Market Recap forTuesday January 29, 2013
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GOLD
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$1663.90
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$9.40
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GOLD - 1 year ago
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$1737.30
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-$73.40
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SILVER
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$31.38
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$0.54
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SILVER - 1 year ago
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$33.99
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-$2.61
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PLATINUM
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$1676.00
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$17.00
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PALLADIUM
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$748.00
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$12.00
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RHODIUM
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$1200.00
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0.00
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HUI
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401.38
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5.92
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XAU
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151.72
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2.51
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USD
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79.54
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-0.27
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EURO/USD
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1.3483
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0.0029
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DOW
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13954.42
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72.49
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GOLD to SILVER RATIO
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53.02 to 1
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-0.63
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Table of Contents
Click on the Links Below to Scroll to the Articles
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Private Meetings and Events
Miles Franklin seeks creative ways to partner with its clients to market Precious Metals to nationwide audiences. If you are interested in hosting a private meeting - or sponsoring a Webinar presentation - with Andy Schectman, President of Miles Franklin, and "Ranting Andy" Hoffman, Marketing Director, please inquire via email to aschectman@milesfranklin.com or ahoffman@milesfranklin.com; or via telephone at 800-822-8080. |
Quotes of the Day
...the 'Big 3' gold shorts are also the 'Big 3' silver shorts as well...JPMorgan Chase, Bank of Nova Scotia...and HSBC USA.
- Ed Steer, Casey Research, January 29 2013
"Historic Move by the U.S. has Just Guaranteed Hyperinflation" (check out the link)
- James Turk, KingWorldNews.com, January 28 2013
The other thing I get tired of mentioning...and I'm sure you get tired of hearing...is that how high and fast the next price rally goes, depends 100 percent on whether or not the bullion banks go short against the new technical fund longs that come back into the market once the price has broken above key moving averages. If they do, it will be the same price pattern we've been looking at for the last twenty-five years or so.
- Ed Steer, Casey Research, January 29 2013
No tree grows to the sky. As I write the Dow is up 72 points. Transports are down 64. I'm getting the feeling that we're moving into a final short squeeze in which the shorts finally "can't take it any longer" and the market looks as though it will never go down. This indicates that the shorts are beginning to panic out of the market. This is where the stock market blows its top, and it should be quite a sight.
- Richard Russell, Dow Theory Letters, January 29 2013
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From David's Desk
How Goes It on the Inflation Front?
If you ask John Williams, he will reply...
| David Schectman |
Lately, the big question affecting the price of gold is will the Fed continue QE or will they cut back, fearful of inflation? Inflation, by their definition is running around 2%. But, as you can see in the graph above, inflation is really running over 9%. Which inflation number are they afraid of? Since the beginning of the financial market turmoil in August 2007, the Federal Reserve's balance sheet has grown in size and has changed in composition. Total assets of the Federal Reserve have increased significantly from $869 billion on August 8, 2007, to well over $2 trillion, much of it being near-worthless mortgage bonds. That is the engine of inflation and it is increasing to the tune of around $80 billion per month, as they continue to create new money, with the stroke of a keyboard, to purchase toxic mortgage bonds from the too-big-to-fail banks, and Treasuries on the open market.
If they aren't afraid of inflation they should be. Jim Sinclair and John Williams say they cannot and will not cut back. They "jawbone," but don't act. How can they stop? If they abandon the Treasury market, interest rates WILL rise - actually they are already starting to rise. Remember, for every 1% rise in the interest rates, we add $160 billion in new interest to the annual deficit and the debt. And, rising interest rates are toxic to the stock market and deadly to the already sickly real estate market.
Simply put, we can't afford to let interest rates rise and that is what QE is all about, plus clearing worthless assets off the banks' balance sheets. Why would the Fed do such a thing? Because the Fed (which is not Federal) is owned by the banks and is in business to protect the banks, not the people. We will be thrown under the buss to help the big banks stay solvent.
If you side with the "they can't stop QE" or, as Jim Sinclair says, "QE to infinity" view, then off your dollar holdings while they still have buying power and take advantage of the current low prices of gold and silver.
Funny how I call $1,650 gold and $31 silver LOW. I have been touting gold since it was $275 and silver since it was under $5. But we can't roll back the clock and today's prices are cheap if the Fed continues to print, print, print. And I believe they will.
The following video, We Are Going To Kill The Dollar, courtesy of our friend Bob U.
| We Are Going To Kill The Dollar |
In 1986 I had several phone conversations with John Exter. He was a real gentleman and I would ask his advice on the economy and the dollar. I was very familiar with his inverse pyramid and have invested accordingly, for the last two plus decades. Exter wasn't just another pseudo economist or newsletter writer - he was the real deal and came from the bowls of the Federal Reserve. He was one of the few Fed bigwigs who dared to speak the truth. And I listened. And now, so should you. - be sure and read his The Central Banker Who Made A Fortune In Gold, written by Darryl Robert Schoon.
Sincerely,
David Schectman
Miles Franklin
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The Holter Report
| Bill Holter
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Why Did You Purchase Gold in the First Place? Published: January 30th, 2013 I received quite a few comments on my piece from over the weekend and wanted to expand on it a little bit. THE most important question to ask yourself right now is "Why did I purchase Gold in the first place?" Many will come back with answers such as "Because I was afraid of inflation." Yes, inflation. Not what the government tells you inflation is, not the bogus rate that they release each month. No; inflation. Inflation as in what your own eyes and pocketbook tell you. Inflation as in the central bank (of whatever country or zone you reside) printing too much money. Inflation as in your Treasury department needing to borrow more than what the marketplace is willing to lend so the central banks steps up with newly minted cash to buy whatever is necessary. Just good ole' plain inflation. Or maybe you are a fiscal conservative and started buying Gold because you were afraid that your government would go broke? Or that your "King" was spending too much or borrowing too much. Or maybe he (or she) was "messing" with the money and clipping corners? Maybe in an effort to keep the "natives" from becoming too restless your "governor" made promises? Lots and lots of promises... you know, the types that can never be kept! Or maybe you were afraid that the banking system was going to come down. Maybe you are (were) some sort of financial skeptic (terrorist) who saw what the banks were doing and figured out that it could lead to no go good. Maybe you didn't trust the banks to hold your money? Maybe you stuck money under your mattress? Maybe you came to distrust the "money" itself? There are a myriad of reasons why YOU may have purchased gold and silver a couple of years ago. A myriad as to why you did the same 10 or even 15 years ago. Yet, now you are questioning yourself. You are questioning yourself because Gold didn't "go up" 20% last year and you're thinking "O my God, should I sell it while it's still worth something?" Don't laugh, many people over the last couple of weeks have become almost suicidal in their fears that "Oh no, what if gold goes 'down' further?" Let me put this in perspective for you. ALL of the reasons that you may have originally made your purchases of gold and silver... are just NOW coming true! Well, not just "now" but they are certainly "coming to a head" now. Believe it or not, the common sense that you employed originally... was correct. Yes, you figured it out! And the best part is that you figured it out early! ...before the rest of the crowd! But, now, you are questioning yourselves because everything that you thought was going to happen has happened yet the banks haven't closed, your Dollars, Euros and Yen still spend and SNAP cards and Obamaphones are still working and online... so... you must have been wrong??? Wrong? Not at all, you were right. Really right and right for all of the right reasons! (scary huh?) But, because of the current production of "Wag the Dog," you are missing the reality of the situation. ALL of what you expected to happen IS happening and is going to continue to happen... faster and harder as time goes by. I have to ask each one of you this question. Back in the early 2000's did you think that Jim Sinclair was crazy talking about $1,650 Gold? Yes? No? Did you think that if we ever had $1,650 Gold you would be rich beyond your dreams? Did you think that you'd be "scared" out of your wits like you are now or did you even think that the system would still be working and functioning as it still seems to be today? Would you like the reality of the situation? The entire sovereign world is broke! The banking system is broke! The currency mechanism and currencies themselves are worth ZERO! The derivatives market has been hypothecated and rehypothecated 10 times or 100 times over. NOTHING can perform as it promises. Gold on the other hand will perform. It IS money and will have value and can be used when... drum-roll please ... NOTHING ELSE can or will which is exactly why you purchased it and now own it in the first place. So, please relax. Please understand that you were correct and correct for the right reasons and are only now becoming fodder for misinformation trying to separate you from your gold. YOU are not a fool right? You know what they say about fools and their money? If you were a fool? You wouldn't already own gold and be the target of those who have already run the system into bankruptcy. End of story!
Regards,
Bill Holter Associate Writer for Miles Franklin
Read more Bill Holter Articles on the Miles Franklin Blog
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Gold Highlights
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BFI Wealth, Zurich - Swiss Annuities and Managed Accounts
Miles Franklin and BFI Consulting of Zurich, Switzerland, have partnered for the past two decades in offering access to offshore annuities and managed accounts. Born at roughly the same time in the early 1990s, both firms have successfully PROTECTED clients via quality, secure, private accounts holding PHYSICAL Precious Metals, annuities, and other managed products. BFI is a global leader in the sale and maintenance of Swiss annuities and privately managed accounts - particularly to U.S.-based clients; and through its Global Gold subsidiary - utilizing worldwide storage leader Via Mat - offers international Precious Metal storage services in Switzerland, Hong Kong, and Singapore. As with Miles Franklin's Canadian offshore storage program, Global Gold offers allocated storage OUTSIDE the banking system.
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January 28, 2013
Below is a chart of gold as of Friday's close. I see support at 1650. In the 1970s gold suffered a big correction, just before it blew its top during 1980 to 2000. Is this going to be a repeat?
Point and figure charts provide us with precise buy and sell points. Below is a P&F chart of gold. At the 700 box we receive a buy signal for gold. And at 1630 we get a sell signal. Note the huge accumulation zone above the 1530 box.
Subscribe to the Dow Theory Letters for the full article.
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Reliable Financial Advisors
In a world of heightened speculative and counterparty risks, finding someone you can trust may be the most important research you do. Miles Franklin does not sell stocks, but is frequently asked if we know of reputable, full-service brokers. WE DO NOT CONDEMN OR CONDONE EQUITY INVESTMENTS, but want investors with such interest to be honestly and competently handled.
In resource stocks, the folks at Sprott Global Resource Investments - managed by Eric Sprott and Rick Rule - are the best in the business. In various capacities, we have worked with Eric Angeli, Jeff Howard, Kenton Toews, Mishka vom Dorp, Jason Stevens, Anthony Marsh, and Andrew Jackson - all of whom are diligent, ethical, and knowledgeable. That style of business is indicative of the reputation Global has built over the past 25 years. You can feel comfortable with any of their brokers, reachable at 800-477-7853.
For all other stocks - including large cap gold, silver and other resource equities - Nick Shermeta, from Northland Securities here in Minneapolis, is as trustworthy and knowledgeable as they come. Nick is a Senior Vice President with more than 20 years experience, but will treat you as if you were his only client. You can reach Nick at 612-851-5908, or by email at nshermeta@northlandsecurities.com.
The common denominator is decades of Wall Street experience, which should give you comfort that well-seasoned and weathered hands are helping manage your portfolio. Notably, we do not receive compensation for these recommendations. We just want you to know that if they are good enough for us, they should be good enough for you too.
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Jim's Mailbox
January 29, 2013, at 12:58 pm by Jim Sinclair
To All CIGAs,
We are now $14 off the low of yesterday which came just shy of $1650. I am writing this for two reasons:
1. To try and impart some insight as to what has gone on the past few days, and
2. To try and give our esteemed leaders some breathing space, by offering my own opinion up.
I'll deal with number 2 first.
I have no idea why so many readers of this site cannot follow the advice Jim lays out here without resorting to a bombardment of emails every time gold looks weak. (a massive 15% off the all-time high for crying out loud!) We are fortunate enough to have fairly robust font of wisdom and experience given to us gratis, but the personal attention the emotionally feeble and insecure seek here is threatening the stability of the ever-flowing stream of market and economic insights being bequeathed. In short: use the damn search engine and get a g-dam dog for a paw to hold when you're scared of the one eyed green monster called manipulation. Keep it up guys and gals, and soon all you're gonna see is a big '404' where this site used to be!! And I, for one, don't want that. How much blood do you need?! Vampires indeed.
Now - Number 1:
The market obviously got pushed down from several levels, but the holding pattern around the $1650-$1690 level, with a drill down to $1650 exactly on options expiry should tell you what you need to know. The public, and some large institutional longs buy put protection against falling prices, as well as speculators who think the market is going to sell off to a given level at a given time. These can be floor (COMEX) positions or OTC positions, and the big open interest is around the even number and half-dollar strike prices. The sellers of these options are the bullion banks and the professionals. They do NOT sell these options naked. They are volatility traders, who delta hedge (with futures) the options they buy and sell. So for those not au fait with how an option market maker works, let me simplify it for you: The maximum profit for any option market maker who is trading volatility (and they all are) is at the short strike at the time of expiry! And you wonder why we went right towards $1700 in the week before expiry, hung around, and then perfectly touched the $1651 level WITHOUT going through it just two hours before expiration? The $1650 put buyers go out worthless, the sellers (i.e. the pros) got max profit. You can smell the heart stopping excitement of the buyers who came 'so close' yet again. Just enough to get 'em to come back to the casino 'next time' (when, of course, you'll be luckier). Volatility traders do not trade puts and calls - they trade "strikes". When you are a market maker who hedges, all calls are puts and vice versa. You are long or short strikes, regardless if they are on the put or call side. An understanding of this WILL require Year 1 algebra. If you can't understand this basic concept, you probably should exit the gold arena, or at the very least, switch of the screen... and for God's sake, stop badgering a man who really deserves more considerate treatment from his readership then the desperate flailing of the egregiously needy and emotionally ill-suited for gold anything.
CIGA
Pedro
Jim,
You posted a video about this happening in Miami. Looks like it also happened in Houston.
CIGA Derek
Army drill scares residents on Houston's south side
Monday, January 28, 2013
HOUSTON (KTRK) - The sight of Army helicopters and the sound of gunfire created a lot of concern Monday afternoon in one Houston neighborhood.
We received a lot of phones calls, Tweets and Facebook posts from worried neighbors, wondering what was going on.
SkyEye 13 HD was over the south side where at first look, it appeared there was a massive SWAT scene happening.
With military helicopters flying above her southeast Houston neighborhood, Frances Jerrals didn't know what to think.
"When you see this, you think the worst. When you hear this, you think the worst," Jerrals said.
And so, she passed along her concern.
More...
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Tangible Sustainable Wealth
January 29, 2013
"Hoisington gives lots of little data points that paint an ugly picture of this slob on a bar stool. Among them:
- Median household income is at its lowest level since 1995
- The percentage of people aged 25-34 living with their parents is at an all-time high
- One out of every 6.5 Americans receives food stamps
- The employment-to-population ratio stands near its lowest levels in three decades.
"A sloppy, sluggish economy, Hoisington reasons, means lots of fallow money lying around. No big demand for borrowing or investing means interest rates stay low."
"Then there are those tax hikes," says Chris -- which brings us to the case of 1937.
"The current tax hike," Mr. Hoisington writes, "is on par with the one in 1937. The economy, which had made some recovery in 1934-36, fell back sharply in 1937-38." Mr. Hoisington won't rule out a contraction of similar scale. Some economists call it "the Depression within the Depression."
"Will we see a repeat of the '37-'38 contraction?" says Chris. "I kind of hope so, because it would shake out the optimism in the stock market and give us more bargains to kick around. On the other hand, I don't want people to suffer, and some surely will if the economy slumps.
"In any case, I think we can expect to have a slow-growing (or nongrowing), heavily taxed and overregulated U.S. economy for at least the rest of the Obama administration -- and possibly beyond. You don't have to like it.
Continue reading on AgoraFinancial.com
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Soothsayers, Naysayers And Ostriches
Someday we're going to owe Chicken Little an apology
JOHN EXTER: THE CENTRAL BANKER WHO MADE A FORTUNE IN GOLD
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John Exter 1910-2006
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John Exter after graduating from college in 1932 pursued graduate studies at Harvard University in economics. Exter wanted to understand the causes of the Great Depression, which had brought economic activity in the US and around the world to a virtual halt during his youth.
As a banker and economist, Exter was to have a storied career. After being at MIT during WWII, he joined the Board of Governors at the Federal Reserve Bank as an economist. In 1950 Exter founded and became governor of the Central Bank of Ceylon.
In 1953 he was division chief for the Middle East at the World Bank and in 1954 he returned to the New York Federal Reserve Bank as Vice-President of International Relations and Precious Metals Operations. In 1959, Exter left the Federal Reserve to become Vice-President at First National City Bank (now Citigroup) with special responsibilities for foreign central banks and governments.
How Exter, an economist, a central banker and investment banker, was to make a fortune in gold is told by W A Wijewardena, Deputy Governor of the Central Bank of Ceylon, in John Exter - Central Banker For All Times an article published on the first anniversary of Exter's death at 95 on February 28, 2006.
... With a huge fortune made on the gold market by using his own expertise on the foresight of irresponsible central banking and its inevitable consequences, Exter took an early retirement in 1972 and went into private consultancy work.
According to his own admission, the prospect for his fortune on gold dawned on him after a friendly debate he had in 1962 with his one time Harvard buddy and Nobel Laureate Paul Samuelson.
In that debate on why the dollar was becoming weak and USA was losing gold, Exter gave his diagnosis, which was based on his experience with the Federal Reserve System. "Paul, it is very simple. The Fed is printing too many dollars and they flow out of the country into foreign central banks who demand gold" Exter is reported to have said.
But, Paul Samuelson did not accept it and wanted to explain the malady in terms of productivity differences between USA and other countries, namely, Europe and Japan. Samuelson's thesis was that the latter category of countries had a higher productivity than USA and therefore the dollar was becoming weaker.
Exter says that he countered Samuelson saying that Japan was in more trouble than USA, because "the Bank of Japan was running its printing press even faster than the rest of the central banks around the world"
Exter had decided then and there that the irresponsible government expenditure by the Kennedy administration could not keep the dollar stable in the long run and one day, gold would become the preferred asset by the world's nations.
Hence, he says that he converted all his savings into gold-based assets and waited patiently. He was amply compensated in 1971 when the US government was forced to sever dollar's link with gold under the gold exchange standard and allow the gold prices to be determined in the free market
Overnight, gold prices doubled from $35 per ounce to $70 per ounce. So did the gold-based assets portfolio held by Exter. [At today's price of $1690 per ounce, the appreciation of Exter's gold-based portfolio would certainly be noteworthy.]
In 1971, Exter had been at the epicenter of US discussions on gold. President Nixon who closed the gold window in August 1971 was heavily influenced by the views of Milton Friedman who believed free-market dynamics would better regulate paper currencies than the rigid discipline of gold. Friedman was wrong.
Paul Volker, then Under-Secretary of the Treasury under Nixon, had asked Exter's advice on the matter. Exter recommended the US raise the price of gold to accommodate the growing pressure on the US dollar. Volker said that wasn't politically possible. Exter then told Volker that Volker had no choice but to close the gold window. Two weeks later, Nixon did just that.
Exter later commented on the significance of that act:
The final link between the dollar and gold was broken. The dollar became nothing more than a fiat currency and the Fed [and especially the banks] were then free to continue monetary expansion at will. The result... was a massive explosion of debt.
Gold Wars, Ferdinand Lips, Foundation for the Advancement of Monetary Education, New York (2001)
Today, Exter is best known for what is called 'Exter's inverse pyramid', a model of what will happen during a deflationary collapse when investors flee increasingly illiquid assets for those offering safety and liquidity.
EXTER'S INVERSE PYRAMID
Ultimately, the fatal flaw in the bankers' paradigm of paper money is the hubris of central bankers themselves. Economists had convinced themselves that by printing money, they could achieve full employment (Keynes), that without gold, free market forces would stabilize currencies (Friedman) and that by sufficiently expanding the money supply a deflationary collapse in demand, i.e. depression, could be prevented (Friedman) and/or safely offset by increased borrowing (Keynes).
Both Keynesians on the left and Friedmanites on the right were convinced that central bank stewardship of paper money was better done without the constraint of gold. That somehow a house built on sand is preferable to one built on rock-proving once again that if thought has no bounds neither does thoughtlessness.
Exter, a friend of Ludwig von Mises, was an adherent of the Austrian School of Economics, an economic discipline shunned by 'house' economists who much preferred the apparent opportunities afforded by credit and debt. After a discussion of Exter's Austrian views, Paul Samuelson told him, "John, you may be right but you're lonely".
In a conversation I had with Exter's daughter, Jane Exter Butler, about her father, she commented that she wished her father had lived long enough to see evidence of the economic collapse he had predicted. Exter had passed away in 2006 two years before the collapse.
I replied that I was certain her father didn't need any such evidence. Exter knew with complete certainty he was right-as he still is today.
JOHN EXTER: THE COMING DEPRESSION AND GOLD
Exter's understanding of macro economic factors allowed him to accurately predict economic events. Exter was certain another depression was coming and that it would be worse than what had happened in the 1930s. The following is excerpted from a 1981 interview with Exter:
I lived through the great depression. I remember it vividly. I know what it did to people. I remember the 25% unemployment. So I'm very unhappy when I have to say this depression is going to be worse.
A time will come when housing prices will weaken so much that many people who bought houses recently will lose all their equity. Once they lose their equity, they may say: "Why should I go on paying the bank? Why don't I just let them have it?" So I think you're going to have defaults on mortgage loans and foreclosures...
More foreclosures, of course, put more pressure on home values. Then more defaults-and when people start to default on their debts, troubles multiply. This is one reason why I think we cannot avoid a banking collapse.
I think people have rather been seeing-in their heart of hearts-that a depression is coming, or at least some sort of hard times...When your income shrinks and you have a debt burden, the debt burden becomes more and more onerous-and you get desperate to borrow...I expect the government to respond to the deflation by trying desperately to re-inflate. I expect huge budget deficits. So I expect the dollar ultimately to become worthless.
The Federal Reserve has already defaulted-gone bust. When I was a young man, the Fed had to redeem its liabilities in gold at $20.67 per ounce. As a matter of practice, any of us could go to any bank in the US and write a $100 check and take out five $20 gold pieces. To maintain that obligation, the Fed had to avoid borrowing short term and lending long term. But it didn't. As a result it had its own liquidity squeeze and defaulted on its IOUs-the paper dollars circulating-are not promises to pay anything. They're IOU nothings.
Paper is worthless as a store of value. The only thing that can give the US dollar any value is its promise to pay something that is a good store of value-primarily gold-to the holder. The government now has welched on that promise, so these paper IOUs are not really worth anymore than the paper they are printed on.
Sooner or later the public will catch on and the dollar will become worthless...As the crisis intensifies; as the results of the liquidity squeeze become apparent and illiquid debtors start to default; as the depression and deflation set in; gold will once again emerge as the supreme store of value.
...This is hard for me to say, for I am a banker: On the subject of income, I'd definitely stay away from banks. Bank deposits are paper IOUs. A bank owes you Federal Reserve notes. Even Federal Reserve notes are not good. A bank is even worse because you have the added risk that it will default on its promise to pay such notes. Remember: gold never defaults.
'HELICOPTER BEN' BERNANKE & 'KAMAKAZI SHINZO' ABE ARE 2013 CO-SPONSORS OF EXTER'S PREDICTED DEFLATIONARY COLLAPSE
In October 2011, Jay Taylor, an expert on gold stocks, interviewed Exter's son-in-law, Barry Downs. During the interview, Downs discussed the signs Exter said to watch for signs, which would signal the approach of the coming economic downturn.
In credit-based economies, aggregate debt levels must constantly grow and when they don't, it signals the economy is entering a dangerous phase; and, if aggregate debt contract, i.e. shrink, that is a far more dangerous sign. That signals a deflationary depression is beginning; and in 2008, Downs noted that levels of aggregate debt began to shrink.
Note: Taylor's interview with Barry Downs begins at the 20-minute mark and ends at the 30-minute mark, see http://www.voiceamerica.com/episode/56715/pondering-the-possibilities-of-a-greater-deflationary-depression .
This is why the Fed, the Bank of Japan, the Bank of England and the European Central Bank have thrown caution to the wind in a desperate and last ditch attempt to save their Ponzi-scheme of credit and debt that has served them so well.
Exter told Barry Downs that once aggregate debt levels began shrinking, nothing central bankers could do could reverse the process. A tidal wave of deleveraging debt would sweep aside any and all attempts to inject enough credit to reverse the process.
QE3 will be no more effective than QE1 nor will QE4 or QE5. No amount of bond buying, no amount of credit can turn back the tsunami of defaulting debt that has already begun to gather momentum. The tipping point has been reached.
Excessive central bank credit has turned into such levels of debt that no amount of credit can subsume it. This is why it's called the end game. Credit-based capitalism was headed towards this finale in 1694. In 2013, it arrived.
The Japanese central bank said it would aim to achieve a rate of 2 per cent inflation - up from its current goal of 1 per cent - "at the earliest possible time" by shifting to the kind of limitless stimulus embraced by the US Federal Reserve and the ECB.
Financial Times, January 21, 2013.
THE END GAME AND THE BETTER TIMES TO COME
Ben Bernanke's belated attempts to restore US employment levels and economic growth through even more monetary easing is as futile as Lance Armstrong's attempts to salvage his tattered reputation.
No amount of optimism, no amount of denial and no amount of credit can fix what central bankers themselves broke. Nothing lasts forever. Not even the dream of bankers who attempted to live off the productivity, ingenuity and labor of others merely by printing debt-based paper coupons they could loan to others as money.
Remember: gold never defaults
John Exter
In my current YouTube video, 2013: The Mother of All Paradigm Shifts, I explain how the banker's paradigm arose. I also show how the collapse of the bankers' paradigm coincides with the end of a far older and far more fundamental paradigm, gender inequality, see http://youtu.be/EZ7HTALQ4JU.
It might be assumed by readers that my expectation of another depression is evidence of a pessimistic outlook. Nothing could be farther from the truth. After the coming collapse, I expect a far better world will emerge; and, although the process will not be easy, it will be rewarding beyond our greatest expectations.
John Exter, in his wisdom, firmly believed that when laws fail, human beings working with moral consciousness could do wonders.
W A Wijewardena, Deputy Governor of the Central Bank of Ceylon
... the vulture feeds neither upon the pastures of the bull nor the stored up wealth of the bear. The vulture feeds instead upon the blind ignorance and denial of the ostrich.
Darryl Robert Schoon, Time of the Vulture: How to Survive the Crisis and Prosper in the Process, 3rd ed. 2012
Buy gold, buy silver, have faith.
Darryl Robert Schoon
www.survivethecrisis.com
www.drschoon.com
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David's Mail Box
Dear Mr. Schectman,
Today I find your comments even more interesting than usual, simply because you are drawing attention to what is happening around us in the real world, while others (the CNBC crowd and their ilk) are still busily protecting the status quo by using what we call in German the "strauss politik", commonly known here as the ostrich reaction. Simply put, if you ignore, it won't happen or it will soon go away. The inevitability of what is about to happen gets more pronounced every day even though the powers that be will continue to obfuscate truth and convince the masses with ever more stridency that everything is just fine, and despite the occasional economic hiccup, we'll all move ever upward. My reading of history tells me that precise timing of an event is difficult, but that in no way changes the reality of what awaits us. The other thing that rears its ugly presence is the fact that what is about to descend on us will be sudden: that is, it will most likely be in the form of a weekend action or press release on a Friday, Saturday or Sunday. Of course the "experts" will quickly state when this happens that it was totally unforeseen and that our "beloved leader" is only taking a path needed to "protect" us from harm or economic disaster as he sees it. Continue your necessary work. You just may be able to awaken a few more benighted souls as to what "blissful ignorance" will bring.
Nick G
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David,
Thank you for your gracious response and I want to apologize for coming across the way I did. I agree with almost everything you wrote. I am a poor writer when expressing thoughts. I should have started out with how much we have in common. I was brought up in Crystal, until the 9th grade. I remember the progressive school system there because I moved down to a segregated school system in Arkansas (which remained segregated until after I graduated in 1970). Our investments (breakdown) are probably closer than anyone you know, using what you have talked about. We both seem to have a genuine fondness for Jim Sinclair. I actually have done very well with my investments because I have been "all in" for quite some time just like you. However unlike you, I have lost my job late in life (not asking for pity). It was my foresight to save in real money that is giving me any hope and I am actively looking to continue making a living.
I did not mean to come across as penalizing you and your wife for succeeding. I only meant to point out that life can turn on a dime for anyone and that luck is also involved with hard work. You were honest with me about how you were not drafted (again something that generations past 1972 cannot even fathom). I was unlucky with the draft (inducted on the very last day of the draft) but lucky in that I did not go the Viet Nam. That was my point, all the killed, maimed, wounded mentally and physically mostly had bad luck, including those of today. I actually feel lucky again because I came within 3 days of being sent to IRAQ in 2003. I had joined the Army National Guard when working for minimum wages to help pay for my college education. My 20 years in service was over just in time for me to retire before a stop loss (which meant that the government would not allow you to get out, in other words drafted). I did feel a little guilty in leaving the people in my unit, 2 of which were killed, but I knew the war was wrong and at 50 years of age I was over the hill for combat. It was also when I left the Republican Party, all politicians for that matter (both parties supported the war). This is why I can relate to Andy Hoffman, he dislikes all politicians equally, Ron Paul excepted. Jim Sinclair has explained the OTC derivatives and mortgage fraud so very well. I believe (again, according to Jim) that the fraudulent bailouts are going to be more responsible for the coming disaster than any other government program (just look at how Iceland has done by refusing to bail out their banks).
I just wanted to add that I have continued to try and get family members on board, and have tried with your blogs and Jim Sinclair. I talked to your son when making a small purchase (junk silver) and he was so nice. I even got a commitment from him to talk with any of my family members if they would just give him a call. Nobody has ever done that for me, but I have failed in getting them to make that call. Again I apologize for coming off as negative towards you. I hope this will clarify that my feeling were not really negative just badly expressed.
The best for you, your family and business,
A. G.
A.G.
Thank you for your (second) email. All of us have a right to express ourselves freely. I took no offense to your earlier email. I replied honestly and respectfully to your comments as I do to all the emails I receive. The Internet is many things, but it is a poor conveyor of emotions and intent. I can't begin to tell you how much trouble I have gotten myself into, in the past, by using email, when discussing an emotional issue. The Internet is a marvel at providing information but can a curse when it comes to communication. I took no offense to what you wrote and thank you for the follow-up.
Best,
David
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Hi David(and Susan)
Concerning Backwoods- there is a Bible verse about casting pearls before swine that I think might apply here. The old "normalcy bias" is at work in
90+% of the population and nothing but terror will bring them around.
I would ask Jack about the 10's of millions without jobs. I think the terror has hit them already. Hang in there buddy-you've helped many people prepare for the coming destruction.
Warmest regards to you and Susan,
Terry
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