| Story Views | |
| Now: | |
| Last Hour: | |
| Last 24 Hours: | |
| Total: | |
Dr. Jim Willie: We’re Starting to See Disconnect Between Physical and Paper Gold (Video)
Each day, when the stock market closes, it’s surprising that Americans on Main Street can’t hear coastal elites in their network studios by the sound of all their “Oooooohs,” and their “Ahhhhhhs,” as equity markets keep closing higher and higher. Sadly, for the American people who are relying on our woefully dishonest mainstream media for the valuable information they need, no one is talking about what’s happening in the bond market.
If there is one thing liberals hate, it’s history (unless of course we’re talking about revisionist history), but if you look throughout history, virtually every single stock market crash we’ve ever had came immediately after a major bond crash, and bonds are beginning to crash in a major way! Despite the mainstream media ignoring it, there has been plenty of information available about enormous amounts of U.S. Treasuries being dumped at once. On multiple occasions over $100 billion in Treasuries has been dumped, often within just a few days.
What happens any time supply exceeds demand for anything sold on an open market? When there is too much quantity, the value of whatever is being sold goes down, and that is no different with U.S. Treasuries. The key takeaway here, is knowing that the yield (interest paid) on U.S. Treasuries runs inverse to the price, so when price drops, the yields (interest) go up. Since many 30-year mortgages are based on U.S. Treasuries, that is why mortgage rates have began going up rather quickly.
HERE IS THE PINK ELEPHANT IN THE ROOM: As Dr. Willie explains in the video below, seeing a rise in the yield for U.S. Treasuries is the death nail for U.S. equity markets. The only thing that has fueled the equity markets this long, has been the Fed artificially keeping interest rates near zero, and that is most likely going to end this week when the Fed meets. Making matters worse, has been the artificial manipulation of gold and silver prices by introducing more and more “paper gold” to trading markets.
Just like with U.S. Treasuries, as more “paper gold” floods the markets and supply goes up, it drives the price of gold down. Make no mistake, that is being done by design. Why isn’t the media reporting to people that every day over 100x more “paper gold” is traded than has ever been mined in the history of the planet? Isn’t that going to cause a problem of biblical proportions when everyone wants their gold at once? You bet it will.
DO NOT MISS: Stock Market Genius Warns Americans About False Hope With US Economy
When you hear people talk about the U.S. Dollar, or the equity markets being “artificially propped up,” that is one of many ways it’s done. The global economy’s foundation element is the U.S. Dollar as the World Reserve, and the U.S. Dollar is the largest Ponzi scheme in history. It’s a game that can only go on so long, and time is running out. In an article today on legendary investors Bill Holter and Jim Sinclair, Bill Holter said the following:
A “reset” of global finance is certainly coming, the only questions are how, when and how much? We believe the event will be very rapid, probably over a weekend but China could force a reset via Mother Nature and arbitrage in a slower manner…
Once Western vaults are emptied, who do think will “make price”? Those who don’t have it but suddenly want it, or those who have it and always wanted it? If we were running China, this is the exact mechanism we would use to remonetize gold and silver
…and remonetizing metal is exactly what we believe they have wanted to do for many, many years!
In the following interview, Dr. Jim Willie discusses how the dumping of U.S. Treasury Bonds is accelerating, the effect that is going to have on the U.S. Dollar’s fate, and disconnect between the paper and physical prices of gold. Following the interview is the full article by Bill Holder on jsmineset.com
DO NOT MISS: Dollar Collapse Has Begun; U.S. Bank Failures Soon to Follow
SUBSCRIBE TO THE TOP STORIES OF THE WEEK IN THE NEWSLETTER HERE
FOR MORE NEWS BY VOICE OF REASON CLICK HERE!
On the website he writes with legendary investor Jim Sinclair (jsmineset.com), Bill Holter writes:
Jim and I have received many panicked calls and e-mails regarding Martin Armstrong’s latest article. In it he again claims gold will collapse to below $1,000 per ounce and thus the fearful communications.
In this very short article, Armstrong questions whether India will begin gold confiscation suggesting door to door searches for “tax evaders”.
DO NOT MISS: Peter Schiff: “Default or Not, U.S. Dollar Is Going to Collapse Either Way”
We posted two articles late last year refuting his poor logic and efforts at rewriting history. In the first one, we refuted his claims that markets are not manipulated. Since then of course we have had many settlements by large banks for just that…MANIPULATING MARKETS. Last week saw Deutsche Bank admit to manipulating the gold market and agree to pay a $60 million fine (peanuts) and offer some seriously damaging evidence in the form of captured communications. As they have turned state’s evidence and squealed on others, this will become very interesting no doubt! we would simply ask, are banks in the business of handing out “free money” in the form of $billions if they’ve done nothing wrong? JP Morgan, Citi, DB and many others have coughed up large fines. Was this “largesse” or was it to head off the decapitating legal procedure called discovery?
Then a week or so after the first article, we were forced to pen another one,. Mr. Armstrong truly erred when he made the statement gold was “de”valued against the dollar in 1934. It was no slip of the pen or tongue, he actually tried to rationalize and “explain” how gold was devalued versus the dollar. The fact is, gold was REVALUED over 70% higher versus the dollar in 1934. The claim that “the dollar” was the best performing asset during the Great Depression is outright bogus and why we give zero credence to anything the man now says. We write this today because so many readers have again had the wits scared out of them.
DO NOT MISS: Dr. Jim Willlie, Peter Schiff, and Bill Holter: Cracks Forming in Bond Markets
The “timing” is peculiar. India’s (Modi’s) timing of their boondoggle by demonetizing 86% of their paper currency cannot be a coincidence. The action came right on top of India’s wedding season where their international gold purchases are seasonally strongest. It was our opinion right from the start, the action was directly taken to cut off and mute their physical demand and offtake from world markets. The only problem is that it backfired miserably as reports of physical gold changing hands internally within India at $3,000 per ounce and more.
Who couldn’t have seen this one coming? When you cut off supply …and autonomously tell people their “savings” in paper currency have been ostensibly wiped out, what would you expect to happen? Supply and demand still works, price rose as supply has been cut and true demand has had a fire lit under it. If you wanted proof that gold is still seen as a safe haven in the midst of turmoil, here it is! Meanwhile, India’s real economy has crashed unlike nearly anything seen in modern history. Giant Foxconn is eliminating 25% of their workforce due to the monetary insanity. Trucks are littering the sides of the road as the cash does not exist to purchase fuel. The disaster is just beginning, coming days and weeks will surely see “hunger riots”.
A similar question was raised about China over the weekend by Yra Harris regarding an article Kitco ran. What will happen if China decides to stop their importations of gold? Jim and I talked at length about this and then spoke with Yra to get his take on our conclusion should this happen. Wouldn’t the ban of imports cause a huge drop in paper gold prices but not necessarily cash price? The answer is yes, no, and we may well see the “mechanism” to reset global markets if we do.
DO NOT MISS: Jim Rickards Discusses Looming Shut Down of the Entire US Economy (Video)
Looking at China following India’s lead was an interesting thought process if you follow it through to the end. The fear of crashing price by “cutting off demand” is logical only if you stop the process before finishing the to the final answer. You see, were China to preclude gold imports, the immediate reactions by COMEX and LBMA would most probably be a crash …maybe even a $500 crash! Would that matter? Again, yes and no but stay with me to the end. “Price” in the West may crash, but “what” exactly is it the price “of”?
Paper prices may very well crash …while price for real gold within China goes to the moon. We are already seeing large spreads existing between Shanghai and COMEX, these would only get larger and expose one market as …not really a market. Will the Chinese look at COMEX prices and shun physical or in the ground gold? Or will they look at what real gold is changing hands at inside of China and decide to “arbitrage” it out of the ground (and from Western vaults) and into their own market?
This is the crux of what we theorized. Yes, it is certainly possible to see paper prices collapse from here and possibly sparked by China banning imports (temporarily). Set in motion would be paper prices dropping and physical markets rising (something I have written about since 2007 and spoke of since early 2000′s). China (official state) would then “purchase” and demand delivery of ridiculously cheap gold (while there is still inventory left to deliver). As Jim put it during our last weekend interview, “you could see COMEX gold at $10 offered and no bid with Chinese cash markets $5,000 bid and no offer”.
DO NOT MISS: Jim Rickards Discusses Looming Shut Down of the Entire US Economy
China (Russia and India) will ultimately “make price” as they are the physical markets and collectively have more gold than the West (please don’t reply with GFMS or World Gold Council numbers as they are laughable). A “reset” of global finance is certainly coming, the only questions are how, when and how much? We believe the event will be very rapid, probably over a weekend but China could force a reset via Mother Nature and arbitrage in a slower manner. Real gold will find its way into India (and China should they ban imports) simply due to the human characteristic of profit motive and black markets. Once Western vaults are emptied, who do think will “make price”? Those who don’t have it but suddenly want it, or those who have it and always wanted it? If we were running China, this is the exact mechanism we would use to remonetize gold and silver …and remonetizing metal is exactly what we believe they have wanted to do for many, many years!
To finish, Martin Armstrong was wrong about gold during the Great Depression even with the benefit of recorded history. Now, he could possibly be correct regarding the direction of his invention of derivative contracts … but we believe he is entirely wrong about the underlying physical product. One thing is certain, should the current paper versus physical pricing spread continue and expand, Netjets will become a great investment as a freight carrier for arbitrage!
Standing watch,
Bill Holter,
BE SURE TO CHECK THELASTGREATSTAND.COM FOR SURVIVAL GEAR!
FREE DETAILED GUIDE TO SURVIVING ECONOMIC COLLAPSE OR MARTIAL LAW HERE
IF YOU READ NOTHING ELSE, THE FOLLOWING POSTS ARE ESSENTIAL:
Peter Schiff: “Default or Not, U.S. Dollar Is Going to Collapse Either Way” (Video)
Jim Rickards Discusses Looming Shut Down of the Entire US Economy (Video)
Dr. Jim Willie: Worst Bond Crisis in 15 Years, World Quickly Losing Confidence in US
Bill Holter: Between Now and Election Will Be Extremely Dangerous (Video)
Dr. Jim Willie: We Are on the Brink of World War; Americans Totally Clueless - Pt. 1
Dr. Jim Willie: We Are on the Brink of World War; Americans Totally Clueless - Pt. 2
Bill Holter: Newly Solidified Chinese Superpower Will Replace Dead U.S. Dollar (Interview)
Peter Schiff: Don’t Believe the Hype! The Real Economic Fallout From Brexit (Video)
How Will the U.S. Conduct Trade With Worthless U.S. Dollars and No Gold? (Video)
Why Did Illuminated George Soros Liquidate 37% of His Stock to Buy Gold? (Video)
.jpg)
FOR MORE GREAT MATERIAL FROM JIM WILLIE:
Dr. Jim Willie: Americans Cannot Comprehend the Loss of the Dollar as the World Reserve
Dr. Jim Willie: Worst Bond Crisis in 15 Years, World Quickly Losing Confidence in US
Dr. Jim Willie: U.S. Will Lose Global Reserve Status, 80-90% Devaluation of U.S. Dollar
Dr. Jim Willie: Unprecedented Bond Dumping Means U.S. Dollar Collapse Ahead
Dr. Jim Willie: Western Banking Is Totally Broken, Insolvent and Corrupt
Dr. Jim Willie: Huge Red Flags Could Be Telling Us Global Currency Reset Is Upon Us!
Dr. Jim Willie: The Earth Continues to Turn, Even as it Continues to Crumble
Dr. Jim Willie: Collapse of U.S. Dollar, Rise of Gold, and Global Economic Rehab (Video)
Dr. Jim Willie: Understanding the Root Cause of the Coming Global Reset… (Videos)
Dr. Jim Willie: Soon the Fireworks Will Start, then Hell on Earth Follows (Video)
Dr. Jim Willie: China Isolating the U.S. (and U.S. Dollar) From Trade (Video)
Dr. Jim Willie: Banks Are Beginning to Prepare for Nuclear Winter (Interview)
Dr. Jim Willie: U.S. Elites Are Losing All Their Power (Video)
Dr. Jim Willie and the Systematic Bankruptcy of Western Society (Video)
Dr. Jim Willie: New World Order Elites in Absolute Terror of Gold Standard (Audio)
Dr. Jim Willie: We’ve Got “Educated People” That Are Stupid As Bedposts
.jpg)
FOR MORE LINKS ON MARTIAL LAW:
Reports of Active U.S. Military Drilling for “Authoritarian Rule of Law” (Martial Law)
U.N. Soldier Says They Will Soon Occupy America: “Going Door-to-Door Taking Guns…”
1,500 Pages of New Documents That Reveal U.S. Government’s Martial Law Agenda (Video)
Mainstream Media Blasts Alternative News Personality on FEMA Camps (Videos)
Ron Paul: Undeniable Proof Martial Law Is Coming Because of the Economy (Video)
Virginia Police and Homeland Security Doing Exercises for Marital Law Conditions (Video)
Latest News on Government’s Preparing For Civil War or Martial Law (Videos)
Martial Law Convoys Sent to Baton Rouge, Dallas, and St. Paul Before Shootings (Videos)
Pentagon Approves U.N. Use Of Force Against American Civilians (Video)
What Is the U.S. Government Endlessly Preparing For (Videos)
Patriot Films Shocking New Video of a FEMA Camp Recently Discovered in Texas
Major Update to Military Movement and Actual Documentation of Their Plans (Video)
United Nations Troops on U.S. Soil Prepared to Assist With Martial Law? (Videos)
Obama Has Prepared FEMA for All Four Storms… Are You Prepared?
13 States Obama Is Using for His Nefarious Secret Agenda (Video)
Obama: Be Ready For EMP Attacks, Engineered Pandemics, Earthquakes, and Martial Law
How Likely is Martial Law in the US, and What Happens Under Martial Law
Law Enforcement Preparing For Rioting on National Scale (Videos)
All Armed Americans To Be Detained In FEMA Camps Starting In 2017? (Video)
Beware of Martial Law: Obama Will Confiscate Firearms Of All 50 States in 2016
Army Not Prepping for Battle; Training For Riot Control and Martial Law
Pentagon Says Preparing For Huge Civil Unrest in U.S. (Videos)
Political Dissidents Homes Being Marked By FEMA Prior to Martial Law?
Government “Threat List:” 8 Million People To Be Detained Immediately
| THE VOICE OF REASON: | |
| Website: | http://thelastgreatstand.com |
| Facebook: | https://www.facebook.com/LastGreatStand |
| Instagram: | https://www.instagram.com/thelastgreatstand/ |
| Youtube: | https://www.youtube.com/c/RightWingConspirator |
| Google + | https://plus.google.com/+Thelastgreatstandconspirator/posts |
| https://twitter.com/#!/LastGreatStand | |
| Seen.Life | http://www.seen.life/profile/21900069-voice-of-reason |
| Minds | https://www.minds.com/VoiceofReason |
| Grassfire | http://grassfire.com/users/voiceofreason/profile/ |
| Tea Party Community | https://www.teapartycommunity.com/profile-151600/ |
| Before it’s News | /contributor/pages/405/008/stories.html |
| Right.IS | http://right.is/contributor/pages/351/169/bio.html |
SUBSCRIBE TO THE TOP STORIES OF THE WEEK IN THE NEWSLETTER HERE
FACEBOOK | GOOGLE+ | TWITTER | PINTEREST | STUMBLE UPON | TUMBLR
FREE GUIDE TO ECONOMIC COLLAPSE OR MARTIAL LAW…
AT THE OFFICIAL BLOG SITE BELOW!
FACEBOOK | GOOGLE+ | TWITTER | PINTEREST | STUMBLE UPON | TUMBLER
