I have a great deal of respect for Ted Butler and his first rate analysis of the silver market. I feature his quotes three times a week. Well, in Today’s Featured Articles Section below, Butler finally comes around and acknowledges that the silver market is manipulated. We have been saying that for a long, long time but it is nice to see that Butler finally succumbed to the undeniable truth that gold and silver are being held back. Butler always looks toward JPMorgan and as many of you know, JPMorgan is the “government’s bank.” The trail points back to the Treasury and the Federal Reserve with JPMorgan doing much of the dirty work at their behest. Butler acknowledges that the suppression will come to an end when the physical market overwhelms the paper market on the COMEX. Yes, we agree!
One of the main forces that will steer investors toward gold and silver is the performance of the dollar. I have gathered up several articles in the Featured Articles Section that point to the demise of the dollar, both as the world’s exclusive “Petro Dollar,” and as the world’s privileged “Reserve Currency.” When it happens, we will be tempted to say, “We told you so,” but things here in America will be so tragic when it happens that there will be nothing to cheer about.
From Dan Norcini:
Foreign Custodial Holdings of US Treasuries continuing to Climb
Just a short set of comments this evening. They deal with the usual, “The world is going to move away from the Dollar any day now” chatter.
If it is, it sure isn’t showing up in the Foreign Central Bank holdings of Treasuries that are in custody at the New York Federal Reserve.
ook folks, I am just as concerned about the US Dollar as the next guy but when I look at the competition, I see one set of assorted problems or another. What that means is that the idea that the world is going to drop the Dollar and move to some sort of as of yet undefined currency in which to conduct the bulk of its trade simply does not carry much weight with me at this time.
Could this happen – yes, it could at some point but I have no idea what it might take to make the world move en masse away from the greenback and to some other currency or basket of currencies. We have all read the stories and heard the talk for years now. The problem with the talk is that there is not yet a viable substitute. If one does arise, hopefully we will be able to see it.
For now however, the US Dollar is still moving higher against several of the majors and US Treasuries seem to be finding willing buyers, even as interest rates move lower over geopolitical uncertainty and safe haven buying.
The world – at least as foreign central banks are concerned – seem more than happy to continue buying US Treasuries. Given the size of the US national debt, that is somewhat consoling for now.
One quick look at the inflation expectations chart or TIPS spread – it continues to move lower. Those buying gold are not buying it out of fears of inflation – they are buying it over geopolitical concerns.
I have to chuckle to myself whenever some talking head on the financial news channels starts going on about gold as the “fear trade”. In most cases these people are talking about paper gold and not real physical gold. As usual, they completely miss the mark. Many of us do not buy gold because we are afraid of what MIGHT happen but because of what we know IS happening; like the uncontrollable printing, borrowing, and spending in DC; like a government that is WAY out of control and fiscally irresponsible; like a paper stock market that is manipulated and controlled in every way possible; like a HUGE $18T US national debt that not only won’t be paid back but cannot be paid back. Hell, we couldn’t even pay the interest on this debt IF the interest rates were to return to their long-term average of about 5.5%.
Then, we have the de-dollarization movement that is catching on around the world because the creditor nations also know that the US dollar is declining in both value and prestige.
Stackers are not the only people who recognize the truth of the US dollar’s situation and how dire it is becoming. Others know this as well and they are acting on this knowledge. This is why China is stacking gold and India is stacking silver. Both of these countries, as well as Russia and some Arab countries, recognize that the fiat paper Ponzi scheme has about run its course and that those who do not have REAL money when the fiat currencies die will be in a world of hurt. They do not plan on being those people… and neither do we.
@BalanceIsKey,i’ll have to disagree on those points.1st:why can’t other countries seek settlements of oil and gas in their own respective currencies.if russia produces oil,and wants to sell to china,and both parties agree to settle with their own currency,then there really is absolutely nothing the u.s. can do.and they are doing it right now. those dollars won’t stay dormant,they will end up back here before long.2nd: whoever in belgium is the proxy for either the fed,or the treasury that is doing the buying.3rd:the dollar is up because they just happen to be “perceived” as the cleanest shirt in the hamper,and the algo’s are churning while the pm’s look negative making everyone believe that the buck is strong as to make the de-dollarization of some countries look bad is all. the lowering of interest rates on the 5-10-30 yr. notes are telling that the dollar is dying.4th:tips are junk.i only say that because real inflation,for real people that buy food and gas are not counted amongst other things that are not counted in cpi,so as an investor why would i buy into an etf fraud,you do know etfs are all fraud pieces of paper backed by nothing which is a lll part and parcel of the 200 trillion in derivatives.when i closed down my handyman business 3 years ago,since that time,i still get calls three years later asking for the honey do handyman.i was just a sole proprietor.long unwind of just one person.the dollar unwind will take time for all those bucks to come back to our shores,even with food inflation the way it is now,can you imagine what it will be like when those dollars really start to come back to these shores. the stars are all set up this weekend.i hope everyone is prepared this weekend could be the turning point for pm’s,the dollar and oil.and ww111.
If also like to hear Miles F’s thoughts on what Tradrr Dan is saying. It’s hard to believe either side is correct because they can’t both be correct. This one issue has caused a LOT of discussion in the communities out there and it would be glad to hear Andrews or Bills opinion on this exact topic.
Actually there is an alternative to the dollar as the global reserve currency. It is the SDR or Special Drawing Right” the IMF has had since 1969.
The IMF will bail out the world when this derivative meltdown (one amongst all the other ponzi schemes out there) crashes all fiat currencies in existence today.
This will begin the experiment of World Money that the powers that be have drooled over for years. Gee, I wonder if this is exactly what they have wanted for all of these years?
Foreigners are selling treasuries, not buying them. Look at the downward spiral of foreign buyers the last few years. The FED is buying up all of its own debt now using the country of Belgium as a proxy and buying through Euroclear. Stealthy but insane also.
Inflation moving lower?! Try about 10% per year in the US. The poor old lady behind me is all smiles each quarter. She makes sure she tells me how her funds are making 7% per year! (I don’t have the heart to tell her she is losing 3% due to inflation) but hey, when you trust crooks with your money, you soon part with it!