Markets Are Broken

AAEAAQAAAAAAAAS-AAAAJGIxNDNiNzhhLWQ3MWUtNDBmMy05ZGExLTZjYTg1NjZiZWNmNQPrecious metals expert Craig Hemke contends, “What people have to understand here is what you think of as a market, two rational people exchanging goods at a certain price that works for both of them, is not what happens here. The price is discovered for the paper derivative itself, and it is determined by electronic high-frequency trading. All this is machines taking ques from other things that seem totally unrelated. So, it sounds like these are markets that are broken. I think that is a safe assumption to make. . . . The speculators trading the paper derivative is what is allowed to set price, and that is absolutely breaking everything. For my specific purposes, it is going to break the derivative paper pricing scheme, as well. We can’t wait for that to come because the price is not going to be discovered to be $1,360 per ounce at that point. . . . I know how this is going to end. Tolstoy in ‘War and Peace’ said ‘time and patience are the greatest warriors,’ and that’s exactly right. I have time and patience on my side because I know how this ends.”

For some of the lowest gold and silver prices in Singapore visit www.SilverAg.com.sg

Credits and video here.

 

Silver Going to Move Up Faster Than Anybody Can Imagine

Silver Coin Bullion 1 ounce on top of a larger bullion bar
Silver Coin Bullion 1 ounce on top of a larger bullion bar

Co-founder of the Gold Anti-Trust Action Committee (GATA), Bill Murphy, has long charged cartel banks suppressed gold and silver prices. Murphy has been proven 100% correct. He now charges, “The real key for this gold cartel, as we call it, is the suppression of the gold price. They realized a long time ago they couldn’t have a dichotomy between the silver and gold. So, they got involved in the silver market (to suppress the price) to make gold look like it should be doing what it is. The problem is they are running out of physical silver to keep the price down. . . . Eventually, you are going to get a commercial signal failure in silver, which means these so-called commercials, which is a misnomer because they are not commercials, they’re gold cartel trying to keep the silver price down. They know when they lose control of silver, and it gets to $21 (per ounce), it will be the end of their gold suppression scheme. . . . It will be a gradual process because the price of silver is going to go bonkers. It will show what they have been doing all these years. I think they are finally reaching a tipping point. . . . The death knell to the gold cartel is the lack of supply of silver to keep the price down. . . . I think you are going to see the double top of $50 be taken out and go to at least $100 per ounce and maybe a lot more. I think it’s going to move up faster than anybody can imagine. . . . Gold is going to move to some big number also. . . .If gold kept pace with inflation, it would be double what it is today.”

For some of the lowest gold and silver prices in Singapore visit www.SilverAg.com.sg

Credits and video here.

 

Real Numbers For Real People To Really Know

m2sOpinion piece.

When I look at the following two charts it tells me a story. First, the velocity of money is slowing down in the States AND yes the Fed did raise interest rates (December 2015) at a time when the U.S. economy was already slowing down.  The downward trend on THEIR OWN CHARTS was already showing up from Q2 2015.  From what we see on their own chart it’s not going to get any better any time soon.

HarpexSecond, let’s look at Harpex. Harpex tells us container shipping movement. Simply put, container shipping more or less equates to the movement of consumer or manufactured goods. It answers the question of “Are people buying goods.” If consumers are buying, we see Harpex going up. If consumers are not buying we see Harpex go down.

Low Harpex numbers suggests that people are not buying consumer goods like electronics, refrigerators, clothing, household goods, etc., the way they normally would.

Logically, we can reason that smaller businesses or businesses that are getting tight on credit that sell these manufactured goods may not be doing well. We can safely assume customers are not buying and businesses are not putting in purchase orders and are perhaps holding inventory. This means more than likely that service industry jobs will have to support displaced workers in the very near future if not already. Or, government will get bigger by becoming an employer. And if you’re an American, that means higher taxes or a cut in benefits for you and me to pay these new salaries. So when we hear how Obama created jobs, it’s not entirely a good thing and that’s why they never tell you what exactly those jobs are that were created.

Nonetheless, if Americans are not buying, China’s economy will slow down, indeed all economies may slow down. Governments all over the world may have to find ways to get money into the hands of their people and businesses in order for them to spend it and get the velocity of money moving again. Alternatively, devaluing currencies would also continue as it is a seemingly preferred  option. This will give the facade of a strong dollar in a very real and very weak U.S. economy.

The dangerous part in all of this is the Fed talking about raising rates. If they raise it another time on the same downward trends we see in these charts, liquidity surely will tighten up, more businesses will fold, and this will impact the whole world much more severely.

Furthermore, if the U.S. decides to print more money (QE), people at some point will ask themselves, why should I work if money is printed willy-nilly? Whats the value? Countries may and will lose faith in the U.S. dollar and perhaps not want to use it or hold it at some point. Likewise they too will ask “What’s the value?” They might even turn toward another currency they find more favourable causing an astronomical amount of endless (and useless) U.S. dollars to be sent home guaranteeing hyperinflation in the U.S.

Admittedly , whether this analysis or personal opinion is right or wrong, it does show we are truly coming to an end of the debt based finance system. These two charts are showing us that the average person cannot take on more debt. The only ones left to take on more debt are businesses, banks, and governments…and all of them are already doing that. Governments and central banks will keep printing in an effort to keep this current system alive.

Alternatively governments or central banks will adopt a negative interest policy. Negative interest rates means you will pay a bank more for the bank to hold your money…absurd right?  They’ll do this in part because it forces people to remove money from their bank account with the hopes that they will spend it (or lose it) thus speeding up the velocity of money. The problem is when you and I continue to work the same amount of hours each day but our money starts to buy us less and less, it’s just a matter of time before complete faith is lost in the debt based financial system. In a nutshell, we all need to store the value of our money now before it’s value begins to fall at a quicker rate.

Knowing this, what are you doing to store the value of your money before all confidence lost? Storing the value of your money in silver and gold is a great start. Why? Well, despite the daily highs and lows we see in the spot price each day, these two metals have a history of being both money and storing monetary value over long periods of time. That alone is more than a good enough reason to start turning some of your paper cash into real, true, historic, and honest money that people all over the world know.

Take care of each other and be a blessing to all,

Patrick

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