They have said that the entire financial system was going to come down for quite a while now…I am one of them. These “alarmists” were the only ones back in 2006 and ’07 who foretold of the looming financial crisis. They were the ones jumping up and down at the end of the last century exclaiming that gold and silver were priced under the cost of production (as they are again now). “We” were right yet, we miscalculated one thing…”we” never believed that sovereign governments would bankrupt themselves in an effort to hide the truth. We underestimated the lengths that would be taken to prolong the current (soon to be past) system.
If you recall the fairy tale of the boy who cried wolf…the “wolf” finally did appear and yes it did devour a meal which is where we are now. Is it possible for the current debt that has built up in the system to ever be repaid? Which said another way, will holders of this debt (bonds) ever get their “money back?” Is it possible for the $1+ quadrillion derivatives market to ever actually perform? When I say “perform” I am referring to actually “pay off” given the circumstances they were originally designed to protect against? These were “individually designed” to guarantee against all sorts of “bad stuff.” Bad stuff relating to the bankruptcy of individual companies, states, countries and even including the U.S. government. “Even including the U.S. government”…does anyone really believe that ANY financial institution on the planet will still be solvent (and thus able to pay or perform) after a U.S. “bankruptcy?”
Think about this, one party…or the other (or both) were absolutely nuts when they entered into an agreement to either insure or be insured of a U.S. bankruptcy! Is JP Morgan, Goldman Sachs, AIG, Credit Swiss or some Chinese behemoth going to have the ability to “pay up” when the game stops? Wouldn’t a U.S. bankruptcy…”bankrupt” whoever it is that sold the insurance in the first place? Going just a step further, what will dollars or euros be worth? Don’t they derive their “values” based upon the “full faith and credit” of the respective governments?
Was it possible for these “alarmist wolves” to have foreseen central banks (the NY Fed?) selling gold that wasn’t even actually their own? Did “we” believe that 100 paper ounces would be sold for every 1 real ounce that actually exists? Could ANYONE have forecast that Mother Nature would be temporarily stuffed and metals prices would drop in the face of record demand with stable or actually shrinking supply? If you go back to 2007, ask yourself, how would anyone have been viewed if they used the words “bankruptcy” and “United States” in the same sentence? Fast forward and we hear this all the time on mainstream media…and even from our own congressmen, senators and president! Why do you suppose it’s “OK” now and never before? Only a few of the “wolfers” went out on a limb back then…yet to this day they are still “crying wolf.”
So why did I choose to write this piece now? Well, because “we” are wrong and been “proven” wrong? “Just look, stocks up, real estate ‘better’ and the precious metals down not to mention a ‘growing economy’ to boot.” Well yes, so we are “told” every single day and it must be true because it’s on the TV right? (As a side note, Richard Russell who was a little late recognizing the manipulation of gold and silver says, “Stocks to crash as the U.S. lies to the American people). Without going crazy into it, how can unemployment be down if less is employed today than they were for many years? How can inflation be 2% when everything collectively costs 8-10% more than it did last year? How can interest rates be lower than in the 1950’s when inflation is higher, money supplies bloated and risk of default much higher? They can’t be…but they are.
Let me explain what prompted me to write this piece. My stepdaughter who lived with us in Costa Rica and has since moved to San Francisco recently said to me, “And I’m going to listen to you who have told me the financial system was coming down for 6 years?” OK, so in her eyes (and I’m sure others) I’m an idiot. But why did she say this to me? Because I suggested that she move away from the coast as she is young and would at some point like to have a child…and I sent her a “radiation map” of what is factually moving across the Pacific from the Fukushima disaster to her area. This is actually fact and can be verified with little effort but I in her eyes am “crying wolf”…again. Am I being “alarmist?” No, I am telling her the truth but because it’s not “on TV” it must be wrong.
My point is this, only YOU can provide for yourself and your family no matter what anyone tells you. Only you can dig through what you hear, read and see. Only you can do the addition of “2+2” and come up with a true and correct answer as to what “reality” actually is. No one in the “everything is fine” camp will help you when the time comes; in fact, when “the time comes” NO ONE will be able to help you including yourself. You can either use common sense and logic to figure out “where” we are now or not.
To finish, I get asked the question constantly, “So when do you think this thing will break?” I have a standard answer, “A few years ago.” There is no way that “left alone” to free markets and Mother Nature that we could have even approached as upside down and perverted as we have become economically and financially (not to mention socially). But, it is what it is…until it isn’t. Which of course will be too late because it really is a ”wolf” in real wolf’s clothing!
Bill you need to relax ….. MyRA is coming to the recuse. Everyone can look to the wall street capitalism experts or should it now be called “CRAPitalism”, to solve the problem. Cramer & CNBC to the rescue. I gave up my securities lic. & the high priced E&O that went with it right after MF Global fiasco, and a couple months later the signing of NDAA confirmed the intelligence of my decision. Well that is if I was willing to follow the rules of “due diligence” that should be applied to my clients funds. And, I have been looking at glazed over eyes ever since when I run my mouth on basic logic when it comes to economics.
But, with that darn sexy MyRA coming to town & J. Lew coming out to help the fed. public sector employees with there guaranteed fund allocations….what is the big worry.
It is all so simple just move from that “small CRAP fund”, “mid CRAP fund”, & “large CRAP fund” right into MyRA’s loving arms. It will all work out….!
Again as Celente says, “You can’t make this crap up”
“SG” on the rant again & out
“It will all work out….!”
Of course it will! Just like the roaring successes of Social Security and Medicare have. :-/
Bill, if you owe yourself money ……. do you really even care? You write about paying money back, We owe ourselves money, we buy our own debt. My questions is what difference does it make do not pay ourselves back?
I have purchased metal from Miles Franklin and I do not regret it one bit…. I believe there is a huge problem but the more I think about it the more I realize it will be years for the collapse to happen. The fact that we are for years to come the world reserve currency, we print as much money as we want, we manipulate all numbers in our favor, we owe ourselves the money that we “borrow” , we create our own interest rates, we rig our own system and screw all other countries and their currencies. How do you see this system in which we can change the rules to suit our needs changing.
I read you, Andy and David daily and have for years, you write about how things around the world are tightening and how it’s obvious that the end game is near. I argue these points to friends that think I am nuts but there is little to say when I get asked the questions above…. mainly, we write the game book and therefore we control our economy and screw others.
The other day I was talking to a trustee for Wells Fargo and this old timer basically laughed at me when I brought up the obvious manipulation. He pointed out it’s an endless game……
“we owe money to ourselves”? Yeah right, dream on. I might even write a piece about how funny this train of thought is.
Jeff, you mistaken believe that TPTB have everything under control and that they can just keep things going for as long as they choose to. I don’t know to what extent you are paying attention to what is happening in the rest of the world, but it is pretty obvious that the U.S. is very quickly losing control and influence over other countries. China in particular is feverishly working on trade agreements with the rest of the world to circumvent the use of the dollar. Other countries are following suit knowing that the dollar will lose its significance over time. More and more countries KNOW that the U.S. is abusing the world’s reserve currency and the effects are felt in countries like Argentina, India, Turkey, Venezuela, Indonesia, Ukraine, most of the middle East and it is quickly spreading.
You mentioned that your banker is aware that precious metal manipulation is indeed an endless game, but things are starting to change. It used to be Central Banks could manipulate the price by just selling the bullion into the market outright. Today this is done mostly through synthetic paper supply which is virtually unlimited. But as with all manipulation there are always unwanted or unforeseen side effects and in this case that clearly is that all the physical metal is disappearing from Western vaults into very strong hands in the East. So, we are nearing the end of this manipulation game, because they can’t continue to play if we run out of physical. Moreover, it is obvious that manipulation is now going main-stream. When the German regulators officially proclaim that Gold manipulation is worse than the Libor rigging and the Financial Times of all papers is urging people to take delivery of physical gold and stay away from paper, you know that we are nearing the end.
Anywhere you look, the Fed is manipulating markets. It seems to be intensifying which is a sign that they are becoming more and more desperate. Cracks are forming everywhere and the Fed is running out of fingers to stuff in every new hole or crack in that dam that is holding back a massive flood of paper fiat currencies. It is a foregone conclusion that the cracks are going to get bigger and bigger and the Fed will react and in their desperation will do exactly the wrong thing. They always do.
I never thought before that a collapse is imminent but now I am beginning to think that something big will happen in 2014. Whatever that something is, I believe will trigger a cascading series of events that they simply can’t stop. I hope I am wrong but everything I am seeing around the world leads me to believe we are very quickly approaching the end game….
Great point “JJ”…I sympathize from the same life raft, but Christmas stunk, & so has everything in the retail world….world wide. The end game & it’s switch was thrown decades ago in my judgement, and we are waiting for confirmation from the media, but the real confirmation will come from “Joe Six Pack” succumbing to the finality of his lack of purchasing power.
The timing of this event is as you intimated unknown, but in my humble opinion the time for the “Joe Six Pack” indicator is nigh. And, that is due to my own “SG” indicator of finality. All ponzi schemes have some level of spending required to maintain the positive front by the damned ponzi scheme organizers, and when the level of spending by the organizers in relation to the dupable ponzi scheme participants starts to grow to some critical level they will most assuredly pull the plug tripping the “Joe Six Pack” indicator. What the ratio of ponzi scheme organizer money to ponzi scheme participant money is that reaches unacceptable levels for the puppett masters is anybodies guess. Plus Joe Six Pack is waking up & tho he will never get the economic ABC’s of this stuff he does understand things are started to stink. I am hearing it from my clients employees in an unsolicited manner. Be prepared it has to happen with the proper clown in office, and that is now.
I fear the life raft we few informed have all been in is about to get crowded real soon. Just my humble opinion. But, what do I know I have been wrong on timing now for 2+ years. But, the canary in the coal mine has left with MyRA & is cashing in his IRA with no penalty via 72T. Hell he was getting laryngitis anyway.
The one and ONLY answer to the debt problem is to declare it null and void because of FRAUD ! It is fraud because it is mathematically impossible to repay ! It can not be repaid because the interest is never created on the loan and that is fraud ! And fraud voids all !!! If we don’t void all out of thin air debt the bankers will own almost EVERYTHING !!! And we will be homeless slaves ! They have a license to counterfeit ! Can I counterfeit the money to repay the loan ? Why not ? If we even attempt to repay a impossible debt (the national debt) all we do is show our ignorance ! The way to fix this mess is so simple a 3rd grader can figure it out ! We void the fraudulent debt and everyone keeps ALL the items they have so called debt on ! And we start to use a debt free currency or / and gold and silver ! And then we will have a robust economy like never before — OR WE LET THE BANKERS STEAL EVERYTHING !
I was in about the third grade when the news was talking about the national debt and I asked my dad who do we owe money to and who could possibly be richer than the United States and where did they get the money? And then my dad took a gulp off his beer and said we owe it to our self ! I said that’s the dumbest thing I ever heard of that’s like borrowing from my right pocket and setting fire to the interest and putting the rest in my left pocket ! This was about 1972 ! And yes it really is this simple !
BUT, we don’t owe to ourself. The Federal Reserve Bank (FED) is privately owned. We owe it to the handful of people that own and operate the FED. We borrow from the FED and we are obligated to pay it back to the FED with interest – period. End of story.
Rich WE are not obligated to pay a fraud !Wake up !
And the interest does not exist so how in the hell are we going to pay it ? The entire banking system is a PONZI SCEEME rich pull your head out of your ass!!!
Great line, Bill: “So when do you think this thing will break?” I have a standard answer, “A few years ago.” I am going to start using it!
Call me an optimist, but it really seems like the game ends (or begins its end in a clear, unequivocal way) this year.
But, I said that to family and friends in 2009. And 2010. And 2011. Etc.
I agree, John, and have been thinking about this with great deliberation for some time now. My thought is that something of momentous importance will occur sometime between 4/14 and 7/15. I have no data to support this but this is what I am picking up from the “feel” of the US stock market, which I have studied and invested in for over 36 years. The feel of this market is just plain wrong. It IS a house of cards and it WILL collapse at some point. When that will be is anyone’s guess but I have listed mine above and it is the best I can do in an imprecise world.
thanks John, yes I think you will know for sure when the game ends.
Bill, I am no scholar, I invented a dumb hat and sold a million and a half of them…. I am 40 years old got lucky and made some cash…. I took a decent portion and bought physical metals. I have watched it go down and I don’t care all that much because I look at as insurance. I have been in David’s home, listened to his hi fi and believed him and do believe him whole heartedly that silver and gold are the way to go….. I have sent a couple of wealthy farmer friends to Miles Franklin and I am a believer that metal is money!
I wish you would do a piece totally dumbed down so I can understand why we don’t just owe this money to ourselves and what does this all mean….. I do not understand a lot of what I read here on the day to day but I continue to read knowing some day I will understand more and more. I have been reading for a couple of years now and I do not always understand the acronyms, the points you make concerning central banks and how it all works but i keep trying! I am asking you to please write a piece that I will understand so I can understand why we don’t just owe it to ourselves. I really hope you write a very basic piece so I can understand…….. Your smart enough to kind of see that stuff is seriously wrong with our debt and economic situation.
Congrats, Jeff, on your business success and your converting a good chunk of that fiat into REAL money. Well done, sir!
As to not just owing this debt to ourselves, US Treasury paper is sold all over the world, not just to Americans. Foreign banks, businesses, governments, central banks, and individuals own trillions of dollars worth of US Gov debt, which is also known as US bonds and / or US Treasury paper. I don’t know what the percentages are for various classes of owners but I do know that there are more than enough foreign owners of our debt that they can sway the market for it. The Chinese own about 2.5 trillion worth and the Japanese own about 1 trillion worth. Other countries own quite a lot too but it isn’t as concentrated as this.
This kind of ownership begs the question, “What happens if they decide to sell their US bonds over a relatively short period of time?”. Like any other investment, this would put a lot of supply on the market and force prices lower because the supply would greatly exceed the demand. When the bonds of a sovereign government fall in price, it gets the attention of bond holders and investors around the world. It could very easily start a rush for the exits in which the price of these bonds literally collapse as everyone wants to sell them and few buyers are there to meet that selling pressure. Since the US dollar is linked very closely to the value of US debt / Treasury paper, the US dollar would come under intense selling pressure as well. This would likely collapse the US dollar, with trillions of them being sold and dollar holders rushing for the exits and into other currencies, including precious metals.
I have no idea what the odds are for such a scenario but I do know that whatever they are, they must be increasing due to the poor management of the US economy and currency. At some point, other countries will be unwilling to loan us any more money. When that happens, it will be “game over” for the current US dollar / debt / borrowing / spending / printing paradigm.
The Chinese have a saying about such things and it is, “May you live in interesting times”. Whether this is a curse or not is unknown but what is known is that these times are definitely interesting!
Bill,
This whole MYRA thing really Pi$$e$ me off to no end. I have been paying SS taxes for 43 years and that system is freakin broke (been robbed). Nothing there for those of us that paid all that in. The past 14 years I have been self-employed so I get to pay the full 15%+ into that black hole. The question I have to ask is if 15% isn’t enough to provide for us how in the heck is 3% going to be enough. We need to stop this stuff. I am just so tired of the US Gubmint stealing all of my money and money that I could build an incredible retirement if I had the opportunity to keep that money. Geez, 15% would build some serious retirement after 43 years. Sorry for the rant. But, I am so sick and tired of living under communism. I can hardly wait for the collapse, in the hope that we may get a chance to get our country back.
I feel your pain, Rich. Like many others, my wife and I paid into the SS system for 35+ years. Thanks to my awakening in late 2009, we decided to take our SS benefits at age 62. We are getting monthly deposits to our checking accounts, on time and in full. There’s no way to know how long this will continue but for now it is working. I am putting a good chunk of this money into PMs as a strong hedge against the coming economic collapse. I am quite sure that there will be one but do not know when. It is possible that it will occur sometime in the next 15 or so months but that is just a guess on my part, based on my assessment of the way the US stock market is behaving vs. how it has behaved for the past 3.5 decades that I have been observing it.
As to the MyRA, it is definitely a joke. As usual, the Obamunists are counting on the stupidity of the young in their approach to this boondoggle. I am thinking that they are underestimating these people, just as they did with Obamunist Care. Young people are avoiding that in droves and I believe that they will avoid these silly MyRAs too. Once it becomes clear that they are not the suckers that the Obamunists think them to be, it will be time for stronger measures to be applied, such as mandatory participation ala Social Security… or Socialist Security.
Like you, I am WELL aware of the large increase in personal retirement funds that would have occurred in my accounts had that money been invested in a 401k type vehicle. As it was, my 401k kicked the living crap out of SS for performance, even though I only had it for 23 years and not 35+ years. It’s benefit was more than double what I will likely collect from SS, if SS survives long enough for that to happen. This is not a given, of course.
Ditto Rich, time to do what the elites have known for years buy real assets pm’s among other things. Of course most on this board know that.
I love the msm morons, oh China’s debt is so so so huge…..yea might be but they have been piling up Gold & silver as a back stop we have been rehypothicating derivatives on items that no one knows who owns, and most of the time don’t exist. Makes me want to break into a chorus of “Oh Beautiful for Spacious Skies……..
The banksters & the District of Criminals have sold us down the river, and if Jim Willie’s intel is right & I am betting it is the US Fed/Treas used our SS#’s as collateral to the Chinese for debt security based on IRS estimated receipts………..Ooops I feel another urge to break into a chorus of “Oh Beuatiful………
No worries though with Jamie D., Lloyd B., & Zero at the helm what could go wrong?
And, heck I just love my new back page of my Wells Fargo statement last month that says any monies US or foreign from any off shore accounts will suffer a 5 dollar per transaction fee for reentry or something like that. I said this elsewhere, “it may sound innocuous due to it being from foreign soil, but don’t be so quick to ignore it. Like mama said SG if you go out tonight after supper you will not get any brownies when you COME BACK IN.” Bottom line it is a threat, and it is a lock that it will eventually involve in state money as well.
Maybe the Ann Barnhardt approach is the manly thing to do & just quit feeding the beast aka Government & the banksters
Oops I feel the urge to sing again
SG out
@SG
I have contemplated the ANN B approach. I just don’t know how to provide for my wife and kids with that approach.
Well Bill the Wolf is about to feast on this dead carcass. The fed just killed the patient in the new year of 2014 when they decided to Taper. So the wolves are surrounding waiting for the paitent who was dead already to be left alone by the support(FED) machine.
P.S Bill I know it is hard when you speak to family and they think you are nuts, so I made up in my mind to live with my consequences and they will have to live with theirs. I choose to live by reality, many choose to live by the consequences of ignorance and stiffneckedness.
yes
OK, I will write a piece for Monday as to why “we DON’T just owe the money to ourselves”. Great comments back and forth today, looks like we are almost becoming a forum!
I think all of troubles date back to The Trojan Horse the German people bought in the 1930’s. The American people bought the same Trojan Horse in the past decade.
I am certain your step daughter is a fine person, but she is like all the young who bought The Trojan Horse from the beginning of time.
confirmed with data in a medical journal
http://dx.doi.org/10.4236/ojped.2013.31001
but do you hear even a peep out of MSM on this subject?
Sadly no. Nor will we.