Prolonged Gold Backwardation Has Never Happened in Monetary History-James Turk
By Greg Hunter’s USAWatchdog.com
Renowned gold expert James Turk says prolonged gold backwardation like we are seeing now, where the spot price is higher than the future price, has never happened before. Turk contends, “No, never, and I am a student of monetary history as well, and I have never seen it happen like this in monetary history. Typically, when a backwardation would occur under the classic gold standard, for example, the banks that would have fractional reserve banking would go under. There would be a banking collapse. So, typically, if there was a backwardation, it would only last for a few days as it did in 1999 and in 2008. So, we have an unusual situation where we have heavy government involvement where they are trying to keep the gold price under wraps so they can maintain this policy of zero interest rates. They are thinking they are going to jumpstart the economy, but the economy is not being jumpstarted. All it’s doing is deferring the ultimate collapse and the governments’ ability to repay all the debt that they owe.”
Turk, a best-selling author who co-wrote a book called “The Money Bubble,” says what is happening now is nothing short of an historic bubble getting ready to pop. Turk explains, “In other words, just as we look back to the South Sea bubble and the Mississippi bubble, people are going to look back to today and say this is the money bubble. People are using what they think is money, but what they are using is really a money substitute. That’s the theme of the book that John Rubino and I wrote. We have lost sight as to what money truly is. It is a physical asset without counter-party risk and that is gold and silver.”
Turk thinks this bubble will end like all bubbles. Turk predicts, “This money bubble is going to pop. It has to because there is just too much debt in the world. That debt has to be reconciled and, ultimately, when you are reconciling debt, it gets back to the point about collateral on the balance sheets. There is just not enough good collateral to support all of this paper money circulating out there.”
It comes as no surprise that Turk thinks the premier collateral is gold. Turk goes on to say, “That’s what you are going to want, and that is ultimately what’s going to reemerge in global commerce. . . . It’s ultimately going to go back to gold.”
Turk also says there is way too many paper promises for the actual physical gold that can be delivered. So, in the future, Turk says, “I see a lot of these promises to deliver gold being broken and, ultimately, the only way you are going to see this being resolved is with a much higher gold price.” How high? Turk estimates, “You’ve got to be looking back to the all-time highs of $1,900 or $2,000 per ounce. We are eventually going to take those out. It’s just a question of when we do it. It’s obvious it is going to happen because gold has been money for 5,000 years and, ultimately, people will come back to gold when they realize that all these promises of bankers and central bankers really cannot be fulfilled. So, it is just a question of when that reconciliation comes. In March of 1968, the dam broke and the gold price was released, and the gold price climbed for another 12 years. When the gold price finally gets released this time around, it’s going to climb for many, many more years. It’s hard to say how high it can go, but relative to the amount of paper that’s out there . . . a price several times higher than what we have today seems very, very reasonable in the long run.”
Join Greg Hunter as he interviews James Turk of GoldMoney.com.
(There is much more in the video interview.)
After the Interview:
Turk also says that when the money bubble pops, it will be far worse than the housing bubble. Housing only affected a certain group of investors and people; money effects everybody on the planet. To find out more about the “The Money Bubble” or how to buy a copy click here. There is free information on GoldMoney.com, as well. To find out about “Bitgold” go to BitGold.com.
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About the Author
Greg Hunter
Greg is the producer and creator of USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin. USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.
What happen with the bitgold when the government raid the storage places . Why should the bail-in only occur in the Fiat accounts? Bitgold seems to be an excellent idea after the crash not before. What is the difference between an ETF and bitgold. You still have to trust someone.
Giant gates to Goliath’s home discovered: Monumental fortification belonging to the Biblical city of Philistine Gath unearthed
Archaeologists say the gates appear to be the largest ever found in Israel
They have also uncovered formidable fortified walls around the gate
The gates to Gath are mentioned in the Bible as David flees from King Saul
Gath is also reputed to have been the home of the Philistine warrior Goliath
By RICHARD GRAY FOR MAILONLINE
PUBLISHED: 11:47 EST, 4 August 2015 | UPDATED: 17:48 EST, 4 August 2015
READ MORE & SEE PICS, VIDEO BELOW;
http://www.dailymail.co.uk/sciencetech/article-3185125/Giant-gates-Goliath-s-home-discovered-Monumental-fortification-belonging-Biblical-city-Philistine-Gath-unearthed.html?ITO=1490&ns_mchannel=rss&ns_campaign=1490
We all know the story of David and Goliath … notice how Goliath despite his strength still needed monumental fortifications against a kid with a rock … similarly today Israel (like a Goliath of the mideast) needs monumental fortifications (the Iron Dome, Patriot Missiles, etc.) against a kid with some nuclear waste (Iran) … Israel is definitely the big man on the block with over 300 nuclear weapons but in my opinion should try to act more diplomatic (like a women named Eve who learned many many years ago to sleep with a snake) and did so in order to preserve humanity … if Israel can come to terms and some agreement with the snake Iran (whereby they can live together) it too will save humanity from and Armageddon we were warned about … but does not need to happen!
Your analogies are truly messed up.
I think Paul dreams a lot!
I only suggest “diplomacy” because the notion of “righteous war” by “either side” is absurd and should be dispelled from the human psyche!
Paul,
You really need to reexamine the Bible.
You wrote, “opinion should try to act more diplomatic (like a women named Eve who learned many many years ago to sleep with a snake) and did so in order to preserve humanity ”
For the first time in along while, I don’t know how to respond to such unbridled ignorance.
I was actually examining writings from the oldest civilization on earth (ancient Sumerian tablets written in cuneiform) that state “Eve” was created by God and given the ability to procreate … however some “snakes in the grass” lusted after her … see the Biblical reference (Genesis 6:2 http://biblehub.com/genesis/6-2.htm)
Paul,
Talk about one sided and biased. I guess you were too young to see what was pulled in 1967 and 1973. Arabs Muslims tried to wipe Israel off the map. This is historical fact, not what I think or believe. Just adding a little balance and there is a new book on the destruction of Israel written by the Supreme Leader : http://www.breakingisraelnews.com/46278/israels-trouble-with-iran-intensifies-before-the-coming-of-messiah-jewish-world/#EMwaChF8QR3BIyVA.97 Here are some more quotes from Iran on Israel, including, one of my favorites “Israel’s destruction is non-negotiable.” http://www.nationalreview.com/corner/416449/night-thoughts-obama-and-iran-jay-nordlinger You have to be pretty one-sided to ignore all of this.
Greg
Greg
I would like your permission to use excerpts of your interviews on my facebook page.
I of course will accredit USA Watchdog with the narrative.
I believe there are many thousands out there who are not getting the true message about the real World, whilst hoping to point a few more people to your website.
Regards
Michael
Sorry Michael,
Please embed the entire video and do not re-edit or re-upload. When people do this, it takes away video views and monetization from USAW. Re-uploading means I also compete with my own work. I pay people to stop copyright violations and they do not check with me first. Please respect my wishes. Thank you for your kind words and support.
Greg
Thanks Greg, I will just circulate your website if you are ok by that
Regards
Mike
Will do
Thanks Greg
U definitely got him nailed…
But perhaps he’s a Freemason and believes in Albert Pike’s ‘bible’, Morals and Dogma.
Pike taught that the ‘good god’ was Lucifer, the Snake who was simply wanting to ‘enlighten’ Eve by telling her she could also become a god…(Sound like any Mormons that u know?)
Jehovah was the ‘Old Meany’ in the Plan.
Today if I bought 1oz gold I would pay around 1100.00 spot price plus the exchange price 5 to 10 % So lets say 1200.00 oz. The if I sell the same oz at the local gold exchange store today they would charge a exchange rate of around 20 %. In one day I could lose 30 % of my 1100.00.
Question is can someone explain the cost of stock buy and sell price. What would be the lose in short trade in gold?
Is gold really in backwardation ? The laws must be changed on gold exchange. So If I plan to buy gold it would be to hold ( Hording ). This is the problem with gold.
Add- Velocity of gold is too expensive, SLOW,and the price is unstable because of paper moneys power to control gold. If this control ends maybe gold will take its place in the market, I don’t think so even then. Silver has much more velocity.
What has more value than “Pure Gold” and how do you get it?
https://youtu.be/iyj33q6g4eo
Frankly, I’d rather use platinum. It’s really on sale right now, vis/a/vis gold. It’s useful in jewelry as well as in electronics. And it has never been confiscated. There has been far too much hype on gold.
oldmoney I like silver because most yard sales have some, and the price can be less then half its value. Small stores will sell there silver cheaper then buying from dealers. Thanks for the comment.
perhaps but the only time platinum was ever used as money was in counterfeit money. IF I did PMs it would be gold and silver
At this moment the price of gold is $1086 oz and the buy/sell spread at a national dealer is $53, You can buy a gold eagle for $1139 oz . That’s about 5%.
4-5% is a standard commission charged by many dealers. Currently the dealer is offering to buy the same eagle coin at spot $1086.
I’d suggest you get a new dealer.
It’s a mistake to buy gold as a speculative investment.
Gold is best viewed as a hedge against inflation/store of wealth.
If hyperinflation hit us, and the price of gold shot up to $10000/oz, you wouldn’t have earned anything, because bread, gasoline, etc would also have inflated at the same pace.
The advantage of gold is that when hyperinflation hits, you would still be able to buy as much with your gold ounce as you could before. The $1100 cash you paid for the gold wouldn’t buy much, but the gold ounce would buy you as much after hyperinflation as it did before.
Grafique I agree, and have some for inflation. So do you see a time when 7 billion people will use gold as money exchange the same as fiat currency ? Thanks JC.
I doubt it. Probably fewer than 1% of people have any gold besides their wedding bands. But I do believe that after the currency collapse, when paper money is worthless, people will accept gold/silver/copper in exchange for goods.
The problem will probably be making change for an ounce of gold.
7 billion people will not revert to subsistence commerce based on copper shavings and gold dust. That’s the type of wild-eyed jabbering you hear from drunk homeless folks on the street corner.
Global economies are entwined and increasingly electronic.
X,
Think transition, from fiat paper to more fiat paper or digits? No way.
Greg
Gold is an insurance policy
Alyce….you give an accurate report.
I agree with all your comments
Thanks for having Mr. Turk on. I was starting to wonder what happened to him as I had not heard from him for a while.
The problem from my analysis is they are not doing what they did back in the 1930’s.
They devalued the dollar by about 40%
Today instead they are printing money and hoping it will work somehow.
What we have here is the same problem as we had then but the circumstances have changed.
Then it was to prevent our gold reserves from being depleted.
Today it’s to prevent our job market from being depleted.
When you took us off Gold what you did was to replace Gold with people.
So the value of the dollar is based on the people’s ability to pay off debt.
Why is it these people that run the system do not understand the very system they run?
The dollar is required to devalue to go forward or things will begin to break.
If it’s not done in an controlled way it will happen as markets begin to spook people.
When you spook people you get a stampede.
If that happens it will be very very messy.
For those that base their faith in paper money or governments there will be a rude awakening.
There will be a devaluation of the USD within a year which will automatically reprice gold. The elites know this; that’s why they are buying by the ton (when they can find it). Silver will also be repriced but many times that of gold.
This is not what is happening
From what Dr. Paul Craig Roberts is saying the government wants a strong dollar to maintain control over the world.
So we have two sections of the government pulling in different directions is what that tells me.
And the people on top who should know better seem to be oblivious to what is taking place.
Either Dr. Paul is right or we have a Fed money policy that just doesn’t work. Are we to expect a big whoops from the Fed soon?
When the dollar system fails it will be as the worlds worst nightmare.
The closest example in history to something like this was the fall of the roman empire.
They only devalued the dollar in terms of gold, because the dollar was on a gold standard.
That no longer applies. It has not applied since the Nixon era.
I’ve heard this very same prognostication repeated ad nauseum since the 1960s: that national debt is always bad, the world economy is on the cusp of collapsing into rubble, and only sweet, sweet gold (my precious!) can save the anointed few true believers.
And yet none of this doom has ever come to pass. The wheel keeps right on turning.
You can bet that TPTB will use every trick in their arsenal to keep the money bubble from popping on their watch. The only way they would let it pop is if there was an alternative outcome that better suited their needs.
What about the gold exchange rumored to be up and running soon in China? My understanding this would be a physical market requiring real gold on deposit to trade. What impacts might this exert on the gold trade and other markets globally?
That is simply ludicrous. In today’s economy, there is no way enough gold bullion exists to accommodate current trade. Also, for those of you who are unaware, gold in pure form is very soft, and very prone to wear loss. You might start out in the morning with a piece worth, say, for the sake of argument, $100; but simply rubbing against the other coins and items in your case might rob it of a few micrograms of worth. Why do you think gold coins are sold encased in plastic? And if you sell one, and it has been removed from its case, it needs to be revalued, and re-encased? For the record, that is why I do not own or deal in gold coins. In addition to all that, there have been new tax regimes slapped onto gold, and other precious metals. One would really have to make a very pretty penny over time.
Time to do some more homework Oldmoney…
Maybe begin with g Edward Griffin’s ‘Creature From Jekyll Island’
and then on to Bill Still’s ‘Money Masters’.
Most gold coins have not been minted in pure gold for the very reason that you state.
Other metals such as bronze and copper were added to harden them for circulation. Two of the most circulated were the Liberty Head and the twenty dollar St Gaudens, (also the most beautiful)…It held up quite well from 1907 till 1933. The Liberty Head, much longer, being first minted in 1850.
Oldmoney: What you say is not true. I buy and sell gold coins all the time. Gold does not “rub” off in contact with other coins. Yes, gold is soft and you can nick or scratch the coin, decreasing the value in some cases, depending on the coin. Many gold coins are NOT encased in plastic. I guess you have never bought an American Gold Eagle or Canada Gold Maple. None of them are in plastic capsules. When you sell a Gold Eagle no one re-evaluates it and re-cases it. You walk into the Coin Shop, they immediately buy the Gold Eagle at spot plus $20.oo Also, at this time there are no “tax regimes” on my purchasing and selling of gold in my state.
Of course there is enough gold bullion, OldMoney. At a high enough price there will always be enough gold.
As for gold being very soft, you speak as if it were as soft as butter. It’s not; it can take a lot of very rough handling without shedding significant value. Even so, you can always buy Gold Eagles that are hardened with copper and silver, if you were truly paranoid about that.
I like James Turk and what he has to say. But the interview lacked specifics. I have been hearing the word “soon” for years and years now. When you asked “This fall?” The answer is “could be.” I think people like Turk have been burned in the past for being wrong and they are reluctant to make a “when” statement for fear of being wrong… again. Also, if you try to delve for facts, you are met with too many generalities.
If gold is in backwardation tomorrow his statement today that “this is the longest it has been in backwardstion” is no longer valid as tomorrow will be the longest. how long can it go on? Nobody has been able to answer this. When will the sky fall? I don’t know.
So i guess the idea would be “to prepare.” If you’re looking for that almanac that biff had in back to the future, I can tell you that it’s very hard to find, i’ve checked everywhere. FEAR NOT BROTHER, WE ARE “THE HUNTERS’ HOUNDS.”
The September/October window is a VERY high likely hood, if we take the advice
of Jonathan Cahn, Mark Biltz, French Foreign Minister/John Kerry, Christine LaGarde,
James Rickards, Porter Stansberry, Bill Bonner, Lindsey Williams et al!
The question remains tho, what will happen to gold and commodity prices if/when
the stock/bond/real estate market collapses? If we believe Harry Dent, they will continue to plummet, at least for awhile.
I’d say there’s a 50/50 chance it’ll go either way. One thing you can probably take to the bank, (if it’s still open), it will DEFINITELY go one direction or the other.
it won’t stay where it is.
Come Oct 20th, will the Yuan be accepted into the SDR Club? This would certainly
be a game changer if it is.
I’m pretty certain the globalist UEs (Uber Elites) are on top of this coming implosion and will use it to their advantage:
“Never let a good crisis go to waste”
“ordo ab chao”
“problem~reaction~solution”
This is the mother of all bubbles. The Libor Rate Scandal. According to some reports this bubble represents over 650 Trillion dollars.
http://www.bbc.com/news/business-19199683
Greg are you beginning to see why so many countries are flocking to the AIIB and why the RMB will be the next reserve currency come October? It is the only gold back system left. The ECU is dumping U.S. bonds as fast as they can and buying up massive amounts of RMB gold backed bonds. What does that tell you?
Thank you Greg for having the courage to warn people about what’s coming. Its going to be bad. Real bad. If some of them don’t get it, its not your fault. You’ve done your job either way, and the lord will bless you for it. Its like everything else. It comes down to choice. In the end the decisions you make when you don’t have to, will determine where you will be when you can’t help it.
Jerry, we’re toast even without a crash. Just keep doing what we’re doing and ruination is not so far on the horizon. Best always. PM
Have you heard the story about the IMF trying to delay the RMB as world reserve currency? Don’t believe it. Here’s the real story.
http://www.wsj.com/articles/chinas-yuan-pushes-deeper-into-global-financial-system-1438038445
Many at the WSJ already know what the Banking Overlords have planned in the coming weeks. A complete takedown of the whole system, except those holding hard assets like gold (which the Chinese have an abundance of). Forget the phony accounting reports. The Chinese have been holding their reserves in private vaults for months waiting for the right time to lay their cards on the table. Time is almost here.
Jerry,
How is a fiat currency of Communist China any better that the rest of the fiat currencies? Its backed by the whims of the Chinese Dictators. I don’t see that inspiring a lot of confidence.
Some of what you are saying is correct, but gold is larger than just China. Let me stress this again: events going forward are not economic as much as they are a matter of politics. See what you can find out about state backed gold banks: research Texas. That is causing concern at a high level. All of this is part of a tension between the states and Washington.
Internationally, the two major stress points as I write this are China and Israel. We are having problems with both of these states that go beyond what you are hearing in the news. Look forward to September’s U.N. Sec Council vote on Palestinian statehood. A French draft resolution has been circulating since November of 2014. Washington unofficially advised Paris on this. We had been pressuring for a delay in this “parameters” resolution vote. The French did delay through the Israeli election . And then they pushed it back to await the P5+1 agreement with Iran. The White House was wary of angering Congress with too many of these initiatives at the same time. Potus had made his dim future speech after the Israeli election earlier this year. This is why Congress invited Netanyahu to speak on the floor.
The UNSC has a radical plan for a two-state solution. You will see this unveiled in another few weeks.
CLR,
Than war is assured in the M.E. This is what I have been predicting for some time now.
Greg
So, you’re predicting war will break out in the Middle East? We must have different calendars. US war in the ME has already been happening since the 2003 invasion of Iraq and all the subsequent tail events resulting from our entanglements in the region. 12 years and running… and it’ll continue for as long as we fight over oil.
X,
I mean a big war with much higher body counts that what we have seen so far. Hope I am wrong.
Greg
Two great guest back-to-back. If people are still in the dark about what’s happening in our world today- just listen to these two interviews.
GREAT job Greg as always.
How high will gold and silver go? My inside source says- “skies the limit”. Metals have been manipulated for so long no one knows it’s real value- the markets will decide as always. I’m told low side is – gold $3000, and silver $125/oz. Buy only physical, and to score big- buy some mining stocks, but be very careful here as some may go belly-up soon.
al
Greg and viewers: This is input from another gold expert- see what Larry has to say
about what’s coming – and he says starting on Oct 7th! Very soon now- prepare!
http://www.moneyandmarkets.com/reports/sct/convergence/v2/?ccode=072120156678143GSTSCT&[email protected]&sc=FPNXC&ec=6678143
Thanks Greg, it’s always good to hear James Turk confirm the PM situation. That was an excellent discussion of backwardation (vs contango), I think I finally get it. 127 COMEX paper ounces promised for every ounce of bullion in their vault ready for delivery is how they are keeping the price down, this skews the demand side of the equation. That ratio has been creeping up over the last few years. But as long as those contracts can be satisfied with cash rather than physical metal, the ratio can go even higher. The FED can always print more $$ to satisfy the contracts.
I have a rather insignificant issue regarding use of the “Black Swan” term; it doesn’t really apply to gold supply & demand. The coming reset is evident to Turk and many others (it would even be evident to Janet Yellen if she was paying attention, but she’s too distracted cooking the books on the GDP). The seemingly inevitable monetary reset may be referred to as a Black Swan in msm reports, but should not be considered as such by anyone paying attention. The money bubble popping may be a serious shock to the system as it is today, but it is not something unforeseen, seemingly coming out nowhere. This will be an engineered crash but I have my doubts it will be a controlled crash. THEY set in this economy on course for this collapse, but the result may not be what they planned. Still, not a black swan.
That said, knowing something bad is coming and being ready are two different animals. The disruptions to the supply of basic needs may overwhelm people who think they’re ready.
Russ,
Yes, good point the “coming reset is evident.” Thank you for weighing in here.
Greg
It is hard to get too excited about an internet based swapping of gold, with all the bad actors having access to hacking and spying and so forth. Plus, what happens when an EMP goes off and nobody has electricity, or the internet is taken over by a tyrannical government?
Better just have it where you can go get it.
I agree so much with the Turk, but all reports are pointing to massive anounts of deflation knocking on the door.
I think Rick Ackerman has been exonerated!
Great interview. Thanks Greg, and thanks to James Turk for his clear, no nonsense assessment of gold’s position in today’s financial environment.
On a different topic (just as important) … check out this news (that was not carried on the main stream media) citing the relationship between three(3) vaccines and the exponential rise in autism!
http://www.thevaccinereaction.org/2015/08/congressman-wants-cdc-investigated-for-tampering-with-mmr-study/
I think the vaccines make us less tastey to the aliens
Greg,
Has anyone analyzed the COMEX itself? Could it be that the Big Banks themselves control the entire entity solely for God Price fixing? If “They” do all the trades and swaps and co-ordinate massive shorts that only go from one pocket to another – then those who ‘buy into’ this game as “investors” are peripheral and serve only as a cover of legitimacy. (Pay in worthless paper Dollars)
Just like the Mainstream Press – they are ALL bought and managed – an organ of the same political agenda – so may COMEX be totally absorbed by the Central Banking Cartel, which now protects the Dollar.
And everyone should give KWN’s Paul Craig Roberts a read. Especially you, Colin.
Alan Greenspan – 1996.:
‘But what a pleasure it was to rediscover the old Alan Greenspan, before he turned his coat and forked his tongue. Back in 1966, when he still believed in free markets and sound money, he expressed himself clearly.’
Here he said: “Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights….” etc, etc……
http://www.zerohedge.com/news/2015-08-05/who-left-speak-truth-or-why-government-hates-gold
..can’t download so go to Zero Hedge link
As James Turk explained 127 “paper ounces” are now promised for every ounce of physical bullion … the bankers do this to keep the gold price down while China and Russia buy gold and take it out of circulation at bargain prices … does anyone smell collusion here? … what kind of “sanction” is this on our supposed enemies? … one would think the “right sanction” would be to raise the gold price making it more expensive for our supposed enemies? … but perhaps the international bankers want to get rid of all the gold in the world so only their fiat “debt money” remains for us to use … the only problem I see with “their plan” is that eventually all true money (gold) will all be in the hands of our supposed enemies… and those who own the gold will make the rules … this only makes sense if the international bankers objective is to destroy America financially (along with its Constitution and its national borders) … for then China will have the power to “reclaim the American continent (stolen from its Indian ancestors) and Russia can reclaim Alaska!
James Turk sounds like a nice person who makes a lot of assumptions about how the world works, and money, which is not gold . I pulled Martin Armstrong’s explanation about gold in backwardation from the archives on his site.
http://www.armstrongeconomics.com/archives/9858
Martin’s explanation sure makes more sense than what James Turk keeps saying.
Alan Greenspan 1996 !!! Here:
“In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.
This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.”
“
Greg, you know I love your site, but I have a comment/question. I just returned from a visit to the US. Economically, everything seemed fine. People were working, shopping, etc. I thought prices had risen since my last visit, but that didn’t stop anyone from buying goods/services. Your guests often say that the economic situation is bad. I didn’t see this during my visit. FWIW, I visited the PNW. Can anybody from a different area comment on the regional economy? Are things bad, good or what?
47,000,000 + on food stamps along with several other forms of government assistance. Were it not for the money printing and EBT cards the soup lines would be impressive and many. A work force of around 230,000,000 between 18 and 68 years old. 93,000,000 not working. Low interest rates and lots of available money propelling the RV in my area big time making things really good in my locality. Can’t believe people by those things on time! Agriculture starting to feel the strains of lower commodity prices. Ask any ag machinery dealer. Don’t think things are as rosy as they look.
Just to clarify about the 93 million who are not working. The reason why many of the 93 million who are not working is because they are students going to school full-time, they are stay at home moms with children, they are disabled or the decided after 40 years of hard work to retire early.
Hello Fan In Japan, I will try and answer your question
as direct as possible. The reality is that if you are highly
skilled in a discipline that is in demand or have a have a
needed product or service, chances are you are doing well.
The problem currently in the U.S. is that what areas are doing
well cannot find the talent to hold those well paying positions.
I could go on and on about our poor educational system or how
a large part of the population has been conditioned to receive
benefits but that speech is for another time. Bottom line, eight
years ago I noticed that my industry was dying. I was a six figure
earner. I decided to retool myself (intensive computer design education)
and now earn more then in my previous industry. I’m nothing special,
just a guy who wanted to succeed. Hope this helps answer your question.
I don’t know what PNW is, but the economy varies greatly from region to region in the US. Here in the Midwest, well paying employment is hard to come by. My job deals with people who are many times discharged from their jobs. They tell me over and over that they can’t find work at the level of pay they used to be making or at the number of hours they would like. Some go from unemoyment monies to diability monies. Some “retire” and just live with the income change. Some go on food stamps and just take part-time hours as they can get them, and I’ve also dealt with some people who went homeless and just stayed with friends or relatives. The divide between haves and have nots is growing, that’s for sure.
Things in America are very bad – relative to what they used to be. I’ll explain –
– We are told by the government that our unemployment rate is 5.3%. Most citizens know that’s pure nonsense because 93,000,000 people are unemployed and have stopped looking for work. Because they have left the labor force, they are no longer counted in the official unemployment rate. The actual rate is far higher.
– Almost 50,000,000 people in America are on Food Stamps (a government program to pay for food for low-income citizens).
– more than 1/3 of American households receive some form of government entitlement each month (welfare).
– In this formerly free country, we have seen our healthcare system become socialized. Most Americans understand that socialism damages an economy, and healthcare is 1/6 of America’s economy.
– Under the three QE programs, multiple Trillions of dollars were printed out of thin air to keep the nation solvent. The full effect of this debasement of our currency has yet to be felt.
– Because of the QE programs, the American stock exchanges soared to unrealistic highs. When the dollar crashes, the stock markets will too.
– Americans sense trouble in other areas too – legalized drugs, homosexual marriage and abortion will all bring terrible consequences. We just don’t know when, or what form they’ll take.
I’m glad things “seemed” normal while you were here. Because the dollar remains strong in the currency indexes, we haven’t felt most of the effects of our foolish government’s policies – yet.
America is falling.
There are NOT 93 million people (those not in the labor force) who are unemployed and have stopped looking for work. Many of them are full-time high school and college students, stay at home moms with children, disabled people and early retirees. Only about 20 million of the 93 million are actually unemployed and should be counted as unemployed by the government but they are not.
In my part of the country (South Central PA) things are not that bad. However I realize that certain areas of the country and certain cities can not say that.
I’ve heard this before…that people are shopping, things seem fine. But that’s an illusion. I’ve lived in So Calif for decades, I know people from affluent areas and average areas. 1. Savings? very little if any. 2. twenty something’s? living at home, or rent a bedroom, most have no chance of buying a house, owe from $40k to over $100k in student loans. 3. Thrift stores used to be places for the very poor, not many customers…not any more! People are lining up before the doors open to get the best choice. 4. Vacations? maybe a road trip, but no more Hawaii. I could go on all day about how our standard of living has declined. All of the above examples will include people “shopping” at some point. And to a tourist, things look normal. Younger Americans don’t know any different, nothing to compare. But believe me, things have declined drastically,
Alyce,
Good stuff and thank you for posting it here.
Greg
Alyce….you give an accurate report.
I agree with all your comments
Your Fan;
The last $1000.00 of credit on a credit card spends just like the first $1000.00 when you got the card in the mail. It “seems” like everything is normal.
Just because the credit card still works, doesn’t mean your solvent. The truth is found in the credit card statement, your bank balance and your ability to pay. Our countries’ problems are found on the balance sheet, not the income statement.
I have posted several times before that the economies of the several cities that I visit regularly in the SE United States for business are actually booming. Asheville/Highlands, NC – Hilton Head, SC — St. Augustine, Fl — St. Petersburg, Fl – Orlando, Fl. Construction in Franklin/Highlands NC is especially good. Locals are loving it. These may be areas where the 1% er’s are in higher concentration, but regardless, their economies are what they are.
Greg. Watching the msm talk about the homeless man killed today in my home town you would think the stock market crashed. They have no idea what is coming.
Nashville theater dismantling.
For Colin The Farmer From NZ
Once upon a time in a land far, far away (across the pond) there was a village (maybe an entire country) that had fallen into disarray. It was known as the Frums Village. And few really saw what was happening.
Brainy Frums stopped watching MSM 16 years earlier. And has not missed any thing of import.
Harmony Frums opted out of the “sick care” (AKA Medical care) industry 18 years earlier. And is today much healthier despite the additional 18 years.
Handy Frums left the corporate world 15 years ago, moved himself and family to the country. After learning from Farmer Frums, has been able to raise most of the food that his family needs.
Papa Frums, who according to himself, is as wise as the great Gandoff himself is still blue despite all of the efforts of the village people. He recons that about 10% of the Frums’s have made changes as listed above, but feels that it has made little to no difference in the overall direction of the village. Despite his great self-appointed wisdom, he is still feeling lost. And at times frustrated, because it seems that outsiders (from other villages) continue to make general assumptions about the Frums’s. Assuming that none of them have done anything to try to make change. He feels that they are part of the propaganda problem that his little village is fighting against.
Many of the village Frums’s have made great sacrifice to learn, educate, and become self-sufficient. And these are the very Frums’s that continue to get attacked. He wonders aloud (but not to loud) if the attackers are themselves ignorant and uneducated to the point that they cannot even see that others are not. It remains a mystery.
THE END
Of course, this is just a fairy tale.
Cheers
Rich
Ha ha ha….
Actually I don’t regard myself as particularly wise.
I do however pride myself on being somebody that does think outside the square and I constantly question the narrative of the establishment.
I rarely watch or read fiction any longer because I find the extraordinary daily geopolitical and financial nonsense that goes on all around us to be an astonishing tragedy that is unfolding at a truly terrifying pace. It actually renders most fiction completely uninteresting to me. The fact that this behaviour has been normalised by the majority of western society is a tragedy and a very sad comment that clearly demonstrates social and political degeneration.
Some of you on WD obviously see me as preaching from some kind of moral high ground. If you do thats fine. I have broad shoulders and I don’t actually ‘give a rats arse’ as we say down here ‘over the pond’.
I comment and challenge the status quo because I feel if I didn’t I would actually be part of the problem. I take the time to do this because I fear for my children and young grand children’s very survival.
I fearful for my family because the Anglo American Axis [AAA] is so absolutely out of control and psychotic that it will be an absolute miracle if mankind survives another generation.
Go for it and laugh all you like Rich. Make up fairy stories too.
This is probably a good way for you to amuse yourself and pass the time of day.
Cheers
Col
Greg. I know you have a lot on your plate, but can you post comments faster so others can answer my questions faster? I don’t do youtube because of the critics, and to put it plain dumb ass comments. I really have questions to be answered. Not from youtubers
From Jim Sinclair and AP today. Word that IMF wants to put China off from reserve currency until October 2016. If that happens they may actually try to delay the reset one more year???????
CB,
China will not delay. Financial war is well under way.
Greg
CB,
I heard that last night, that takes a lot of b*lls or just insanity to do that….can’t wait to see whats coming!!
That’s a very valid point, and it would give everyone who “predicted” a collapse from September to EOY and out (excuse). I don’t see China sitting on the sidelines for the next year, things could get very interesting within the next 2 months.
We live in extraordinary times … one day your grand children will ask “grand dad when gold and silver were selling so low during the “Deflationary 2015 Era” why didn’t you buy a boat load of the stuff?” … your response will either be “I did” … or “I was an idiot and too scared to act” … however it seems there are many people out there buying bullion coins, bars, and rounds … as the US Mint had to suspend sales of Silver Eagles for most of July (it couldn’t keep up with demand) and sales of Gold Eagles this July reached their highest monthly total in more than two years … further it is not just a US phenomena … Australia’s Perth Mint reports its precious metal inventories are being “cleared out” by surging demand (especially from Asia) … now you would normally think that tight supply and public demand would drive precious metal prices higher … however the bankers are forcing precious metals “even lower” (trying to break long term resistance on the charts) to create a selling panic … their relentless selling pressure is accomplished by selling futures contracts “short” using unprecedented leverage (they are selling 127 ounces of gold for every one ounce of physical metal they own) … this obviously sets up the potential for them going into physical default … but when bankers own a printing press they don’t care if the holders of contracts want to take delivery of physical metal … the bankers can simply hand out freshly printed “fiat cash” in settlement (a no lose situation for them) … however if a massive short squeeze develops because the short sellers can’t come up with newly printed cash within 3 business days they will be forced to “cover” their positions by placing buy orders … for contrarians such a situation is a dream come true … we well know that consensus opinion is always wrong at major turning points and now with mining companies shutting down (due to lower prices) and mining output falling along with constant demand will ultimately raise prices and increase the odds for a violent short squeeze.
Those who don’t succumb to herd mentality and hold their physical precious metals “fully paid for” can simply sit back and wait for the inevitable short squeeze to develop … they will never face the prospect of a contract default or a margin call or any of the other hazards futures traders are subject to when trading derivatives markets.
China and the IMF. What you read and hear in the news is a tool used to shape your opinions and not really actionable or new. It may sound silly, but it’s true that a certain headline can hurt the economics in a given country. The news in one country will make fun of a leader in another country, while that other country is making fun of the other country. But inside we are handing each other little filips. Part of a deal is the benefit on the outiside of the deal, that has to be factored in. RT will deride Obama and a particular General, while they compliment Putin for his integrity in honoring an agreement not to do something. But the White House knows all along that the Kremlin cannot do that thing because of diplomacy and economics. And a commentator in the U.S. will wonder, “Why does Putin not attack to defend Ukraine?”
For example, tension is high right now over the Vienna Agreement. This tension has arisen ever since Moscow’s sale of S-300 air defense missiles to Iran back in April. The sale of this defense system had been scrapped in 2010 when the U.N. imposed sanctions on Iran. This year, the sale to Iran loosened a blockage in the negotiations between the White House and Iran. The Israeli opposition to the talks was neutralized at that time, and a green light was given in regards to trade with Iran. Moscow’s sale helped neutralize the right-wing opposition in the states, and it was beneficial to Moscow and the Russian economy. A great deal of opportunism is swirling around this agreement. You are going to hear more about gas rights in Qatar. This goes back to Greece and the pipeline deal with Moscow.
I wouldn’t take too seriously what you read in the news. Understand that tensions are high on the inside.
CLS,
Sometimes these stories, once delved into, reveal the real story even though its only slightly related.
As with Russia, they need to keep US in war, bogged down etc. I had read that tis deal with Iran was if the Russians wrote it themselves. Funny how you just confirmed that for me. CLS I dont read/watch the news anymore. I go to about 5 different sites and thats it; this being one of them.
Dear Readers
I have just posted this article on Facebook. When people question the validity of holding gold take a look at the maths.
My analysis starts with 1999 when Britain’s chancellor Gordon Brown sold off 415 tonnes of gold to save Goldman Sacs et al from complete collapse.
Thursday 6th August 2015
7. THE 1999 GOLD CRISIS continued
Relative positioning of the dollar vs. gold in 1999
Dollar Value
Federal Reserve System founded 23rd December 1913
$ In 1999 now worth 5 cents
Fact: If in 1913 you purchased a product for $20 that same product in 1999 would have cost you $336.57, that is inflation to the tune of 1582.8%, looked at another way debasement of the currency.
Gold Value
Gold price on 23rd December 1913 = $20.67 ounce
Gold price in 1999 = $290.25, 1304% increase.
Which would you rather have?
Gold doesn’t default or go bankrupt.
PS. If one calculates the comparison through to 2015 we are looking at 5705% increase in the value of gold since the inception of the Federal Reserve in 1913, whilst the dollar value is down to 3 cents.
If the FR decides on further QE, woe betide the dollar
Regards
Mike Harvery, Kilkeel
I was wondering what you think of G. Edward Griffins theory on “The Collectivist Conspiracy”? After watching all of the crazy things that are going on World Wide and the older I get, I am starting to believe more and more about the Elites that run the world (money), and this whole Far Left and Far Right, Democrat, Republican thing is just a ploy to fool people in to thinking that their votes really count. Our leaders, news and so on keeps the people confused and makes our Government look more like a WWE Wrestling match (which is fake). If this is true, we need to do a LOT MORE than just vote. It may take another 1776 to get us back on track, because The New World Order will be a nightmare and our freedom will be history. I am getting worn out trying to figure out all of these insane leaders, and tired of talking about it which is getting us no where.
Thank you,
Jeff Warren
Former Marine
I disagree. This has already happened. Germany wanted to re-patriot their gold and the NY Fed said no. Dr. Paul Craig Roberts said they can keep this game up for a long time.
Once again I will point out that if we again take the high road to leadership and exert American muscle agains all foreign threats, then and only then can we experience the fruits and exhiliration of our freedom once more. There are millions of evil doers out there wanting to do harm to America. Lets stand beside her, guide her and fight for her. Lets put our armaments factories back to work and achieve a lasting peace by defeating our enemies. Lets get rolling again. Lets kill the enemies of freedom and the denegrators of democracy. The next commander in chief has a big job ahead because the current leadership failed to act. Once we take hold and make our case militarily , we will prevail. God Bless the United States of America. Or as our exhuberant youth would say …. USA ! USA ! USA ! USA ! USA ! USA ! USA ! USA !
http://www.ft.com/cms/s/0/82737cca-39f2-11e5-bbd1-b37bc06f590c.html
CD
James is great and speaks very well. Thanks Greg
Billy
Just a brief thank you for those who commented on the economic conditions in different areas of the country. Oh, and PNW is pacific northwest.
The real problem is not that gold prices are being manipulated (which they probably are) or that central banking is smoke and mirrors (the case has been made)…
The overarching problem we’re seeing today is the concentration of wealth — more money and power into fewer and fewer hands — both globally and here at home. This drives inequality and leads to corruption, both public and private. The last time the U.S. economy experienced the current level of inequality was before the Progressive Era of the late 19th and early 20th centuries. At no time in the last 125 years have we seen such levels of wealth concentration as we do today.
A their core, these are policy problems, not merely economic ones.
Wealth “confiscation” can only take place when the wealthiest few realize that their wealth has become so concentrated that money has stopped flowing normally around the economy — a situation we are rapidly approaching today.