Video — The Creature from Jekyll Island (G. Edward Griffin)

This is a must watch video. If you real­ly want to know how we got here, in the finan­cial mess that we are in today, then you need to watch this video and under­stand exact­ly how we got here.

The Fed­er­al Reserve Sys­tem is the great­est scam of all his­to­ry — Because it is NOT:

  • Fed­er­al
  • a Reserve (there are no Finan­cial Reserves)
  • a Sys­tem (it is New York based — with the illu­sion of Nation­al pres­ence)

Mr Grif­fin sites sev­en rea­sons why the Fed­er­al Reserve Sys­tem shoul be abol­ished:

  • It is inca­pable of acheiv­ing it’s stat­ed objec­tives
  • It is a Car­tel — Oper­at­ing against the pub­lic inter­est
  • It is the Supreme instru­ment of Usery
  • It gen­er­ates our most unfair tax
  • It encour­ages war
  • It desta­bilis­es the econ­o­my
  • It is an instru­ment of Total­i­te­ri­an­ism

It’s long weigh­ing in at 105 min­utes — but Mr Grif­fin is a mas­ter pub­lic speak­er, a dili­gent researcher, and above all it is high­ly enter­tain­ing piece that every­one should hear.

And know this — You can watch/listen to this video much quick­er than it took Mr Grif­fin the years of painstak­ing research, or ever to read his weighty tome as the same (which is a MUST read, btw ;-)).

Split it into two parts if you must, or more, but make sure you under­stand all that is in this great, great lec­ture.

A clos­ing thougt from Mr Grif­fin:

Fed­er­al Reserve Sys­tem does not need to be audit­ed…  It needs to be abol­ished!

 

I hear you Mr Grif­fin!

Keep stackin’ — FPOW Far­leyB

© Copy­right MMXIII RagingGoldenBull.com

Quote — Keep Clam and Buy Gold

 

Dude - Keep Clam and Buy Gold

RagingGoldenBull_Keep_clam_and_Buy_Gold

Keep Calm and Buy Gold!

Love the Sentiment…Especially as gold prices are sink­ing (load-up now!). This could be our last great chance to load up on bar­gain base­ment priced bul­lion before prices lift-off (for sure­ly they must)…

More Gold­en Mon­ey Quotes

© Copy­right MMXIII RagingGoldenBull.com

John Embry on Gold and Silver

Here is a recent inter­view with John Embry for the Hera Research Newlet­ter (HRN):

HRN: Thank you for join­ing us today. Let’s talk about gold stocks.

John Embry: Gold stocks rep­re­sent a tremen­dous val­ue in rela­tion to the price of gold and to the fun­da­men­tals of the sec­tor. There has been tremen­dous short­ing activ­i­ty by hedge funds and, as a result, ded­i­cat­ed gold funds have expe­ri­enced redemp­tions. Retail investors, who are nat­ur­al buy­ers of these stocks, have been anni­hi­lat­ed by the price action. This has cre­at­ed one of the finest oppor­tu­ni­ties, if not the finest oppor­tu­ni­ty, that I have ever seen.

HRN: Do you have a short term price tar­get?

John Embry: I don’t look at short term price charts for gold. In a mar­ket as heav­i­ly inter­fered with as this one, charts can be made to look any way you want in the short run. As I see it, if you don’t like gold at these prices, then you must like cur­ren­cies. My part­ner Eric Sprott often says, the U.S. dol­lar is the best look­ing horse in the glue fac­to­ry. If the U.S. dol­lar is the world’s strongest cur­ren­cy, that’s the best endorse­ment for gold that I can think of.

HRN: Do you believe that cur­ren­cies are los­ing val­ue?

John Embry: The fact is that economies are slow­ly melt­ing down. The prob­lem is exces­sive debt in almost every cor­ner of the world. The only way to deal with the debt is through aggres­sive growth, but fab­ri­cat­ing growth through more debt won’t work. The idea that you can get the econ­o­my to move for­ward by cre­at­ing even more debt just does­n’t wash. We can’t ser­vice the exist­ing debt, even at arti­fi­cial­ly low inter­est rates. I don’t see any easy way out. We have to get the exces­sive debt out of the finan­cial sys­tem. Either pol­i­cy mak­ers are going to cre­ate mount­ing infla­tion or there will be a defla­tion­ary debt col­lapse.

HRN: Europe seems to be a case in point. Do you think the Euro will break up?

John Embry: The Euro­crats who con­struct­ed the cur­ren­cy aren’t going to give it up eas­i­ly. The key is how much the Ger­mans are going to go along with. They real­ize that there’s a huge loss for them if the Euro falls apart. I would­n’t want to be in Ger­man Chan­cel­lor Angela Merkel’s shoes. Ger­many is trapped in the Euro because it relies on exports and Ger­man banks hold the debt of oth­er Euro­pean coun­tries. Despite the bailouts and the infla­tion­ary poli­cies of the Euro­pean Cen­tral Bank (ECB), Ger­many does­n’t have much choice.

HRN: How can Euro­pean gov­ern­ments solve their debt prob­lems?

John Embry: The prob­lem is that it would take a hor­rif­ic debt col­lapse to set the stage for future expan­sion. There is no politi­cian on earth that wants that to hap­pen on their watch. Con­se­quent­ly, pol­i­cy mak­ers will resist defla­tion and we’re going down the oppo­site road, which means mount­ing infla­tion or pos­si­bly hyper­in­fla­tion. I don’t think politi­cians will change the sys­tem. I think the sys­tem will change the politi­cians.

HRN: Can the econ­o­my recov­er in a high infla­tion sce­nario?

John Embry: Cre­at­ing even more debt is not going to work. To me, high infla­tion is the most cor­ro­sive thing that can hap­pen to an econ­o­my or to a coun­try. I’m real­ly wor­ried that neo­clas­si­cal, Key­ne­sian econ­o­mists like Paul Krug­man, who are pre­scrib­ing even more debt, will bring about a col­lapse.

HRN: Are these prob­lems the result of Key­ne­sian eco­nom­ics?

John Embry: If you real­ly applied Key­ne­sian­ism as Keynes orig­i­nal­ly envi­sioned it, the gov­ern­ment was sup­posed to run sur­plus­es when the econ­o­my was grow­ing to pay for the deficits that would be cre­at­ed dur­ing down­turns. That’s been con­ve­nient­ly for­got­ten. We’ve had an astound­ing build up of debt. I don’t think peo­ple ful­ly real­ize how seri­ous this is. I’m amazed at how com­pla­cent peo­ple are. We’ve nev­er been in a posi­tion like this in the entire his­to­ry of the world.

HRN: Why do you think peo­ple are so com­pla­cent?

John Embry: I think it’s cog­ni­tive dis­so­nance. When con­front­ed with some­thing that’s real­ly unpleas­ant, and to which there’s no easy solu­tion, the aver­age per­son will basi­cal­ly block it out and look for some­body to tell them that every­thing is fine. The main­stream news media and the gov­ern­ment are doing that as we speak. Con­se­quent­ly, the aver­age per­son does­n’t have a chance of under­stand­ing what’s going on. The man in the street does­n’t have a clue what’s com­ing.

HRN: What about invest­ment pro­fes­sion­als?

John Embry: I have a lot of close friends who have been in the invest­ment busi­ness for 40 years and they don’t want to hear it.

HRN: Won’t the Fed­er­al Reserve and oth­er cen­tral banks sim­ply bail out the sys­tem?

John Embry: They think that print­ing mon­ey will buoy the mar­kets and that that’s good, but it won’t solve any of the prob­lems. Although you may get a momen­tary lift in the finan­cial mar­kets, when it plays itself out we’ll be back in the same sit­u­a­tion, but with mon­ey that’s being sys­tem­at­i­cal­ly destroyed.

HRN: Does print­ing mon­ey work in the short term?

John Embry: There are nom­i­nal prices and real prices. Print­ing mon­ey is very decep­tive and peo­ple are con­fused by its effects. I am only inter­est­ed in real returns, not nom­i­nal returns. If you have a nom­i­nal return that’s caused by infla­tion, you’re los­ing mon­ey because gov­ern­ments tax nom­i­nal gains.

HRN: Can gov­ern­ments inflate their way out of debt?

John Embry: The U.S. fed­er­al gov­ern­ment, for exam­ple, has reached a stage where forty cents of every dol­lar spent at the fed­er­al lev­el is bor­rowed and a lot of that mon­ey has been print­ed. There has nev­er been a case in his­to­ry where that has­n’t led to finan­cial dis­as­ter. If you study any empir­i­cal evi­dence, they’re in a hope­less posi­tion. They’ve only been able to get away with it so far because the U.S. dol­lar is the world reserve cur­ren­cy. If the Unit­ed States was­n’t able to print mon­ey and was trapped in the Euro­pean Union, it would just be a mas­sive Spain.

HRN: So, gov­ern­ments can’t inflate away their debt?

John Embry: Infla­tion is the eas­i­er, more expe­di­ent route to take, but I would not rule out an acci­dent. For exam­ple, if pol­i­cy mak­ers push aus­ter­i­ty too far they could trig­ger a defla­tion­ary spi­ral that would be impos­si­ble to reverse. I sub­scribe to the Aus­tri­an the­o­ry of eco­nom­ics. In his book Human Action, Lud­wig von Mis­es wrote that there is no way to avoid the col­lapse of a cred­it boom and that more cred­it expan­sion sim­ply destroys the cur­ren­cy.

HRN: Don’t infla­tion­ary poli­cies help banks and sup­port the finan­cial sys­tem?

John Embry: The ECB could do anoth­er Long-Term Refi­nanc­ing Oper­a­tion (LTRO) or the Fed­er­al Reserve could buy more U.S. Trea­suries in the open mar­ket but that’s not real­ly solv­ing the prob­lem. If you actu­al­ly eval­u­at­ed the bank­ing sys­tem and marked all the assets to mar­ket, the sys­tem would be insol­vent.

HRN: And the basic prob­lem is too much debt and lever­age?

John Embry: The over the counter (OTC) deriv­a­tives sit­u­a­tion is so sur­re­al I can’t begin to express it. Cor­rect­ly cal­cu­lat­ed, the notion­al val­ue of all OTC deriv­a­tives is in excess of one quadrillion dol­lars glob­al­ly. The vast major­i­ty are relat­ed to inter­est rates. Cen­tral banks have to keep cre­at­ing liq­uid­i­ty to pre­vent these instru­ments from col­laps­ing.

HRN: What can the Fed­er­al Reserve and oth­er cen­tral banks do?

John Embry: They’re lost either way. They’re run­ning a mas­sive lab exper­i­ment with mon­e­tary pol­i­cy and don’t have a clue what the out­come is going to be.

HRN: Do you think the U.S. econ­o­my can grow its way out of debt?

John Embry: When I was a kid back in the 1950’s, most women did­n’t work. Amer­i­cans main­tained their stan­dard of liv­ing by putting a sec­ond per­son to work. When that was expend­ed they made up the dif­fer­ence by going into debt and, even­tu­al­ly, they used their homes as cash machines. Now stu­dent loans total more than $1 tril­lion. I just don’t see where the con­sumer demand is going to come from going for­ward. You can’t get blood out of a stone.

HRN: What do you think the out­come is going be?

John Embry: I believe that before this is over we’ll have a new cur­ren­cy sys­tem, prob­a­bly backed by gold.

HRN: Do you sup­port the gold stan­dard?

John Embry: One of the great­est peri­ods of wealth cre­ation was when we had a gold stan­dard in the sec­ond half of the 19th cen­tu­ry. It’s hard to believe that it’s going to be 41 years since there has been gold back­ing for any of the major cur­ren­cies in the world. That is what has allowed the mas­sive build up of debt that we have today. If there had been a gold stan­dard, we would­n’t be in the posi­tion we are in. West­ern gov­ern­ments don’t want the gold stan­dard because it restricts their abil­i­ty to dole out favors.

HRN: But the gold stan­dard does­n’t pre­vent finan­cial pan­ics.

John Embry: There are always going to be finan­cial pan­ics, but, under the gold stan­dard they tend to be short term. If we had had a gold stan­dard, there would have been a num­ber of cleans­ing peri­ods where excess debt was elim­i­nat­ed. The Fed­er­al Reserve allowed the build up of debt that led to the stock mar­ket bub­ble and crash of 1929 and to the Great Depres­sion, which was fol­lowed by World War II. It took about a decade to build up the debt and more than a decade to deal with the fall­out. It’s tak­en more than 40 years to build up the debt we have today and I don’t know how long it’s going to take to cor­rect it.

HRN: What does this mean for the aver­age per­son?

John Embry: I think liv­ing stan­dards of most peo­ple in the world, par­tic­u­lar­ly in the West are going to decline pre­cip­i­tous­ly. The Fed­er­al Reserve recent­ly report­ed that the net worth of the medi­an Amer­i­can fam­i­ly has fall­en near­ly 40% since 2007 after adjust­ing for infla­tion. Before this all plays out, I think the per­cent­ages are going to be far larg­er.

HRN: Do you fore­see any wider impact on soci­ety?

John Embry: When I was grow­ing up in the Unit­ed States after World War II, I did­n’t real­ize how remark­ably for­tu­nate we were as a soci­ety to have such a strong mid­dle class. Sel­dom in his­to­ry has there been a mid­dle class to equal what tran­spired in the U.S. and Cana­da from the 1950s to the 1980s. We basi­cal­ly took it for grant­ed because that’s all we ever knew. The mid­dle class in the Unit­ed States is dis­ap­pear­ing. What hap­pens is that you have mas­sive pover­ty and a small wealthy class. It’s one of the worst things that can hap­pen to a soci­ety and it can lead to civ­il unrest. If there’s no rea­son to buy into the sys­tem, peo­ple will act up.

HRN: Do you view gold and sil­ver as com­modi­ties?

John Embry: I view gold and sil­ver as mon­e­tary met­als. The main­stream news media con­flates gold and sil­ver with indus­tri­al com­modi­ties, but they’re real­ly a com­peti­tor to the cur­ren­cy sys­tem. Gold is the antithe­sis of paper mon­ey.

HRN: I’ve read that cen­tral banks are buy­ing gold.

John Embry: Con­fi­dence in cur­ren­cies is mis­placed. There is a strong flow of gold from West to East. The Chi­nese, Indi­ans, Rus­sians and Viet­namese know per­fect­ly well what’s going on with the U.S. dol­lar and the Euro. They are buy­ing phys­i­cal gold and the West has been stu­pid enough to sell it to them.

HRN: What’s your view on Chi­na?

John Embry: I’m not opti­mistic on Chi­na in the short run. The Peo­ple’s Bank of Chi­na (PBoC) recent­ly cut bank reserve require­ments by 150 basis points to stim­u­late 1.2 tril­lion yuan ($190 bil­lion) of new lend­ing because they don’t want growth to fall from around 8% to 7%. As I see it, they’ve dined out on West­ern profli­ga­cy for 20 years and have become the most unbal­anced econ­o­my in the world. An inor­di­nate amount of Chi­na’s eco­nom­ic activ­i­ty is gen­er­at­ed by exports and by all man­ner of cap­i­tal spend­ing on man­u­fac­tur­ing, real estate, infra­struc­ture and more. The slow­down in the world econ­o­my has revealed mas­sive over­ca­pac­i­ty in many sec­tors.

HRN: Can Chi­na devel­op a con­sumer-dri­ven econ­o­my?

John Embry: The idea that Chi­na’s econ­o­my can morph into a con­sumer-dri­ven econ­o­my is pre­pos­ter­ous. The very same con­sumers are employed in sec­tors like man­u­fac­tur­ing where there is mas­sive over­ca­pac­i­ty. If the world slides into anoth­er glob­al reces­sion, which is not beyond the realm of pos­si­bil­i­ty, I don’t see how Chi­na stays out of it and if they don’t then there’s no engine of growth left in the world.

HRN: So, even with a ris­ing mid­dle class, Chi­na remains depen­dent on exports?

John Embry: The fact is that Chi­na has become the world’s man­u­fac­tur­er but the abil­i­ty of their two largest cus­tomers, Europe and the Unit­ed States, to con­sume is being con­strained. Chi­na is not going to be able to keep sell­ing more year over year. The HSBC man­u­fac­tur­ing index has fall­en to reces­sion­ary lev­els.

HRN: It has been pre­dict­ed that Chi­na will become the world’s largest econ­o­my. Do you think that’s true?

John Embry: I think Chi­na will prob­a­bly dom­i­nate the 21st cen­tu­ry. The U.S. dom­i­nat­ed the 20th cen­tu­ry but it went through some very tough times in the first half of the cen­tu­ry.

HRN: With a slow­down in Chi­na, what’s your view on com­modi­ties like cop­per or crude oil?

John Embry: In the short term, I’m wor­ried about com­modi­ties. In a deep glob­al reces­sion, I expect there will be extreme mon­e­tary debase­ment, which will hold up the nom­i­nal prices of com­modi­ties more than sup­ply and demand fac­tors would sug­gest.

HRN: Do you fore­see a bear mar­ket in com­modi­ties?

John Embry: We are in a short-term bear mar­ket that will be arrest­ed by mon­e­tary debase­ment.

HRN: But there are val­ue buy­ing oppor­tu­ni­ties?

John Embry: Giv­en my views on cur­ren­cies, com­modi­ties that are already depressed could be decent repos­i­to­ries for wealth. I like agri­cul­tur­al prod­ucts. As the glob­al econ­o­my con­tin­ues to devel­op, I think the sup­ply of food is going to be a major issue.

HRN: How can investors pro­tect their assets in a glob­al reces­sion?

John Embry: The only things I’m com­fort­able hold­ing are pre­cious met­als and, because they are so cheap now, pre­cious met­als min­ing shares.

HRN: Where do you think the price of gold will end up?

John Embry: I’m more con­cerned with how many ounces I own than with how many U.S. dol­lars I can get for them at any giv­en point in time. Gold and paper mon­ey are going in oppo­site direc­tions.

HRN: Thank you for your valu­able time.

John Embry: It was my plea­sure.

© Copy­right MMXII RagingGoldenBull.com

15 Fundamental Reasons to Own Gold

Here is one that I have dug up from my archives, just to show how apt, and how long this has been com­ming — the smart investors got on this phase back in 2002 and have been chug­ging ever since. John Embry from Sprott assett man­age­ment gives us 15 fun­dame ntal rea­sons for us to own gold (note that this arti­cle was writ­ten back in Sep­tem­ber 26 2003 — and it is just as informed as it was then):

1.Global Currency Debasement

The US dol­lar is fun­da­men­tal­ly & tech­ni­cal­ly very weak and should fall dra­mat­i­cal­ly. How­ev­er, oth­er coun­tries are very reluc­tant to see their cur­ren­cies appre­ci­ate and are resist­ing the fall of the US dol­lar. Thus, we are in the ear­ly stages of a mas­sive glob­al cur­ren­cy debase­ment which will see tan­gi­bles, and most par­tic­u­lar­ly gold, rise sig­nif­i­cant­ly in price.

2. Investment Demand for Gold is Accelerating

When the crowd rec­og­nizes what is unfold­ing, they will seek an alter­na­tive to paper cur­ren­cies and finan­cial assets and this will cre­ate an enor­mous invest­ment demand for gold. To facil­i­tate this demand, a num­ber of new vehi­cles like Cen­tral Gold Trust and gold Exchange Trad­ed Funds (Elf’s) are being cre­at­ed.

3. Alarming Financial Deterioration in the US

In the space of two years, the fed­er­al gov­ern­ment bud­get sur­plus has been trans­formed into a yawn­ing deficit, which will per­sist as far as the eye can see. At the same time, the cur­rent account deficit has reached lev­els which have por­tend­ed cur­ren­cy col­lapse in vir­tu­al­ly every oth­er instance in his­to­ry.

4. Negative Real Interest Rates in Reserve Currency (US dollar)

To com­bat the dete­ri­o­rat­ing finan­cial con­di­tions in the US, inter­est rates have been dropped to rock bot­tom lev­els, real inter­est rates are now neg­a­tive and, accord­ing to state­ments from the Fed spokes­men, are expect­ed to remain so for some time. There has been a very strong his­tor­i­cal rela­tion­ship between neg­a­tive real inter­est rates and stronger gold prices.

5. Dramatic Increases in Money Supply in the US and Other Nations

US author­i­ties are ter­ri­fied about the prospects for defla­tion giv­en the unprece­dent­ed debt bur­den at all lev­els of soci­ety in the US. Fed Gov­er­nor Ben Bernanke is on record as say­ing the Fed has a print­ing press and will use it to com­bat defla­tion if nec­es­sary. Oth­er nations are fol­low­ing in the US’s foot­steps and glob­al mon­ey sup­ply is accel­er­at­ing. This is very gold friend­ly.

6. Existence of a Huge and Growing Gap between Mine Supply and Traditional Demand

Gold mine sup­ply is rough­ly 2500 tonnes per annum and tra­di­tion­al demand (jew­ellery, indus­tri­al users, etc.) has exceed­ed this by a con­sid­er­able mar­gin for a num­ber of years. Some of this gap has been filled by recy­cled scrap but cen­tral bank gold has been the pri­ma­ry source of above-ground sup­ply.

7. Mine Supply is Anticipated to Decline in the next Three to Four Years

Even if tra­di­tion­al demand con­tin­ues to erode due to ongo­ing world­wide eco­nom­ic weak­ness, the sup­ply-demand imbal­ance is expect­ed to per­sist due to a decline in mine sup­ply. Mine sup­ply will con­tract in the next sev­er­al years, irre­spec­tive of gold prices, due to a dearth of explo­ration in the post Bre‑X era, a shift away from high grad­ing which was nec­es­sary for sur­vival in the sub-eco­nom­ic gold price envi­ron­ment of the past five years and the nat­ur­al exhaus­tion of exist­ing mines.

8. Large Short Positions

To fill the gap between mine sup­ply and demand, cen­tral bank gold has been mobi­lized pri­mar­i­ly through the leas­ing mech­a­nism, which facil­i­tat­ed pro­duc­er hedg­ing and finan­cial spec­u­la­tion. Strong evi­dence sug­gests that between 10,000 and 16,000 tonnes (30- 50% of all cen­tral bank gold) is cur­rent­ly in the mar­ket. This is owed to the cen­tral banks by the bul­lion banks, which are the counter par­ty in the trans­ac­tions.

9. Low Interest Rates Discourage Hedging

Rates are low and falling. With low rates, there isn’t suf­fi­cient con­tan­go to cre­ate high­er prices in the out years. Thus there is lit­tle incen­tive to hedge, and gold pro­duc­ers are not only not hedg­ing, they are reduc­ing their exist­ing hedge posi­tions, thus remov­ing gold from the mar­ket.

10. Rising Gold Prices and Low Interest Rates Discourage Financial Speculation on the Short Side

When gold prices were con­tin­u­ous­ly falling and finan­cial spec­u­la­tors could access cen­tral bank gold at a min­i­mal leas­ing rate (0.5 — 1% per annum), sell it and rein­vest the pro­ceeds in a high yield­ing bond or Trea­sury bill, the trade was viewed as a lay up. Every­one did it and now there are numer­ous stale short posi­tions. How­ev­er, these trades now make no sense with a ris­ing gold price and declin­ing inter­est rates.

11. The Central Banks are Nearing an Inflection Point when they will be Reluctant to Provide more Gold to the Market

The cen­tral banks have sup­plied too much already via the leas­ing mech­a­nism. In addi­tion, Far East­ern cen­tral banks who are accu­mu­lat­ing enor­mous quan­ti­ties of US dol­lars are rumored to be buy­ers of gold to diver­si­fy away from the US dol­lar.

12. Gold is Increasing in Popularity

Gold is seen in a much more pos­i­tive light in coun­tries begin­ning to come to the fore­front on the world scene. Promi­nent devel­op­ing coun­tries such as Chi­na, India and Rus­sia have been accu­mu­lat­ing gold. In fact, Chi­na with its 1.3 bil­lion peo­ple recent­ly estab­lished a Nation­al Gold Exchange and relaxed con­trol over the asset. Demand in Chi­na is expect­ed to rise sharply and could reach 500 tonnes in the next few years.

13. Gold as Money is Gaining Credence

Islam­ic nations are inves­ti­gat­ing a cur­ren­cy backed by gold (the Gold Dinar), the new Pres­i­dent of Argenti­na pro­posed, dur­ing his cam­paign, a gold backed peso as an anti­dote for the finan­cial cat­a­stro­phe which his coun­try has expe­ri­enced and Rus­sia is talk­ing about a ful­ly con­vert­ible cur­ren­cy with gold back­ing.

14. Rising Geopolitical Tensions

The dete­ri­o­rat­ing con­di­tions in the Mid­dle East, the US occu­pa­tion of Iraq, the nuclear ambi­tions of North Korea and the grow­ing con­flict between the US and Chi­na due to Chi­na’s refusal to allow its cur­ren­cy to appre­ci­ate against the US dol­lar head­line the geopo­lit­i­cal issues, which could explode at any­time. A fear­ful pub­lic has a ten­den­cy to grav­i­tate towards gold.

15. Limited Size of the Total Gold Market Provides Tremendous Leverage

All the phys­i­cal gold in exis­tence is worth some­what more than $1 tril­lion US dol­lars while the val­ue of all the pub­licly trad­ed gold com­pa­nies in the world is less than $100 bil­lion US dol­lars. When the fun­da­men­tals ulti­mate­ly encour­age a strong flow of cap­i­tal towards gold and gold equi­ties, the tril­lions upon tril­lions worth of paper mon­ey could pro­pel both to unfath­omably high lev­els.

© Copy­right MMXII RagingGoldenBull.com

Yra Harris predicts Gold will Close Higher at Year End

Yra Har­ris is called a “trader’s trad­er.” He says the lat­est deal on Greek debt is just

pre­tend and extend.… ”

The real prob­lem is Spain because they’re big, they’re in debt and they have 27% unem­ploy­ment.” Every­one in the West­ern world is deal­ing with the sov­er­eign debt mess by print­ing mon­ey and sup­press­ing inter­est rates.

 

Har­ris pre­dicts:

As long as real yields are neg­a­tive, of course, gold is going to go up.”

Har­ris is afraid infla­tion could get out of con­trol and says:

It’s like being a lit­tle preg­nant, you can’t real­ly con­trol it. Noth­ing destroys democ­ra­cy like inflation–end of sto­ry.”

If Democ­rats and Repub­li­cans can’t reach a deal to avoid the so-called “fis­cal cliff,” then Har­ris con­tends,

Defla­tion … is bull­ish for gold because every­body knows what the cen­tral bank will do to answer the call … the Fed will become that much more aggres­sive.”

No mat­ter what, Har­ris is bet­ting that

gold will be high­er by the end of the year.”

© Copy­right MMXII RagingGoldenBull.com

Weird Blip in Todays Gold and Silver Charts after Market Close

Check out these charts form just after the close of todays trad­ing.

First todays Gold chart — drops and recov­ers 40 USD in an instant:

Gold is being manipulated?

Blip on Gold Chart from 2012-11-26

And now check-out the Sil­ver chart:

Blip on Silver chart for 2012-11-26

Blip on Sil­ver chart for 2012-11-26

Kind of fun­ny that they hap­pen at exact­ly the same time? The USDX (US Dol­lar index) shot-up and then recov­ered, in a mir­ror of the met­als move­ment.

Manip­u­la­tion? Foul-play? Hmm­mm.…..

So just why did Gold Jump 22 USD to 1,751 USD over Thanksgiving?

Gold prices could be back on their way upwards again. Last night at close of busi­ness gold prices jumped up (almost spiked up) 22 USD to close the day up at 1751.90 USD per once. It has not been there for almost 10 months so this could be a good sign for the year end.

gold has re-started it's upward journey

Gold back at 1,751 USD an once — On it’s way up once again ?

I would expect to see the last high of the 1900s’ test­ed again and if we are lucky could be into 2k USD Gold ear­ly next year. What a won­der­ful New Years gift that would be!

© Copy­right MMXII RagingGoldenBull.com