Dollar Crash Ahead

ROBERT'S REMARKS  December 5, 2014

DELUSIONAL COLOSSAL FRAUD

 

"I am more concerned in the return of my money than the return on my money" Mark Twain

 

The position of the major banks is so precarious that one should pay heed to the above quote from Mark Twain Most of U.S. banks have a debt leverage of 60 to 1 I might inform you that gold and silver do not go bankrupt. Keep your attention on Ferguson as a distraction while this country and possibly the world goes down the tube.

 

The Remarks that I write is not going to please everyone. It is not meant to .It is meant, in part, to open people minds to other ideas and to reality; the reality of what is really going on with regards to economics and finance. One cannot delve into these two subjects without mentioning politics which in these times has such an influence on practically everything.

 

The house of delusions is cheap to build, but drafty to live in, and ready at any time to fail. A.E. Houseman

 

The banks and a small cadre of bankers and powerful people now run the country. If you think that electing people to office matters, the reader is sadly mistaken. The bankers are destroying the monetary system in order to keep their authority alive. To repeat, it is the bankers that currently run this country and they are as corrupt as they come. None are being prosecuted, none brought to trial, none convicted.

 

I believe that the U.S. is going to be taught a fatal lesson for its subversive deeds, and endless fraud and destruction One thing is clear to me is that all this corruption in market control is ultimately unsustainable for much longer  We are close to a gigantic meltdown, like in months rather than a year or two.

 

No one can predict how long governments can get away with fake growth, fake money, fake jobs, fake financial stability, fake inflation numbers and fake income growth. The second thing that is very clear to me is that when the "jig" is up for this country, the consequences will be fearsome for us. Probably 10 times worse than the 2008 financial debacle. Your one main salvation will be that gold and silver coin that everyone despises right now. (No matter what the manipulated price is)  But in your possession.

 

I am not so sure that a safe deposit in a bank is the right place for your gold and silver as the banks own your safe and due to the Patriot Act, can invade your box and seize your metals for any trumped up cause.

 

It is simply amazing to me how the monetary reserves of our forefathers (gold) can be so hated. Your government and most around the world can print money endlessly, and have people thinking that this paper is a store of value. They can control the gold and silver market by selling paper naked shorts in the futures market without ever owning on ounce to do this This is illegal by your government,. It's the old story that if you repeat a lie often enough, the know nothings will believe it. But now many countries are trying to recall their gold from the Federal Reserve Bank as trust no longer exists as to the safety of their gold.

 

Japan is literally melting down fast AFTER IT ANNOUNCED THAT IT WILL PRINT TRILLIONS TO SAVE ITS ECONOMY AND TO DRIVE THE YEN DOWN TO OBLIVION. This is sure to cause a currency war in Asia. If Japan goes bust, the banks around the world will go bust, like a multiple of the  Lehman event, and it will suddenly be game over and a global panic will ensue. You hold on to that gold you bought because many currencies will not survive.

 

I am always talking about buying gold in my Remarks as the one financial place to be. But why listen to me when we have the famous Alan Greenspan saying the exact same thing in a recent speech. Maybe you will listen to him. And it does not matter what the price is now, what the price may be manipulated down to. It will outlast all the fraud, theft, stealing and lying that is going on right now by Congress and your government. In 40 years, no one has ever seen our gold reserves at Ft Knox. That is if there is any, which I strongly believe has been spent or stolen or leased out.. Leased out gold never returns. Never and in NEVER

Not one single member of Congress mentions this ever.

 

Over the Thanksgiving holiday, we had a knockdown of gold by about $30. Nothing unusual about this as the U.S. does this when no one is trading the metals. It’s all done in the paper market and no gold ever changes hands. Total Fraud.

 

One place that I can assure readers that we are going to is THIRD WORLD STATUS. 

Obama is seeing to that in spades. Whether you are a Republican or a Democrat is meaningless to me. Never before have we been held in so a low esteem around the world as with this current president. Never have we been so despised, at least in my lifetime, as with the current president. Never have we elected a President who is so over his head in this office. I cannot remember a President who lied time and again and does it so convincingly. These are of course, my opinions.

 

People come to me and mention how low gold is and it could probably go somewhat lower. The corrupt U.S. Comex tries to control the physical gold and silver market by selling paper gold into the futures market to artificially depress the price. No physical gold is delivered because the many Central banks are now very close to having no gold to deliver. They can only deliver paper dollars. At some point either China or Russia will revalue its gold and then the Comex game is over.

 

What is interesting to note is if one wishes to buy a large quantity of gold anywhere in Asia, you pay the spot price of gold (let's say $1150 per ounce) and then you pay a 90% premium to spot added on.  That would be another $1000 per ounce making $2150 per ounce. Yet the Comex lists an ounce of gold for $1150 or $1200. Almost no gold is available anywhere in a decent amount, yet gold falsely trading at a paper price.  Did you say FRAUID by th U.S. COMEX. Fraud by the Agencies reporting the price.

 

You the reader, are being treated to a colossal FRAUD which is simply not sustainable. Our total  monetary system is going to collapse and the elites are buying a little more time until all hell breaks loose .At some point the paper price will have to meet and catch up with the traded bullion price in Asia Does not the reader understand that everyone, every country is clamoring for their gold. ?? Or don't you know this??? France will be the latest to try to reclaim their gold from London and the Fed.

 

The Dutch just took back from the U.S. 122 tons of gold (supposedly). Yet how is Germany, which is owed 1500 tons of gold and has asked this back from the U.S., just given 5 tons ?? Everyone, now France, is clamoring for their gold to be returned from the U.S. and London banks  By asking for their gold back, all these countries are screaming that they do not trust the U.S. any longer That gold and silver are money and the U.S. dollar is a fraud. Doesn't the reader understand this???? The dollar becomes a FRAUD when unlimited trillions are printed into existence.

 

But when people mention the current price of gold to me I ask them what is the purchasing power of one 1929 U.S. dollar?. Of course most do not know that it is now just one penny. Twenty 1929 US dollars was 20 cents in 1929.. Now take a $20 dollar gold piece, which in 1929 purchased the same goods as that $20 US paper dollars and instead of two cents it buys at present $1150 dollars. And surprisingly if I mention this to anyone under the age of 40, they cannot comprehend what I am talking about. And that is what your U.S. government is counting on. And that is what this fellow, Gruber, who devised the Obama Health Care Bill keeps stressing. This health care bill is full of deceit but the public is too "stupid" to comprehend this. A direct quote. And this is what I have said so many times in past letters. Not that the reader is stupid, but the general public simply does not comprehend what is taking place in this country.

 

And that is what this MIT professor is talking about when he says, quote" The American voter is stupid" when discussing Obamacare, which he was paid $400,000 to formulate the law.

How many times have I said in my Remarks that Obamacare is nothing but a tax bill and the worst piece of legislation in my memory. This bill is not sustainable. You cannot go across state lines to compare medical insurance policies. Mr. Obama cannot remember this MIT man who was at the White house at least 20 times.  So let me repeat what I have said before in my Remarks, The Obama Health Care Bill is the biggest FRAUD ever perpetrated on the American people. The biggest FRAUD by any U.S. government. I often ask myself, how many lies can one person tell the public day after day.?? Whether one is a Republican or a Democrat, it is a lie told every day. Every Democratic senator who voted for this bill has been voted out of office.

 

But,as mentioned so many times by me, there is another element that creates this "Something for Nothing" Society  or this mentality and that is the MAIN STREAM MEDIA that reports misinformation as facts and blacks out or censors critical reports of public or private wrong doing. The Politbureau of the Soviet Union, Xinhua of China, the Ministry of Information of Nazi Germany are just a few examples. In the U.S. and Europe it is known as the Main Stream Media. Controlling the minds and thoughts of the public is as old as man.

 

This Main Stream Media used to be quasi monopolies on information before the Internet. These are very powerful tools to manipulate the unthinking part of the public. You can look no further than modern day Russia whose economy is failing, living standards are declining and the public victimized by official cronies of the kremlin. Now investigative journalism is virtually extinct and bad news is blacked out or totally altered. It is all politically "sanitized" by editors who do not agree with your need to know in order to better conduct your affairs or who to vote for. They are also bribed and paid off. Government stealing is now only reported by accident, whether you look at the national debt, politically correct economic reports, the hoax of climate change, the state government finances, regulation, inflation, are all now politically correct reports rather than the correct facts which may cause the U.S. government trouble in future elections.

 

"Whoever controls the media controls the mind" The main stream media is owned by the same elites which control the banks and government. Now due to the poor quality of education the low information people cannot sift through the media reporting and separate the truth from the lies.

Make the middle class into serfs and slaves to the government and to the banks in one form or another. Let them go into endless debt. Create the desperation for growth and personal progress in their lives. You may not know it, but your standard of living is in a free fall when properly measured in purchasing power. When do people wake up??? To repeat, the middle class is dying.

 

CURRENT ANALYSIS IS USELESS

  

The usual way to analyze all the markets is through the use of graphs, charts, past history, currency events and a host of other indicators. Using all these indicators, one then tries to predict the timing of all the current events. That is the outcome.

 

All of these things are, in my opinion, out the window. Your government has illegally intervened in all of the current financial markets through the use of many tools at their disposal.

 

The major tool is the use of the financial futures markets , the use of unlimited production of cash money to buy stocks and thus raise their price. That is they buy futures in the futures market through the use of the Plunge Protection Team, which has at its disposal more than a trillion dollars of paper money. If stocks are selling off, if there is a plunge in the stock market, they move in to buy all the stock futures they want and whenever they want. That raises the price of mostly all stocks artificially. This is not done with gold mining stocks. To the contrary, these stocks are forced down in price, which is why I believe some are as cheap as dirt. (More about this later)

 

If your government wants to prevent the price of gold and silver from going up, they sell unlimited naked futures contracts in the futures market. It is important to your government that they subvert the price of these metals so as not to present a viable option to the paper dollar. Naked shorts are blatantly illegal.

Frankly, it seems to me that the price of gold must be kept down at all costs. I have gone into this futures selling before. Its all done on paper and it is the paper price which is taken as the real price. The Comex is totally a paper trading market for the precious metals. No gold is delivered. Only cash or paper printed dollars. At some point in the near future, the Comex will be totally discredited. A new gold and silver trading market just opened IN Hong Kong

 

Consequences of Gold Suppression

 

You have the consequence of driving out the purchase of gold by Americans (gold going from West to the East China, Russia, and India). China buys all the gold it can for bargain prices. You have the ridiculous situation of the demand for the precious metals going through the roof and yet the price of these metals keeps going down through the artificial means of naked short selling. The U.S. Mint, at this writing, cannot keep up with the sale of silver eagles and just closed down. October was the largest sales of silver eagles in several years.

 

You have the consequence of the price of silver and gold being fixed in a totally corrupt phony paper market established by the corrupt bullion banks and ultimately by the U.S. Federal Reserve.

 

You will have the consequence of many silver and gold mines shutting down or hoarding their production until the price rises to a worthwhile remuneration. Since the price is so artificially low, the premiums on these coins will start to rise to offset the low price.

 

I do not think in all my years as a financial manager, have I ever seen so much FRAUD in one government. Congress's approach is not to attack this illegal fraud and violation of basic financial law, but instead to introduce many new laws ( such as Dodd Frank) that are extremely expensive to enforce, to adhere to, and in most cases do not take care of the FRAUD. Indeed, we already have sufficient laws on the books for the SEC to prosecute what is going on but this SEC looks the other way, never to prosecute the big bankers, and only issues fines that are mostly considered a nuisance.

 

Indeed, one of the biggest FRAUDS in the finance business is the Attorney General himself, Eric Holder who was convicted of Contempt of Congress, but nothing has been done about this. The major officers of the banks consistently get off the hook. Only the smaller fry are gone after, many are suicides, or killed outright. The big banks pay fines that they can easily meet and are willing to meet because it is such a small part of the money they made committing FRAUD.

 

Thus, trying to predict or figure out the timing of the day of gold's rise seems to me to be futile. Gold really should be about $3000 an ounce from the amount of unlimited money printing that has been going on from the continuing decline in the purchasing power of your dollar. What I can predict is that our national debt will be $20 trillion by the time Mr Obama leaves office, two years from now. In his tenure, he will have doubled our national debt, more than any other president in our history, and more than all the presidents accumulated together. This is a man who promised to cut out national spending in half when he took office.

 

In the past few months I have had little inclination to write an investment letter because I think to myself, what's the use? There is nothing out there that is legitimate or not lied about, with the full complicity of the U.S. government and 90% of the media. Not a single financial fact is truthful. . All figures are massaged, artificial, not meaningful. The lies being told to a gullible public get bigger and bigger. The more government figures one relies on, the more you will get hurt in the future.

 

The basic thrust of this government, this administration is to maintain the status quo, to keep you in the dark as to what is really happening, and for those in power to steal as much as they can. I always get the question as to how long can this stealing go on, and I have no clue because the public does not realize it. Our national debt is growing by leaps and bounds. We are already at 105% of GDP; we already spend $1.5 trillion dollars over budget each and every year. Your government presents the budget deficit at around $500 billion when the actual budget deficit is three times that and will be that way for as far as the eye can see. But no one seems to care. What people also do not understand is that the interest on this debt is compounding. Even if it is around 2-3%, the interest of $18 trillion is huge and growing. Shall I mention national bankruptcy.???

 

I hear talk of higher interest rates in the media when such a thing is not possible without bankrupting this country. Wake up to reality. The higher the interest rate expense, the more money that must be printed to keep the entire economy going. Every 1% rise (to repeat) equals $270 billion in added budget debt. And yet the same crap is repeated over and over again. A false unemployment rate, a false deficit, a false GDP, a false inflation rate, even with the price of gas going down.. The rise in food prices, medial expense, school tuition, etc far exceeds the price of gasoline going down. Expenses keep going up and salaries are stagnant A prescription for personal bankruptcy.

 

We have a nation that is completely falling apart,and a brainwashed people. Anyone who is not brainwashed surely must realize that everything is controlled, every financial figure coming out of a corrupt Washington is false. All government numbers given to you do not make any sense any more. Are you brainwashed????

 

QUANTATIVE EASING  ( To infinity)

 

Two words that mean a printing (buying) of $85 billion each month of securities that either no one wants, defaulted securities that are owned by the banks, or Treasuries that can no longer be sold overseas because foreign governments are up to their eyeballs in these Treasuries. We thus have had QE one, two, three and  we are told that this buying will come to an end. Yet another lie.  That is a repeat from many past Remarks.

 

Your government can never end QE. They must print money to infinity. It can never be halted or even slowed NEVER AS IN NEVER. What does the reader not understand about the word, NEVER?? The U.S Fed is in a deep and dark corner and has now no options left but to print endless money or face a country in total collapse. Your government has no ability to halt this coming systemic failure which is still in progress. All the central banks are printing endless FIAT money just to stay alive, to pay our bills To repeat,. What part of NEVER does the reader not understand??? We must print money in ever greater and greater quantities. Gold and silver is the only thimg that can survive this printing or the going to WAR.

 

The ultimate collapse cannot be stopped even with WAR and major bond fraud, stock manipulation and gold suppression. If you have gold and silver, some day you will thank your lucky stars that you have it. The entire U.S. financial edifice has become fully dependent on the printing of money out of thin air with nothing to back it up. No net income, no gold as a reserve, just the printing press. The U.S. is a pathetic heroine addict fully dependent on larger and larger doses of printed paper to pay its enormous bills The U.S. has unmanageable DEBT as our great and bloated welfare state grows ever larger. At some point the U.S. T bonds will be dumped by many foreigners as the dollar declines rapidly in value. They are doing it already. When will people understand this???

 

How does all this come to and end?? Right now, the Chinese, Russians, and India all buying gold as fast as they can at this bargain price. At some point the U.S. or London will no longer be able to deliver gold or silver in the amounts or at the price espoused by the corrupt Comex. Then China ( at some point) will announce one fine morning that they will buy gold and silver at let's say $2000 an ounce for gold and $50 an ounce for silver and that will end the Comex and all the metals suppression. But I cannot tell your this date nor will I try anymore. When they make this announcement of a higher offer for gold, the entire game is over for the U.S.

 

THE TOTAL DISCONNECT

 

There is no relation between the current price of the price of gold on the COMEX at 1170 and the price of gold being trading in Asia. The price people pay for gold and silver in Asia is nearly twice that in the U.S. That is if they can get the metals. The disconnect between "price and supply" is exactly what an Austrian economist would predict. If you price filet mignon below that of chicken, the supply of filet mignon will eventually disappear. That is what you are seeing with gold and silver. Price does not matter if you cannot get any product just as supply does not matter if the price is too high. Too high prices will eventually bring out more supply. Too low a price will eventually shrink the supply or the availability. The current low price for gold and silver will create excess demand (as now with all the Asian countries) and also cause a shrinking supply since mines cannot make a profit at these low levels.

 

While Comex can hand has created this low artificial price, they cannot create the supply necessary to satisfy the greater demand. Why would any gold or silver mine sell their product at a price lower than it cost to mine the ore and make a decent profit. What the COMEX has done by forcing the price too low is to have set in place the fundamentals for a "re-pricing" in explosive fashion.

 

TODAY"S STUDENTS

 

We now teach our students Government dependence, and that this is acceptable as a lifestyle, not something to be avoided and totally shameful. We teach that personal failure is not their fault. They thus believe that they are the middle class and just by showing up are entitled to the various rewards that go to those that work hard, take care of themselves, live a prudent life style, save some of their earnings, and serve others the most.. This has been the recipe for personal success which has served the developed world so well in past years'

 

Now NONE of these virtues is taught in today's schools, thus students no longer give these things any thought or work to achieve them unless taught so by their parents. Indeed, 71% of all fathers disappear in the black community.  Now, almost a half a century, since the Department of Education was created, legions of citizens are on one form or another of Government assistance or relies on it to supply or supplement their incomes which they can no ;longer earn  due to a general incompetence, the inability to support themselves,, or weakness caused by economic policies of our centrally controlled federal and state governments.

 

We thus produce expanding generations THAT ENTER AND EXIT THE PUBLIC SCHOOL SYSTEMS which build and expand constituencies of Socialist Know Nothings.  These are the people who will vote themselves larger and larger amounts of money from the public troth. Look closely at the breath taking climb of those on the dole in one form or another..

Your government does not take in enough money to support all these people, so they must print endless amounts of money to make up the void. They must constantly raise taxes on those that work. (I own gold and silver instead of paper money) These know nothings are sucking wealth out of the U.S. economy rather than creating any wealth. The President and his supporters in Congress have literally exploded government dependency. The social safety net system is and has been overwhelmed with responsibilities that  the government has chosen to provide. This, in my opinion, is part of the plan of your president and his supporters to collapse the economy in a form of socialist dictatorship. A Cloward-Piven strategy (why not look this up on your own)

 

There is no shame anymore connected with government dependence as children are taught it is the norm, not their fault, and are entitled to it. A lifestyle of living on the fruits of others, Food stamps, welfare, disability, section 8 housing, Medicaid, Obamacare, and on and on.

Legions of deadbeats who we support by printing money

 (I think I'll stick with my gold and silver)

 

Unsound money has allowed your government to COVER UP poor economic policies and to grow government DEBT to now un-manageable levels. It now requires about $12 dollars of new debt to create one dollar's worth of GDP. The GDP    (Gross Domestic Product) is for as brief instant in time, but the interest owed on it compounds against the borrowed alias the taxpayer and our children.  Never reported in the media. This is how the bankers take the public's money with their powerful lending operations and transfers the money to themselves. The" bankersters" who printed it out of thin air and then lend it to the public. This money keeps declining in purchasing power, so far, by 80% since 1971

That is why you own gold and silver at any price. Because gold HAS OUTLASTED ALL PAPER CUIRRENCIES. There is no paper currency that has lasted more than 75 years in the same form or not devalued. You remember that when you read about anyone dumping on gold and silver. 

 

You could substitute the words Federal Reserve for the bankers. They print Federal Reserve Notes, lend the money to the Public, charge interest on this money, and this interest goes to the 10 rich families who own the Federal Reserve. To repeat from one of my Remarks a while ago, The Federal Reserve is owned by foreigners, mostly, and is not Federal and not an American entity. But most people do not understand this or what I am saying. ( read the The Creature From Jekyll Island by Edward Griffin)

 

THE GOLD MINING STOCKS A Perpetual Warrant

 

Gold and silver has been so artificially knocked down so much and so far, that the gold mining stocks that produce gold are at unreal prices. They are at what I call" stock warrant" prices A stock warrant is the right to buy a stock for a limited time.in the future, let's say a year or two. They usually sell for a few dollars up to about $10 dollars. Mostly in the few dollar re-manage, then these warrants expire if the price is not reached.

 

Here we have the case of many gold mining stocks selling at the price of a warrant, but a perpetual warrant because the stock has fallen to the price of a warrant and there is no expiration date as this is the stock and not the warrant. If you are willing to hold several of these very cheap stocks, As I do, you always make money but patience is required.

These stocks can be volatile. Some suggestion in which I have taken a position:

 

One such stock is the gold mine, Kinross,( KGC,) stock symbol  current price $2.80

In 2010 the stock was $18.50 or about 600% more. This company has $978 million in cash and a market value of $3.55 billion.

Prudential owns 92 million dollars in this stock

First Eagle Investment owns $300 million of this stock

Vanguard owns $311 million in this stock

Market Vectors ETF owns $191 million in this stock

 

So I own a few thousand shares and just wait and it will not matter if I wait a year or two.

As with the stock below. These Companies were around when I was a kid.

 

Gold Corp Stock Symbol GG  Current price was $19,64 Current Market Capitalization is $16 billion.  Price in 2010 was $45, revenue was $3.6 billion last year Gross profit $1,062 billion

 

Agnico Eagle AEM Current price $23.49  Current Market Capitalization  is$ 5 billion In 2010 the price was $78.00 This is an excellently run comp[any and has been buying up many other smaller companies as has Kinross.

 

Barrick Gold ABX stock symbol.  The largest gold mining company Current Market Capitalization is $13 billion, Current price $11.49

price in 2010 was $50.19 Not a very well run Company but a sleeper in my view now that the price is way down. Could be bought out at this low price

Van Eck Gold owns $911 million dollars of stock

Vanguard $126 million dollars, Fidelity $76 million dollars of stock 

 

Newmont Mining Company  NEM  Probably one of the better gold mining stocks. In 2010 this stock was $ 61 Currently at $18.40  Market Capitalization at 9.18 billion

Nearly as large as ABX but much better run.

 

State Street Bank holds $651 million dollars

Market Vectors $561 million dollars

Vanguard $618 million dollars

Blackrock 370 million dollars

 

SGDM This is the Sprott Gold Miners ETF  $17.79 High several years ago at $35

Contains about 10 of the top gold mining companies The item to know here is that this ETF sells at a 29% discount to net asset value.

 

Buy one of these or a smidgen of each one, Put away and forget about them for a year.

 

Gold Miners are trading at multi year lows

Gold Miners have under performed the price of gold since 2011. When gold starts to take off, and it will, the gold mining stocks historically have out performed the metal by a factor of 6 to 1.                            Till Later 

 

 

 

 

 

 

 

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