“For every action there is an equal and opposite reaction” – Newton’s law.
If this is true then you must ask yourself, what will be the “reactions” to the obvious and lately blatant market riggings? For example, does anyone really believe that 10 yr Treasury interest rates would be at 1.7% if it were not for The Fed buying up unsold bonds (well over half of all those issued) and suppressing interest rates? Does anyone believe that the stock markets could show such a total lack of volatility without “a little help” from the Plunge Protection Team? Do you really believe that you could purchase Gold for under $5,000 per ounce or Silver under $100 if weren’t for “tons upon tons” of unbacked and naked paper contracts hitting the markets at a pace of over 100 to each 1 real ounce that actually exists? Newton’s law by the way is merely an explanation of the laws of Mother Nature.
What I am getting at here is that at some point (I believe could be any day for nearly any reason) the markets will “get out of control.” In other words, Mother Nature will overwhelm our central planning alchemist and asset “prices” will revalue. They will revalue in the directions of common sense. The “equal and opposite reactions” will probably far overshoot where “true values” ought to be. This of course is only opinion but it does make common sense because markets are made up of “individuals” (yes I know, machines are running the show currently but they are programmed by humans) and “emotions” will enter the picture. All I am saying is that as it always has, the pendulum will swing to far in the opposite direction from where it is now.
When I say “emotions” I am specifically speaking of fear which by the way is THE greatest emotion of any living animal or human. “Fear” once taken hold will spread as fast as electricity and engulf anyone and everyone. Even those on the correct sides of the markets will get that sinking pit feeling in their stomachs because they will know “it’s over.” The “opposite reaction” that is surely coming will erase and “take back” years and years of living beyond our means. Think of it this way, if we have lived beyond our means for 40 years (actually longer), that exact amount of “over living” is due, payable and OWED to Mother Nature. She WILL be payed… either slowly over time or all at once.
My bet is that Mother Nature will be paid virtually in one lump sum over a very contracted time frame. I say this because we are talking about a financial system and economy that has LEVERAGE, lots and lots of leverage! It is this very same leverage that the puppet masters have used to paint their picture that “all is well.” The problem is this, the system has gotten so large now that even central banks are dwarfed by the size. The other problem is that THE most important piece to the puzzle of rigging everything are the precious metals markets. This is so, simply because they are “competition” for the products of the central banks, currencies and by extension sovereign debt.
This “precious metal problem” is huge and cannot be solved. At some point we will see a “delivery problem” where some of the (100+ paper ounces for every 1 real ounce) metal does not get delivered upon demand. The average person will hear this and say “big deal”. It is a BIG deal, HUGE, in fact it is the WHOLE deal! When you first hear about a delivery failure, KNOW that there will be less than 1 to 2 weeks before the entire system shuts down. It is this simple, without being able to deliver metal the entire rig of EVERYTHING financial will be up. Currencies will collapse, the bond bubble will collapse, interest rates will explode, distribution will cease to exist and “cash” will be your only means to trade with… until that no longer works when people figure out that accepting paper currency is useless and equal to not being “paid.”
My whole point is this, the Gold and Silver markets are absolutely minuscule to all of the other markets. When you then do the math and “divide by a number greater than 100” (because 100+++ ounces of paper are out there claiming each real ounce in existence), you then see that what are already minuscule markets are in fact 100+++ times SMALLER. The upcoming “opposite reaction” in all markets will be a b!@#% and the levels to where Gold and Silver settle will astound even the most ardent bulls. I would venture to say that the “final levels” for Gold and Silver will far exceed ANY and ALL predictions that you have seen in print to this point. Don’t be surprised by any “number” and don’t let ANY “number” lure you out until you know that a new and stable monetary system has evolved.