Hyperinflation and Complete Collapse – Nick Barisheff

By Greg Hunter’s USAWatchdog.com 

Asset manager Nick Barisheff says, “There’s never been a fiat currency in history that didn’t end in hyperinflation and complete collapse.”  Barisheff thinks that Treasury Secretary Tim Geithner’s most recent call to have an “unlimited debt ceiling” for the U.S. was “just telling the truth.”  That’s essentially what we have now with “open-ended” money printing by the Fed.  Barisheff adds, “All it’s doing is postponing a problem . . . it makes it bigger and eventually it blows up.”  Forget about remedies for the economy, it’s too late.  Barisheff says, “We’ve passed the point of this getting fixed.”  Barisheff thinks if the Fed’s gold holdings are ever audited, there will be a “gigantic short-covering rally . . . multiple bankruptcies . . . and a massive loss of confidence” in the dollar because much of the gold is gone or leased out.  Barisheff thinks the gold price could be “easily double” right now.  That’s because Barisheff believes, “What’s kept the price down is the artificial leased gold going onto the markets.”  Join Greg Hunter as he goes One-on-One with Nick Barisheff, CEO of the $650 million Bullion Management Group.      

Comments
  1. jc davis

    Greg. OUT OF THE PARK HOME RUN..! That ball is gone, and so is the gold reserve in the USA. Couple this interview with the comment made by David E in your last interview we can clearly see theres no gold for reserve currency.We dont need a aduit to estimate how much gold is in the feds hands,just look at how much is in the world, and simple math will tell the truth. theres no gold being held as a reserve currency.

    • Greg

      Thank you JC Davis for the comments and the link.
      Greg

  2. jc davis

    link: i found this math interesting.http://www.numbersleuth.org/worlds-gold/

  3. Ben

    Greg,

    I feel like a learned something from this man that I haven’t seen from other gold people which was some basis for predicting a gold price, in this case based on the M1 money supply (and other money supply indicators). These things are important to know as at some point, everything becomes overpriced, but if you have some numerical guidance, you have some guidance on which to base investment decisions.

    Nick also touched on the concept of leased gold. If I understand the situation, it sounds like many investment houses, banks, etc are basically loaning out gold that they don’t even own. Is that correct?

    In this case, it appears that the USD and other currencies are so highly inflated that purchasing gold is no longer just an investment. Instead, it’s insurance from financial calamity.

    Even if there were only say a 5% chance of your guests being right on the whole fiat currency vs precious metals, the impact of them being right is so profound that people ought to protect themselves. If this game were repeated hundreds of times over many lifetimes and this scenario only played itself out 5 times out of 100, the financial cost to people would be too huge to ignore, ruining whatever gains they had the other 95 times. Unfortunately, I’m becoming convinced that the likelihood of a dollar collapse is far closer to certainty than 5%.

    • Greg

      Thank you Ben for your comment and analysis!!
      Greg

  4. JRMFL

    The FED is making every attempt to wreck our Economic/Social/Financial Systems.

    But you are mistaken assuming it is not Dollars for Dimes first.

    Gold looks as though it will be heading much lower.

    We will know next week, when the collapse begins.

    • Greg

      JRMFL,
      The debt is skyrocketing. I don’t see how the long term direction is anything but up measured in fiat currency. Thank you for weighing in here.
      Greg

      • JRMFL

        Thomas Jefferson said it best -“If the American people ever allow PRIVATE banks to control the issue of their currency, first by inflation, then by deflation, the banks will deprive The People of all property until their children wake-up HOMELESS on the continent their fathers conquered. The issuing power should be taken from the banks and restored to The People, to whom it properly belongs”

        Greg conventional thinking is far too mired in the inflation/deflation paradigm.

        Economic destruction is here, it is happening right in front of us.

        We have seen the effort to inflate or die fail…

        YOU know what comes next.

        • JRMFL

          Consider Open Interest a warning, OPEX will be ugly for spec longs.

          I have been a proponent of Honest Money for decades, but I realize we crossed that Rubicon many, many years ago.

          Tier 1 Capital is not for us, it is for them and they have all the time in the World, in fact, they have that too.

          Happy Thanksgiving Greg, be well.

          • Greg

            Thank you JRMFL and Happy Thanksgiving to you mey friend.
            Greg

    • JoeJustJoe

      First off, Happy Thanksgiving to one and all. Second, I have no choice but to agree with JRMFL here. It’s pretty clear what is going to transpire here in the near term. We are about to see a “no safe haven” move in the markets (cept for the U.S. dollar (UUP) and treasuries(TLT)), taking gold down with it. I mentioned in previous posts how I was “expecting” the PM stock ETF that trades as NUGT to trade into the $7’s. I am very confident that is now coming even more quickly then even I anticipated. Gold (as measured by GLD) won’t be a safe haven at all. In fact, it might be one of the tickers that gets hit hardest. In disclosure, I began building a position in the VIX product UVXY on Th and will add to that position of Fri. I will also be buying Dec puts against the ticker GLD once it trades into the mid 168 area. My target for the SPX is going to be the low 1300’s for the coming collapse. I’m not sure what the catalyst will be. Possibly end of year selling as the Wall St gamblers are faced with higher taxes next year, it could be Greece as National Bank of Greece (NBG) is set for the next wave down…to me the catalyst isn’t that important actually. The talking heads will be sure to come out with news about how well retail sales are going sometime tomorrow. I would use that news to get more heavily short the markets. The VIX products (TVIX, UVXY, VXX, TVIX) will make the move they “should have” made as the SPX collapsed from the 52 week high. I’m confident there is a reason they have under performed so dramatically. They will outperform dramatically into the end of year. Again, best wishes to all and your families.

      • Spanky

        I have never heard such garbage in my life. after what you just heard here, just how are they going to get the gold to smash it hard again? who is going to sell when all hell breaks loose? Gold is mostly held by strong hands now, and they don’t need to sell when everything else plunges. You think the crooks can defy gravity forever???

        • JRMFL

          Spanky – dispensing with the drama and taking into consideration how the Gold price has been affected by the prior Financial Crisis of 2008 – it is not at all difficult to imagine its price being severely affected by the impending crisis.

          The LMBA is where the bulk of Global deliveries are made, there is no shortage of metals there fro delivery. SUpplies are tightening, but there is metal available for delivery.

          Paper Gold is far different, it remains a speculators tool for both hedging and trading. Again, although there have been drawdowns, there remains metal for delivery.

          To your point, actually you made mine, strong hands can and will wait out any price decline. Physical holders are rarely tempted to sell, paper holders however are indeed induce to sell quite easily.

          The Economic and FInancial destruction we are witnessing is no accident it is well planned and being executed in broad daylight.

          My belief is it will be far easier for the FED to manifest another deflation scare prior to any move to “Hyper-Inflate” the currency.

          Hence the phrase Dollars for Dimes… consider what Money Center Banks are buyers and holders of en masse… UST Bills Notes and Bonds.

          Does that sound like your “crooks” insider Inflation Trade>

          No, it does not.

          Perhaps you should temper your critical thinking and its attendant earshot “Garbage” and begin to consider other possibilities.

          I have traded Gold for decades, know it well and know all too well what is possible as well as probable.

          We will not be permitted to escape the devastation in front of us, everyone will lose a hand, some perhaps two.

          • JRMFL

            Expect a Short Term upswell in the Metals Complex, after it nears completion – there will be an excellent opportunity to hedge Physical and short paper in Size.

            Economic Winter is here, the Financial Economy will no longer be able to sustain its persistent Bull Story.

  5. Jim

    “There’s never been a fiat currency in history that didn’t end in hyperinflation and complete collapse.” After the colapses though a few people make out like fat rats and the many stand behind fences begging for jobs. Here’s a gullible concept. Why not take the technology, resources and manpower and do the right thing, for free and for nothing. “That’s Socialism/Communism” I am told. How can that be true when both Socialism and Communism have monetary systems held by the few against the many. Sound familiar? Just because our standard of living still exceeds most of the world doesn’t mean it will stay that way when the few no longer need us as their base. I just feel when the basis for a system is wrong (for profit trumps what’s best) it can only continue in a wrong direction. I don’t have an answer for the worlds problems but as long as we continue discussing how to tweak a bad system, I don’t expect to see much change.
    Have a blessed Thanksgiving!

    • Greg

      Jim,
      My goal is not to tweak “a bad system.” I want people to take cover and protect themselves. I hope you are doing the same. Happy Thanksgiving to you and yours. Thank you for your weighing in here.
      Greg

  6. Agent P

    This has been gone through so many times… The only questions that remain are:

    – At what point does public loss of confidence in the currency become an issue?

    – What might be the triggers for such a loss of confidence?

    Don’t hold your breath…

    The recent election results show just how ignorant people have become about history and how that applies to economics and a nation’s currency valuation, to be precise. This ignorance in turn, has provided our Monetary and political ‘leaders’ with ample headroom to basically bamboozle the public with all manner of fididdled numbers on $Debt, GDP, Employment and CPI data, to the point of being outright ridiculous and non-credible. But what does it matter to an ignorant public?

    When it does finally land on them, it will be too late anyway. We will have already devolved into basically a quasi police state where government runs everything, and they more than likely know this and are preparing behind-the-scenes for the fallout of an economic catastrophe when it arrives.

    Barisheff is right on one thing – it’s too late for anything meaningful that will change our course. The only thing you can do is prepare, network, try to change minds or offer up salient points for discussion that may help get people to Think, rather than ‘feel’.

    • Greg

      Agent P,
      A famous quote come to mind reading your comment. It goes something like “You can ignore reality but you can’t ignore the consequences of ignoring reality.” Reality will eventually hit folks in the face like an iron skillet. I’m just hoping I can help some people duck. Thank you for adding your analysis to this site!
      Greg

  7. wheedle

    Geithner being a former Federal Reserve Bank employee is merely encouraging an endgame scenario. The international banking entities will continue to add gold ( and silver ) to their asset listings while fiat money printing reaches exponential levels. When those printing levels create a hyperinflation event, there will be a demand by the public for some kind of sound money policy to bring about a recovery. Those holding gold & silver will be the new power players when the smoke clears and order returns. But what Mr Barisheff is saying would be to take physical possession of your precious metals NOW ! Verify authenticity and prepare for an economic downturn that will change everything. A well spoken interview. Thank You

    Also read “Firestorms & Currency Twisters” at goldenjackass.com to find an article that collaborates with what Mr Barisheff is saying.
    And “The Crash Course” at peakprosperty.com suggest physical depletion of silver reserves in 10 to 20 years which could make silver an even greater investment.
    Good Luck To All

    • Greg

      Thank you wheedle for weighing in here.
      Greg

  8. RUSS SMITH

    Hi!, Patrons Of USAWatchdog.com Et Al:

    This is not offered as an argument but only as an observation. The National Inflation Organization has a video titled “MELTUP” which is quite lengthy but towards the end either Mark Farber or Jim Rogers tell US that, if the US $ was to be made redeemable into gold, gold would be a minimum of $1,000,000/troy oz. Now, if I were an insider, strong hands guy, it would seem to be in my favor to get gold incrementally up in prise while the weak hands sell to me at lower prices I would KNOW wlll be transended sooner or later but I also KNOW that it takes buy forces to get the price up to that level. So, the masses such as we have today thinking that gold is in a bubble will always be willing to sell, because they don’t know such high prices for gold can ever be reached. In this case though my own belief is that there’s going to become such a shortage of actual above ground gold that people of whatever classification will be unable to buy it at any price anymore which means at that time it will truly belong to the STRONG hands until? Stop thinking now and go watch MELTUP for yourself & then do your thinking from that point forward OK? At least at that point if controversies arise their basis in fact will come out of the mouth of either Jim Rogers or Mark Farber and not mine.

    RUSS SMITH, CALIFORNIA (One Of OUR Broke States)
    resmith@wcisp.com

    • Greg

      Interesting Russ thank you.
      Greg

  9. Carl Hopkinson

    If an honest audit were to be done of real physical gold in “allocated”
    form versus all claims against such gold, you would probably find
    that the gold is oversubscribed by not a factor of 2 to 1, but more
    like 100 to 1. Crooks cannot help but steal themselves to the limit
    of their ability, future consequences do not enter into their
    equations. Hope I live long enough to see these devils suffer
    Hellfire for all the havoc they are wreaking on this world.

    • Greg

      Carl Hopkinson,
      it’s probably a lot closer to 100 to 1 than 2 to 1. Happy Thanksgiving!
      Greg

  10. Art Barnes

    I have suspected for quite a while now that the tipping point had been reached and there is no turning back now. Unlimited debt (printing) is just the new reality and its only a matter of time until the inflation ramps up that even the MSM will have to take notice. But understand America with the currency in retrograde civil rights curtailment will not be far behind. First inflation, second civil unrest, third marshal law to stop the unrest, and last a new government with a supreme commander; that is the future reality and Greg a law will be passed that you can’t possess or use gold although there will be a black market if you want to chance it. Great interview, happy turkey day!

    • Greg

      Thank you Art. Happy Thanksgiving to you and yours.
      Greg

  11. Larry Ki

    Greg,

    With all the talk about the U.S. fiscal cliff and removal of limits to deficits and debts, TSHTF is descending upon us with a vengeance.

    It’s not too late to grab all the gold you can afford in a last-ditch effort to protect yourself from financial ruin.

    Thanks, Greg, for spreading the word about impending disaster.

    • Greg

      Thank you Larry Ki,
      Greg

  12. David E

    I know the Jewelry manufacture that I supplied gold to never paid back any the gold they leased with gold. How could they do that? The gold they got was turned into jewelry and sold to jewelry stores who sold it to the public. This one company I would estimate leased between 2000 to 5000 ounces per year. They were just one among dozens of similar companies in Minnesota who did this. Minnesota is by no means jewelry production capital of the US, Rhode Island and the North East are were most jewelry production is centered. It wouldn’t surprise me if the amount of gold leased by all these manufactures would amount to millions of ounces per year. I could see the bank vaults gold being drained over past 50 years.

    The thing about jewelry manufacturing industry in the US is that much of it is gone due to offshoring. The company I supplied gold to for 27 years I no longer do. The reason they closed their manufacturing operations as they were unable to compete with foreign labor. 105 years of manufacture and then no more. Now all this is done in China and India. The jewelry store just makes an order over the internet and with a day or two it’s on Gulf Stream jet over the Pacific and from there a FedEx delivery to their door. There has got to be hundreds of jewelry manufactures closed down and thousands of skilled workers let go. The gold I used to get as a percentage cut for my services is now going to the Chinese.

    Happy Thanksgiving Greg.

    • Greg

      Good stuff David E! Thank you for posting it here.
      Greg

  13. David Lynch

    Hi Greg,

    You asked Nick: ” What happens when multiple parties come to claim their gold ? I tell people that it would be like selling your 60k pick-up truck to 5 different NFL linemen, and have them all come to your house at the same time to get ” their ” truck. Good luck to the scammers……
    Thanks for doing what you do here, I am sure you are not making too many friends with the 1% crowd. Funny, how they cannot stand the truth.

    • Greg

      David Lynch,
      It will be rough when it happens! Nice visual.
      Greg

  14. Stephan Larose

    The solution here is to Kill the Fed and for citizens to own their central bank outright. The Fed is a PRIVATE entity which charges us debt and interest to print money out of thin air. A Citizen owned bank could do the same debt free. This would liberate enormous amounts of resources and negate the need for income taxes.

    Sure, we can all run and hide, but this system exists only by our consent, so I think the better thing to do is to simply march out and tear it down.

    There are far better ways to run a society than by having a bunch of rich secretive shareholders defraud us with funny money and killing ourselves working while the owners of the economy sit back and enjoy all the benefits. Crony Capitalism/Democracy will have to go, replaced by a judiciously regulated free market administered by a government of participatory democracy. The people should govern their political managers directly. Our politicians our idiots, all they’ll do is f#@# up unless we supervise and direct them.

  15. H. H. H.

    What is to stop this guy from issuing and deeding the same bar number to a million customers?

  16. Mark

    Hi Greg,

    I am 45 years old and have about $250,000.00 in an IRA. I would like to put it all into gold and silver. I have the majority of it in gold and silver ETF’s…From what I have read and watched, you seem to agree that these are just more fiat paper with no guarantee of redemption. The tax consequences for early withdraw from my IRA to put it into physical gold are staggering for me!
    I am considering Sprott, BMG, Self Directed IRA, or cashing out my IRA and taking an almost 50% loss to buy physical and bury it. If you were in my position would you be buying a shovel right now?

    Thanks for your take and all you do to bring out the truth! Mark

    • Greg

      Mark,
      Why don’t you do both? Split it up and take care of it that way. You will still need shovel, but you will just dig a smaller hole. Or, you can dig one big hole, that is up to you. One thing is for sure ETF’s are not gold and silver.
      Greg

  17. BOB D

    It boils down to trade. What is gold worth ,what is a potato worth. In the past before plastic and glass you had clay, wood and rock. Silver and gold was the first plastic, a easy metal that could be molded. This use gave it value.
    The Iron age gave us the plow that could displace a rock and keep cutting. Because the farmer could produce more, he needed a way to store his wealth. Potatoes only last for so long but gold because of it’s labor cost to fine became a good keeper.
    Today a farmer can save his wealth in many ways, sure gold can hold some trade value , but that’s all it is, a trade.
    The farmer could take his potatoes to town and trade, with the story keeper and have credit in said store.
    A currency is just the oil in the trading system. A high grade oil is what we want, because nobody likes to get burn on a trade.
    The Bankers have been draining the oil pan for years and that,is because they have no honest trade.
    The Bankers and investors have game the system and they have cause the inflation. They have the gold and will still game the system , with a gold back currency. With the help of the Bankers buddies in Congress they will suck the people dry.
    Were I’m I going with this, I have no idea but the turkey is cook and it’s meal time. PEACE

  18. Joseph Botelho

    Hello Greg,

    I have been following Nick’s advise and predictions on what the future value of gold will be by the year 2017. Wrote a few articles on my blog on this subject and how it will one day be the currency of choice. One of the best piece of advise l can share with anyone who will or has invested in “Gold’ do not store it in a safety deposit box in any Financial Institution. Keep it at hands reach, if you need to liquidate it you have access to it 24/7.

    We all have heard the rumours that the amount of gold stored at Fort Knox isn’t exactly the amount they say they have there, as l said just rumours that could be very accurate. In his latest interview he points out many strong factors that indicate that his prediction is very feasible and reachable by 2017 or sooner.

    Could Gold be the currency of the future, l think so, it is already being used in many countries in Europe. With government’s printing more and more money means one thing the value of paper money has lost it’s bargaining power, with Gold Governments have a hard time converting paper to gold. Unless they have a David Copperfield working for them, only way l see this happening.

    The inclusion of gold as a Tier 1 Capital asset by BCBS would enable banks to lend more with less equity capital, and gold would become in Mills’ own words “the new backstop for debt, currencies and bank equity capital.” This alone will have an impact on the value of Gold!

  19. TONY

    Hello Greg, I have been a regular visitor to your site and always enjoy the no hype just the facts information. It is very interesting when I watch this interview and it would appear that there is very much a degree of conservative forecasts for gold and silver by the experts. You really pushed Nick to state what his gut feeling is on where he thought the true value of gold should be – $70000 – $10,000 gold – Those figures stated were based on fundamentals and not his gut feeling I truly believe if you pulled Nick aside off air and asked him off the record – this figure would be a lot higher once a mania phase started. It was also interesting to see your normally very calm demeanor has changed and that there is almost an underlying feeling of the anger and realisation that this is indeed playing out – the end game is coming. I don’t say this as a negative and I also Greg but there seems to be now a very real push by you for the truth. Many thanks for your website and keep the good real news coming

    • Greg

      Thank you Tony for the comment.
      Greg

  20. Frank

    Carry on my wayward Fed, carry on till you are done.
    Lay your weary head to rest, don’t you print no mo’.

  21. gman

    question. so many explanations on this subject seem to assume that “inflation” and/or “deflation” will be evenly spread throughout the financial world and population. is there any basis for this assumption? it would seem reasonable that those who control the money would ensure they themselves always have enough, while the rest of us would be left to experience deflation in our wages and savings, and simultaneous inflation in our costs. or, looked at another way, the 1% could purchase anything with miniscule effort while the 99% will be required to labor eight hours for a loaf of bread. what role will gold play in such an environment?

  22. Semi

    Mayhap this quote suits the subject, at least in part…”When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is ABOVE the hand that takes. Money has no motherland; financiers are without patriotism and without decency; their sole object is gain.” -Napoleon Bonaparte

  23. Prepper Recon

    Greg, I love the show! I watch it when ever I can. I would love to see it become available as a downloadable podcast so I can listen to you in the gym or while I’m gardening. Keep up the great work! Thanks for all you do in trying to wake up America for the coming collapse.

    • Greg

      Thank you Prepper Recon for your comment and support.
      Greg

  24. Charles Savoie

    Mr. Barisheff is one of the finest men in Canada. He’s a person investors can trust. Another Canadian I’m thinking of is Mark Carney—UGH. Carney can’t be trusted, except like Bernanke can be trusted. Contrasting Barisheff with Carney is on a par with comparing a fine ruby with a rat pill.

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    With economic crisis the road it may, I made the choice to come up with information on submitting having been fired effects. Several theory would make clear produced by the possible lack of work system place efforts, exactly what widespread is perfect for getting possibly rejecting remarks, after which you can add successes within my own breakthrough about what an ideal methods as well most likely slipups are typically in declaring redundancy enhancements.

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