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Yesterday was the most I’ve ever written in a day – ten hours – but here we go again, a new slew of “horrible headlines” to confront and the criminally exploitative Greek “debt swap” bailout just hours away.  With 60% PSI commitment, it appears a cinch to reach the 66% required to force the remainder to comply, but not necessarily the 75% needed to prevent it from being considered truly “voluntary.”

At 66% commitment, the Greek government can force the remainder’s hand via “Collective Action Clauses” – or CACs – which cannot possibly be considered by the ISDA to be “voluntary.”  Moreover, even if 75% do commit, how can the ISDA state that the remaining 25% accepted the terms voluntarily?

These are all rhetorical questions, of course, as the ISDA is run by the same banks – JP Morgan, Goldman Sachs, Bank of America, Citigroup, and HSBC – that wrote 97% of the world’s $1 QUADRILLION worth of derivatives, so they will say “black is white” if need be, supported by an ever-expanding GLOBAL PPT that prints money at exponentially higher rates each week, soon to go hyperbolic.  This is not speculation, as even their own charts depict this, and that’s just the money they ADMIT to printing.

Greece Readies Record Debt Swap With 60% Commitments

This is why my friend Paul Brodsky of QBAMCO values gold TODAY at more than  $10,000/oz, utilizing the same calculations as Jim Sinclair, Mike Maloney, and myself.  This is the identical money pricing mechanism utilized at Bretton Woods in 1944 – dividing the “monetary base” by central bank gold reserves – that came up with $35/oz back then.  However, one can easily make the case for a $27,000/oz gold price in TODAY’s DOLLARS (i.e. no more MONEY PRINTING), as I will demonstrate shortly.

Brodsky – US Money Base Will Explode to $15 – $17 Trillion

QBAMCO is just using the OVERT (U.S. government published) monetary base of $2.7 trillion divided by the U.S.’s supposed 8,135 tonnes (261 million ounces) of gold reserves, to reach an initial target price of $10,300/ounce.  However, he expects the monetary base to EXPLODE to $15.0-$17.0 trillion in the coming years, again assuming the U.S. hasn’t COVERTLY sold any of its gold reserves – LOL.

U.S. government officials have on numerous occasions ADMITTED to selling, leasing, and swapping gold, yet official gold holdings have barely budged in 30 years.  Moreover, given how viciously active the Cartel has been in recent years – particularly on the multitude of occasions when gold lease rates went negative (i.e. paying parties to lease one’s gold) – there is not a doubt in my mind – or GATAs – that at least half, and likely more is gone forever.

This is why the U.S. Treasury has not allowed an audit of its gold reserves (held at Fort Knox, West Point, and the Denver Mint) in 60 years, and NEVER will despite Ron Paul’s best efforts.  Not to mention, why Central Banks around the world – such as the German Bundesbank and Swiss National Bank, and likely the Dutch National Bank – are ordering audits of their gold held in New York.

Per the Chart below, I have created three separate gold price projections, based on QBAMCOs methodology, the same utilized at Bretton Woods, NH in 1944:

1. The first estimate – in black – represents QBAMCOs estimate based simply on the PUBLISHED monetary base and gold reserve figures – $10,325/oz.

2. The second estimate – in blue – represents MY ESTIMATE based on the PUBLISHED monetary base and MY ESTIMATED gold reserve figure – $27,000/oz.

3. The third estimates – in red – represent QBAMCOs projections of U.S. money supply growth, combined with PUBLISHED gold reserve figures – $57,361/oz. – $65,010/oz.

4. The fourth estimates – in green – represent QBAMCOs projections of U.S. money supply growth, combined with MY ESTIMATED gold reserve figures – $150,000/oz. – $170,000/oz.

Now do you see why I have devoted my career – and net worth – to PHYSICAL gold, and why I find it silly to take risks with mining stocks?  Not to mention silver, where my price target continues to be based on a decline in the gold/silver ratio to between 5:1 and 15:1, suggesting a price target utilizing this methodology of $700/oz to $34,000/oz?

These estimates are nothing new to me – as noted in my December 21st RANT, “SIMPLE MATH AND $100,000 GOLD” – and could go significantly higher if HYPERINFLATION cannot be averted.  And you know my views on the likelihood of that occurring…

Estimate Source

Monetary Base ($ trillions)

U.S. gold reserves (ounces)

Bretton Woods value of gold (per ounce)

Published U.S. Gov’t Ests.




Published U.S. Gov’t MB, RANTING ANDY GOLD Est.




QBAMCO MB Est. (low end), Published U.S. Gov’t GOLD Ests.




QBAMCO MB Est. (high end),
Published U.S. Gov’t GOLD Ests.








QBAMCO MB Est. (high end),




Now that I have you excited, I figured I’d add a post-mortem to the Toronto PDAC mining conference – the world’s largest by far – which thankfully I was able to skip for the first time in six years.  Per the article below, another attendance record was set – more than 30,000, up from less than 5,000 ten years ago.  Most are there with, or to see, mining companies, whose stocks continue to languish despite a sevenfold increase in gold and silver prices, the majority from junior miners whose stocks peaked five years ago.

I am encouraged by rising attention to the sector, as these people are watching PM prices and telling others, who may eventually buy gold and silver and tell others to do the same.  However, when I see how DEAD junior mining stocks are, and how SHOCKING the contraction of large-cap multiples (on both earnings and reserves), it only heightens my belief that mining stocks are a siren luring investors to Scylla and Charybdis.

Mining stocks may or may not rise more than bullion in the future (excluding inevitable capital gains and dividend tax increases), with as much potential to BANKRUPT you as make you rich.  As we approach the END GAME of the global monetary system, “getting rich” is the LAST thing you should be concerned about, the first being to PROTECT YOURSELF.

PDAC Convention Is to Toronto What Canadian Grand Prix Is to Montreal

Around the world, I see nothing but bad news, which MUST be separated from the relentless, expanding presence of PTB manipulation.  Remember, equity volumes are at record lows for the HFT (high frequency trading) era, thus all I see in the financial markets are government PROPAGANDA games, utilizing the PPT, QE, ESF, and gold Cartel.

In Europe, even ECB governors are descrying the gargantuan, hyperbolic growth of the Central Bank’s balance sheet, chock full of worthless “collateral” for LTRO bailouts – er, loans – that will eventually be seen for what they are…

Ex-ECB’s Juergen Stark Says ECB’s Balance Sheet “Gigantic”, Collateral Quality “Shocking”

In China, the property/construction bubble is bursting before our eyes, guaranteeing more QE…

S&P: China developers getting closer to “downgrade thresholds”

…while in the U.S., even manipulated employment numbers are tepid, guaranteeing more QE…

Initial Claims Miss Expectations, Rise For Third Consecutive Week For First Time Since August 2010

…and even the supposedly strong BRIC nations are feeling the pinch of the GLOBAL economic collapse – such as Brazil, which surprisingly reduced interest rates today – adding additional GLOBAL QE from South America…

Brazil opts for deeper rate cut to stoke recovery

…and don’t forget the biggest threat of all, which would not only add more QE than the other issues COMBINED, but potentially yield tens of millions of deaths…WORLD WAR III.

My god, I was watching commentary on the Presidential election campaign yesterday, showing Romney, Gingrich, and Santorum ALL provoking Iran with “we will attack” rhetoric, topped off by Obama’s press conference with Netanyahu, in which the two of them appeared to be competing for the title of most boorish, offensive comments.

Guest Post: War With Iran Is Coming

I mean, how is ANYONE listening to this madman Netanyahu, inflaming the doting AMERICAN crowd with the same PROPAGANDA utilized by the U.S. government…


…PROPAGANDA that only Ron Paul is not susceptible to…the one candidate against the madness of war.  By the way, does ANYONE believe this psychopath Michelle Bachman could give a rat’s arse about “our ally Israel”…


…or that Rick Santorum can be VIOLENTLY against abortion but so VICIOUSLY in favor of annihilating Iran…


…or that puppet Mitt Romney word’s weren’t written – VERMBATIM – by his “handlers,” i.e. Wall Street and the Military-Industrial Complex…


…or that Newt Gingrich has a HUMAN soul…

Honestly, it brings me to tears listening to these pieces, making me feel so ALONE in my quest for truth.  Thank god for this newsletter – and my “shadow world” – for giving me the strength to keep fighting.


As for today’s markets, what more is there to say but capping at KEY ROUND NUMBERS and “Dow / Gold x 2 ALGORITHMS?”

At the COMEX open at EXACTLY 8:20 AM EST, gold breached the KEY ROUND NUMBER of $1,700 for minutes, before its first WATERFALL DECLINE OF THE DAY immediately thereafter with no other market budging

Similarly, silver breached the Cartel’s ULTIMATE line in the sand at the KEY ROUND NUMBER of $34.00 for a total of one minute before it immediately WATEFALL DECLINED by $0.65/oz…

Mind you, Dow Futures were consistently +60 the entire morning, until the “Dow/ Gold x 2” algorithm was turned on at the NYSE open.  As you can see above, at EXACTLY the 9:30 AM EST NYSE opening, gold plummeted $6.00/oz, or 0.3%, and silver $0.30/oz, or 0.9%, while the Dow fell a measly 20 points, or 0.1%.  And don’t forget the miserable HUI, completing a terror-stricken PDAC conference with yet another opening plunge, this time of a whopping 1.2% in the opening 30 minutes of trading, as the Cartel fights with all its might to push it below 500.  Ah, the relief of being out of mining stocks, which have experienced the exact same trading patterns for the past five years.

Continue Reading The “Bennie Bottom”