss” unfold before us, there are many things we still don’t know. However there is one thing we do know: that the truth is totally different than what is being depicted by JP Morgan and the talking-heads of the mainstream media.

To understand that this is pure financial farce requires putting numbers into perspective. Let’s start with this one: JP Morgan’s derivatives portfolio alone amounts to more than $70 trillion in highly-leveraged, ultra-risky bets. That is the amount JP Morgan admits to. Thus whether we are talking about a “$2 billion” trading loss or the $4-5 billion figure now being rumored is irrelevant. These are trivial numbers.

Even if we assume a $5 billion loss that would be equal to less than 1/10,000th of its derivatives portfolio. If the media Chicken Littles wanted to really stoke some fear they would be talking about the imminent risk of JP Morgan (and its Wall Street cronies) being forced to make good on $trillions of (ultra highly-leveraged) credit default swap contracts – should one of Europe’s other (larger) Deadbeat Debtors “go Greek” and default.

So we can now conclude this is a totally staged event. If there were any doubts about this, Jamie Dimon himself has put an end to them with his poor job of acting. For nearly four years Wall Street has fought even the tiniest bit of re-regulation of their sector, simply restoring a small portion of the banking regulation regime which used to be in place.

This fanatical obstructionism – led by Jamie Dimon and JP Morgan – has occurred despite the $15+ trillion bail-out package heaped upon the (surviving) Wall Street Oligarchs after they had completely wiped-out their own sector (and themselves) with $100’s of billions of bad bets which had all detonated simultaneously in 2008.

Thus what we are to believe is that despite the fact that JP Morgan saw no need at all for any regulation following the Crash of ’08 that this tiny “$2 billion” trading loss has caused JP Morgan to do a 180-degree turn on the subject of regulation. Jamie Dimon has suddenly been born again, and now he “sees the Light”: the bankers need some regulation. It is about as plausible as a bull volunteering for castration...

Full commentary: http://www.bullionbullscanada.…e-dimon-born-again-banker

The Big Lies Regarding Precious Metals Miners

The talking-heads in the mainstream media spend so much of their time talking out of both sides of their mouths that they have clearly become oblivious to the extent of that double-talk. This is the only rational explanation as to the insistence of the mainstream media in repeating the same self-contradictions.

In this case I’m referring to media double-talk regarding their reporting on the precious metals sector, and most particularly their totally perverse coverage of the precious metals miners. The contradictions should be obvious to any/all investors who watch this sector closely.

On the one hand we have the media endlessly bashing these miners as “under-performers”. Despite the (supposedly) “high” bullion prices we’ve seen in recent years just look at the charts, shriek these bashers. Yes, when we look at the results from our (totally manipulated) markets, it is clear that (mysteriously) these miners are in the midst of their second Depression in five years – in the middle of one of the longest, strongest bull markets in history. Of course the myopic media notices nothing unusual about that.

However, the propagandists couldn’t be content to leave their sabotage of the miners at that level. Out of the other side of their mouths we hear voices like Bloomberg. Inserting the stiletto, it proclaims in its headline:

Barrick Leads Miners Spending Faster Than Earnings Rising

Ouch! The message from that stab-in-the-back is clear: these miners are money-losers…but hold on a second. Weren’t these same propagandists telling us (again and again and again) that these miners should all be drowning in profits from the “high” bullion prices they crow about (as they warn us repeatedly about a “bubble”)?

Methinks I see a contradiction here. Either these miners are reaping “high” prices for their gold (and silver) and thus raking in windfall profits; or, they are struggling in just attempting to stay afloat – as low bullion prices mean they are unable to offset spending with revenues. Both of these things cannot be true at the same time...

Full commentary: http://www.bullionbullscanada.…ng-precious-metals-miners

Paper Money: The Barbarous Relic

Gold is a barbarous relic.

Even most ordinary people who rarely pay any attention to topics in the realm of economics will be familiar with this expression. Like most of the Big Lies from the media propaganda machine, our governments have made sure that most of us have heard this one enough times to have it burned into our psyches.

As with most of these Big Lies, this too is a blatant perversion of the truth. It will come as no surprise to gold-bugs and that dwindling minority who advocate sound monetary policies that the reference to gold as a “barbarous relic” was made by the one-and-only John Maynard Keynes. It was from Monetary Reform, a book Keynes published in 1924 – and it was a reference not to gold itself – but to the gold standard:

In truth, the gold standard is already a barbarous relic…

Thus the original reference was made by the most infamous paper-printer in all of history, desperately searching for some insult he could hurl at the gold standard in order to attempt to make his monetary nonsense sound appealing to the Sheep – i.e. the global economics community.

For those not familiar with the mechanics of national economies, the gold standard has often been referred to over history as “the Golden Handcuffs”. How did it acquire this intimidating nickname? Because it absolutely limits our governments from any extreme/insane fiscal or monetary policies without the consequences of those policies being immediately known to the general public.

A government trying to run huge deficits (like the U.S. government was doing during the Vietnam War), would quickly see its “bank account” (i.e. the national gold reserves) quickly evaporate as paying for those deficits emptied the government’s Treasury. Thus ultimately the primary reason that a gold standard is despised (or rather feared) by all the charlatan money-printers like Keynes and the deadbeat governments of modern Western economies is that a gold standard forces governments to pay their bills.

However, the fear/hatred of the Money-Printers and Deadbeats toward the gold standard doesn’t end there, it only begins. By definition, a gold standard bases all new currency creation on one’s national gold reserves. Thus these Handcuffs also prevent Keynes and all his central-banking ilk from allowing the printing presses to run wild with new money-printing – quickly destroying the value of any currency with dilution. So in addition to forcing governments to pay their bills it also forcibly prevents them from excessive money-printing. Two strikes against the gold standard...

Full commentary: http://www.bullionbullscanada.…money-the-barbarous-relic

Deutsche:

Paper Money: Der barbarische Relikt

...Was würde mit dem Goldmarkt passieren - und der Preis für Gold - wenn die westlichen Zentralbanken versuchten, Ellbogen den Weg in die Spitze der Schlange, um etwas Gold-Kauf der eigenen zu tun?

Der Goldpreis würde sofort in den Orbit gestartet werden, da alle diese Big-Käufer konkurrierten um das begrenzte Angebot: genau das, was sie haben 30 Jahre von fanatischen Bemühungen zur Verhütung gewidmet. Nicht nur, dass die Angebot / Nachfrage-Fundamentaldaten allein schicken den Goldpreis rasant höher, aber denken Sie an das Signal an den Markt senden würde?

Westlichen Zentralbanken, die größten Gold-Hasser in der Geschichte der Welt, die größten Gold-Dumper in der Geschichte der Welt wurden nun "Gold kaufen". Die gleichen Banken, die Tausende von Tonnen Gold gedumpten auf den Markt hatte, zu Preisen von $ 400/oz und weniger waren nun bereit, Gold zu kaufen, da der Preis stieg über $ 2000/oz.

Ebenso wichtig ist, wäre für die westlichen Zentralbanken, um plötzlich Flip-Flops in der heutigen Zeit und versuchen Sie es zu laden, bis auf ihren eigenen Gold (nach diesem Bullenmarkt ist bereits höher stieg seit mehr als einem Jahrzehnt) absolut widersprechen und verdampfen alle ihre letzten, gehegten liegt, dass Gold in einer "Blase". Sie können nicht sehr gut bezeichnen etwas eine "Blase" und dann auf der Käufer-Fenster eilen, Scheck-Buch in der Hand ... zumindest nicht, wenn Sie ein Bash-and-buy Künstler wie George Soros sind.

Es wird gesagt, dass "Handlungen sprechen lauter als Worte". Wenn die Zentralbanker waren am lautesten schreien, dass sie den Verkauf von 500 Tonnen Gold pro Jahr wurden "Gold eine barbarische Relikt war". Jetzt sind sie kauft 440 Tonnen pro Jahr (und der Kauf weiter zu beschleunigen)...

Volle Kommentar: http://translate.google.com/tr…money-the-barbarous-relic

The Great Western Revenue Crisis, Part II

In Part I it was necessary to spend most of my time/energy dispelling the fiction from the mainstream media that the debt-crisis afflicting most major Western economies is due to government over-spending. As I demonstrated with a combination of unequivocal charts, clear logic, and simple arithmetic; the U.S. economy is clearly in the grip of the worst revenue crisis in its entire history.

In Part II, I will explain why we can safely conclude that other Western nations are also facing a revenue crisis rather than their insolvency being due to excessive spending; and then along with that I will describe how this collective revenue crisis has emerged across the West.

To begin with, readers must understand that economies are dynamic entities, constantly evolving in response to the policies bestowed/inflicted upon them. This means that only dynamic analysis (i.e. analysis which accounts for change) can ever yield useful conclusions and policies.

What do we get instead from the mainstream media and their “experts”? A diet composed of 100% static analysis. It is simplistic, one-size-fits-all dogma – which never, ever accounts for change in our economies. The classic example is the Keynesian idiocy that governments can permanently run deficits (i.e. never fully pay their bills), and that somehow this can lead to long-term prosperity.

Those who actually understand the concept of dynamic analysis would require only two words in rebuttal: “compound interest”. The chart below illustrates the long-term harm that has occurred to the U.S. from allowing the static dogma of Keynesian economics to be wrapped around the dynamic U.S. economy like a straitjacket.

[Blockierte Grafik: http://www.bullionbullscanada.…ishing_return_on_debt.jpg]

Full commentary: http://www.bullionbullscanada.…rn-revenue-crisis-part-ii

The Great Western Revenue Crisis, Part I

While some may argue my criticism of the insipid mainstream media is too extreme, my rebuttal is simple: “don’t shoot the messenger.” It’s not simply that these media drones are wrong consistently – indeed, almost unfailingly – but in many instances their reporting on issues is literally 180 degrees opposite to the facts.

There can be no more obvious example of the mainstream media’s inability to distinguish “black” from “white” than its utterly worthless reporting on the debt crisis sweeping across Western nations. Not only have they been unanimously incorrect in identifying any of the causes of this debt-crisis, but these dolts can’t even manage to describe the problem correctly.

In this case it is necessary to put the proverbial cart before the horse. First I’ll show people what the Western debt crisis is really all about. Then once the problem is clear it will be much easier to understand/accept the real causes.

Sadly, while is truly a “Western” problem it will have to be illustrated with U.S. data, due to the lack of availability of “real dollar” data for other Western economies. It is ironic that the U.S. – which has both pioneered and perfected lying-with-numbers with its official statistics – is now the only place to obtain realistic (i.e. “real dollar”) economic data in many important categories.

This is due entirely to the tireless efforts of John Williams of Shadowstats.com, as well as the efforts of less-visible sites and individuals who have built upon that body work. Williams produces the only data on U.S. inflation (and many other key statistics) using the same methodology for each year’s calculation.

Conversely, as I have explained on previous occasions the U.S. government is continually “moving the goalposts” with its statistical lies. It is continually changing the methodology of its calculations. Not only are these “changes” comprised of ever more dubious/absurd “adjustments” and “assumptions”, but this intentional deceit is compounded by refusing to update old data with the new methodology – the only possible means to produce consistent measurements...

Full commentary: http://www.bullionbullscanada.…ern-revenue-crisis-part-i

Time To Confront Central Bank Liars

I’ve had enough. Day after day of 100% manure from these propagandists. It’s time to shout out that “the Emperors are wearing no clothes.”

For three years we have had to listen to B.S. Bernanke (yes, his initials really are “B.S.”) drone on and on about the mythical “U.S. economic recovery.” I recently pointed out with an abundance of long-term charts and elementary reasoning that it wasn’t even theoretically possible for the crippled U.S. economy to be growing.

However, don’t take my word for it. Instead, let’s look at the actions of B.S. Bernanke. Until Japan’s failed experiment with taking interest rates to zero – and leaving them there – no nation in modern history had ever engaged in such recklessly insane monetary policy.

There is a very good reason why this had never happened before in economic history. Zero percent interest rates (as I have noted previously) are nothing less than the economic equivalent of a defibrillator. It is a last-ditch, desperation measure designed to attempt to shock some life back into a dying body.

Ultra-low interest rates (interest rates much lower than inflation) were never intended as a permanent prescription for any economy. They rape “savers”. And with rapidly greying populations, we are becoming societies of savers. Leaving interest rates at near-zero is simply serial rape.

What happens when you rape savers again and again and again? They stop saving. They begin spending their paper as fast as they get it – the inevitable consequence of near-zero interest rates...

Full commentary: http://www.bullionbullscanada.…nfront-central-bank-liars

It seems I forgot to post Part I first, so here is a brief excerpt...

Two Scenarios For Next Precious Metals Rally, Part I

Let me preface this piece by first stating that my reason for writing it was not to induce people to guess which scenario they found more probable, and then to place their bets beforehand. Rather, my purpose was exactly opposite: to prepare people for either scenario so that when they recognized one or the other unfolding they wouldn’t do something stupid in a moment of panic (or greed).

Sadly, in our markets to “do something stupid in a moment of panic” generally means doing precisely the opposite of what one should be doing. This also explains why the bankers like to start panics. First of all, as the cause of these panics the banksters are neither “panicked” nor (obviously) surprised themselves. So they continue to operate calmly (in this feeding-frenzy) while the sheep make themselves especially easy to sheer.

As a result of this never-ending game being played in our markets by the bankers, there is genuine utility in looking ahead (something the sheep almost never do) so that when events do unfold we will be prepared to act (calmly) – as opposed to reacting in panic (as the bankers desire).

With that preface out of the way, the next task is to explain/define these two, looming scenarios:

1) The crash-driven rally

2) The event-driven rally

Full commentary: http://www.bullionbullscanada.…cious-metals-rally-part-i

Two Scenarios For Next Precious Metals Rally, Part II

In Part I, I presented readers with the premise that the next rally for the precious metals sector would be triggered by either some significant “event” or (worse) a full-fledged market crash. Indeed, I suggested to readers that with gold and silver seemingly “trapped” (by the banksters) in a trading range that the sector needed a catalyst of this nature to break the metals free from this manipulation inertia.

I then went on to outline one of those scenarios: the crash-driven rally. Precious metals prices (and most commodities) would suddenly begin spiraling higher in an exponential manner – a clear signal that the masses would be beginning to shun the worthless paper of the banksters (and an obvious prelude to hyperinflation). To halt that existential threat to the bankers’ paper empire they would do precisely what they did in 2008: crash global markets to temporarily put the brakes on commodity prices, and buy them a reprieve from the total collapse of their paper.

Those who enjoy semantics will argue that I’m not describing a “crash-driven rally”, but rather a rally, a crash, and then another rally. However, with the insane volatility which has been permanently imposed on our markets through the banksters’ Pied Piper trading algorithms, an “exponential” move in commodity prices can occur over a period of a few, short weeks.

Not being a short-term oriented “trader” (i.e. a gambler), I simply don’t acknowledge moves of a couple of weeks (in either direction) as being either a rally or a correction. With the price of gold now capable of rising or falling by 5% in a single day (and the price of silver capable of moving at double that speed), even violent moves of a couple weeks duration no longer qualify as “rallies” or “corrections” in any statistical sense. The ‘beta’ in this sector has widened to such an extreme that such violent short-term moves now can only be (properly) classified under the broader heading of volatility.

Thus we would have extreme volatility to the upside, followed by even more extreme, even more brief volatility on the downside – leading to the sector’s next true rally. That is the extreme scenario looking ahead. As I noted in Part I, the only desirable aspect to this scenario is that we would essentially have advance warning of what was to come when (if) we see precious metals and commodity prices begin soaring “for no reason”.

In contrast, the other trigger for the next precious metals rally could also be a less-extreme, less-harmful event. However the downside to this more benign scenario is that we would (likely) not have the advance warning we would get in the crash scenario. Two recent examples of such “event-driven” rallies come to mind: one of these events was instigated by the bankers, the other forced upon them...

Full commentary: http://www.bullionbullscanada.…ious-metals-rally-part-ii

Precious Metals Déjà Vu For Morgan Stanley?

In the middle of 2007, Morgan Stanley paid out $4.4 million to settle a class-action lawsuit initiated against it by its own clients. Why were Morgan Stanley’s clients suing it? They alleged that Morgan Stanley took money from them for buying precious metals on their behalf, took money from them for “storage” of these precious metals accounts, but only pretended to purchase the bullion.

Morgan Stanley (reading from the standard Wall Street script) denied the allegations, but settled the case “to avoid the cost and distraction of continued litigation.” Before moving on to Morgan’s Stanley’s latest exploits in the precious metals market, this deserves a few comments.

First of all, if Morgan Stanley did only pretend to purchase bullion on behalf of its clients, while charging them for the “bullion” and storage fees on that imaginary bullion, we have a word for such actions: fraud. So if Morgan Stanley was guilty of swindling its own clients in this manner then why wasn’t it required to acknowledge its guilt?

The answer is simple. Morgan Stanley is based in The Land of Fraud (aka the United States of America). In The Land of Fraud swindling people (whether total strangers or long-term clients) is a way of life – just ask a former Goldman Sachs employee. Thus the Wall Street banksters can commit fraud without ever having to admit fraud.

Indeed, Bloomberg explicitly confirmed that the SEC’s commit-but-never-admit policy has been standard practice for more than four decades, with such settlements then rubber-stamped by the U.S. judiciary. Bloomberg noted this institutionalized corruption when it criticized a (lone) U.S. judge who has had the temerity to challenge the commit-but-never-admit doctrine:

…As part of the agreement, New York-based Citigroup neither admitted nor denied the allegations, a clause which has been standard in such settlements for at least four decades.

But it gets better for the Wall Street fraud factories. Not only can they commit acts of fraud with impunity while never having to admit to them, but the “fine” they receive after being caught in the act is rarely more than 10% of their proceeds of crime – and often much, much less...

Full commentary: http://www.bullionbullscanada.…eja-vu-for-morgan-stanley

Two Scenarios For Next Precious Metals Rally, Part I

Let me preface this piece by first stating that my reason for writing it was not to induce people to guess which scenario they found more probable, and then to place their bets beforehand. Rather, my purpose was exactly opposite: to prepare people for either scenario so that when they recognized one or the other unfolding they wouldn’t do something stupid in a moment of panic (or greed).

Sadly, in our markets to “do something stupid in a moment of panic” generally means doing precisely the opposite of what one should be doing. This also explains why the bankers like to start panics. First of all, as the cause of these panics the banksters are neither “panicked” nor (obviously) surprised themselves. So they continue to operate calmly (in this feeding-frenzy) while the sheep make themselves especially easy to sheer.

As a result of this never-ending game being played in our markets by the bankers, there is genuine utility in looking ahead (something the sheep almost never do) so that when events do unfold we will be prepared to act (calmly) – as opposed to reacting in panic (as the bankers desire).

With that preface out of the way, the next task is to explain/define these two, looming scenarios:

1) The crash-driven rally

2) The event-driven rally

Putting aside the fact that gold and silver are the most undervalued assets on our planet today; despite this ever-present truth the sheep generally need a “reason” to jump on the precious metals bandwagon. The irony here of course is that simply by jumping on the bandwagon the sheep supply the necessary momentum to drive prices higher – meaning that no “reason” is every truly necessary for gold and silver prices to go higher, in accordance with their ultra-bullish long-term fundamentals.

So the Catch-22 of the precious metals market is that we always need some catalyst to break gold and silver free of the intermittent bankster-created “log-jams” which have occurred in this market over the course of its 10+ year bull run, even though there is never any reason necessary to bid-up these grossly undervalued assets. In the last several years we have seen (arguably) three such catalysts. Two of those catalysts were events and one was a “crash”...

Full commentary: http://www.bullionbullscanada.…cious-metals-rally-part-i

Destruction of Spain’s Economy Duplicates Greece

More than two years ago I began warning readers of the most heinous acts of fraud ever perpetrated by the Western banking crime syndicate, which I dubbed “economic terrorism”. These swindles involved nothing less than the destruction of entire European economies, solely so that the banksters could profit on approximately $100 trillion in bets they had placed on the debts of these economies.

The mechanics of this economic rape have been explained many times in the past. First of all the bankers duped governments and institutions all over the Western world into placing trillions of dollars (and/or euros) in bets that interest rates were about to soar higher – just before they crashed interest rates to the lowest levels in history. This swindle is known as “interest rate swaps”.

The second (and even more destructive) form of fraud perpetrated against these governments didn’t even require their participation – merely their naïve acquiescence. The bankers began placing huge bets (totaling at least $60 trillion) that these nations would default, and then had the audacity to call these bets “insurance” (credit default swaps). Note that such “insurance” had been banned in the U.S. for more than half a century – based upon anti-gambling statutes.

Here is the question which these banksters would never answer: how does a third party placing bets on whether someone’s home would burn down provide any “insurance” to the owner of the home? The answer of course is that it doesn’t. What it did do, however, was to create a $60 trillion motive for “arson”.

This is precisely what we have we have seen. After the banksters (primarily based in Wall Street) got assorted chumps to take the wrong side of this $60 trillion, unregulated mountain of bets – betting that these Euro governments would not default – they then began to systematically burn-down the economies of Europe one by one...

Full commentary: http://www.bullionbullscanada.…economy-duplicates-greece

U.S. Standard of Living Has Fallen More Than 50%

In writing about the relentless collapse of Western economies, I frequently point to “forty years of plummeting wages” for Western workers, in real dollars. However, where I have been remiss is in quantifying the magnitude of this collapse in Western wages.

On several occasions I have glibly referred to how it now takes two spouses working to equal the wages of a one-income family of forty years ago. Unfortunately that is now an understatement. In fact, Western wages have plummeted so low that a two-income family is now (on average) 15% poorer than a one-income family of 40 years ago.

Regular readers will recognize the chart below on U.S. average wages:

[Blockierte Grafik: http://www.bullionbullscanada.…cpi_lies1964onfeb2012.png]

Using the year 2000 as the numerical base from which to “zero” all of the numbers, real wages peaked in 1970 at around $20/hour. Today the average worker makes $8.50 hour – more than 57% less than in 1970. And since the average wage directly determines the standard of living of our society, we can see that the average standard of living in the U.S. has plummeted by over 57% over a span of 40 years.

There are no “tricks” here. Indeed, all of the tricks are used by our governments. The green line shows average wages, discounted by inflation calculated with the same methodology for all 40 years. Obviously that is the only way in which we can compare any data over time: through applying identical parameters to it each year.

Then we have the blue line: showing wage data discounted with our “official” inflation rate. The problem? The methodology used by our governments to calculate inflation in 1975 was different from the method they used in 1985, which was different than the method they used in 1995, which was different than the method they used in 2005.

Two obvious points flow from this observation. First, it is tautological that the only way in which data can be compared meaningfully is to use a consistent methodology. If the government thinks it has improved upon its inflation methodology, then all it had to do was take all of its old data and re-calculate it with their “improved” methodology. Since 1970 there is this invention called “computers” which makes such calculations rather simple.

This brings us to the second point: the refusal of our governments to adopt a consistent methodology in reporting inflation statistics can only imply a deliberate attempt to deceive, since it is 100% logically/statistically invalid to simply string together disconnected series of data – and present it as if it represents a consistent picture. More specifically, we can see precisely what lie our government was attempting to get us to believe.

Roughly speaking, the blue line trends flat. Thus, our governments have been lying about inflation for the last 40 years as a deliberate means of hiding the 57% collapse in our standard of living. Meanwhile, the situation is more than reversed if you’re one of the fat-cats at the top. While average American workers have seen their wages plummet by 57% over the past 40 years, in just 15 years (1992-2007) the 400 wealthiest Americans saw their incomes rise by 700%...

Read the rest: http://www.bullionbullscanada.…g-has-fallen-more-than-50

Sideways Precious Metals Prices Mean It’s Not Too Late

Throughout the history of our industrialized economies, gold and silver have typically represented between 5% and 10% of the average investor portfolio – or roughly 5% to 10% of their wealth. Note that historically this ratio has typically risen in times of financial turmoil, crisis, or simply any time of high inflation.

Today, despite the price of gold having surged in price by well over 500% from its absolute low, despite the price of silver having surged more than 800% off of its absolute low; gold and silver still represent little more than 1% of the wealth of the average individual. The gross under-ownership of this historic “safe haven” is taking place at a time when Western markets, financial systems, and their entire economies have never been in a greater state of crisis.

Already, these debt-saturated dominoes have begun effectively declaring national bankruptcy. This is the only way to describe the 75% default on Greek government debt and the wholesale liquidation of government-owned assets. This only increases the leverage (and the strain) on the bankers’ $1+ quadrillion derivatives market.

The derivatives market is a totally unregulated casino, operated by Western banking Oligarchs. It is nothing but a collection of bets on the world’s markets and economies. Indeed, one of the largest category of derivatives are credit default swaps – which had been banned for decades based upon U.S. anti-gambling statutes.

With this insanely leveraged casino having swollen to a size equal to more than 20 times total, global GDP; it is only a question of “when” not if this paper Ponzi-scheme will implode. The amounts are so huge that a “bail-out” isn’t even theoretically possible. When this implosion occurs, the Western financial system is 100% certain to be vaporized (and most likely all Western paper currencies).

Meanwhile, the same cabal of bankers is printing-up their paper money at the most reckless rates in history, which is the only reason they have been able to delay the implosion of their paper house-of-cards this long. It is a matter of elementary economics and arithmetic that if you print currency at a rate in excess of economic growth that the value of that paper must decline...

Full commentary: http://www.bullionbullscanada.…ces-mean-its-not-too-late