David Cameron, Prime Minister of Britain wrote an article which was published in The Guardian yesterday. The headline “Red lights are flashing on the global economy” in my opinion is very true what he followed the headline with was not. In this article which was penned after leaving the G-20 summit, Mr. Cameron went on to mostly tell the truth about the global woes but was very careful to exclude Great Britain. To me, this sounded like some sort of “whistle stop” campaign about how well Britain is being managed and their risk is the possibility of being tipped over by global events.
“Well managed” he purports? This is not even close to being so and the “austerity” he speaks of is only a pipe dream and no longer even an option. I would ask him a few questions were he willing to take any, such as “didn’t Britain try austerity for 6 months or so only to find out it cannot be implemented without an economic and financial implosion?” I might even ask him how he feels now that Britain sold 60% of their gold reserves at the worst prices possible since 1979 …but that wouldn’t be a gentlemanly question would it.
In any case, let’s look at the headline …”red lights are flashing on the dashboard of the global economy.” This is true nearly all over the world. As a matter of fact, the “engine” for global growth just announced one of their diesel tanks as empty. It’s been discovered that China’s “shadow banking system” had a huge increase in bad debt. Understand that this is not the “core” banking system but this did add to China’s growth acting as an afterburner of hot and easy credit. A reversal of this credit will surely drag on the economy and will probably even surprise the complacent as to where it shows up. “Where” being further news on hypothecated, re hypothecated and re re re hypothecated commodities. We still don’t know fully how the warehouse frauds uncovered earlier in the year will fall, a decline in credit from the shadow banking system can only reveal more fraud!
So David Cameron “covered his butt” with the headline, when the time comes he can now say “I told you so, you should have listened to me.” Unlike David Cameron who is still in office and trying to cover his reputation, there are two ex U.S. government officials who are and have been telling you the truth for years, Paul Craig Roberts and David Stockman. Mr. Roberts was Asst. Treasury Secretary from 1975-1978 and David Stockman was the Director of OMB under Reagan. When I read or first heard their opinions I can remember thinking “WOW, this guy is from the government and telling the truth!”. This is still so today and both of these men seem to be getting louder and much more urgent in their warnings. Neither hedges nor flip flops in their opinions which I respect as much as I do their logic. They have been and are telling you the absolute truth and doing so in my opinion out of pure “character!” They both say “it’s over” from a mathematical standpoint, I don’t understand why anyone even questions what they say?
Another ex “federal” employee who has been boisterous lately is Alan Greenspan. I have recently written how he is out selling books and trying to clean up his legacy. Part of this has been to admit gold in fact is money, it is better than any fiat ever and that there will be “great financial difficulties” at some point. Mr. Roberts and Mr. Stockman, unlike Alan Greenspan, are not out on the speaking circuit trying to clean up their legacies, they are firmly and cleanly intact. They I believe are trying to help anyone who would listen while Alan Greenspan’s motive in my opinion is one of “don’t blame me, I warned you.”
There are others of course but these four will suffice for what I am trying to get across to you. “Why don’t people believe them?” Yes I know, if you are reading this then you probably do believe them but why don’t the masses? I have an opinion on this, I think most people know “something” is wrong, VERY wrong. Many don’t really know what it is and wouldn’t really understand it unless handed to them on a platter. Most people are not “wired” to understand economics or finance. Some, many, are just too worn down by daily life to bother “figuring it out” while others (MANY) just want to bury their heads in the sand …because the truth is just too ugly to bare!
I do understand the concept of the masses being slowly and methodically being “dumbed down” over the years. Notice I used the word “methodically” which in my mind includes “intent.” I say this because a knowledgeable and well informed population is hard to pull the wool over their eyes …a dumbed down population on the other hand will (has) stand by and accept things the “way they are.” This is important because our “money” system is fake and fraudulent, sadly only one or two out of 100 in the West understands this. The rest of the world still “gets it” which is why Western vaults are being raided by Eastern buyers.
Once all is said and done, the majority in the West will finally get it but unfortunately this will be too late. I have always said that “one second too late is equal to a lifetime,” unfortunately this is the case. “We” cannot save the masses as they will not listen for whatever their personal reasons. What we can do is try. I would urge anyone reading this to pass my writings along to friends and loved ones that you care about. When you come across Paul Craig Roberts or David Stockman’s writings or anyone else “who makes sense” …forward it! Yes I know, you have tried this and either lost friends or became the “black sheep fool of the family.” All you can do is try! Time is very short now, we know this because the Achilles Heel, gold supply has become very tight. We know this because even career politicians like David Cameron have told you. We know this because many Western nations have already proposed and signed “bail ins” where bank balances will be stolen upon the financial collapse. We know this for so many various reasons, not the least of which is your own common sense.
To finish, I want to link to Mr. Roberts and Stockman’s latest work. Does it sound like things are a “little bad?” Or does it sound like the system is hopelessly broken? Please understand this if nothing else, Stockman and Roberts have no ax to grind whatsoever. They worked in government during a time when “serving your country” was still the mindset. Please read their latest, David Stockman On Monetary Breakdown & Skyrocketing Gold and A Global House Of Cards — Paul Craig Roberts these are their honest opinions! It’s over …and only a matter of time until our world reflects this fact!
Great post thanks ! This kind of opinion could be heard a few times ago when gold/silver where rising in fiat terms but now that it is over, they use still real estate and especially recently stocks to hoard/hedge against fiat.
I also think that even with that people with lower incomes/”education” are more prone to hear gold/silver advantages than upper social people.
it’s not “over” til it’s over.
Of course but in the meantime a new paper gold/silver dumping is taking place, 1200/16 seems to be their line in the sand…
a 3rd “reversal day” will kill them.
1180 lost in a few minutes, have you seen something special a few minutes ago ???
Thanks.
RD,
You keep obsessing about the current fiat denominated price of precious metals rather than focusing on the big picture. The fiat game truly is over, we are just awaiting the final whistle.
yes Al correct, at first I thought you were writing this to me and I was thinking “how do I not focus on the big picture?”. This is not about dollars, as we will find out it is about fixed weights and measures …most commonly ounces!
Bill,
I agree completely about Dr. Roberts and Mr. Stockman. Two of my favorite commentators. I would add
Michael Pento
http://pentoport.com/pentonomics.php
John Hussman
http://www.hussmanfunds.com/weeklyMarketComment.html
and Gordon T Long
http://www.gordontlong.com/Macro_Analytics.htm
to your list, and there are more. These very intelligent and astute observers of the world economy mince no words about the coming crash. No one will be able to say this time that “no one saw it coming”, although you know they will try.
yes they are all good reads.
Mr. Holter
Rodger here again….been trading gold and commodities for over 35 years. We had a confirmation “buy” signal yesterday in gold…over 90% chance the low is in (could trade lower for a day or two, but the change of trend has occured).
Also, it’s around 10 am Weds, and if the Dow closes lower by more than 30 points…I will have a confirmation “sell” in this market, meaning, one should be looking to short the stock indexs. I never have price predictions…only that the market has changed trends.
-Rodger-
charts are made to be painted and they are with derivative leverage, the key in gold is when the physical market overwhelms paper by becoming too scarce. I believe the bottom is in for the physical market readings and how the last two Fridays unfolded. We will see.
It looks the reason has been given about the swiss gold referendum poll (CHF/EUR is decreasing).
It seems that the swiss as all westerners will bow to their banker masters…
yes, most probably. The danger for the shorts now would be another outside day.
Surely but so easy now to put back the genie into the bottle as 1180 is gone.
That is quite an hazard that this poll is just the day you release the above article.
If this referendum would be put elsewhere in the west or japan, I think the yes would be below much below 10% even in germany. I guess thet no will win by 65%/35% or something like that at the end of the day.
People in the west will never buy gold en masse, except when there will be none offered maybe !
Switzerland is the best chance anywhere in the West.
yes, correct.
Bill,
Thank you again for making my day with your excellent article. I can not get enough of the truth!
Can you imagine being 1 second too late and it costing you a lifetime of misery? Not just a year or two of misery, BUT A LIFETIME OF MISERY !!!
Those of us alive today have had it real good and have not experienced a depression. I don’t think that the good life that Americans have lived will let their brain accept it will ever be any different. Different it will be and not for the good either.
Many people voted “for change” several elections ago, but they assumed it would be “good” change, but it has been “bad” change.
Americans are still assuming the good life will never change. A big butt kicking is just around the corner and life will forever change!
Happy Holidays to all.
very welcome Farrell.
“Not just a year or two of misery, BUT A LIFETIME OF MISERY !!!”
Well, perhaps the “saving grace” there is that the remainder of one’s life at that point will be short… nasty and brutish, for sure, but blessedly short. :-/
Howdy Bill,
I came by Mr. Schectman after asking a friend why it was we heard nothing from anywhere about the 07 financial tsunami. This the hook I use when introducing you to friends. Of course nobody had any idea how completely the Game of Number Reporting could be skewed, and so any prediction that even manipulated valuations could continue passed 2012 left egg on all faces, probably purposefully. These invisible hands are now so brazen that they do not even hide it. I watch Kitco gold and silver charts moving in concert every day, when at one time they were opposing mirrors of each other. My best guess is it is all deemed ‘national security’ and treated like a panic index. My hope is every community will have enough neighbors with PM’s to start up a local lending institution when the dust settles. My concern is these asshats have bought up enough with their imaginary money to dictate and cause the locals big grief. Our kids need wise elders, and the days of adults staying ignorant of all things economic are gone. Dammit jim, I’m a doctor not a brain surgeon. Or something like that.
2007 seems like a lifetime ago …and yes, I was writing back then that “it’s coming” and people thought I was nuts.
Don’t take it too hard, Bill. Disbelief and denial are 1st cousins.
have spent many years being “the lunatic”.
People wanted hope and change they can believe in. Now many are stuck with “Pocket Change”. I continue to forward the messages as much as I can Bill. There are still people who are happy to receive the emails. I continue my job as a watchman regardless of the people. I appreciate that the Most High has given me the understanding and also comrades in the fight with information such as yourself and the others mentioned in this article. Maybe we can do a little bit more. I believe everyone of us can afford 1 ounce of silver. Why not just buy one ounce and give it to a family member or someone/friend after having a conversation with them. It works because I have done it and I know people who once they have felt the realness of the money they started to buy for themselves and even rewarded me for the information by giving me back ounces.
My 6yr old daughter just raided her piggy bank and got a couple ounces for her and her brother. When she saw the ounces and the realness they were glad to have them. Go figure!
start ’em young!
Hi Bill, yes I havs tried my best to send out all your writings and to no avail. I now think I know Why. listening to John Nash talking about dumbing down of the people he spoke of Neotany…Neotany subjects the human being to a massive behavioral program before it has the discernment and discrimination to resist. like children in Sunday school, children in a trance infront of the TV and education system etc. So by the time we are adult we are hard wired to resist any other knowledge as it will go against our indoctrination and brain washing. so keep up the great work as there are humans out there that it gets to and who get it, neotany, sadely to say has got hold of the rest.
living amongst zombies.
Hi Bill,
Great site, great insight, thank you.
You ask: “why don’t they (the masses) believe them (the voices in the wilderness)” and the obvious answers are: propaganda from the politically and corporately controlled main-stream media; wide-spread ignorance/ inexperience of economics and finance (although even the “experts” differ absolutely vehemently about the meaning or implications of it all); and ultimately extreme apathy engendered by a feeling of extreme powerlessness; after all, the 99% are struggling to make ends meet in the face of declining incomes and rapid inflation (I mean the real increase in prices they face in the real world in every supermarket, department store, restaurant etc.), so they don’t have the savings/ spare cash to invest meaningfully in gold and silver, and the only choice they get on the ballot paper is which villain gets to throw them to the sharks. So they shut their eyes and continue trying to make ends meet…
Best regards,
MKG
unfortunately correct.
My wife and I give a 1oz. silver round to family and others for birthdays, anniversaries, Christmas, and any special event. You should see their eyes light up when they first “see” and then “touch” the dazzling pieces!
It then becomes EASY to talk about the reality of PM’s vs. paper. No one ever turns the gift down or asks us “why?” – everyone seems to be aware that they are holding something precious and rare. At current prices, this is the cheapest education we can give!
great mentoring!