Monday, August 8, 2016

Gold World News Flash

Gold World News Flash

Moscow, Beijing, & Washington: A Complicated Triangle

Posted: 08 Aug 2016 01:00 AM PDT

Submitted by Fredrico Pieraccini via,

The historical importance of relations between the United States, China and Russia has long been analyzed from the beginning of the Cold War. Often the tone of interactions has determined the global situation. Important information can undoubtedly be gleaned concerning current and future strategies by observing the direction in which the dynamic relations between Moscow, Beijing and Washington are headed.

For a good part of the Cold War the United States enjoyed a privileged situation that relied on a tempestuous relationship between Moscow and Beijing, especially from the end of the 1960’s until the collapse of the Soviet Union. Ideological differences, regional conflicts and territorial disputes spanning for decades allowed Washington to occupy the apex of this complicated triangular relationship. It was in this climate that Nixon’s memorable visit to China developed in 1972, preceded by months of diplomatic work done by Henry Kissinger. The primary objective of the visit, beyond the dispute over Taiwan and the beginning of a fruitful economic cooperation, was to negotiate an agreement and align strategies against the Soviet Union. To date, there is no unique reason that can explain the collapse of the Soviet Union. But certainly the unenviable position of Moscow, subjected to the combined external pressures of Beijing and Washington, did little to help.

Since 1991, Russia and the PRC have embarked on a long path of reconciliation and reconstruction of bilateral relations based on trust and common interests. During the first post-Soviet decade, the triangular relationship between the powers saw strong cooperation and few episodes of conflict. It was during this period that the Chinese began to power up their economic engine, reaching what it is now. In particular, trade between Washington and Beijing skyrocketed, going from a few billion dollars in 1990 to a hundred billion dollars per annum in the early 2000’s. At the same time, Russia and the United States were experiencing their most agreeable period in history, thanks to Gorbachev and Yeltsin selling out Russia, bowing to western wishes to exploit the Russian Federation. It was during this embryonic phase that the trilateral relationship between the three powers began to crack. The level of poverty, decline, misery and humiliation suffered in the former Soviet Union, especially in Russia, compelled the Kremlin to appoint a young Vladimir Putin as Prime Minister, and then President, of the Russian Federation.

The apex of the triangle

Events on September 11, 2001 were the main driver for the adoption of a US global interventionist policy. Under the pretext of the infamous war on terror, every corner of the globe became open to attack, any perceived threat assuming a strategic priority to be addressed. As can be imagined, with such stated objectives, the next 15 years led to a progressive loss of stability and sense of security for both China and Russia. In particular, NATO expansion towards Russia’s borders, flaring up in the 2008 war with Georgia, marked the beginning of a direct action to attack the Eurasian superpower. Simultaneously in Southeast Asia, diplomatic action, increasingly expressed in military terms, led Beijing to demonstrate a more determined posture on matters concerning the definition and defense of its maritime boundaries.

In spite of the rising tensions, it was only in the recent 24-36 months that the situation took a dramatic turn. The events in Ukraine radically damaged relations between Moscow and Washington, and the affair concerning Crimea permanently changed the delicate balance in the triangular relationship between China, Russia and the United States. Specifically, it is important to observe the development of events from the coup in Ukraine, namely, international sanctions imposed by the European Union and the United States on Russia forced Moscow to make a long-awaited strategic turn to the east.

Immediately, vital trade agreements that had been lingering for 20 years awaiting approval were agreed to in a matter of weeks, thanks to the sudden motivation of Moscow and Beijing. Even military technology exchanges have overcome the historical mistrust between Moscow and Beijing, delivering a huge blow to American hegemonic aspirations. The last 15 years have seen a gradual but inexorable strategic rapprochement between China and Russia, the inadvertent result of Washington’s perpetual bullying. The paradoxical result of this continuous bullying has been Moscow’s turning to the east, resulting in Sino-Russian cooperation that effectively serves to place the United States in a weaker position with respect to both.

The privileged position held for decades by the United States has gradually evaporated, vanishing completely.

Beijing is the new vertex

In spite of all this, the People’s Republic and the United States continued to increase their trade, reaching a staggering five hundred billion dollars per annum in 2015. The insistence with which Washington has tried in every way – initially with the Asian crisis of 1997, then with strong pressure on regional allies (Japan and India in particular) to contain the economic growth of China – has ended up putting Washington in a disadvantageous position. A similar situation was seen with the same attitude pursued by NATO and the European Union of advancing towards Russia’s borders. The reunification of Crimea and the militarization of the ‘Spratly Islands’ are just two emblematic examples of what consequences American policies can lead to and how unproductive they can end up being for Washington.

The aspirations to global dominance of the American deep state have resulted in pushing China and Russia to adopt a comprehensive shared strategy in which they place at the center of their relations common interests rather than differences. Historical mistrust is a thing of the past, with the absence of ideological difference no longer providing a hindrance to mutual cooperation that pervades all areas. The weaknesses of the two nations was transformed into a strength through mutual all-around support.

A good example can be seen in the need for Russia to attract fresh capital, following the application of illegal international sanctions, and the equally important need for China to have rich agricultural lands to cultivate. Recent studies show that Siberia has probably the most fertile lands in the world. Both Moscow and Beijing needed to correct respective strategic deficits: food independence in the case of China, and foreign investment in the case of Russia. The combination of these needs fostered a fruitful collaboration that allowed them to quickly solve their issues: Chinese companies received long Siberian land concessions in exchange for huge capital. Further developments of this agricultural strategy will be interesting to follow in the near future.

Equally obvious is the aspiration of China and Russia to become international brokers, organizing and bringing together different countries within frameworks such as BRICS, SCO and AIIB. Although differing in purpose, membership and methods of action, it is the principle that unites all these organizations led by Moscow and Beijing. Stability, economic prosperity, cooperation and security are the four pillars on which these new global alliances are being built.

The Carnegie Endowment explains the strategic balance (especially nuclear) among the three powers, with an asymmetrical relationship between China and the US, a symmetrical one between Russia and the United States, and latent one between China and Russia.

The tragedy for the United States seems interminable

Although the global economic system is dominated by the dollar, benefiting only Washington, recent pushes towards the internationalization of the yuan (the IMF Basket and ASEAN), and trade exchanges between China and Russia that increasingly tend not to be conducted in dollars, explain the future trend of global currencies. The supremacy of the dollar depends mainly on its use in the oil trade, forcing countries to accumulate American money as a reserve currency in order to operate in the international markets. With the United States leading and imposing its international economic architecture, it is easy to understand the reasons behind the visits of Putin and Xi to Iran, and the even more significant visit of the Chinese leader to Saudi Arabia in recent months. The maneuvers towards de-dollarization are already being conducted. This for Washington is an existential threat that can hardly be ignored. Equally improbable is the possibility of America halting this drift. The American policy over the past fifteen years has forged unexpected agreements between the Russian Federation and the Republic of China that will end up in benefiting global stability. The failure of the global hegemonic aspirations of Washington, and of the strategies adopted against China and Russia, have ended up isolating the United States rather than Moscow and Beijing.

The hysteria that has plunged the American oligarchy has produced devastating results in America. Donald Trump and his strategy to accelerate the withdrawal of the US from the world stage in favor of a domestic recovery has had an unexpected success and could be the last chance to save the American empire from a future collapse.

We could even almost overdo it and go further by stating that a Clinton presidency would transform the understanding between Moscow and Beijing, raising it to hitherto unseen levels, permanently isolating Washington.

August 2016: Quick Look At The Chart For The Market, Gold, Silver and Bitcoin

Posted: 07 Aug 2016 11:00 PM PDT

Musical Chairs

Posted: 07 Aug 2016 11:00 PM PDT

Submitted by Jeff Thomas via,

You’re familiar with the children’s game of musical chairs. Ten children walk around nine chairs whilst listening to music. When the music stops, each must quickly find a chair and sit in it. One child is out of luck and is out of the game. Then a chair is removed and the nine remaining children walk around the eight remaining chairs, waiting for the music to stop again.

Economics is a bit like musical chairs. In a recession, the economy takes a hit and there are some casualties. Some players fail to get a chair in time and are out of the game. The game then goes on without them. The economy eventually recovers.

But a depression is a different game entirely. Since 2007, the world has been in an unacknowledged depression. A depression is like a game of musical chairs in which ten children are walking around, but suddenly nine of the chairs are taken away. This means that nine of the children will soon be out of the game. But it also means that all ten understand that the odds of them remaining in the game are quite slim and that desperate times call for desperate measures. It’s time to toss out the rule book and do whatever you have to, to get the one remaining chair.

Of course, the pundits officially deny that we have even been in a depression. They regularly describe the world as “in recovery from the 2008–2010 recession,” but the “shovel-ready jobs” that are “on the way” never quite materialize. The “green shoots” never seem to blossom. So, what’s going on here?

Depressions do not occur all at once. It takes time for them to bottom and, if an economy is propped up through economic heroin (debt), the Big Crash can be a long time in coming.

In that regard, this one is one for the record books. As Doug Casey is fond of saying, a depression is like a hurricane. First there are the initial crashes, then a calm as the eye of the hurricane passes over, then, we enter the trailing edge of the other side of the hurricane. This is the time when things really get rough—when even the politicians will start using the dreaded “D” word. We have entered that final stage, as the economic symptoms demonstrate, and this is the time when the game of musical chairs will evolve into something quite a bit nastier.

In normal economic times, even including recession periods, we observe financial institutions maintaining their staunchly conservative image. For the most part, they deliver as promised. But, as we move into the trailing edge of the second half of the hurricane, we notice more and more that the bankers are rewriting the rule book in order to take possession of the wealth that they previously held in trust for their depositors.

And they don’t do this in isolation. They do it with the aid of the governments of the day. New laws are written in advance of the crisis period to assure that the banks can plunder the deposits with impunity. Since 2010, such laws have been passed in the EU, the US, Canada and other jurisdictions.

Trial balloons have been sent up to ascertain to what degree they will get away with their freezes and confiscations. Greece has been an excellent trial balloon for the freezes and Cyprus has done the same for the confiscations. The world is now as ready as it’s going to be for the game to be played on an international level.

So what will it look like, this game of musical chairs on steroids? Well, first we’ll see the sudden crashes of markets and/or defaults on debts. Shortly thereafter, one Monday morning (or more likely one Tuesday after a long weekend) the financial institutions will fail to open their doors. The media will announce a “temporary state of emergency” during which the governments and banks must resolve some difficulties in order to “assure a continued sound economy.” Until that time, the banks will either remain shut, or will process only small transactions. (This latter announcement is a nice way of saying that the depositors will be on an allowance from the bank until further notice.)

Just as Greeks may now withdraw €420 per week, much of the rest of the world will operate under a similar allowance. What about a business that would need to pay that amount for even one salary? What of a restaurant that would pay that amount for even a small food delivery? That remains to be seen—but business will not be robust.

Of one thing we can be sure. The banks will part with no more than they absolutely have to in order to avoid riots. Their wish will be to confiscate as much as possible themselves, and the new laws allow them to do just that.

And that’s when we’ll discover that nine chairs have disappeared.

Remember, what we’re looking at is the end-game. The banks will no longer maintain the ruse of client concern beyond this point. Each player grabs as much as he is able, because banking as we know it will come to an end.

To be sure, a new banking system will rise from the ashes in a few years, but for now, the wealth that’s on the table will be swept up by those who have the law on their side.

Many of the most august names in banking may well disappear over the next few years. Some institutions folded in 2008, but re-opened under new names (minus the debt that sank them in the first place). Others, like Bear Stearns and Lehman Brothers, are gone for good. They will be joined by a host of other stalwarts of the industry. Merrill Lynch, AIG, Royal Bank of Scotland, Fortis, Fannie Mae and Freddie Mac all teetered on the edge of collapse in 2008. These and many more stand to go off the cliff in the coming crisis.

And they will not go with dignity. They will go out with a last-minute grab of as much of the deposits as they can manage. (Those who have taken part in a bank liquidation will know that what little the departing bankers leave behind on the table, the liquidators gobble up in fees. Depositors, at best, get the scraps.)

Well. Pretty grim. If history repeats, as it generally does, more than 95% of depositors will lose most or all of their savings. But there will be those who are only impacted in a minor way—those who decided to get their wealth (no matter how large or small) out of the banks before the crash.

How so? First, and most essential, remove all your wealth (except for a maximum of three months’ operating capital) from the bank. Second, move it to a jurisdiction that’s at a lesser risk than the jurisdictions stated above. (Pick the healthiest one you can find, with the lowest taxation rate and a reputation for stable government over decades.) Third, since banks in other jurisdictions may also be at risk, place your wealth in those forms of ownership that are least likely to be under attack from your home government (precious metals and real estate). Overseas real estate is the safest bet, as any attempt by a foreign government to confiscate it amounts to an act of war. However, real estate is not the most liquid means of holding wealth, so quite a bit must be held in precious metals—again in the overseas jurisdiction where it’s harder to confiscate.

Should you need a sudden cash infusion at home, precious metals are always easy to sell quickly and the proceeds are easily repatriated (countries in economic trouble never complain about money coming in, only money going out.)

Finally, if possible, create an overseas location for yourself, either where your wealth is or another location—one that’s likely to be peaceful to live in, when crisis reaches your home jurisdiction.

In this game, the odds of being the lucky one who gets the last chair are very slim. The alternative requires more preparation, but is, by far, the safer choice.

Gold Counter Cyclical?

Posted: 07 Aug 2016 10:06 PM PDT

The title of this segment is actually the subject line of an email sent by subscriber ‘RK’ on Friday, after the post-Payrolls update that included the following statement that RK questioned. From the update… “Gold is getting clobbered as it should. Let’s please keep it real, because a lot of gold bugs are not going to. The case for gold, silver and commodities rests on an inflationary phase, which strong jobs and wages would indicate out ahead. But for now, the hit to the precious metals is logical.”

Trump: Anti-Establishment or Trojan Horse?

Posted: 07 Aug 2016 08:30 PM PDT

by Jeff Nielson, Bullion Buls:

It continues to amaze me how many people continue to accept Donald Trump’s assertions that he is an Anti-Establishment candidate at face-value, without any serious scrutiny. Donald Trump’s campaign finances are handled by a Goldman Sachs money-man. Trump’s campaign has now been taken over completely by a Washington Insider. Someone please explain to me how this is an “anti-Establishment” candidate???

Yes, he still talks Anti-Establishment, this is Donald Trump’s schtick. Most successful politicians have their own schtick. Who can forget this classic from Barack Obama?

I promise Change.

Barack Obama was an “anti-Establishment candidate” too. He was going to change the direction of policy in Washington, and begin to represent the People instead of just the Fat Cats. Does this sound like anyone we know?

He was going to “clean up Wall Street”, while his campaign coffers were beingSTUFFED FULL of Wall Street money. What did we get? We got More Of The Same.

More war. More corruption. More serving the Fat Cats. Zero “change”. Talk is cheap, and nothing is cheaper than the talk of a politician.

Trump can’t simply talk about “new policies“. That was Barack Obama’s schtick, and the oligarchs know they can’t duplicate these cons precisely, or even the gullible American population will begin to clue-in to the Game. So Trump claims to be a “new candidate” — a real Outsider. And to give this schtick some credibility, he engages in even more pseudo-attacks on the Establishment than Obama.

So Trump talks about taking on the Fat Cats. He talks about representing the People. He talks about some of the oligarchs’ Secrets. But these are Secrets of which the already-aware are fully aware. We learn nothing new from Donald Trump.

For the unaware; the mainstream media continues to label Trump as some simple-minded loose cannon, who has no idea what he is talking about. NOT a difficult thing to do since Trump is a loose cannon, and much of what he says is simple-minded, ignorant, prejudiced rhetoric.

The oligarchs get to have their cake, and eat it too. They now own Trump (as evidenced by their complete control over his campaign). They can allow Trump to spew all of his sexy Secrets on the one hand, while using their propaganda machine to discredit all those Secrets with their other hand.

Read More @

The ABSURDITY of the NWO’s BIG SHOW — Rachael McIntosh

Posted: 07 Aug 2016 08:05 PM PDT


Author Rachael McIntosh joins me to share some very interesting insights about Hillary Clinton, the Rothschilds, the coming economic collapse and the controlled demolition of World Trade Center building 7 on 9/11. Rachael’s book series ‘Security Through Absurdity’ was voted Best News Series of 2014 by and you can purchase the books today directly from Rachael at her website

Chart of the Century!

Posted: 07 Aug 2016 08:05 PM PDT

by Bill Holter, JS Mineset, SGT

In a recent article, Peter Degraaf posted a series of charts including the one below. I must confess I had never seen this particular chart before but extremely glad it was posted. I knew the monetary base had grown wildly but did not realize the extent until seeing it in graph form. While Peter spent just one paragraph on this, let’s look at it in depth to get a better understanding of why it is so important and what it really means.

Let’s start by deconstructing this down to what it really means. First, I must confess I do not know whether this chart is comparing the “priced” amount of U.S. gold to the monetary base or rather the price of gold to the monetary base (because the axis is not labeled). Either way, this chart tells us something VERY important! The price of gold relative to the monetary base has never been lower than it is right now other than the at the end of last year.

Looking at the chart, you can clearly see the “markup” of gold in 1933 from $20.67 to $35. You can also see the run from $35 to $850 during the 1970’s and peaking in 1980. You can also see the turn in 2000-2001 when gold traded down to $256 per ounce. These were very important generational turns but we can glean something even more important from this chart. In relation to the monetary base, you can now purchase gold below $20.67, below $35 and below $256 when adjusted for the monetary base outstanding! The monetary base has grown and grown for 100 years, it has exploded in the last 8 years.

Making this simple to understand, as the monetary base grows (money is printed), it is like slicing a pie. With each “cut” (addition of dollars), each slice gets smaller and smaller. As with anything, the smaller something becomes, the less valuable it will be. In banking or finance, this concept is called “inflation” when a currency becomes more plentiful in relation to goods …prices rise because it takes more of the more plentiful currency to purchase the same amount of goods as compared to previously.

Shifting gears, there is another side to this equation and one the powers that be are desperately trying to keep hidden from you. They have been suppressing the price of gold to hide the fact they have sliced and diced the “dollar pie” until now the slices are miniscule (the dollar has very little value left). They have done this at the same time “risk” has exploded. When I say “risk”, I am talking about systemic risk. Never before has the world taken on as much leverage in relation to GDP nor versus collateral. Banks, brokers, insurance companies and even sovereign governments are now more leveraged and financially in higher risk situations than ever before in history!

I would be remiss in writing this if I did so without talking about “U.S. gold”. There is so much anecdotal evidence the U.S. has been divesting gold (even custodial held gold) for years, in no way can anyone credibly believe the 8,300 tons claimed is still there. If this is the case which I absolutely believe it is, then the above chart would be revised to even lower levels. I guess the best way to illustrate would be to go back to our pie analogy, how big would the many more slices be if the total pie was the size of a thimble?

Going one step further, “gold” has been rehypothecated many times over. We have seen instances on COMEX where there were more than 500 ounces represented by paper contracts for every one real ounce they claimed to have. We have no way to know what the real global number of hypothecated gold is to actual gold …but we will find out sooner or later and the mass of paper owners will be left holding just that …paper. The cover up has gone on for years and was done to support confidence in the dollar, U.S. Treasuries and the fiat currency system in general.

The currency/debt system we live in will mathematically implode as sure as the Sun will rise tomorrow. This is simple logic, the system as a whole cannot grow enough to pay back nor service the debt already in use, “debt saturation” if you will. Richard Russell called it “inflate or die” which means either “inflate” the currency or outright default, there is no in between in the end. Someone, somewhere “loses”, there is no way around this, the odds greatly favor the holders of currencies as being the losers rather than outright default.

To finish, it is my hope you are putting 1+1 together while reading this. There has never been a more dangerous time financially than today in all of history. This, at the same time gold has never been cheaper in relation to the amount of dollars outstanding. This 1+1 is a no brainer, never before a greater need for the safety of gold and never has the insurance policy been this cheap! Of course we could talk about silver which is extremely cheap versus gold but that would be overkill for another writing. This will end with a massive call on gold by EVERYTHING credit …which is everything, everywhere financial! The “call” for real gold will come on like a light switch flipped overnight. You either have it, or you don’t …and never will!

This was a public article, if you would like to read all of our work please follow this link to subscribe.

Standing watch,
Bill Holter
Holter-Sinclair collaboration
Comments welcome

"Sell Everything"... But Why: What Has The Smartest Investors So Spooked?

Posted: 07 Aug 2016 07:36 PM PDT

Submitted by Nick Colas of Convergex

Many of the smartest investors out there hate stocks.  Since May, we've heard negative equity calls from Stan Druckenmiller, George Soros, Carl Icahn, Jeff Gundlach and Bill Gross.  Wall Street lore says "Never argue about markets with a guy who is much richer than you".  So we'll take the discussion in a different direction: what do they know? 

Successful investors are always more plugged in than the market as a whole – hence their success.  And while we can only guess at the lynchpins of their negative take on stocks, we do have some idea of how significant they must be.  For example, in 2016 the S&P 500 is up 5.9% on a price basis after 1) the Brexit "Leave" vote, 2) dramatically disappointing Q1 and Q2 U.S. GDP, 3) a correction of 20% in oil prices, 4) a Fed that has incorrectly calibrated its public stance on monetary policy, 5) Donald Trump as the Republican candidate for president, and 6) the U.S. 10 Year Treasury at near record low yields. 

None of that has been enough to spook U.S. equity markets.  So whatever the big boys think they know, it must be really bad.  But what is it, and why is it so hidden from view?

* * *

"Someone is getting this information before you."  If you've ever worked at a hedge fund, you know this is the worst thing you can hear.  It means you are behind the curve, providing yesterday's news into an investment process meant to predict the future.  "Titanic sinks!" or "man lands on the moon!" are the more playful retorts you'll get from co-workers.  But it all means the same thing: up your game, or get a white box from the mail room.

So when a cluster of high-profile hedge fund and long-biased managers go out of their way to give dire warnings about the U.S. equity market with stocks sitting at or near all-time highs, any sensible investor needs to pay attention.  These are people with access to information that most market participants could only dream of having.  Former heads of state and central bankers, private intelligence operatives, senior government officials, the best consultants in any industry…  It is like having an all access pass to anything, anywhere, any time.
Here's a partial list of bold faced names that have panned stocks and other financial assets in recent weeks:

  • Stan Druckenmiller (May 4th at the Ira Sohn Conference): "Get out of the stock market."
  • George Soros (June 9th, as reported in the Wall Street Journal): "The billionaire hedge fund founder and philanthropist recently directed a series of big, bearish investments, according to people close to the matter."
  • Carl Icahn (June 9th, on CNBC): "I don't think you can have (near) zero interest rates for much longer without having these bubbles explode on you" while also saying it's difficult to assess when exactly that might occur.
  • Jeff Gundlach (last Friday, in an interview with Reuters): "Sell everything. Nothing here looks good."
  • Bill Gross (in his monthly investment letter, released last week): "I don't like bonds. I don't like most stocks. I don't like private equity."

Fun fact: a group of bears is called a "sloth" or a "sleuth".  We can safely ignore the first reference; none of these investors made their considerable fortunes through laziness.  That leaves us with "Sleuth" – as in, what have they discovered?

Whatever it is, it has to be something weightier than the headlines we've faced so far in 2016. The S&P 500 is, after all, still up 5.9% on the year.  And none of these headlines have tanked U.S. equities:

  • Donald Trump wins Republican nomination for President of the United States against a field of well-funded and well established competition
  • U.S. GDP growth fails to deliver on 2% growth through first half; runs 1.0% average instead
  • After a good run earlier in the year, crude oil prices experience correction and break $40/barrel
  • One gold ETF draws the most fresh money of any exchange listed product YTD; yellow metal at +2 year highs
  • Global economic growth so sluggish that U.S. 10-Year Treasury yields reach 1.5%, far worse than even the depths of the Financial Crisis
  • Britain votes to leave the European Union
  • $13 trillion of global sovereign debt sports a negative yield, so great is the demand for "Safe haven" assets around the world
  • Federal Reserve guidance on future interest rate policy widely ignored. The U.S. central bank says 2 bumps to Fed Funds this year (25 bps apiece), but Fed Funds futures handicap less than one.

There's no getting around it: that's a lot of unexpected news.  The connection between them and higher stocks has exactly one point: bad news drives interest rates lower, and as long as the S&P 500 earns +$115/share those lower rates support ever loftier valuations.

A bearish call, such as the ones our "Sleuth" has made, must therefore convincingly pull the rug out from the "Lower rates = higher stocks" paradigm.  Don't tell me that these big-money investors are just making a valuation call – they all know better than that.  Try walking into any of their offices and saying "U.S. stocks trade at 18x earnings… Time to short em…"  Your feet would barely touch the floor as security escorted you and your white mail room box out of the building.

No.  It must be something larger.  But what?

Gold & Silver Reflect The Only Reality That Exists in This Sea of Deceit

Posted: 07 Aug 2016 07:30 PM PDT

Gold And Silver – Charts Only

from Edge Trader Plus:

Our pace for posting commentaries will slow down for August by design over the next few weeks, and for the last week of August, there will be no posting due to vacation time. This week, focus will be solely on the charts. There is so much going on in the world and with the Bread and Circuses election in the United States, the sum of which is enough to send the price of precious metals considerably higher, but the reality is price is still under the control of Chinese buying at bargain prices while the West's central bankers try to keep alive the Ponzi scheme facade regarding gold and silver.

The globalists behind the fiat curtain have been exposed for their financial and political chicanery to keep the vastly underwater banking system "alive and well," yet the public has no unified voice to be so shocked by the extreme theft by the bankers and their political hacks, so the game plays on.

Gold and silver reflect the only reality that exists in this sea of deceit, the U S strong-arming the vassal political union called the EU with no backbone or popular support, the ongoing disruption and war in the Middle East,  the US using NATO to saber-rattle against Russia, forever provoking Putin and casting blame on Russia for much of the ills that go on
around the world when only US fingerprints are to be found everywhere.

There are many articles that discuss the almost inevitability of  WWIII with the US not only provoking Russia but China, as well.  When the financial house of cards can no longer be held, the go-to alternative has always been war to get the public minds off the source of all woes, the elite's moneychangers and their ongoing theft from the people.

More thought needs to be given to what practical role gold and silver would play once the fiat Federal Reserve "dollar" loses its status as a reserve currency and receives the recognition it deserves, a third-world nation with a worthless paper fiat currency.  How will precious metals holders benefit, and to what use will their holdings be placed?

How may PMs holders are there in Venezuela, and how are they faring?  We will look for some answers in future articles.  In the meantime, despite the ongoing calls for gold and silver to take off, imminently, the charts do not support a runaway market to the upside.

Straight lines are frequently drawn to represent support or resistance when, in fact, both are the function of an area as opposed to a fixed price point.  The two horizontal lines on the weekly gold chart originated from prior failed swing highs.  Price broke above the lower one but fell just short of the upper resistance line.  Yet, price was contained within that area.

The purpose is to take note of where price has failed previously, and then watch the development of how price reacts on a subsequent retest.  It is the basis for simply being prepared to respond at support/resistance areas.  For example, one can make a huge mistake buying new positions at an area of resistance because a reaction is more probable than upside continuation.

The wide range, poor close bar of 4 weeks ago was a red flag event.  It was a message from the market that sellers overwhelmed buyers and pushed price down with buyers unable to sustain the rally, and the selling reaction occurred at a resistance area, answering the howquestion of the character of price development.  Last week was a retest of 4 weeks ago, and we then mentioned how volume was peaking at the high of the rally, another red flag.

GC W 6 Aug 16

A more detailed picture emerges on the daily chart.  The early July high was an overlapping of 4 TDs, a sign of a battle between the opposing forces of buyers v sellers.  After the 4th day, price broke lower making those 4 overlapping bars an area of resistance to be watched on any retest.  The retest came last week.

Read More @

Oil Says the S&P 500 is Heading to 2,050

Posted: 07 Aug 2016 05:43 PM PDT

The markets are beyond overbought and overstretched.

The S&P 500 has been trading within a 1% range for three weeks. This range finally broke out to move an incredible 0.22% higher.

Yes. 0.22%... less than half of one percentage point. This is what has got the bulls foaming at the mouth.

Meanwhile, Oil, which lead the rally from the February lows… has broken down completely.

Stocks are on borrowed time. The S&P 500 should retest 2,100 if not 2,050 in the near future.

On that note, we are already preparing our clients for this with a 21-page investment report titled the Stock Market Crash Survival Guide.

In it, we outline the coming crash will unfold…which investments will perform best… and how to take out “crash” insurance trades that will pay out huge returns during a market collapse.

We are giving away just 1,000 copies of this report for FREE to the public.

To pick up yours, swing by:

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research


The Trick To Staying Sane In The Market's New Normal Ponzi Narrative

Posted: 07 Aug 2016 05:00 PM PDT

Authored by Mark St.Cyr,

Just as there’s a scheme to pay old investors with new investors money (aka a Ponzi.) There’s another part of the scheme that rarely gets talked about: i.e.,The narrative that fuels the scheme to begin with.

Much like the original structure which involves money, this too needs an ever-growing amount of gullible, willing participants. However, the currency here is narrative.

And just like any Ponzi scheme once you lose the narrative – you’ve lost everything. One can not survive without the other. Yet, it is the narrative more often than not that is needed to drive the scheme ever higher. Without it, the scheme implodes via its own weight. The narrative regardless of how outlandish, bizarre, or full of nothing but outright lies must be maintained and vociferously defended by those who are already caught in the scheme.

In my view the reason why many are finding the greatest confusion, as well as complete consternation is this: Too many are forgetting the “investors” in this scheme are governments (or proxy) with unlimited funding resources, as well as: they also control the narrative. i.e., any data point they wish to convey as what “is” good or bad. I would imagine if Charles Ponzi were alive today he’d argue “And you sent me to jail for?” But I digress.

Why the scheme of today is far more troubling than those of any bygone era is as I iterated: the access to unlimited funds.

As has been stated ad infinitum – central banks have the ability to print money ex nihlo. And what people forget is that ability retards the process for the scheme to collapse under its own weight. Remember: a Ponzi scheme works until you begin running out of suckers. And it’s in that math of exponentiation where once you see “a crack” the crumbling comes with near immediacy. There are only so many people, with enough money to swindle.

However, if one has access to unlimited fund? “Cracks” can be repaired, hence the scheme can continue. The game is the same. The only difference with this one is the physical reality of needing more “bodies” with wallets is no longer a requirement. i.e., One central bank with the gumption to print equals how many investors wallets of yesterday? 10? 100? 10,000? 1,000,000,000,000? I hope you beginning to see my point.

As long as the central bankers of the world are holding the print button down with both hands and feet – the scheme is going to last a lot longer than anyone ever dreamed possible. But, as I said, the “money” is only half of the equation. This is where the narrative must also match if not supersede. And it is here where those “cracks” are beginning to widen at a dramatic pace, and “money” alone can’t abate the damage. In fact more “money” seems to be exacerbating the problem.

I have been inundated by notes from friends and family this past week as the “markets” once again hit never before seen in human history heights. However, this time was different from some of those in the past. I could discern two very distinct recollections as they tried to square a few circles. First: How can GDP be in the toilet at the same time they’re touting a “wonderful” employment report? And second: If the “markets” are a representation of the economy – then why does the economy stink? But it wasn’t only them…

More than likely if you are reading this you are probably one of the few that have concluded via your own observations that this economy is not in any way, shape, manner, or form what it’s being represented or heralded via the main stream media or financial press and are looking for other objective viewpoints. Or, you don’t truly know which side to take for everything seems contradicting. Regardless of which camp you fall into, I commend you for looking as to form your own conclusion. However, with that said, I would venture to bet dollars-to-doughnuts you’ve also come across a phenom that’s growing absolutely louder by the day: Utter contempt that it has yet to fall apart.

As usual I have been perusing many differing news sites, as well as financial blogs and more. What I’ve been noticing more, and more as of late is the utter despondence by some, and the absolute outrage by others that the markets are still being held captive by central bankers. i.e., “Why won’t this market go down?!”

Well, it’s quite easy really, and it’s these very same people who understand this point deep down yet, are the one’s losing their minds the fastest: e.g., It’s not a market.

For years now it’s been self-evident: market rules no longer apply. Technical analysis – useless. Fundamental analysis – useless. The only thing that now matters is whether or not a stock, bond, or ETF is favored by a central bank. Period. Yet, far too many veteran traders or seasoned business people are still viewing many aspects of these markets through a prism of 10 years ago. Those days are gone, long gone. Yet, people are acting (or hoping) that there is still some sense of normalcy still residing within. I’m sorry – there isn’t.

The issue here is we may indeed be in what some have described as a final turning, much like that described in the brilliant work of Strauss-Howe in their seminal work “The Fourth Turning.” Whether or not one prescribes to this theory is for one’s own counsel. However, if there is one factor which helps put weight into where we are one can’t leave out one of the other most prominent tell-tale signs. To paraphrase Robert Prechter “Governments are the ultimate herd mentality.” And this latest “bull-run” shows just how “more money than sense” this latest bull#### run has become.

The difference today is, where as in a traditional Ponzi like situation the narrative would break (i.e., people would begin openly complaining about not getting paid) where it would all but disintegrate overnight. That’s not going to happen with near unlimited funds. Even if the ruse is the same.

The key to watch for (in my opinion) is when the narrative (i.e., everyone’s getting paid) is believed less and less, coupled with: the longer it goes on – the less it’s believed. I feel we are in these stages currently. Which via my thinking is an end-of-game stage.

However, how long it can go on for is an open question. We’re now closing in on a decade, can it go longer? Again, who knows, but the issue is: if it does – how do you want to play knowing what you know?

The issue today is not to “blame” what may, or may not, be happening to your psyche as it pertains to the markets. For there aren’t any. Only “markets” now exist. And they are in a complete bizzaro world of their own. The “rabbit hole” central bankers of today have created make the world of Alice look down right normal as compared to the modern Keynesian markets of today.

The key to keeping one’s sanity (as well as account balance) is to stop waging a rational war with the irrational. Or, said differently: never try to teach a pig to sing. It will do nothing but frustrate you and annoys the hell out of the pig. Too many today are still trying to make this pig sing a tune of reality. It won’t – and it can’t.

During this period what any prudent individual or business concern should be focusing on is how can they take advantage of the current craziness, and how can they be in the most opportune position when that crazy does indeed come forth. For it is my contention – opportunities of generational proportions will make themselves available to the prepared. Here are a few examples…

If you are some form of a day trader in stocks you must know more about how to close and get paid on your position just as much, if not more so, than strategies for putting one on in the first place. If you own a business of any size what is just as important to understanding a competitor’s product strength is their strength or weakness should any disruptions within the “markets” occur. i.e., will they still be able to fund? Who is their funding source? Is their main supplier at risk if a currency move takes place in the Yen, Yuan, Dollar, etc., etc, overnight? And what can you do if so? Does it effect you?

During this central bank influenced “house of crazy” have you taken advantage of these low rates as best you could? Or, have you left that up to your competitor?

If you’re an investor – are you concentrating on gaining ever the more risk as these “markets” go higher? Or, are you pulling more and more off the table with a concern for the where’s and how’s to make sure there is a return “of” your capital as opposed to a return “on?”

If you’re in a business or even employed by one – have you taken note as to if your company or competitors are the current “buy, buy, buy” of some central bank portfolio? Do you even know? If you think it’s all about “superior product” only today. I’m sorry – you’re not paying enough attention. A superior product means little if the competition’s bonds are being bought hand over fist – and yours are left vying for scraps. Of course there are myriads more however, this is the way one needs to view today’s current environment.

As was stated many years ago but is now turned up to 11: The markets can stay irrational much longer than one can remain solvent. Add to that “irrational central bankers?” 11 goes to 11².

Time is of the essence to ensure one is planning for the correct probabilities, along with watching ever the closer for more tell-tale signs that things are getting closer to a conclusion rather than a continuation. And narrative is the thing to watch vigorously in my opinion. The money is no longer affording the continuation of near religious faith in the omnipotence of central bankers. For the higher the market goes – the louder the questioning is becoming.

The key today is to not think as Cypher (played by Joe Pantoliano) did in “The Matrix” (1999) when he longed for the option to change his decision and take the blue pill as opposed to the red. No, that’s not an option no matter how much one would like. You can’t un-know what you now know to be true. No, the trick to keeping one’s sanity, as well as wallet in tact is know what games are rigged and which are not. Then decide as in another movie tag line made famous by a computer named “Joshua” (depicted in the movie War Games 1983) when it stated…


If you watch the ‘markets” closely what you’ll find is that line is picking up ever the more steam the higher these “markets” go.

That’s how you know the narrative is coming unglued. Just when it has a catastrophic failure event? That’s anyone’s guess. And it’s all a guess at this point.

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The gold mining startup came together during one of the toughest periods in mining history.

K92's main asset is the Kainantu project, a large high-grade gold resource with extensive infrastructure including underground mine development, a mill processing facility, a fully permitted tailings pond, and paved roads. The infrastructure means K92 can aim to restart mining in the near term with minimal capital costs and seek to grow through cash-flow funded exploration on the roughly 405-square kilometer property, considered prospective for additional discoveries.

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