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Real Gold vs Pretend Gold

Real Gold vs Pretend Gold

Real Gold vs Pretend Gold - Craig Hemke (14/01/2020)

The battle continued in 2019, and rarely has the disparity been this sharp.

And what do we mean?

Well, on one hand, you have real physical gold. This is gold that you store yourself or at a trusted vaulting company. This is gold that you can actually hold in your hands. This is the gold that is demanded at record levels by central banks around the globe.

On the other hand, we have pretend gold. This is the domain of the bullion banks. They offer futures contracts, unallocated accounts, and ETFs…all as an alternative to the real thing and as a way of increasing the total supply of “gold” in what amounts to a modern day alchemy.

What’s astonishing is that the investment world allows a physical price to be determined through the trading of the pretend alternative. More on that in a minute. But first, let’s look at two data points that stand in stark contrast to each other.

First, there’s demand for the real thing: physical gold. One great story in 2019 was how the Polish central bank purchased—and then demanded immediate delivery of—about 100 metric tonnes of physical gold. The Poles are no dummies, and they apparently wanted no part of the unallocated promises from the LBMA: https://www.bloomberg.com/news/articles/2019-11-25…

In total, it appears that reported central bank demand for gold will exceed 670 metric tonnes in 2019. This follows what was a 50-year record demand of 641 metric tonnes in 2018. This from the World Gold Council at the end of Q32019: https://www.gold.org/goldhub/research/gold-demand-…

So, as price rose by 18% in 2019, a logical conclusion would be that this was due to strong physical demand. And that conclusion would be mostly correct. This is Econ 101. Surging demand often leads to higher prices, and the central banks alone soaked up nearly 25% of global gold production in 2019.

…click on the above link to read the rest of the article…

Canada’s “Enron-style” Economics: Most Wealth Redistribution Occurs Off the Books

Canada’s “Enron-style” Economics: Most Wealth Redistribution Occurs Off the Books

Canada’s “Enron-style” Economics: Most Wealth Redistribution Occurs Off the Books - Peter Diekmeyer (25/11/2019)

The Trudeau Administration’s reappointment of Bill Morneau as the country’s Finance Minister last week was by far its most important. 

During his first term, Morneau managed to hold together a shaky Canadian economy, which for the past three decades has relied on driving borrowing and spending increases at a pace faster than economic growth just to keep the system afloat. 

It’s a Ponzi scheme, and insiders know it.

The question is whether Morneau—whose education, financial background, and previous work at the C.D. Howe Institute position him as one of the brightest lights in a weak Trudeau cabinet—can keep the game going. 

Morneau’s biggest challenge will be operating in an environment in which estimated off-the-books annual wealth transfers* caused by the federal government’s suppressed interest rate policies are twice the size of his official budgets. 

“Taxes on idiots” 

The challenge is that it is hard to manage off-book wealth distribution, because so few people know that it exists. 

That’s no accident. Economists figured out long ago that voters would never pay for bloated public spending if they knew its true cost. 

Over the years, governments have thus developed a variety of revenue sources that voters can’t see. Corporate and payroll taxes are one example. Lotteries and casinos, which have been described as “taxes on idiots”, are another.

Supressed interest rates, which rob pensioners and retirees of the benefits of a lifetime of thrift, act much the same way. 

Yet while economists distinguish between fiscal (overt) and monetary (off the books) policy, few have ever tried to quantify the difference. 

In truth, as we noted last week , the process is complicated.

…click on the above link to read the rest of the article…

Ask the Expert – Nomi Prins – October 2019

Ask the Expert – Nomi Prins – October 2019

Ask the Expert - Nomi Prins - October 2019

Bestselling author Nomi Prins is an American author, journalist, and public speaker. A former managing director at Goldman Sachs and senior managing director at Bear Stearns, her latest book is Collusion: How Central Bankers Rigged the World. Her previous book All the Presidents’ Bankers explored over a century of close relationships between 19 Presidents from Teddy Roosevelt through Barack Obama and the key bankers of their day, based on original archival documents. Prins also received recognition for her whistleblower book, It Takes a Pillage: Behind the Bonuses, Bailouts, and Backroom Deals from Washington to Wall Street , for her views on the U.S. economy, for her published spending figures on federal programs and initiatives related to the 2008 bailout, and for her advocacy for the reinstatement of the Glass–Steagall Act and regulatory reform of the financial industry.

This month, Nomi answers seven of your listener-submitted questions, including:

• When will the U.S. dollar end its reign as global reserve currency?

•  Should you be concerned about gold confiscation?

  • Plus: If the financial system crashes, are you at risk?

U.S. Constitutional Crisis? Not According to Gold Bullion

U.S. Constitutional Crisis? Not According to Gold Bullion

U.S. Constitutional Crisis? Not According to Gold Bullion - Nathan McDonald (26/09/2019)

The system is collapsing, the markets are crashing, and gold and silver bullion are soaring higher, attempting to protect their investors from the impending doom about to befall us.

Or not.

The Mainstream Media is at it again, beating the war drum and attempting to rile up the people of the United States, the markets, and anyone else that will listen. After all, you’ve got to get those clicks.

The hubbub that I am referring to regards the ongoing “constitutional crisis” taking place in the United States even as I write this article.

A “whistleblower” in the Intelligence Community has stepped forward with damning information that he / she heard from a guy who knows a guy who knows for a fact that President Trump is attempting to circumvent the election process, big league.

Straying from tradition and in record-breaking fashion, the Trump administration released the transcripts of the supposed incident, which took place via phone call with the President of Ukraine. The “whistleblower” believes the President attempted to garner foreign interference in the upcoming 2020 elections by having Ukraine investigate Joe Biden and his son Hunter Biden.

This, of course, would be very concerning if true, even if there was undoubtedly some funny business that took place regarding Hunter’s “incident” while Vice-President Biden was in office.

To read more about the background surrounding this past event, I suggest Karl Rove’s recent Op-Ed that appeared in the WSJ this morning.

If all of these allegations were true, then you would expect that President Trump and his administration would go into immediate “lock down” mode, making it as difficult as possible for the opposition to investigate his “wrongdoings”. Which is what I believe both the Democratic Party and the MSM thought would happen.

 …click on the above link to read the rest of the article…

Liberty Under Attack: Gold and Silver Fall?!

Liberty Under Attack: Gold and Silver Fall?!

Liberty Under Attack: Gold and Silver Fall?! - Nathan McDonald (11/04/2019)

Image Source, via Ruptly 

On a day like today, the irony of gold and silver losing key psychological support levels is beyond ironic, it is ludicrous.

Unless you are living under a rock, then you will have heard that after seven years of hiding out in the Ecuadorian Embassy, Julian Assange, the founder and head of Wikileaks, was forced out of asylum and arrested by the UK government.

This move, highly anticipated for days, caused a sudden flood of emotions, with some supporting the arrest and others screaming out in rage and shock as they watched a disheveled Assange being dragged out of the Embassy and thrown into an awaiting police vehicle.

His appearance once again raised concerns about his well-being and health, as many of his supporters have worried about the damage the last seven years of confinement have done to his mental health.

These concerns appeared to be valid, as Julian Assange without a doubt looked absolutely horrible.

Whether or not you support Julian Assange and Wikileaks likely depends on the way the political winds are currently blowing.

I remember well the entirety of the Assange saga and the work that Wikileaks has done throughout the years, exposing such things as the ” Iraq War Logs” and the “leaked State Department cables“.

These two very prominent leaks exposed a deep level of corruption within the U.S. government, and thus Assange became an enemy of the United States bureaucrats and the deep state.

The first major leak made Assange a hero to the left, as it greatly damaged President Bush and the Republican party of the time by exposing the violent acts of torture the military was committing overseas.

The second major leak saw the political winds change, blowing them in another direction.

Turning the left, who once idolized Assange, against him.

 …click on the above link to read the rest of the article…

Morneau is Flying Blind

Morneau is Flying Blind

Morneau is Flying Blind - Peter Diekmeyer (01/04/2019)

The Trudeau Government continues to resist calls for an overhaul of its complex tax regime. 

Yet Bill Morneau, Canada’s Minister of Finance, who was in town this week to address the Montreal Chamber of Commerce, wouldn’t name a single non-accountant that he knew who understands tax code.

Pressed by local media, the Minister admitted that he had no idea whether even his own university-educated daughters—who he has said are powerful influences on his political thinking—were able to complete their own returns. 

“The subject never comes up at the supper table,” he joked. 

Long-time tax reform activists greeted the news with a yawn. 

“The Minister’s answer speaks for itself,” says Aaron Wudrick, a director at the Canadian Taxpayers Federation. “Nobody understands the tax code because it’s absurdly complex.” 

Cracks in Canada’s centrally-planned economy

Less well-understood is the fact that even the brightest public officials can’t measure the far-reaching implications of the Income Tax Act and other complex legislation. 

That’s because much of the government’s spending comes in the form of increases in unfunded liabilities and hidden transfers caused by interest rate suppression. These expenses are kept off of the government’s books, making them almost impossible for activists like Wudrick to challenge. 

This in turn raises growing questions about the overall effectiveness of Canada’s centrally-planned economy, where public spending accounts for nearly half of GDP. 

Some examples:

1. Subsidizing electric vehicles, but giving bigger breaks for gas-guzzlers

Morneau’s proudest achievements include the government’s environmental record, notably the measures announced in his budget to support the electric car industry.

Unfortunately, the Canadian government also provides billions of dollars of much-larger subsidies to buyers of gas-guzzling cars, trucks and SUVs.

 …click on the above link to read the rest of the article…

The Most Important Chart in Economics?

The Most Important Chart in Economics?

The Most Important Chart in Economics? - Peter Diekmeyer (25/03/2019)

Earlier this month, the U.S. Federal Reserve quietly released the Financial Accounts of the United States. Like most government data, the 198-page report (known to insiders as the Z1) is almost impossible to understand.

However, to the economists and accountants who wade their way through the mess, the implications are clear.

America has been growing government, business and household debts faster than its economy for more than four decades. Despite the huge runup in asset prices during that time, the country is essentially bankrupt.

The impending disaster becomes even clearer when presented visually. 

The above chart, compiled on the St-Louis Fed’s FRED site, strongly suggests that economists have been pushing a GDP expansion that has been fueled almost uniquely by debt.

The three stages of scam economics

The story of how the American government and the Federal Reserve—with the quiet backing of university academics—fueled this elaborate Ponzi scheme unfolded in three stages.

Tax and spend

The first signs emerged in the 1960s and early 1970s, when American companies, after an almost three-decade free ride, began to get competition in international markets from countries such as Japan and Germany, which had been bombed back to the stone ages during World War II.

By that time, the American public had gotten used to constantly-rising living standards. For politicians, asking voters to work harder or to curtail constant demands for “more” became increasingly more difficult. 

Governments responded with what became known as “tax and spend” economic policies.

Taxing the hard-earned savings of workers and passing the cash to bureaucrats to spend instantly created “sugar highs,” due to the short-term effects of dumping extra cash into the economy. 

 …click on the above link to read the rest of the article…

The Trend Continues: Romania Introduces a Bill to Repatriate its Gold Reserves

The Trend Continues: Romania Introduces a Bill to Repatriate its Gold Reserves

The Trend Continues: Romania Introduces a Bill to Repatriate its Gold Reserves - Nathan McDonald (08/03/2019)

The trend is accelerating, just as I predicted it would.

Countries all over the globe are growing anxious, as the geopolitical atmosphere of the world continues to heat up, threatening to hit a boiling point.

Central bankers and government officials who see the world through an unfiltered, non-rose-tinted lens are well aware of this, and are beginning to take the necessary actions required to protect themselves and their homelands.

China, Russia, India, Poland and Turkey are just a few of the countries that have made no secret of their plans for long-term accumulation of precious metals, in a hope to diversify their national reserves out of the U.S. dollar and into hard money.

I, along with many others in the precious metals community, believe that the reason for this is that they can see the writing on the wall and are well aware of what is coming down the road.

They know that the U.S. dollar will not be the reserve currency of the world forever, and from their actions, I believe they know that precious metals will once again take center stage, playing a vital role in the next successor to the throne.

Joining the growing ranks of concerned countries is Romania, a holder of 103.7 tonnes of gold. Or rather, a country that believes they hold 103.7 tons of gold.

As I have stated numerous times, if you don’t hold it, you don’t truly own it.

Physical possession of a significant portion of your precious metals is vital in these times of growing unrest.

Waking up to this reality, Chamber of Deputies President Liviu Dragnea and Senator Serban Nicolae of Romania have proposed a bill to force the National Bank to repatriate 95 percent of Romania’s gold reserves, which are largely held abroad.

 …click on the above link to read the rest of the article…

The U.S. National Debt is Completely Out of Control. Oh Well?

The U.S. National Debt is Completely Out of Control. Oh Well?

The U.S. National Debt is Completely Out of Control. Oh Well? - Nathan McDonald (01/03/2019)

The U.S. National Debt recently blew past the $22 trillion mark, to the shock and amazement of… 

Almost no one.

Although there remains a minority of individuals who are concerned about the exploding debt level, they are a shrinking minority, as more and more people are simply content to drift into blissful ignorance, disregarding the alarm bells going off all around us.

To many, especially the millennial and younger generations, the creation of money is just as mysterious as electricity or the internet. It simply is, and it has always been.

Too few now remember when honest money reigned and governments were forced to be fiscally responsible due to the checks and balances that the gold standard placed on them.

Sadly, $22 trillion is just the start, as the unfunded liabilities that the United States now owes stands at a truly ghastly number, $122 trillion.

And the U.S. isn’t alone. Countless “established” countries around the world find themselves deeply in debt, with no chance of ever “digging” themselves out.

For years, I have pointed out these increasing debt levels. For years, I and many others have been ignored. And sadly, I fear that we have now crossed the Rubicon and there is no going back.

What cannot be repaid will not be repaid. Remember these words.

This is the reality we now live in: a world where debt levels, at least in the short term, simply do not matter… until they do.

We are in one massive shell game, and those playing the game know that it is rigged, but have no choice but to continue with their participation.

 …click on the above link to read the rest of the article…

Central Banks Buy Gold Bullion Hand Over Fist, Most Purchased Since 1967

Central Banks Buy Gold Bullion Hand Over Fist, Most Purchased Since 1967

 Central Banks Buy Gold Bullion Hand Over Fist, Most Purchased Since 1967 - Nathan McDonald (14/02/2019)

Cryptocurrencies have been crushed, the stock market looks poised for a slowdown and the world stands on the edge of a cliff, as geopolitical tensions flare across the globe, waiting for a spark to ignite the flames.

The smart money knows it, and they are starting to move. This includes Central Bankers, which are buying the king of metals, gold bullion, hand over fist.

As I stated at the start of this year, I believe 2019 will see significant accumulation in the precious metals market, which will finally break out of the horrible sideways trading pattern we have been in for years.

As many of you know, gold has been stuck in an abysmal trading pattern, moving slightly above $1300 only to be crushed back down toward the $1100 mark.

This comes in spite of the fact that we now face the most geopolitical uncertainty we have seen in decades.

However, not everyone has been unaware of these dangers.

Central Banks spent 2018 accumulating precious metals in a monumental way, increasing their holdings by the most in one year since 1967. Quietly accumulating while the rest of the financial world happily ignores the alarm bells going off all around them.

Recently, the World Gold Council stated that the world consumed 4,345.1 tonnes of gold throughout 2018, up from 4,159.9 tonnes in 2017.

The chief driver of this move higher was Central Banks, which bought 651.5 tonnes throughout 2018, a staggering 74 percent increase over 2017, and as previously stated, the largest increase since 1967.

Sadly, Western Central Bankers are still asleep at the wheel and were not the main contributors to this increase.

As I have been reporting on for years, countries such as Russia, India, China, Poland, Kazakhstan and Turkey were the main purchasers of gold bullion throughout 2018.

 …click on the above link to read the rest of the article…

Demand for Physical Gold & Silver Bullion Increase As Geopolitical Tensions Erupt Around the World

Demand for Physical Gold & Silver Bullion Increase As Geopolitical Tensions Erupt Around the World

Demand for Physical Gold & Silver Bullion Increase As Geopolitical Tensions Erupt Around the World - Nathan McDonald (31/01/2018)

You can sense it. You can feel it.

The tension in the air is all around us, and it’s not just isolated to one country. Rather, it is a global phenomenon.

Geopolitical angst is rising as trade wars rage across the globe, with countries picking sides and either moving radically to the left or to the right, with all middle ground rapidly evaporating.

This is a recipe for disaster, and we are soon to enter a period of incredible turmoil and unrest, as people become more and more desperate to assert their political will over their opponents, no matter the cost.

This will, as it always has, lead to great political upheaval, upending the proverbial apple cart in the process.

We already see this unfolding in politics all over the world, as people take more and more extreme measures, forgoing the traditional means of change and adopting more radical approaches.

Look at Venezuelalook at Francelook at the United States. Change is happening, and it is happening fast.

Now more than ever, it is vital to protect yourself, to take personal liberty over your finances and to prepare for the hard times that are soon to be upon us.

There are many steps that could be taken to mitigate the risks coming to you and your family. However, first and foremost is the acquisition of gold and silver bullion, both of which are tried, tested and true ways of preserving your wealth in times of increased tension and chaos.

I personally believe that taking physical possession of your precious metals is the first step in this process. This is an insurance policy that has worked for thousands of years, getting people through some of hardest times in human history.

 …click on the above link to read the rest of the article…

Party On: Fed Chairman Powell Capitulates to the Market

Party On: Fed Chairman Powell Capitulates to the Market

FED Chairman Powell, who for a time was appearing to go rogue and stray off the beaten path of loose monetary policy paved by so many of his predecessors, has collapsed his resistance and utterly given in to the demands of the market.

At a forum hosted by the American Economic Association in Atlanta last Friday, FED Chairman Powell was a “good boy” and did exactly what Wall Street demanded.

He stuck to a well-written script of carefully selected words, focusing time and again on a few in particular, but most notably the word “patient”.

The context in which this word was used was in reference to raising interest rates.

As we have noted in previous articles, the hawkish approach adopted by FED Chairman Powell was ill received by both the markets and President Trump, who has been in an open feud with the FED.

This insistence on raising interest rates has caused the markets to gyrate wildly, causing sporadic, sharp dips lower in the broad stock market. This struck deep fear into investors, as they began to worry that the end of the “easy money” era was over.

Like his predecessor Janet Yellen, who also carefully chose the word “patient”, Powell intentionally selected this word to signal to the markets that (also like Yellen) he was willing to put on the velvet gloves when it came to handling the markets.

FED Chairman Powell stated the following:

“We’re listening carefully with … sensitivity to the message that the markets are sending and we’ll be taking those downside risks into account as we make policy going forward.”

…click on the above link to read the rest of the article…

The Apex Predator That Will Take Down Wall Street (And K Street)

The Apex Predator That Will Take Down Wall Street (And K Street)

Grant Williams grabbed our vote for the top Alt-Finance presentation of 2017 for A World of Pure Imagination , which highlighted global stock, bond and real estate bubbles that are now showing signs of imploding.

The co-founder of RealVision TV excelled again during 2018 for Cry Wolf, an encomium for a gold-backed currency, which Williams argues would act as an “apex predator” to check government policies that have enticed Americans to borrow themselves into near-bankruptcy.

“In gold’s absence, bankers have multiplied precipitously, creating new variations on the same theme: credit,” says Williams, who likens the process to the proliferation of deer in Yellowstone National Park following extermination of wolves in the 1930s. “They have grazed the financial landscape to virtually nothing.”

Williams’ arguments are well-understood in the precious metals community, where he has taken on a growing role as a Yoda of sorts—a lonely voice arguing cogently for financial sanity.

However, Williams’ ideas are essentially unknown to ordinary investors and the general public, in part because (ironically, for what many describe as a capitalist economy) free market thinkers are essentially banned from governments, universities, and the mainstream media.

Hence the importance of Cry Wolf, which dramatically illustrates the role of what Joseph Schumpeter called “creative destruction,” whose effects Williams likens to the reintroduction of wolves in Yellowstone in 1995.

Destructive preservation: rewarding the inefficient

Right now, the U.S. economy is (in many ways) the opposite of a free market.

Much of this is directly tied to the gradual banning of gold-backed currencies, which has enabled governments to print money and distribute it to favored interest groups, often in secret, without taxpayer approval.

…click on the above link to read the rest of the article…

Preparation is Vital. 2019 is Destined for Chaos

Preparation is Vital. 2019 is Destined for Chaos

As you make your New Year’s resolutions, make sure you allot room for some much needed protection as we head into 2019 and beyond.

It may not be the rosy picture many of you were hoping for, but sadly, 2019 appears to be destined for increased chaos, turmoil and outright confusion.

The chief driver of this will undoubtedly be the current disheveled state of affairs we are seeing unfold in the United States.

As we enter another week of government shutdowns, we are getting just a small sample of what this year has in store. We haven’t seen anything yet, and I believe the madness witnessed throughout 2018 was just an opening act.

President Trump is being challenged on all sides, and I believe at this point moving forward we will see some very serious and drastic changes within his administration, as he rapidly clears house of anyone he believes belongs to the “old establishment”, replacing them with those whom he deems “loyal” to him.

In addition to this, we are going to see him use every weapon in his arsenal to jam through as much of his agenda as he possibly can within his legal powers.

This will enrage his opponents and embolden his die-hard supporters, all while doing damage to the system as a whole in the long run.

At this point, from a personal perspective, the left has left him little-to-no options, as he now fights for his and his family’s survival—all of whom his opponents would love to see behind bars, no matter the ramifications this would cause to the very fabric of the United States.

Meanwhile, emboldened by their recent victories, the radical far-left elements within the Democratic party are going to come fast and hard at Trump, attempting to take him down as viciously as they can.

…click on the above link to read the rest of the article…

No “Poloz Put?” Ignore BoC Warning At Your Peril

No “Poloz Put?” Ignore BoC Warning At Your Peril

Governor Stephen Poloz’s warning last week that the Bank of Canada wouldn’t backstop fluctuating stock markets drew little attention.

“Is there a Poloz Put?” the central bank head asked rhetorically. “No.”

At first glance, the fact that only one BNN Bloomberg producer and a few smaller media picked up the story is hardly surprising.

Canada is a mere bit player in global central banking and financial markets, and the opinions of any Canadian official generally carry little weight outside of local circles.

However, in December 2017 Poloz provided investors a similar warning about Bitcoin, then trading near its all-time high, but which subsequently fell by more than 80%.

Investors would thus be foolish to ignore him now.


One of the Fed’s main policy tools

First, a little background. The idea that governments are key drivers of stock prices may appear ludicrous to those who believe that Western economies are free markets.

However, as Moody Analytics notes, higher asset prices and resulting wealth effects are one of the Federal Reserve’s main policy tools for achieving its inflation and economic growth targets.

For U.S. stock traders operating today, most of whom have never seen a crisis that government hasn’t bailed them out of, the Fed’s most important manipulation is the existence of a tacit “put,” which ensures that asset prices won’t fall too far.

Former Federal Reserve Chairman Alan Greenspan, Ben Bernanke and Janet Yellen all intervened to boost asset prices at key points when the heavily-indebted U.S. economy appeared set to implode.

The Bank of Canada’s policies are less overt. While the central bank claims that it “does not target asset prices,” asset price manipulation is clearly direct “collateral damage” resulting from its other policy objectives.

…click on the above link to read the rest of the article…

Olduvai IV: Courage
In progress...

Olduvai II: Exodus
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