2014: Plagues of Biblical Proportion

2014 will mark the beginning of the years of many sorrows, the opening act having been the crashes of Bear Stearns and Lehman Brothers starting in early 2008 – neither of which was an “accident.” The following analysis is based upon information provided by Jim Willie in a recent interview with Turd Furgeson to which we add our own interpretations for good measure.

 

USA

 

We have already given our own warnings about the US which is a kleptocracy running on borrowed fumes. The Rockefeller Nazis and Bush Crime Syndicate have plundered the USA for its wealth and gold, and have safely absconded with it to offshore locations. But the carnage is only starting.

 

The economy will spiral out of control as quantitative easing is exposed for the fraud that it is. The wholesale debasement of the currency which was used to continue lavish bonuses to criminal banksters and bail outs of their incompetent, Ralph Kramden inspired investing schemes will catch up with the currency in even larger inflation than we have seen to date. Just as Belshazzar was partying like a wild dog on the night he lost his life to General Gobryas’ invading armies, so Americans and their Nazi leaders smugly denounce any threat to their security and prosperity. But the joke is on them.

 

The US deficit has doubled under the watch of Rockefeller Manchurian Candidate Barack Obama, who promised very early in his administration that we would have trillion dollar deficits as far as the eye can see – and he was only speaking of the visible current year operating deficit. The other deficits would simply be repudiated.

 

This deliberate destruction of the currency to satisfy the Wall Street banksters was partially required by the mechanics of debt based currency. Debt based currency requires ever greater inputs of currency – hence debt - in order to keep from imploding – it is a Ponzi scheme on steroids. After 80 years, the capital base of America has finally been eviscerated to the point where deficits must be accelerated. You can safely ignore the gibberish about Taper Talk. It’s another lie of the US Fed.

 

On this point of inflation vs deflation, there is some reasonable disagreement. Professor Antal Fekete has argued that deflation is the pre-eminent threat, as 33 years of declining interest rates have depleted capital stocks, especially those of the banks. Indeed both Willie and Fekete would agree that the banks are insolvent zombies.

 

But we know from John Williams' work that inflation is much higher than the government calculates, so inflation is indeed a prominent threat. Fekete may prevail in that it is not hyperinflationary, but no one will deny the destruction of capital we have seen in this country as huge chunks of manufacturing have been moved offshores, resulting in chronic intractable unemployment, all of which is due to structural intangible capital destruction.

 

Middle East

 

Recently – within the last 1-2 years – the Chinese navy completely fried the entire electronics system on a US destroyer on patrol in the Indian Ocean. That destroyer is now in the Virginia naval yards being scrapped. The point is that Chinese military strength has reached parity or superiority over the US – and the Chinese are not spending 45% of the world’s military expenditures to accomplish that technical feat.

 

This development is not to justify a new arms race, but rather a strategic withdrawal as the American Imperium is overstretched and bankrupt on its corpulent lusts. This defeat of the US Navy in the Indian Ocean accompanies its defeat in the Middle East where Russia’s Vladimir Putin administered the US the biggest asswhooping since Viet Nam. Few recognize the strategic defeat of the US, but it was a geopolitical earthquake which signals the arrival of new overlords in the Middle East – Russia and China - who are friends again on the basis of the enemy of my enemy is my friend.

 

The supreme arrogance of the Bush Crime Syndicate’s seminal Project for a New American Century had some early successes but is completely in ruins as Egypt and Syria demonstrate. The Saudis supposedly instigated American action against the Syrians, but we aren’t buying it. The US was acting on the Neocons’ (BCS) PNAC document created no later than the 1980s.

 

Willie believes that the US will tilt toward Iran, but that won’t go over any better than lice at a Ms Clairol hair styling event. The US has tortured Iran, the latest episode being economic sanctions – in collusion with its mullah’s we might add – and they are not going to forgive and forget so easily.

 

Indeed the reason for the attacks on Iran has nothing to do with nuclear weapons, which US officials have repeatedly acknowledged as non-threatening. The fear of the Iranian military is predicated upon as sound a reason as the fear of the Vietnamese in the 1960s - it was all a hoax by the leaders of the Military Industrial Complex to justify war, murder, and mayhem for Wall Street’s benefit.

 

The real reason for the attacks was Iranian acceptance of gold for payment of oil, bypassing the aging petrodollar arrangement facilitated by Nazi Henry Kissinger in the 1970s. However, with the arrival of Russian and Chinese military installations in the Middle East, the petrodollar will give way to the petroyuan.

 

The only asset propping up the US dollar is the US military, which the US trots out any time a nation, most recently South Korea, utters any interest in diversifying its portfolio out of the US dollar. But the stampede has started, with even the British establishing a Yuan swap facility with the Chinese. The sun is indeed setting on the American empire.

 

Finally, the US was repudiated in the Ukraine when Neocon hack John McCain stepped forth to support the repressive Ukrainian government under pressure from its people to resign. Again, the US was outwitted by billionaire criminal Putin. But US policy is run by rank amateurs beholden to the trivial Rockefeller Nazi interests.

 

The Sino-American war in Africa continues to rage, with the US sending in its proxy forces from France to aid the losing cause. That war will end no more favorably than the others.

 

Gold

 

We have reported the emptying of Fort Knox – the world’s largest store of nerve gas, but now insiders, such as Andrew Maguire, report empty London vaults with massive tonnage of gold shipped east to China where the story is rather complicated.

 

It turns out that the US defaulted on derivative obligations to secure the Chinese gold pledged in a quid pro quo to grant China Most Favored Nation status. The US granted the repressive corrupt communist regime this privilege because the Chinese put up gold collateral for the deal. The US stole the gold – it is gone, and then it defaulted on the securities payments, leaving the Chinese quite perturbed and short changed.

 

To pay for it, the US forced the British and Swiss to steal gold from allocated accounts, melt it, and recast for shipment to China. ETF accounts, private gold accounts, and companies with custodial accounts such as MF Global, have all been raided to pay off the Chinese. And lawsuits are flying like fur in a wild cat fight in Switzerland.

 

The African invasions are all about gold and rare earths, as the invasion of Iraq in 2003 was all about oil and heroin.

 

US banksters have been skimming a lot of gold, stealing enormous tonnage during the Clinton administration, but the bulk of gold has gone east where both the Russians and Chinese have at least 15,000 tons each! He who owns the gold makes the rules.

 

Although 2013 saw an incredible decimation of the price of gold, 2014 will see the exact opposite and then some. Its price will recover while the stock market flattens or declines. COMEX is dead. It has not delivered any gold in 6 or so months. It is nothing more than a pricing committee to fleece people of their gold.

 

Indeed the paper price of gold does not reflect its production costs. Consequently, more gold production is going dark, shrinking already tight supplies. With almost no gold in the West, we cannot fathom any scenario where gold would fail to increase in price in 2014.

 

Given the huge drainage of gold from the US, we have serious doubts about the gold content of US Mint gold products. Independent assayers overseas and domestically should assay the fineness of US gold, especially since the US disbursed an enormous amount of gold plated tungsten during the Clinton years, and we suspect subsequently as well.

 

Americans will begin to suffer acute privations in 2014 and should not expect any relief from the bankrupt and criminal US government. US unemployment is dropping because of statistical phenomena – not because of any hiring or economic improvements.

 

The first salvo will come with the bifurcation of the USD into 2 currencies. The domestic dollar will be devalued 60-80% just like banana republic currencies, and the foreign held dollars will continue as is. We expect to see the announcement in 4^th quarter of 2014 or so.

 

The implication is that imported goods will skyrocket in price. Gasoline will be at least 10 USD per gallon. And since oil is a huge part of agriculture, food prices will double or triple as well. These price changes will force devaluations in houses and cars as demand will fall due to higher operating costs.

 

If you are puerile enough to believe that shale oil will bail out the US, a village might be missing its idiot.

 

And what about Deutsche Bank?

 

We previously reported Willie’s prognostications about Deutsche Bank, one of a group of 4 international powerhouse banks which sold German gold down the river for a pittance, but whose most egregious crime was falsifying data allowing unqualified European countries to join the European Union. The Maastricht Treaty required that certain debt ratios be met, and when it was not possible, DB lied about the numbers.

 

Willie remains adamant that DB is going under. This means a ripple effect from Bonn to London to New York City and beyond. We reported on the US government’s preparation by testing bail-ins which will arrive with force in 2014. Bail-ins will be applied to everyone – not just the large account holders. In fact, if the past is any indication, wealthy account holders will not suffer any losses. Only those at the 95 percentile and lower level will suffer confiscations.

 

But the ripple effects resulting in US bail-ins is only part of the story. The entire fraudulent house of cards, which is US banking, will collapse in controlled demolitions like which the Bush Crime Syndicate used to destroy the WTC. The problem is interest rate swaps which are currently destroying JPMorgan Chase. The London Whale Trade continues to eat billions of dollars annually, but with the collapse of DB triggering trillions in derivatives claims, DB will be only one of many banks to suffer meltdown.

 

This most interesting collapse has already begun as witnessed by the fire sale of One Chase Plaza to the Chinese. How is it that the primest of prime New York City real estate is sold to the Chinese government for over half off in what is supposed to be a robust real estate market? Don’t the talking turds on MSNBC, CNBC, and other newsfaking organizations remind us daily of the lush prosperity America is wallowing in due to the virtuoso performance of its economic wizards?

 

The reason for the giveaway by the traitors of Wall Street is that Chase has a vault right next to the New York Fed’s 9 stories underground as reported by Zero Hedge. This makes it very opaque to send the Chinese more gold – whatever is left of it and it is very puny – and more money. In other words, the Chinese control the US Fed and by extension the US government.

 

But how can this be, you ask? One narrative is that the Chinese are enemies of the US, and we would agree that there is no love lost. But the real source of the takeover is the Bush Crime Syndicate and Rockefeller Nazis. Remember that David Rockefeller denounced the US Constitution in his autobiography and everyone continued to make stupid jokes about tin hats. But the destruction of the US as a functioning independent power is required to elevate the plutocrats to ultimate power in a one world government where the poor 1% have spheres of influence but who in turn report to the .1% Rockefeller and Bush level Nazi scum.

 

In short, the Chinese are a tool to achieve the ultimate Nazification of the world. As such, we expect to see the dismantling of the US, starting with Alaska and Hawaii, begin within a year or so.

 

You see, it is one thing to own all the golden eggs, but quite another to own their goose. In a world of declining economic prospects, gold increases in relative value, but a viable company is a series of future cash streams which will handily outperform gold.

 

We hope our predictions – with heavy input from James Willie’s public commentary – are wrong, but beware of handwriting on walls.

 

Reference

Roasting Jackass on an Open Fire, Turd Ferguson, December 24, 2013, accessed 12/25/2013 www.tfmetalsreport.com

Copyright 2013 Tony Bonn. All rights reserved.

Fort Knox Gold is Gone

Although it is not news to long time readers of The American Chronicle, the knowledge of Fort Knox’s divestiture of gold by US politicians is going main stream. Well connected hedge fund manager William Kaye of Hong Kong told King World News this week that the US Treasury’s claims of owning 8000 plus tons of gold is an outright lie.

 

We reported earlier Jim Willie’s shocking revelation that Fort Knox is perhaps the world’s largest repository of nerve gas, its gold having long been stolen by senior government officials in order to suppress the price of gold and to line their pockets.

 

But the chorus of dissent among official Washington’s legion of liars grows louder. Kaye relayed the word from his many contacts in the gold world that much so-called sovereign gold has come through one of the world’s largest gold refiners to be melted down for transference to Asian powers.

 

One would think that the Germans would have learned the hard way that most politicians are liars, but one would be grossly mistaken. The recent demands by the Bonn government for return of its gold are laughable. Not only have the bullion banks, most notably JPMorgan Chase, told the Germans they would have to wait 7 years for a small fraction of their gold, but it was melted down long ago, with no hope of ever recovering it.

 

Many schemes for stealing the barbarous relic have been implemented by politicians since the 1960s when the London Gold Pool was established to suppress the price of gold. The most outrageous scheme involved Bill Clinton and Robert Rubin, then Secretary of the Treasury. Clinton came into office vowing to manage finances like a Republican, keeping an eye on bond prices as an indicator of inflationary pressures.

 

This provided cover for Wall Street vulture Rubin to take over the gold supply. The duo shipped out massive quantities of gold plated tungsten as the supply of pure, or even 90% gold stolen by Roosevelt under scaremongering during the Depression, was inadequate to quell the price.

 

The US Treasury used the mechanism of gold leasing to its client banks such as Goldman Sachs and JPMorgan Chase. It is much like a repo loan in that the Treasury would lend the gold in exchange for cash, but without having any term associated with it. Since officially the Treasury was loaning, rather than selling the gold, it could continue to claim it as an asset on its balance sheet.

 

But in fact, it really wasn’t the Treasury’s gold to lease since the Treasury had turned over its gold to the private banking cartel of the Federal Reserve. Thus the Federal Reserve supplied the physical gold to its member bullion banks who in turn sold the gold at a tidy profit on the open market, usually overseas in Asia.

 

Zero Hedge has reported recently that JPMorgan Chase’s gold supplies are at their lowest levels on record, below 770,000 ounces, and accounts for 80% of physical gold deliveries.

 

Why the run on gold when everyone knows that it is barbarous relic? National governments have stolen so much gold from allocated gold accounts and safety deposit boxes that no one trusts the home of the Whale Trade to safe keep his gold. If the bank can steal Germany’s gold, what barrier is there to keep it from stealing a small time depositor?

 

The Swiss National Bank, among many others, has been the leading thief of Swiss held gold. Although very little publicity has been raised about the thefts, large lawsuits are being pressed against the criminal banks.

All of these desperate and criminal activities speak loudly to the fact that gold is in severe and permanenent backwardation, meaning that the spot price of gold is higher than the forward months' future prices. Those denying this observation have pointed to the paper price of gold for refuting our claims. Unfortuantely the paper price of gold is not a reflection of its true price, and is indeed a highly manipulated value.

But recently even the paper prices have shown backwardation, an ominous sign of a breakdown in the criminal cartels' controls of the gold price. But the problem associated with backwardation is extensive economic destruction as price and pathways through price discovery collapse. It is not at all a good sign. The Great Depression of 2008 continues.

 

Thus the stage is set for the great gold bull market. The last 10 years were a warm up. The next 10 years will see an exceptional explosion in its price, although it will not happen overnight. The perfidy of American politicians, sponsors of the continuing 1000 year Reich, those ever loyal Citizens of the World, is greater than anything dreamed by Benedict Arnold.

 

 

Reference
King World News, Game Over - “It’s All A Farce, The Fed & German Gold Is Gone,” July 9, 2013

Copyright 2013 Tony Bonn. All rights reserved.

Is the Price of Gold Manipulated?

Many of our more naïve readers may be shocked to learn that gold is so important that it is the most heavily manipulated currency in the world. But why and how is such manipulation done?

We felt vindicated when Zero Hedge reported a couple of years ago that CIA documents revealed focused and wide spread manipulation of gold. The revelations came as a dividend of the ground breaking work which the Gold Anti Trust Association has done, since its inception in 1998, to demand the government to free the gold and silver markets from deliberate manipulation by government proxy banks.

The documents revealed that not only did the Federal Reserve actively monitor and intervene in gold markets, but it did so in consultation with the CIA. We weren’t too surprised by this disclosure which gave us comfort to know that the agency was not 100% devoted to murdering people.

Ever since John Keynes ridiculed gold as that “barbaric relic,” Americans have paid scant attention to its value in either commerce or their portfolios. Following the economic pied pipers, most investors think that gold is a useless commodity interchangeable with a boat anchor. The savvy investors have loved these bimbos as their absences from the markets have created better buying opportunities for them.

However, the uninterrupted upward price action of the past 10-12 years has caused some to give gold strange new respect. Why would this be so? The primary cause is the loss of value and respect of the fiat money system weighed down with trashy debt and imminent default.

Regardless of the public opinion of gold, it has always played a singularly important role in supporting the mountain range of debt accumulated under the fraudulent fiat money systems which have run amok since the establishment of the Federal Reserve in 1913. The links are not direct but are tangible nonetheless.

In a classic Brer Rabbit scheme, one of the biggest liars in America, Federal Reserve chairman Ben Bernanke, has taken a one man tour of America’s schools to demean gold while defending the indispensability of central banking. Unfortunately for the chairsatan, the facts of history show nothing but a debased currency and more volatile economy since the dawn of central banking in America – and only more so since the men running the financial world are ever more corrupt.

Now all of this talk of conspiracy has been derided with utmost contempt by the Bernankes of this world, but as Elvis Presley said, you can hide the sun for a while but you can’t make it go away, a citation Paul Mylchreest made in a seminal discussion on the manipulation of gold prices in Thunder Road Report of March 28, 2012.

Mylchreest documents the patterns and algorithms the banksters use to control the price of gold using daily and intraday gold price charts to illustrate the inteventions. He shows that finger print type trading actions occur like clockwork at specific times of the days and days of the week. Although the gold cartel cannot ultimately control the long term trend, it can fight a very effective rear guard action to obstruct free price discovery and keep potential buyers on the side lines.

It is thus an open secret among insiders that the physical price of gold is at least 25% higher than the paper price of gold. For those new to the topic, derivative products such as electronically traded funds do not keep a physical supply of gold matching their obligations for gold. In fact their prospectuses state that they do not have to maintain any purity or reserves of gold. Any redeemer of shares can be easily turned away with cash.

But why do the highest levels of government fret over the gold price so much? The main reason is that the price of gold signals the distrust and vulnerability of the fiat regime. Gold rises in price when the market supply of dollars grows, signaling that the central bank is debasing the currency. Since 1913, the Federal Reserve has destroyed 99% of the value of the dollar, leaving it with a constant dollar value of less than 1 cent.

The American government has one other fear of competition from gold - the loss of the exorbitant privileges it enjoys as the issuer of the world's reserve currency, a privilege it has used to menace the world with war and inflation.

It is a well hidden fact that most of the largest banks are functionally insolvent, many having negative common tangible equity – Regions Bank being one such example. If that weren’t bad enough, the Federal Reserve is itself insolvent, with many of the crapulent securities it has bought since 2008 having less market value than book value. However, with the politically motivated FASB, financial institutions no longer need maintain mark to market on securities, thus enabling them to deceive the government, investors, and the public about the true financial states of their organizations.

Some say that all is well with the gold situation, because the government could utilize its vast hoard of gold to moderate its price. It could, but the problem is that the USA pissed away its stolen gold (FDR 1934) through the London Gold Pool during the 1960s and beyond. Even then, the fiat currencies were under stress due in large measure to the massive expansion of US government debt during the 1960s in its imperial war of aggression against Viet Nam.

Ironically enough, the government did use its gold stocks to keep a lid on the price of gold – something essential with inflation indexed bonds and entitlement programs. When the gold reserves were exhausted, ETFs were established to take the role of allowing the gold cartel to sell naked, thus applying immense downward pressure on the price of gold.

If any doubt exists that gold is a barbaric relic, let us recount the story of current Commodities Futures Trading Commission chairman Gary Gensler who, though a bankster’s puppet, was pushed violently against a corrider wall at a Washington hearing by a New York bankster executive who warned him that any continued investigation into commodities price manipulation would result in serious consequences which we interpreted as a death threat. Gensler, according to our source, attempted to report the incident to Congress, but Congressional leadership showed no interest in getting involved.

The above story illustrates that the only barbarity associated with the relic is the behavior of its opponents seeking desperately to uphold the debt based fiat system under which we are enslaved. The best way to fight your overlords is to take physical possession of gold. However, have it assayed since USA banking and government sources are major purveyors of gold plated tungsten.

The major reason for fiat currencies is that they can expand without constraint, thus making wars and colonial conquest nearly risk free for the aggressors. Now you know the other reason the barbarians consider gold a barbaric relic.

Reference
Thunder Road Report, Paul Mylchreest
Copyright 2010-12 Tony Bonn. All rights reserved.

Should You Own Gold?

The quack economist John Keynes called gold a barbarous relic but he was just talking his butt. Central bankers the world over have applied great diligence in observing the behavior of gold relative to their funny money. Thus if the central bankers are concerned about gold, it would behoove our dear readers to do likewise. We believe that one should buy gold early and often.

We will return frequently to the many topics surrounding gold but in this missive we will state that its value is vastly under appreciated by most money managers and I would hasten to add that we are all money managers. The recent economic troubles plaguing the world have caused many professional money managers to re-evaluate their stances toward gold. Greenlight Capital went the extra step of converting all of its paper gold holdings to physical bullion in recognition that gold was bound to revert to the mean in terms of valuation.

Some studies note that gold holdings of 5-15% reduce risk and increase returns by 6% or so. Perhaps the study over sampled the period 2000-2009 when gold showed its best performance since the 1970s.

But this point aside, we would note that the pathologies which central bank currencies are suffering - acutely since 2008 - provides powerful incentive to at least diversify gold holdings. But why gold? Why not something sexier and more complicated? Haven't you read the myriad jeremiads against gold?

We have heard all of the calumnies against gold and find them wanting. The most powerful argument in favor of gold that it has always been money and it cannot be manufactured out of thin air like paper and electronic currencies. Its physical existence cannot be manipulated by a few mouse clicks or a fecund print shop.

We admit that the price of gold can be manipulated but we also note that the central bankers losing control over the price of gold - hence its robust rise in price over the past 10 years. But this begs the question: is gold rising or are other monies declining. While ultimately the answer is a combination of both, the primary answer is that other currencies are imploding. Thus gold serves as a hedge of protection for mismanaged currencies.

We also accept the notion that gold is not truly an investment. It was never intended to be. It is only when irresponsible central bankers - a redundant phrase - debase currencies in excess that gold asserts its role - not as a store of wealth although that is indeed one of its features - as a thermostat indicating that trouble is afoot. The incessant rise of gold since 2000 indicates loss of faith and fidelity in the currency and market place. Disease in the currency readily metastasizes to this economy it serves.

Gold should be around 2200 USD assuming it correlates positively with the money supply or price inflation. Gold has not kept pace with this standard due to massive suppression schemes. Thus its reversion to the mean gives it still much upside potential - but only because price suppression schemes are failing and monetary realities are beginning to assert themselves.

We will say much much more about gold in the coming weeks. Visit the Selected Links on our home page to begin studying the details gold and its preeminence as money.