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.

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

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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

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