Monday, August 29, 2016

Gold World News Flash

Gold World News Flash

Brazil's Banana Scoundrels Will Now Win Their Olympics

Posted: 28 Aug 2016 11:00 PM PDT

Authored by Pepe Escobar via,

The Rio Olympics are gone – Bolt, Phelps, Neymar, the green pool, the Ugly American Lochte and all – but a global audience may have been spared a shameful last act.

Mediocre incompetent opportunist, corrupt coward traitor, and certified political usurper, interim President Michel Temer, refused to go to the closing ceremony, afraid of being booed out of a packed Maracana stadium. According to the latest polls, 79% of Brazilians want Temer The Usurper out. Now.

Thus Temer The Usurper was not able, according to protocol, to pass the baton (for Tokyo in 2020) to visiting Japanese Prime Minister Shinzo Abe. Team Temer offered a meeting later on in the capital, Brasilia. Japanese diplomats flatly refused; who wants your Prime Minister to meet a coward in hiding?

Former President Lula lobbied hard to bring the Olympics to Rio, and preparations went on under President Dilma Rousseff. Coupled with Temer The Usurper’s primal fear of being booed just as in the Olympics opening ceremony, which led to his subsequent diplomatic humiliation, a noxious, pathetic political propaganda campaign was deployed right to the end of the games, trying to diminish or even extinguish Lula’s and Dilma’s role. Quite a few Brazilian athletes with great performances at the games benefited from government-supported sport programs.

Now the Scoundrel Games are back in Brazil – with a parliamentary junta disputing gold medals with an institutional racket involving big banks, big business, corporate media and sectors of the Judiciary and the Federal Police. The farce is being sold as a trial in the Senate of President Rousseff, accused – without proof – of financially embellishing the state budget.

Unlike the cowardly usurper, Rousseff is going to the Senate to stare all 81 members in the face; these are the people who by the end of this month will for all practical purposes save or bury Brazilian democracy for good. Rousseff, in case of – miraculously – not being impeached, proposes a referendum leading to new elections.

As it stands, it does not look good. The late, great Jean Baudrillard – a great lover of Brazil – would characterize Rousseff’s impeachment drive as a simulacrum, obliterating the real crime; the parliamentary/institutional coup orchestrated by a notorious bunch of scoundrels, Temer included.

The multi-layered coup, with modified Hybrid War elements, comes with a prearranged finale. It does not matter that even Brazilian Public Ministry experts have repeatedly admitted there’s no juridical basis for Rousseff’s impeachment. Even the federal prosecutor on the case concluded a few weeks ago that she did not commit a crime – «responsibility» or otherwise.

The prosecutorial gang includes two of every three members of the Brazilian Congress who are facing an array of scandals. The overall institutional farce points to the Legislative, the Judiciary and the Public Ministry dragging their feet on indicting the legislative scoundrels while accelerating the procedure against Rousseff. That’s the definition of organized crime.

The endgame, from the point of view of the coup plotter galaxy, is to criminalize and finish off with the Workers’ Party for good – from Lula and Rousseff downwards – under an upcoming barrage of hazy «obstruction of Justice» allegations.

And the Obama administration loves it.

The president of construction company giant Odebrecht, incarcerated for months now, accused Temer The Usurper of pleading for – and receiving – undeclared «electoral help», in cash, for his party, the PMDB. Temer has already been convicted for violating election finance laws and banned from running for office for eight years.

Interim Foreign Minister Jose Serra also received «electoral help» for his presidential campaign in 2010; part of the loot was paid overseas, something that properly investigated could lead his party, the PSDB, to lose its registration.

In these past few weeks, Temer The Usurper took no prisoners to turbo charge the impeachment timetable farce, at the same time preventing Dilma to mount a detailed defense. His excuse; he needs to go to Hangzhou, China, for the G20 summit starting on September 4. And he needs to go as president-in-charge – not as «leader» of an unelected caretaker government acting like they’ve earned their mandate in the polling booth.

The real reason for the rush, though, is that Temer feared the serious Odebrecht corruption charge like the plague. Other charges may be imminent. Yet he’s protected – at least for now; the Mob – as in the Goddess of the Market, Brazil’s big banking and their shills in corporate media – is on his side.

Brazil remains totally paralyzed by the political/institutional farce. The 8th largest economy in the world, second largest exporter of food products, and largest industrial platform in the developing West is bleeding, badly. Oil workers are accusing the Mob for 1.5 million lost jobs. Huge infrastructure projects are stalled. Large construction companies are virtually broke; Odebrecht by itself fired over 70,000 workers.

In parallel Temer The Usurper’s «government» has already started to enact its masterplan – straight from disaster capitalism’s playbook. One of the key «policies» is to sell out Petrobras – and the pre-salt reserves – to foreign, as in US corporate, interests. Lula correctly identified the pre-salt reserves – the largest oil discovery in the 21st century so far – as the privileged source for a new development drive for Brazil.

But there are way more disasters in store; selling out indigenous Brazilian industrial development via hardcore privatization, abandoning the defense of Brazilian engineering know-how; severe cuts on education, health, science and technology; «flexibilization» of workers’ rights, as in attacking them on all fronts; a regressive attack on pensions; and sabotaging Mercosur – the South American common market – to the benefit of vassal subordination to US interests.

The – legitimate – Uruguayan Foreign Minister, Rodolfo Nin Novoa, was even compelled to denounced the – illegitimate – Brazilian Foreign Minister, the lowly Serra, for trying to buy Montevideo’s help to prevent Venezuela from stepping up to the temporary presidency of Mercosur. In a little over three months, Serra managed to reduce Brazilian diplomacy to a heap of rotten bananas.

And then, of course, there’s the cherry in the cheesecake; the lame duck Obama administration’s full support for the coup and the impeachment farce.

Obama did not have the balls to say it upfront. That came in the form of Secretary of State John Kerry meeting with the repellent Serra in a trip to Brazil in early August. Kerry even issued a long statement – for all practical purposes legitimizing the coup.

Kerry did not have the balls to meet Temer The Usurper. So what; the whole Global South now knows where Washington stands. Parliamentary / institutional regime change is of course OK. As long as it prevents BRICS integration and Chinese trade/commercial advance in Latin America.

Move on, nothing to see here – as Washington proceeds to the serious business of negotiating two crucial military bases with Argentina’s neoliberal vassal Mauricio Macri; one in resource-rich Patagonia, the other smack into the Brazil / Argentina / Paraguay triple border, right by the largest aquifer on the planet.

And there’s all that pre-salt oil about to go to Chevron! How not to love the smell of regime change in the morning? Definitely smells like victory. And you don’t even need to send the Marines for it.

"I’ve Never Seen Anything Like This Before" - The Housing Markets In The Hamptons, Aspen And Miami Are All Crashing

Posted: 28 Aug 2016 08:58 PM PDT

One month ago, we said that "it is not looking good for the US housing market", when in the latest red flag for the US luxury real estate market, we reported that sales in the Hamptons plunged by half and home prices fell sharply in the second quarter in the ultra-wealthy enclave, New York's favorite weekend haunt for the 1%-ers.

Reuters blamed this on "stock market jitters earlier in the year" which  damped the appetite to buy, however one can also blame the halt of offshore money laundering, a slowing global economy, the collapse of the petrodollar, and the drastic drop in Wall Street bonuses. In short: a sudden loss of confidence that a greater fool may emerge just around the corner, which in turn has frozen buyer interest.

A beachfront residence is seen in East Hampton, New York, March 16, 2016.

We concluded this is just the beginning, and sure enough, several weeks later a similar collapse in the luxury housing segment was reported in a different part of the country. As the Denver Post reported recently, high-end sales that fuel Aspen's $2 billion-a-year real estate market are evaporating, pushing Pitkin County's sales volume down more than 42 percent to $546.45 million for the first half of the year from $939.91 million in the same period of 2015.

The collapse in transactions means that Aspen's high-end real estate market "one of the most robust in the country, with dozens of options for buyers ready to spend more than $10 million" finds itself in its first-ever sustained nosedive, despite "dense summer crowds, soaring sales tax revenues and high lodging occupancy."

Like in the Hamptons, the question everyone is asking is "why"? There are many answers:

Ask a dozen market watchers why, and you'll get a dozen answers. Uncertainty around the presidential election. Fear of Trump. Fear of Clinton. Growing trade imbalances with China. Brexit. Roller-coaster oil prices. Zika. Wobbling economies in South America. The list goes on.

"People are worried about all kinds of stuff these days," says longtime Aspen broker Bob Ritchie. "I've never seen anything like this before."

The speed of the collapse has been stunning. Until just last year, the local market was beyond robust, with Pitkin County real estate sales hitting $2 billion in 2015, a 33% annual increase driven largely by sales of homes in Aspen, where prices average $7.7 million.

This year, however, "a slowdown in January turned into a free fall." Sales volume in Pitkin County is down 42%, according to data compiled by Land Title Guarantee Co.

Almost all of that decline is coming from Aspen, where the market is frozen. Sales in the Aspen-Snowmass market in the first half of the year were the bleakest since the first half of 2009, and inventory soared to levels not seen since the recession.

High-end sales that fuel Aspen's $2 billion-a-year real estate market  are evaporating

The statistics are stunning: single-family home sales in Aspen are down 62% in dollar volume through the first-half of the year. Sales of homes priced at $10 million or more — almost always paid for in cash — are down 60%. Last year, super-high-end transactions accounted for nearly a third of sales volume in Pitkin County.

"The high-end buyer has disappeared," said Tim Estin, an Aspen broker whose Estin Report analyzes the Aspen-Snowmass real estate market.

"Aspen has never experienced such a sudden and precipitous drop in real estate sales," according to the post.

Worse, it's not just the collapse in the number of transaction: even more disconcerting for brokers who have always trumpeted Aspen as a safe and lucrative place to park a huge pile of money: Prices are dropping.

In the first half of this year, the average price per square foot of Aspen homes dropped 22 percent to $1,095 from $1,338 in 2015. Recent Aspen sales also closed at more than 15 percent below listing price, a rare discount.

Some brokers suspect that the frenzied sales and pricing pace of 2015 was not sustainable. The present decline is a correction, they say. "I think a lot of people thought we would go to the next level in 2016. Take the next step up and that step got resistance from buyers," said longtime Aspen broker Joshua Saslove, who just put an Aspen home for more than $10 million under contract. If it closes, it will be just the fourth sale above $10 million in Aspen this year, compared with more than a dozen by this point last year.

"I think a lot of developers thought they would push their, say, $5 million properties to $6 million this year, but no one is buying," Saslove said. "I don't see that nonchalance or cavalier attitude any more."

To be sure, Saslove is hoping that a rebound is coming; that however, may be overly optimistic and first far more pain is in store especially if one considers what is taking place in yet another formerly red-hot housing market, where suddenly things are just as bad, because as Mansion Global reports...

Luxury condo sales in Miami have crashed 44%.

According to the latest report by the Miami Association of Realtors, the local luxury housing market is just as bad, if not worse, than the Hamptons and Aspen.

The latest figures out of Miami this week showed residential sales are down almost 21% from the same time last year. But as bad as this double-digit decline may seem, it pales in comparison to what's happening at the high end of the market.

A closer look at transactions for properties of $1 million or more in July shows just 73 single-family home sales, representing an annual decline of 31.8%, according to a new report by the Miami Association of Realtors. In the case of condos in the same price range, the number of closed sales fell by an even wider margin: 44.4%, to 45 transactions.

The Miami housing market, and its luxury segment in particular, has been softening for the past year with high-end condos sitting on the market for twice as long as they did a year ago and sellers offering bigger discounts amid an increased supply.

Number of closed sales for Miami condos priced over $1 million fell by 44%

In July, townhouses and condos of $1 million or more waited, on average, 162 days for a buyer, a 1.9% increase over a year ago and the longest time of any other price range, according to the report.

As in the previous two markets, the locals want something to blame, in this case the strong dollar, which has significantly increased the value of properties in other currencies, has been blamed, and perhaps rightfully so as sales to foreigners—an important client base, since international buyers  acquire more homes in Florida than in any other state, according to the National Association of Realtors - have tumbled.

Real estate appraiser and data expert Jonathan Miller said that Miami is behaving like most of the rest of the U.S. housing market, which is in fairly good shape overall "but soft at the top."

As noted here over the years, In the case of Miami, like in other most other coastal markets such as New York and Los Angeles, the housing boom was heavily boosted by foreign buyers, who used US luxury real estate as their new form of anonymous "offshore bank accounts" courtesy of the NAR's exemption from Anti-Money Laundering Provisions. However, after the recent drops in commodity prices and the spike in the USD, they have scaled back their purchases.

"The international component is not as intense," Mr. Miller said.

Depsite the slowdown deals are still being done, with cash the preferred form of payment of foreign buyers in the U.S., - some 43% of all sales in Miami in July were closed in cash, however down from 48.1% the same month last year, according to the latest figures.

Other potential buyers are also stepping back: cash sales for townhouses and condominiums, an indicator of investor activity, hit their lowest level in a year last month: 633 transactions, representing a 30.4% year-over-year decline, according to the report.

As for the forecast for the coming months, sales activity doesn't look likely to surge. There were 1,272 pending sales of townhouses and condos in Miami in July, which means 25.4% fewer transactions waiting to close than in the same month in 2015 and the lowest number so far this year. Meanwhile, as a result of a building boom, luxury condo inventory is up 47.8% from last year, with 2,482 units worth $1 million or more waiting to change hands; this means that sellers of high-end condos will continue to face stiff competition, prompting even fewer transactions and/or lower prices.

So far, the collapse at the luxury end has failed to transmit to the broader market, less impacted by lack of foreign demand, however as we documented two weeks ago, it is only a matter of time before the overall US housing market suffers as well. The only question is whether the NAR and the US Census Bureau, who tabulate the "goal-seeked", seasonally adjusted data, will admit it before or after the presidential elections. The likely answer: it depends on who the next president is.

What Life Will Be Like After An Economic Collapse

Posted: 28 Aug 2016 08:10 PM PDT

Submitted by Megan Stewart via,

If you have been waiting for a public announcement or news headline to let you know that an economic collapse has begun, you are in for the surprise of your life. If history in other countries and in Detroit, Michigan is any indication, there won’t be an announcement. An economic collapse tends to sneak up on a city, region, or country gradually over time. In some cases, the arrival of an economic collapse is so gradual that most people living in it aren’t even aware of it at first.

Things just get gradually worse, often so gradually that people and families adjust as best they can until one day they actually realize that it’s not just their home or their neighborhood that has been hit so hard financially, it’s everyone. By that time, it’s often too late to take preventative action.

In March of 2011, Detroit’s population was reported as having fallen to 713,777, the lowest it had been in a century and a full 25% drop from 2000. In December 2011, the state announced its intention to formally review Detroit’s finances. In May of 2013, almost two years later, the city is deemed “clearly insolvent” and in July of 2013, the state representative filed a Chapter 9 bankruptcy petition for Motor City. Detroit became one of the biggest cities to file bankruptcy in history.

So we have only to look at what happened in Detroit, Michigan post-bankruptcy, to get an indication of what might soon be widespread across the United States and what is already widespread in countries like Brazil and Venezuela.

Increased and Widespread Hunger

Grocery stores and other businesses will fail one by one or be shut down from the riots and looting. In Detroit, the economic collapse left less than 5 national grocery stores for over 700,000 people. Imagine the lines even if food was still being shipped in on trucks. Small independent corner stores and family owned stores become the most convenient place to shop. These are stores with already high prices who make most of their profit from beer, wine, lottery, and cigarettes.

Now imagine that shipping schedules have been affected by the economic crisis, this would mean longer lines with less certainty that any food would even be available once you got into the store to shop. People in Venezuela are actually dealing with government-run grocery stores and are limited to two days per week they can shop. They still face long lines and total uncertainty of what, if any food, will be left once it’s their “turn” to shop.

One of the ways for you to prepare for an economic collapse and increase the likelihood that your family will be well-fed regardless of what is available in the grocery stores is to grow your own food. For further protection, consider planning and planting a hidden survival garden rather than a traditional garden that would be obvious to neighbors and looters. In addition, you can learn how to identify, harvest, and consume wild edible plants to supplement your food supply.

Sporadic Public Services

Public services, including the school system experience frequent strikes that shut them down for days at a time. Power issues and outages become more frequent and roadways become filled with potholes and other signs of disrepair as preventative measures are shoved aside. The water from the tap, that you pay for monthly, begins to smell funny, so you start filtering it before using it. Garbage collection service is sporadic and you begin to see increased trash along the streets and sidewalks.

Your cell phone is certainly not something you can rely on since you can’t predict when the signal will be available. Although you pay for high-speed internet, actually getting that service on a daily basis is a matter of sheer luck. Increased littering in the streets and lack of regular garbage collection services becomes an issue because the litter now clogs storm drains every time it rains.

In order to prepare for the sporadic and possible shutdown of public utility services, you can research alternative methods for getting what you need. Consider solar or wind power energy, digging a well or installing a rainwater catchment system. Invest in a composting toilet in the event that public septic systems are overloaded or malfunctioning.

Social Unrest

This is another one of those things that just tends to sneak up gradually. Initially, protests warrant our attention because it’s new and different and out of the ordinary. But as the protests become more and more frequent, people stop caring why the protests are happening. You learn to avoid areas where protests are likely to occur. You start taking an alternate route to work or entering your office building through a back door.

Violence and vandalism begin to accompany the protests and roadblocks become part of your everyday routine. Like rush-hour traffic r, you plan enough time to get to work based on the knowledge that the road may be blocked due to a car or building being set on fire the night before. More people will be armed when in public, tempers will be short, there will be increased knife fights and shootings. This will put a huge strain on emergency services personnel such as police, fire, and EMS.

Streets, yards, and even homes are flooding more often now. In addition to the litter, the metal storm drains and even copper pipes from abandoned homes are being stolen for cash. Before long you start to notice that the historic plaques are missing from city monuments, statues come up missing, even doorknobs, anything metal that can be scrapped is fair game for looters and thieves.

One way to prepare for the next wave of riots is to move out of the city to a more rural location. If you can’t do that right now, then it will help to be intimately familiar with your city roads and other transportation routes. Make sure that you have several planned routes to/from work or your child’s school and any nearby grocery stores. In addition to planning alternative routes for daily travel, you should plan and practice several different bug out routes in case you need to leave your home quickly. Consider not only roads but also railroad tracks, subway tunnels, sewer tunnels, and power line easement roads as possible alternative routes.


Daily travel is fraught with angry mobs and requires using alternative routes which result in everything just taking longer. Travel by bus, subway, and airline are unpredictable due to increased strikes. Roads go unrepaired as a result of striking workers or budget constraints. Increased bottlenecks on the roads lead to more frequent carjacking and muggings as thieves learn where people will be forced to stop.

More people are forced to travel by bus, subway, or train due to skyrocketing gas prices, thus public transportation services are overwhelmed. There are increased train accidents, bus and subway breakdowns due to lack of investment, corruption, and politics getting in the way of doing things correctly. Strikes, protests, and roadblocks make everything worse. Soon the only way to get anything done involves “paying a little extra” or suffering long and uncertain delays.

Plan for long delays in transportation by not only keeping your car gas tank full of gas at all times but also by stockpiling as much gas as you can safely store. Keep your car well-maintained, keep spare parts and engine fluids stockpiled, and perform preventative repairs. You can also consider an alternate form of transportation such as a motorcycle, foldable bicycle, or even a motorized scooter or boat if your situation warrants it.

Criminal Activity

When an economic crisis is in the making, you will definitely see an increase in criminal activity. People will become desperate to feed themselves and their families. More people will be more willing to cross the line into criminal activity to get what they need. Initially, you will hear about more incidents of violence, looting, robberies, and muggings.

Your neighbor or a family member will be mugged and you will respond by taking additional safety precautions. You’ll check your car before getting into it, you’ll avoid dark areas, carry your keys in your hand. As reports become more frequent, you’ll start to travel only in groups and never alone.

You’ll hear that the woman down the street had someone break into her house while she was sleeping. So you may nag your husband to reinforce the deadbolts and add security bars on the windows. When the neighbor is robbed, your husband will buy several guns and you both will learn to use them. You’ll teach your kids about gun safety and maybe create a plan of action for a home invasion.

Before long, getting mugged or being a victim of some type of crime is as unpredictable and as common as a car accident. You’ll realize everyone in the neighborhood has now beefed up security on their homes. All your family, friends, and coworkers have experienced a mugging, carjacking, or worse.

You’ll have no choice but to accept this new way of life and count on basic safety measures (a form of passive denial) or further learn to defend yourself and remain in a constant state of alert (a very stressful state over time). It’s difficult emotionally, mentally, and physically to remain on high alert 24/7 for any length of time. Most people will revert to a form of passive denial until the next incident happens to them or a family member.

Take time now to learn self-defense moves and make sure you and all family members know how to use both non-lethal and lethal weapons. Keep weapons where you can reach them quickly but where they are safe from curious child fingers. Learn and consider putting into practice some of these 10 deceptive strategies for preppers so you can avoid becoming a target for criminals.


Streets that used to have a house on every lot, morph into desolate patches of houses as people lose their homes to banks or abandon their homes to move in with family or friends due to lack of finances. Houses fall into disrepair, lawns are overgrown, pests and rodents thrive in empty buildings.

Abandoned homes that aren’t torn down or maintained by the city may be taken over by squatters, some with the best of intentions to clean it up, others who just need a place to sleep, or who are in between drug or alcohol binges. Squatters will modify heating systems to get them to work or customize DIY heating sources which can result in increased house fires and even explosions when things go wrong. As the housing conditions worsen, more people will become ill from prolonged exposure to the elements, to poor living conditions, and to increased insect and rodent infestations.

The best way to ensure that housing for you and your family is stable is to keep up with needed repairs and do what you can to reduce your overall housing expenses. If you can pay ahead on your house payments or pay down on the principal amount, or even pay off your house, you stand a better chance of keeping control of it when things start to collapse.


More and more people you know will experience job loss or layoffs. It may seem easy enough to get another job at first, but as more and more people are displaced, finding a job will become almost impossible. Teenagers will be displaced from jobs that are now being taken by adults.

This means instead of working for the summer and after school, more teenagers will be out on the streets without anything worthwhile to do. The neighborhood might just seem “rowdier” at night and then during the day too. But before long, boredom, frustration, and even anger will set in and the unemployed will join the ranks of the protestors and looters.

Prepare for possible unemployment by saving up an emergency fund and stockpiling food and other supplies so that you can manage through several weeks or even months without steady income. Reduce your monthly expenses as much as possible so you can live on less when money gets tight.


This is one of the areas that many people don’t really consider when they think about an economic collapse but it’s probably one of the most important when it comes to human life and survival. This is especially true for those people who may take daily medications in order to treat a chronic life-threatening condition. Initially healthcare appointments may become more difficult to schedule. It may take longer to get in to see a doctor because quite frankly, more people are getting sick and needing care.

Illnesses from poor diet, from low-quality water, or food that spoiled due to power issues will be more frequent. There will also be more injuries as a result of the looting, rioting, and increased criminal activity. You can expect increased incidents of domestic violence as family relationships are strained and crack under the stress of poor living conditions. Many people will lose access to their healthcare when they lose their jobs, and this will place a strain on public services such as free clinics and emergency rooms.

To prepare for a shortage or lack of accessible healthcare, you can create and learn to use your own first aid kit and learn how to identify and use wild plants and natural remedies to treat minor illnesses and diseases.

There’s really no way to predict the timing of an economic collapse with any certainty and in most cases, an economic collapse will occur gradually without much warning unless you are paying close attention to activity and events going on around you and around the world. The best way to be prepared when it does happen is to start changing your lifestyle now, in the ways discussed above, so that you and your family can survive hard times in the future.

Hillary Clinton Attacks Donald Trump and the Alt-Right!

Posted: 28 Aug 2016 08:00 PM PDT

Hillary Clinton's speech on the alt-right was a confusing, paranoid mess, but it did follow kind of internal logic that is well worth understanding. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative...

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HARDCORE EVIDENCE: Hyperinflationary COLLAPSE is Coming!

Posted: 28 Aug 2016 07:04 PM PDT


This one is a MUST LISTEN. Michael Oliver from Momentum Structural Analysis and writer David Jensen join me to provide the latest evidence of global economic collapse. The biggest bubble in the history of the world is about to pop, and as it does, interest rates will rise quickly causing the whole house of cards to fall.

Michael explains, “The liquidity created by the central banks, instead of going into stocks as it has been, is shifting. the river of flow is shifting into commodities. We are about to have commodity price inflation.”

We are living through the end phase of a global credit bubble which has been created by short circuiting the gold and silver markets, forcing interest rates down in a secular manner over 35 years. When you have credit tightening in a credit bubble, you have the recipe for the collapse,” David warns.

And as the Bond market bubble pops, inflation will quickly turn into hyperinflation, destroying life as we know it. Buckle up.

What Preppers haven't Prepped for - the big gaping hole

Posted: 28 Aug 2016 06:25 PM PDT

Reading stories about Preppers is often more inspiring than reading about startups.  Preppers dedicate their entire life to their new way of life, as it were.  Take for example this recent article in the Washington Post about the American Redoubt:

Those migrating to the Redoubt are some of the most motivated members of what is known as the prepper movement, which advocates readiness and self-reliance in man-made or natural disasters that could create instability for years. It's scenario-planning that is gaining adherents and becoming mainstream in what Redoubt preppers described as an era of fear and uncertainty.  They are anxious about recent terrorist attacks from Paris to San Bernardino, Calif., to Orlando; pandemics such as Ebola in West Africa; potential nuclear attacks from increasingly provocative countries such as North Korea or Iran; and the growing political, economic and racial polarization in the United States that has deepened during the 2016 presidential election.

Although the reasons for prepping are extremely varied, most dedicated preppers share several axioms of their prepping philosophy, such as:

  • Being 'off the grid' or self-reliant, for food, power, medical needs, and any needs or wants
  • Living in a secure, remote area
  • DIY mentality (Do It Yourself)
  • 6 month - 2 year supply of food and other supplies
  • Gold & Silver for if/when the financial system collapses

Before exposing the big gaping hole in the prepper's main doctrine, let's give uber-credit to this 'movement' if you want to call it that.  Although many preppers are fueled by irrational fears, and some based on a low probability, high impact event statistic (for example, a meteor several miles wide can strike the Earth, causing widespread volcanoes, earthquakes, and other end of days scenarios, but the chance of this happening in next 100 years is very low, probably 1 in 100 million); their approach towards life is very American, in fact it was this type of survivalist gusto that made America what it was originally.  The land was untamed, there were 'terrorists' (called in those days, American Indians) and Americans had to be self-reliant because well, there was no DHS to call.  If your village was attacked by Indians or the British you had to defend yourself.  There was also the chance of a lifetime - live in the West in the most beautiful property in the world basically for free - but you must do all yourself.  Pioneers, Homesteaders, Tradesmen, all thrived and made America what it was.  This essence seems to have been lost by the baby boomer generation that was convenience and consumer oriented (but of course, not completely).  Anyway, preppers have ushered in a new age of Americanism based on their self-reliant approach.  And many good lessons come with 'preparing' such as self-defense, making a robust plan (such as any organization, business or military should have), and keeping a stockpile of supplies in case of shortages.  The previous generation, mostly not with us anymore, would appreciate all these values.  During the war, they lived without many things.  They 'prepped' because of war.  Many preppers today will say that we are at war, it's just an information war, or assymetric war, or potential war.  Being a prepper in many ways is being smart in today's world.  Who knows what will happen tomorrow.  

The big gaping hole: FINANCIAL PREPPING

Preface this by saying that - of course - like with anything - it's not 100%.  But generally speaking, preppers have prepared for everything except for their finances.

Preppers are NOT financially prepared!

Keeping physical gold and silver is a good idea - but it isn't a panacea.  Also there are many risks associated with spending Gold and Silver such as theft, loss, and acceptance.  Maybe in certain scenarios - no one would want silver, but they may want a beer?

Yes, that's right.  If you want a real currency to use in an end times scenario, stock up on cheap whiskey and gin.  Growing Marijuana will be easy in such times (the reason it has the nickname 'weed' is because it grows like a weed), but making a still requires knowledge, time, a place which is safe and suitable, dedication, and materials.  That's just one example.  You can elaborate on this scenario with this lateral thinking.

Other items of value in end times include tools of all kinds, and specifically tools that don't run with electricity, but those too.  Dynamos, solar powered battery chargers, things like this - may be more valuable than gold or silver.  

And as gun lovers like to say:

The only real currency if society breaks down is accelerated lead.

Preppers should beef up their knowledge and understanding of the financial system.  If the system collapses, the new society will need bankers too.  An economic system must evolve, eventually.  Even if humans are living as savages, at some point as we rebuild, preppers and survivors will need bankers too.

(above: Camoflage as art, from ATL.)

To learn more about the financial system as a whole, checkout Splitting Pennies - your pocket guide to becoming a financial wizard!

Norwegian Central Bank Discloses Nearly $1 Billion in US Gold and Silver Mining Shares

Posted: 28 Aug 2016 04:00 PM PDT

Dutch Central Bank Refuses To Publish Gold Bar List For Dubious Reasons

Posted: 28 Aug 2016 04:00 PM PDT

Bullion Star

Smart Money Is Turning To METALS As Bankers Print — James Gowans

Posted: 28 Aug 2016 02:59 PM PDT


James Gowans the President and CEO of Arizona Mining joins us to discuss central bank money printing, the real risk of hyperinflation of the US Dollar as we’ve seen in Venezuela and the trend of big money moving into metals mining stocks, including Zinc mining companies like Arizona Mining. Jim explains that Zinc has actually outperformed gold and silver in 2016 rising more than 40% year-to-date.

The commodities are rising fast as the decades long bond market bubble begins to deflate. This is going to translate into much higher prices for the stuff people need.  Inflation… and ultimately hyperinflation as John Williams has predicted,  is looking increasingly likely.


Posted: 28 Aug 2016 01:54 PM PDT

Deutsche Bank is shutting down hundreds of branches in Germany causing great concern while their Russian desk helped move $10 billion offshore through a mirror-trading scheme. First, What is a mirror-trading scheme? And what is the ripple effect of the deutsche bank collapse?American financial...

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T.F. Metals Report: Fed jawboned Friday's markets into submission

Posted: 28 Aug 2016 12:31 PM PDT

1:20p ET Tuesday, August 2, 2016

Dear Friend of GATA and Gold:

The TF Metals Report's Turd Ferguson elaborates on Friday's several attempts by Federal Reserve officials, ultimately successful, to jawbone the markets into doing what the Fed desires. Ferguson's commentary is headlined simply "Ridiculousness" and it's posted here:

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.


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Join GATA here:

New Orleans Investment Conference
Wednesday-Saturday, October 26-29, 2016
Hilton New Orleans Riverside
New Orleans, Louisiana

Help GATA by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

Or by purchasing a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

To contribute to GATA, please visit:

Stock touting may be a lot easier when 'nobody knows anything'

Posted: 28 Aug 2016 08:23 AM PDT

11:27a ET Sunday, August 28, 2016

Dear Friend of GATA and Gold:

Mining stock promoter Bob Moriarty, proprietor of and author of the new book "Nobody Knows Anything," was at least speaking for himself the other day when he claimed that central banks care a lot about interest rates but not at all about gold.

In commentary headlined "A Zombie Financial System, Black Swans, and a Gold Share Correction" --

-- Moriarty wrote:

"As a measure of just how important gold is to the world financial system in comparison to interest rates, interest rate derivatives are about 1,300 times greater than gold derivatives. We have a lot of me-too parrot websites talking about manipulation and conspiracies but logic tells us central banks worry about interest rates and couldn't care less about the price of gold."

... Dispatch continues below ...


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But central banks care about gold precisely because its price has a long historical correlation with interest rates and government bond prices, a correlation studied and documented by central bankers and economists alike, including, in their 1988 study, "Gibson's Paradox and the Gold Standard," Harvard economics professor Lawrence Summers, who went on to become U.S. treasury secretary, and University of Michigan economics professor Robert Barsky:

A few weeks ago another academic paper, written by a professor of accounting and finance at the University of Western Australia in Perth, Dirk Baur, confirmed that the relationship between interest rates and the gold price gives central banks a powerful incentive to influence interest rates by intervening surreptitiously in the gold market:

Baur even quoted from the transcript of the May 1993 meeting of the Federal Reserve's Open Market Committee, which includes an exchange about gold and interest rates between Fed Chairman Alan Greenspan and Fed Board of Governors member Wayne D. Angell, comments that have been cited by GATA many times over the years.

Greenspan: There's an interesting question here because if the gold price broke in that context, the thermometer would not be just a measuring tool. It would basically affect the underlying psychology. Now we don't have the legal right to sell gold but I'm just frankly curious about what people's views are on situations of this nature because something unusual is involved in policy here."

Angell: We can hold the price of gold very easily. All we have to do is to cause the opportunity cost in terms of interest rates and U.S. Treasury bills to make it unprofitable to own gold. I don't know how much change in the fed funds rate and the Treasury bill rate it takes to do that, but I'd sure like to find out.

And just yesterday GATA consultant Robert Lambourne reported that the Bank for International Settlements, the central bank of the central banks, recently jumped back into the gold swap business, apparently to relieve tight conditions in the gold market:

Indeed, three years ago the director of market operations for the Banque de France, Alexander Gautier, told the London Bullion Market Association meeting in Rome that the French central bank trades gold for its own account "nearly on a daily basis" and is "active in the gold market for other central banks and official institutions":

If central banks "couldn't care less about the price of gold," why are they trading it "nearly on a daily basis" and why is the BIS arranging gold swaps?

Of course GATA has compiled an enormous amount of official documentation showing that central banks care desperately about the gold price and about concealing their intervention in the gold market, and always will care as long as gold is considered money, a form of money competing with central bank currencies. A summary of that documentation can be found here:

Still more of it can be found here:

So why does Moriarty insist that there is nothing to this even as he fails to address even one document? Why does he constantly misinform his readers?

Is it because the stock-touting business is a lot easier when nobody knows anything?

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

* * *

Join GATA here:

New Orleans Investment Conference
Wednesday-Saturday, October 26-29, 2016
Hilton New Orleans Riverside
New Orleans, Louisiana

Help GATA by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

Or by purchasing a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

To contribute to GATA, please visit:

Post Yellen = Market Confusion

Posted: 28 Aug 2016 06:45 AM PDT

Yellen seems to me to be mastering the art of saying things so that everyone can come away hearing what they wanted to hear. For those concerned about the Fed leaving interest rates too low for too long, she adopted a hawkish view on the economy, particularly when it comes to the payrolls. For those thinking that any Fed rate hike would send the Dollar soaring, pressuring Emerging Markets as well as equity markets both here domestically and elsewhere, she sounded the theme of interest rates remaining low for a long time. Thus, if the Fed were to hike sooner rather than later, no need to worry because it would not signal the beginning of a rapid series of rate hikes.

Janet Yellen At Jackson Hole

Posted: 28 Aug 2016 06:16 AM PDT

The equity markets are bouncing along support on the lower bound as they wait to hear what Chairman Yellen has to say about the Fed's perspective tomorrow and what else is said over the next few days at Jackson Hole. As for gold and silver, they went down in honor of the option expiration on the Comex for the most part this week, and today is just the anti-climax. Traders claim to be 'confused' about what the Fed is up to. So for their benefit and yours, here is a brief cheatsheet.

Breaking News And Best Of The Web

Posted: 27 Aug 2016 05:37 PM PDT

Odds of rate hike go up after Yellen speech. US Q2 GDP lowered, expected to rise in Q3. World trade continues to contract. Gold and US stocks fall post-Yellen. Negative interest rates getting a lot of attention, mostly critical. Europe doesn’t seem fixable. Trump hires new people, keeps falling in polls. Clinton emails remain major […]

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