The Canary in the Gold Mine Has an Iron Lung

JM Bullion

There is No Greek Deal.

This week’s podcast reviews the supposed “aGreekment” gold and silver prices and Janet Yellen’s Congressional testimony.

Introduction 0:00-3:10

There is No “AGreekment”

3:10 discussion of the terms of the recent deal to avert a Greek exit from the Euro. There is no Greek deal only media events surrounding negotiations- just like there is no housing recovery or economic recovery. Media events are design to cover up that there are no solutions to the global debt bloat that has sunk Greece and hindered growth worldwide.

The Greek deal will require the sale of Greek assets (selling of airports and seaports), a loss of their sovereignty (they must pass laws acceptable to the troika that will ensure debt repayments). Greece will now work to pay off debt.

Greece can’t print its way out of its debt problem the way other countries with similar debt to GDP ratios like Japan and the United States. Only countries with power can engage in quantitative easing. If you can’t print currency, you work for those that can because they won’t let you default; they have you locked in to their subsistence.

Tspiras offered incompatible goals-stay in the Euro and not have to pay. Greece’s negotiating posture went from we stay you pay to “you stay you pay” after the Greeks voted NOT to agree to an onerous bailout package.

The Canary in the Gold Mine Has an Iron Lung

Canary in a gold mine

7:00-9:25 Lower gold and silver prices are discussed in the context of increased retail demand. “Officials” do not like to see gold and silver prices rise as they indicate declining confidence in their financial stewardship so they act to supress their prices. U.S. Mint July gold and silver sales are discussed.

https://twitter.com/smaulgld/status/620350855800311808?refsrc=email&s=11

Sales of American Silver Eagle Coins July 1988-2015

July sales of american silver eagle coins 1988-2015

Sales of American Silver Eagles in the first week of July topped 2.7 million before the U.S. Mint halted sales.

Sales of American Gold Eagle Coins July 1987-2015

american gold eagle sales chart july 2015

The U.S. Mint has sold 95,000 one ounce American Gold Eagle coins as of July 20, 2015, the third largest July sales month.

Federal Reserve, Elections and Ponzi Schemes

9:25-13:00 the interplay between the Fed the IRS and Congress is discussed. “Transparency” of the Fed is discussed.

Fed Transparency initiatives include banning @pdacosta from all press conferences

— Smaulgld(@Smaulgld) July 15, 2015

Discussion of the reasons the Federal Reserve wants to raise rates- to appear prudent, credible, to support the (false) notion that that the economy is improving and to drum up demand for US Treasury Bonds in light of de-dollarization initiatives. Outside of the alternative media, the Fed has convinced the markets that they are going to raise interest rates.

Fed Intervention in Markets

13:00-15:30 Fed intervention in bond and equity markets is discussed. Discussion of how policy makers manipulate perception through positive media and dispensing benefits.

The Benefits of Inflation/Ponzi 101

15:30-21:26 the Fed’s misguided desire to create inflation is discussed. Raising interest rates is another way of attracting more money to the U.S. Treasury ponzi scheme. The lower US deficit also give the Fed cover to raise rates as interest payments on the debt will be lower. Rates needs to be raised so they can be lowered.

Access Journalism/Manipulated Controlled Politics

21:26-24:20 the lack of investigative reporting is discussed. Discussion of how the kicking the can down the road can continue- they just add more road by issuing more credit. A modern version of the emperor’s new clothes is noted.

How will the Greek Public Take the New Agreement?

24:20-25:28 Scenarios of how the Greeks will react to the new troika deal. Will they get kicked out of the Euro, will they take themselves out of the Euro? Default?

Will The Fed Raise Rates?

25:28-33:48 A Fed rate hike is already bake into the market. The stock market continues to rise. The Fed stopped QE because foreign creditors did not like that the US was printing dollars. Now the Fed will placate those investors and raise rates a small amount to keep demand for treasury bonds to combat de-dollarization initiatives.

The uneven nature of the housing recovery is discussed. Stock analysts who place strong buy recommendations on unprofitable companies are discussed as well as reporters for the main stream media who characterize today’s economy and job market as one of the strongest ever.

The Biggest Ponzi Scheme Ever

33:48-36:05 the global debt situation is the greatest ponzi scheme ever. The old adage of when you find yourself in a hole you stop digging doesnt apply to the current situation. The credit issuers have to keep digging and issuing credit to keep the ponzi scheme going. The Fed and bankers have learned damage control from the 2008 crisis.

The Anti Gold Press

36:05 Every week there are a few anti gold stories from each of the mainstream media outlets designed to keep.

Gold is backed by NOTHING!

Gold is Desired/Silver Required

It may be easier to keep the gold price down in the long run because gold is not required and there is plenty of gold in stockpiles and at central banks. Silver, however, is required for solar and electronics industry and relies on mining supply as there are no vast stockpiles of silver. If demand continues to increase with lower prices mining supply may not keep up. It would be hard to manipulate the price down if there were to be an acutal silver shortage as market participants would pay a market price to receive physical silver.

Gold/Silver Trading strategy?: Short gold and silver, take the profits and buy the physical. Comex won’t default as people don’t go to there to buy gold or silver they go there to trade futures contracts. You don’t beat the casino at the casino.

The Shanghai Gold Exchange through May 2015 had delivered over 900 tons of gold vs. just 84 tons for Comex in the entire year of 2014.

comex vs shanghai gold exchange chart

Comex is largely a paper market where delivery on contracts is not the norm.

The current global debt ponzi scheme requires not only more credit but media support.

The Fed Will Raise Rates Not Because the Economy is Getting Better But Because they Want and Need To Raise Them

The Fed officials are laying the ground work for a rate hike:

Janet Yellen: “If the economy evolves as we expect, economic conditions likely would make it appropriate at some point this year to raise the federal funds rate target, thereby beginning to normalize the stance of monetary policy.”

“A small increase in interest rates from zero is not tight monetary policy, and with the economic progress we’ve made and that I expect to continue, monetary policy can take a step back from the emergency measure of zero interest rates,” said Cleveland Fed President

There is No Greek Deal- Just a Series of Media Event

Check out all the Smaulgld podcasts here.

Please consider making a small donation to Smaulgld.com. Thanks!





Check out all the Smaulgld podcasts here.

Get Free Updates From Smaulgld.com

Subscribe to Smaulgld.com and get the free In Case You Missed Itweekly email as well as updates and analysis on gold, silver, real estate and the economy.

Also get the free report “Twelve Key Differences Between Gold and Silver” when you subscribe.






Subscribe to Smaulgld.com to receive free gold and silver updates, news and analysis.

Buy American Gold Buffalo Coins

Canary Photo- Can Stock Photo

Further Reading:

U.S. Mint Suspends Order Limits on American Silver Eagle Coins

U.S. Mint Sells Record Number of Amercian Silver Eagle Coins in June

Bankruptcy in America

A Warning To San Francisco

How a Stock Market Crash Ends the Economic Recovery

Nigel Farage to Tsipras- Leave the Euro

Please visit the Smaulgld Store for a large selection of recommended Kindles, books, music, movies and other items.


You can support Smaulgld.com by making all your Amazon purchases through the search widget below and by ordering your gold and silver by clicking on the JM Bullion, BGASC, Goldbroker, Golden Eagle Coin, Miles Franklin, Perth and Royal Canadian Mint ads on the site.

DISCLOSURE: Smaulgld provides the content on this site free of charge. If you purchase items though the links on this site, Smaulgld LLC. will be paid a commission. The prices charged are the same as they would be if you were to visit the sites directly. Please do your own research regarding the suitability of making purchases from the merchants featured on this site.

Chart Disclaimer: Information presented here has been obtained from a third party and is presented for information purposes only. Smaulgld can not and does not guarantee the accuracy or timeliness of the data displayed on this site and therefor the data provided should not be used to make actual investment decisions. You should always consult a professional investment adviser before investing in precious metals or any type of investment. You acknowledge that Smaulgld assumes no responsibility for the integrity of data on this site.

The content provided here is for informational purposes only. Making investment decisions based on information published by Smaulgld (SG), or any Internet site, is not a good idea. Accordingly, users agree to hold SG, its owner and affiliates, harmless for all information presented on the site. SG presents no warranties. SG is not responsible for any loss of data, financial loss, interruption in services, claims of libel, damages or loss from the use or inability to access SG, any linked content, or the reliance on any information on the site.

The information contained herein does not constitute investment advice and may be subject to correction, completion and amendment without notice. SG assumes no duty to make any such corrections or updates. As with all investments, there are associated risks and you could lose money investing. Prior to making any investment, a prospective investor should consult with its own investment, accounting, legal and tax advisers to evaluate independently the risks, consequences and suitability of that investment. SG disclaims any and all liability relating to any investor reliance on the accuracy of the information contained herein or relating to any omissions or errors and as such disclaims any and all losses that may result.

Post Navigation