Four Score and Ten Days Ago

For the sake of everyone's sanity, I thought it best to update and re-release this post from July 10, 2013.

Before reviewing this post from July, here's all you need to know:

  • JPM has been a net "deliverer" again this month. So far, with 4,061 October deliveries already made, JPM has issued 1,991 of them. HSBC has been the primary stopper, grabbing for their house account 2,933 of the deliveries.
  • This pattern is consistent with the February, April and June delivery pattern from earlier this year and documented here: http://www.tfmetalsreport.com/blog/5018/evidence-gold-corner. JPM issues and the other bullion banks take delivery.
  • This pattern was discussed again here ten days ago: http://www.tfmetalsreport.com/blog/5112/pattern-re-emerges
  • The only outlier month was August, where JPM was the primary stopper and the other banks were the issuers. We spent a lot of time that month researching the correlation of these facts with the rally in price that occurred at the same time. For example: http://www.tfmetalsreport.com/blog/4941/jpm-continues-hoard-gold
  • After a 5.4 metric ton raid yesterday, the GLD shows an "inventory" of 890.98 mts. Month-to-date, the GLD has now disgorged 15.01 metric tonnes or 482,582 troy ounces of gold, enough to settle 4,825 Comex contracts.

So, now, here we are. Another Comex delivery month where JPM is the primary issuer and Comex price is declining. We are also seeing a renewed raid on the alleged "inventory" of the GLD. Today saw the brutal, summary dumping of over 5,000 Comex contracts in an obvious attempt to suppress and manipulate price (http://www.zerohedge.com/news/2013-10-11/stop-logic-gold-slam-was-so-furious-it-shut-down-cme-trading-again). And, finally, a quick check of the calendar reveals that today is what?...It's the 11th of the month!

The moral of the story? We must expect more weakness in the short term, followed by continued drawdowns of the GLD to meet global physical demand. Price will then recover later this month and into November.

OK, so here's the post from July 10....

A Pattern Emerges   (http://www.tfmetalsreport.com/blog/4827/pattern-emerges)

By Turd Ferguson | Wednesday, July 10, 2013 at 11:14 am

Because I'm still adjusting to the time change coming off of my vacation, I found myself tossing and turning last night when I suddenly came to this realization. Though not on the level of Dr. Emmett Brown after hitting his head on his bathroom sink, I think you'll find this interesting, nonetheless.

As you know, The Bullion Banks have engaged in a relentless campaign to lessen their exposure and potential liability in paper precious metal. Since the announcement of QE∞ last September, price has counter-intuitively fallen by over a third from near $1800 to below $1200. All the while, The Bullion Banks have decreased their total net short position in paper gold from 737 metric tonnes to less than 70 metric tonnes (from the CoT survey of 7/2/13). From a chart perspective, it looks like this:



Now, look closely. See anything? No? Look again, even closer. Do you see anything now? Do you see any type of pattern?? I must admit that, prior to last evening, I hadn't seen it, either. But it's there, waiting for you to discover it.

OK. What if now I gave you this? Take a look at the chart below with some notes made upon it. Now what do you think?

Hmmm. Well that's interesting, isn't it? Yes, price is down by over 30% from last September. However, almost all of the decline has taken place during the five calendar months of October, December, February, April and June. In fact, as you'll see below, the vast majority of the decline has occurred during the middle of those months. Hmmm. That's interesting, too.

Now before we dig further, what if I gave you these two charts?

So, now, let's go back to the current decline. What is so special about the months of October, December, February, April and June? I'll give you a few moments to think about that before we continue...

.....

.....

If you guessed, "They're Comex delivery months, Turd!", then you win today's prize! Yes! Those months are, in fact, "delivery" months for The Comex. Recall that the active futures contract is always the front month for delivery. Currently, this is the August13 contract. As of Monday, it had a total open interest of 206,000 contracts and it will stop trading and have it's First Notice Day on July 31. Anyone holding a contract after that date must show their intent for delivery by providing 100% margin in their account. Deliveries to eligible contract holders will then take place through the month of August.

Still with me? Good.

This same process occurred back in September for the October12 contract. First Notice Day was at the end of September and deliveries took place through October. The price of gold peaked at $1796 on October 5 but managed to hang in there for another week or so. But then look what happened and note the exact date:

DATE                   PRICE                 GLD TONNAGE           

10/12/12                 $1773                           1,340.52

10/24/12                $1699                           1,336.90

10/30/12                                                      1,336.30

So, what do we see here? Near the middle of the delivery month, price began to drop rather steeply and a little bit of gold was shaken out of the GLD "inventory". Then, after a decent rally in November, price began to decline again once we flipped the calendar to the delivery month of December. Look what happened and, again, note the date:

DATE                   PRICE                 GLD TONNAGE

12/12/12                  $1723                          1,351.42

12/20/12                 $1635                          1,350.52

12/28/12                                                      1,350.82

And now you're thinking, "OK, Turd. What's the deal?". Well, let's continue, shall we? Again, please note the date:

DATE                   PRICE                 GLD TONNAGE

2/11/13                    $1669                          1,326.89

2/21/13                    $1555                          1,290.31

2/25/13                                                         1,272.85

Well, that's interesting. This time, the mid-delivery-month decline shook out over 50 tonnes of gold from the GLD. "Hmmmm. I wonder what would happen if we tried that again?"

DATE                   PRICE                 GLD TONNAGE

4/12/13                    $1564                         1,158.56

4/16/13                    $1321                          1,145.92

4/29/13                                                        1,080.64

"Wow. This is awesome!", the Evil Ones said. "We hit price in February and shook out 50 tonnes. Then, even while price was stable from 2/21 - 4/12, we were able to grab 114 more. Finally, by breaking price down through the floor at $1525, we got 75 tonnes in April! What a deal!!"

Once again, price was relatively stable mid-April to mid-June, while no Comex deliveries were taking place. Then look what happened, again paying special attention to the date:

DATE                   PRICE                 GLD TONNAGE

6/12/13                   $1394                          1,009.85

6/28/13                   $1181                            969.50

7/9/13                                                            939.75

So, what is the lesson here?

  • The Bullion Banks have utilized the manufactured price drop to lessen their exposure and potential liability in paper gold by over 90%.
  • This resulting "discount" in paper price has led to a surge in global physical demand. For example, see here: http://www.mineweb.com/mineweb/content/en/mineweb-gold-news?oid=197040&sn=Detail
  • However, Registered and Eligible Comex inventories are dangerously low. As of yesterday, The Comex showed 224 tonnes of Eligible and just 35 tonnes of Registered (ready for delivery).

What to do, what to do? The plan is clear! Raid price during the delivery month!! Create the selling and panic necessary to shake loose tonnage from the GLD. Use this gold to settle delivery obligations, not only in New York but London, too. Once the current delivery "crisis" has passed, leave gold alone to wallow and flounder, only acting to cap price whenever necessary to keep the downtrend in place. Once the next delivery month arrives: Wash, rinse and repeat.

Going forward, this likely means that we're "safe" for about another month. Besides, it's summer and we're in the middle of vacation season. Aside from the occasional short squeeze or price plunge, the pattern suggests that gold will be stable between $1250 and $1350 until early August. But then....watch out!

Forewarned is forearmed.

TF
 

108 Comments

Spartacus Rex's picture

Nice!

Thanks TF!

Edit: Oops, whaddaya know FURDST!

Bollocks's picture

Even Nicer!

The bullion banks are seriously under scrutiny.

Second  cool.

Mr. Fix's picture

A busy day for Turd

This is starting to look like a tradable system.

How long you think it will last?

And what happens when the music stops?

Bollocks's picture

Turd - one more thing that's just struck me about the number 11.

Before I say this, I am not a numerology-type person. I don't follow what the meanings of numbers seem to mean to those that are into that stuff.

BUT.

I mentioned 9/11 in your previous "where we are" post.

There's lots of evidence out there that tptb are obsessed with numbers. Numbers have seem to have important meaning to them.

Your last post and this one brought attention to the number 11.

What has just struck me is the numbers on a clock. 11 is the last number before 12 - the last hour, before a new cycle begins.

Haven't we heard about a "new world order" and a "new world currency" being touted as the next stage, since 9/11 happened, by the world's leaders?

They will need to kill the dollar to bring one in.

Am I nuts? Or is there something here?

 

Big Z's picture

top ten

I have arrived  lOL  now back to lurking

Spartacus Rex's picture

Gee Bollocks...

R U like channeling Winston Churchill or something?

Edit: Oh wait now I get it.

It was all a British plot.

Let's see, we take the Beatles Number "9" with Churchill's "11" th Hour and WOW how come we did not see it coming?

Simple, pure revenge on the Yanks! LOL

Hammer's picture

National Holiday in Japan

National Holiday in Japan (again - they have lots of them !) this coming Monday. Markets will be closed.

Bollocks's picture

Spartacus

Just pointing out an obsession that I've noticed that those in powers seem to have with numbers.

Sure, maybe I'm nuts about that. Maybe not though - maybe there is a connection, and a message.

DeaconBenjamin's picture

Starved of gold, Indians may import record volumes of silver

By Siddesh Mayenkar

MUMBAI | Tue Oct 8, 2013 5:03pm EDT

Indian silver imports are on pace to hit a record high this year as the wedding and festival season drives up buying of the precious metal instead of the traditional gold, made scarcer and dearer by official measures aimed at cutting the trade gap. Higher silver demand in the world's biggest buyer may help support prices, which have fallen almost 30 percent this year on the international market and are on track for their biggest annual drop in almost three decades.

The increase in buying is unlikely to spark a fresh policy response from authorities, as in the case of gold, since the value of silver that is imported is far lower than that of gold and therefore not critical to the trade balance.
"There has been a massive improvement in silver imports and we will continue to see more. Investors are taking advantage of lower prices and the lack of restrictions on silver imports as of now," said Harmesh Arora, director with the Bombay Bullion Association.

According to the GFMS metals consultancy, India imported 4,073 tonnes of silver from January to August, more than double the 1,921 tonnes in the whole of 2012, when a jump in prices in the peak season hurt demand. The record high was 5,048 tonnes in 2008. India, also the world's biggest buyer of gold, has raised the import duty on bullion three times this year, taking it to 10 percent, and in July the government told importers that a fifth of their purchases would have to be turned around for export, leaving only 80 percent for domestic use.

The import duty on silver was also raised to 10 percent in August from 6 percent, but prices remain far apart: gold is about 60 times more expensive than silver in dollar terms. Gold has a special place in Indian culture, bought as a hedge against inflation and traditionally used for gifts at weddings and festivals. Silver does not enjoy the same status. The value of silver imports in 2012 was $1.8 billion, whereas gold imports cost $52 billion. Even record shipments of silver are therefore unlikely to put any strain on the trade deficit, in contrast to the impact of gold, which is India's second-biggest import item after oil.

http://www.reuters.com/article/2013/10/08/us-india-silver-idUSBRE99711G20131008

jolidacrown's picture

Interesting ...

So - we can now add scheduled beat downs on top of every other tool they employ - I’m a sucker for punishment I guess - oh well the money was spent and it’s staying - whatever happened to all things positive for gold … backwardation for one - GOFO rates and many more hailed as the new dawn?

I’m at peace with the daily drama in metals - long term no problem - I don’t see me buying much dips until it drops below a thousand - my conclusion - 5 to 10 years before we see any meaningful surge.

One last thought - the ones making money in metals - are the same ones that keep us interested in the metals - it’s all good - family and friends have certainly been proven right - hopefully longevity will prevail.

chrtoo's picture

Weekend buying opportunity ..

.. provided by the cartel. I knew I had dry powder around here for a reason .. I wonder if it will be dry powder, all the way through New Year's, so that the 'money' folks can deny the Gold bull market another year of running.

Imagine the press field day if there is Y-o-Y confirmation that the Gold bull has ended. Long live the bull!

Happy Thanksgiving to our Canadian readers!

CHR.

P.S.  Top 10!

Edit:  Missed it by that much!

Spartacus Rex's picture

@ Bollocks

Well, considering how pathological they are, and how they constantly work with "numbers", One would reasonably conclude that their preoccupation and/or obsession with same would eventually reach the extreme, Right?wink

Bollocks's picture

Spartacus

"One would reasonably conclude that their preoccupation and/or obsession with same would eventually reach the extreme, Right?"

I don't know. I'm just putting forward an idea. The numbers 1 to 12 relate to the division of time that everyone uses worldwide. Not just on a clock, but to the months in a year too.

I was just pointing out something that came to me, that's all.

Symbolism. Oh, one last thing to hopefully (smiley) label me possibly insane about this...

Twin towers. Look at them - the number 11. All the major clampdowns on our freedom came after that event. In retrospect, symbolism may reveal some truth.

¤'s picture

Two Years Later: Libya

Libya in anarchy two years after NATO Humanitarian Liberation

In 2011 when Muhammar Qaddafi refused to leave quietly as ruler of Libya, the Obama Administration, hiding behind the skirts of the French, launched a ferocious bombing campaign and a “No Fly” zone over the country to aid the so-called fighters for democracy. The US lied to Russia and China with help of the (US-friendly) Gulf Cooperation Council about the Security Council Resolution on Libya and used it to illegally justify the war. The doctrine, “responsibility to protect” was used instead, the same doctrine Obama wants to use in Syria. It’s useful to look at Libya two years after the NATO humanitarian intervention.

 | FRANKFURT (GERMANY)  |  OCTOBER 2013  
 
JPEG - 26.6 kb

Chaos in oil industry

Libya’s economy is dependent on oil. Just after the war, Western media hailed the fact the oil installations were not damaged by the population bombing and oil production was near normal at 1.4 million barrels/day (bpd). Then in July the armed guards hired by the government in Tripoli suddenly revolted and seized control of the eastern oil field terminals they were supposed to protect. There is where the vast bulk of Libya’s oil is produced, near Benghazi. It goes by pipeline to tankers on the Mediterranean for export.

When the government lost control of the terminals production and export fell sharply. Then another armed tribal group seized control of two oilfields in the south blocking oil flow to terminals on the northwest coast. The tribal occupiers demanded more pay and went on strike to demand pay and an end to corruption. The end result is today, early September Libya pumped a mere 150,000 barrels of its capacity of 1.6 million bpd. Exports have fallen to 80,000 barrels per day. [1]

Armed Militias vs Muslim Brotherhood

Libya is an artificial state like much of the Middle East and Africa, carved out in the colonial era of World War I by Italy. It is ruled by tribal consensus among numerous tribes. Qaddafi was chosen in a long process of voting by tribal elders that can take up to 15 years I was told by one expert. When he was murdered and his family hunted, NATO forced rule by a Muslim Brotherhood-dominated National Transitional Council (NTC).

Now in August a new Assembly was elected dominated again by the Brotherhood as in Morsi Egypt or Tunisia. Sounds nice on paper. The reality is that, by all accounts lawless bands, armed for the first time during the war with modern weapons, including foreign Al Qaeda and other jihadists are carrying out daily bombings across the country for local control. Tripoli itself has numerous armed gangs controlling sections of the capitol. It is turning into an armed battle between local tribal millitias that are forming and the Brotherthood that controls the central government. Leaders in the provinces of Cyrenaica and Fezzan are considering breaking away from Tripoli and rebel militias mobilizing across the country. [2]

Bombings in Tripoli are daily as lawlessness spreads

Nuri Abu Sahmain, Muslim Brotherhood President of the newly elected Congress has summoned militias allied to the Brotherhood to the capital to try to prevent a coup, in a move the opposition sees very much like a coup by the Brotherhood. The main opposition party, a center-right National Forces Alliance, as a result just deserted Congress together with several smaller ethnic parties, leaving the Brotherhood’s Justice and Construction party heading a government with crumbling authority. "Congress has basically collapsed," said one diplomat in Tripoli. [3] The Obama Administration has promoted a takeover across the Muslim world from Egypt to Tunisia to Syria by the secretive Muslim Brotherhood as part of its long-term strategy of controlling the Muslim Arc of Crisis from Afghanistan to Libya. As the Saudi-backed military coup against Brotherhood president Muhammed Morsi in Egypt in July showed, the Obama strategy has some problems.

Riots and lawlessness

With rising violence the Interior Minister Mohamed Khalifa al Sheikh resigned in August. Some 500 prisoners in Tripoli jail did a hunger strike to protest being held two years without charges. When the government ordered the Supreme Security Committee to restore order, they began shooting prisoners through the bars. In July 1200 prisoners escaped a jail after a riot in Benghazi. In short lawlessness and anarchy is spreading. [4]

Ethnic Berbers, whose militia led the assault on Tripoli in 2011, temporarily took over the parliament building in Tripoli. Because the US and NATO was adamant it wanted no “boots on the ground,” instead they freely gave arms to any and all rebels who would shoot at the Qaddafi government troops. Now they still have the guns and Libya was described to me by one French journalist who had recently been there as “the world’s largest open air arms bazaar,” where for cash anyone can buy any modern NATO weapon.

Foreigners have mostly fled Benghazi since the American ambassador was murdered in the US consulate by jihadi militiamen last September. And Libya’s military prosecutor Colonel Yussef Ali al-Asseifar, in charge of investigating assassinations of politicians, soldiers and journalists, was himself assassinated by a bomb in his car on 29 August. [5]

Prospects are grim as the lawlessness spreads. Sliman Qajam, a member of the parliamentary energy committee, told Bloomberg that “the government is running on its reserves. If the situation doesn’t improve, it won’t be able to pay salaries by the end of the year.”

The Obama Administration argues that the not-yet-proven use by the Assad government of chemical weapons in Syria justifies a bombing war by NATO and allies such as Saudi Arabia, Qatar, Turkey and Jordan, based on the “humanitarian” doctrine deceptively known as “responsibility to protect,” which argues that certain violations of human rights or safety are so serious as to transcend international law, UN Charters or US constitutional requirements and allow on moral grounds any US President to bomb any country he or she chooses. Something is not quite right here. 

http://www.voltairenet.org/article180423.html

Spartacus Rex's picture

Bollocks

Gee, and if they had only thought to rename WTC 7 to WTC 9  it would have been, as Nigel Farage puts it: "Brilliant"!devil

wooden nickel's picture

jolida

can you explain your expectation of 5 to 10 years? what do you base this on? you may be right, but it would be nice to know your thinking.

Bollocks's picture

Spartacus

Hahaha. Yes, that would have been perfect. lol! Better still if it had been designed in the shape of a number 9. lol.

Can't help myself..

Hey, I'm just saying. I did say I was probably nuts for pointing this out.

Oops, have to say nevertheless, the attraction to numbers and symbology has a vast history where those in power are concerned.

I'll shut up now, I promise wink.

benque's picture

My stack...

...is a very, very, very fine stack.

But not nearly large enough.  I've heard mention of a concentrated buying effort on Oct 31, and even hints of possible special prices.  Nothing for a week or so, and wondering if folks are still planning to go through with it.  I hope to add to my little stack on or about that date, and would like to coordinate my humble efforts with the rest.

Kcap's picture

*SILVER IS SICKENINGLY UNDERVALUED*

Regardless of how people feel about the manipulation, the lies, the fraud, the collusion....this is a fact. 

I can tell you that if JPM is LONG Gold and now GS is a player in the market in the process of going long.....then something will happen soon.  These guys are impatient....they like to make money quickly.  Even if we make a deal to avoid shutdown blah blah blah, keep your eyes open even wider for the following 3 months.  That is when something, anything, black swan, false flag, etc will happen.

Gold and silver.....in this next stage, will prosper from an asymmetrically unfolding outcome.  This won't be something people will be able to see a mile away....right now, you are betting on the swan.  And my personal feeling is, she's ready to take flight.  Keep your eyes on the game.

Kcap

Physical_only's picture

Don't these people think anyone is paying attention ?

so·ci·o·path' "S"

 [soh-see-uh-path, soh-shee-]  

noun Psychiatry.
a person with a psychopathic personality whose behavior is antisocialoften criminal, and who lacks a sense of moral responsibility or social conscience.

Or they just don't give a $hit & not enough of the right people are paying attention. OR the so called right people all have their hands, arms, legs, etc; in the preverbial cookie jar.

http://finance.yahoo.com/news/obama-says-real-boss-default-040100464.html

President Barack Obama knows who is the boss: the bond market.

"Ultimately, what matters is: What do the people who are buying Treasury bills think?" the president told reporters this week, when discussing measures he could take to end the threat of a historic default on the nation's debt.

Even with the U.S. budget deficit down by more than half since 2009 as a percentage of the economy, the Congressional Budget Office says the government this fiscal year will need to borrow an average of almost $11 billion each week. That's why Obama is so sensitive to what investors will tolerate.

............................................................................................................................................................

If the government has to borrow 11 billion a week and the Fed is buying 45 billion worth of bonds every month, doesn't that mean they are buying them all? Who are these other people Obama is referring to?

RANT=OFF

woofwoof's picture

@benque

@benque

I sure hope that 1000 Turds step up to the plate on Oct 31 to buy at least 10 oz of silver. Silver Doc had hinted on providing a break-even price for that day.

Occasnltrvlr's picture

C-Note Report for the Idly Curious

Philadelphia suburbs, at a branch of a large non-NY bank:

No new C-notes, "Maybe by Christmas.  If we order them now, we still get the Series 2009."

Occasnltrvlr's picture

Also, About an Oct. 31 Purchase of Silver

If anyone is willing to provide a "break-even" price on a 10-oz. bar or some similar offering, I'm in for a "break-even" purchase.

Physical_only's picture

RE; C-Note

Being Idly Curious, I was able to pick some up yesterday at the Credit Union

SS121's picture

@ Turd

Man, what an awesome podcast tonight,  my all-time favorite no question about it. 

It's like you just shifted into that final gear and are pulling away from the pack.   I don't know whether it was tonights PC or where you're headed from here, but MAN that was awesome!

Thank You Sir, for all your hard work.  I am thankful to be riding along.

Hope you have a cool weekend and will be looking forward to the Monday show.

Occasnltrvlr's picture

@Physical_only, Are You...

...Free to elaborate a little, such as, relative size of the Credit Union, and general location?

Occasnltrvlr's picture

DPH

Even disregarding specific content, that was just a darned nice array of photos and headlines to see.  Thank you, for what you do.

Physical_only's picture

RE: Credit Union...C-notes

Central Valley, California

Valley First Credit Union

Medium size, although when I asked; they said "they had just got them in from the Fed"

Which surprised me as they cover a few cities, but are again what I would call medium in size.

DeaconBenjamin's picture

IMF Discusses A Super Tax Of 10% On All Savings In Eurozone

 

One of the latest reports from the IMF discusses a super taxation of 10% on savings in the Eurozone. That would solve the debt problem in most sovereign countries. It would be an alternative of higher taxes or spending cuts.

The economists who wrote the paper hasten to say that it is a theoretical proposal. Still, it appears to be “an efficient solution” for the debt problem. For a group of 15 European countries such a measure would bring the debt ratio to “acceptable” levels, i.e. comparable to levels before the 2008 crisis.

The report itself is embedded at the bottom of this article. In the last section of the report, on page 58, right before the appendices, it says:

The sharp deterioration of the public finances in many countries has revived interest in a “capital levy”— a one-off tax on private wealth—as an exceptional measure to restore debt sustainability. The appeal is that such a tax, if it is implemented before avoidance is possible and there is a belief that it will never be repeated, does not distort behavior (and may be seen by some as fair). There have been illustrious supporters, including Pigou, Ricardo, Schumpeter, and—until he changed his mind—Keynes. The conditions for success are strong, but also need to be weighed against the risks of the alternatives, which include repudiating public debt or inflating it away (these, in turn, are a particular form of wealth tax—on bondholders—that also falls on nonresidents)

There is a surprisingly large amount of experience to draw on, as such levies were widely adopted in Europe after World War I and in Germany and Japan after World War II. Reviewed in Eichengreen (1990), this experience suggests that more notable than any loss of credibility was a simple failure to achieve debt reduction, largely because the delay in introduction gave space for extensive avoidance and capital flight – in turn spurring inflation.

The tax rates needed to bring down public debt to precrisis levels, moreover, are sizable: reducing debt ratios to end-2007 levels would require (for a sample of 15 euro area countries) a tax rate of about 10 percent on households with positive net wealth(*).

(*) IMF staff calculcation using the Eurosystem’s Household Finance and Consumption Survey; unweighted average.

Indeed, Keynes makes his appearance in the report as well.

One should note that the first paragraph of the report right away debunks the myth that politicians and main stream media try to sell, i.e. the crisis is contained and the positive economic outlook for 2014.

High debt ratios amid persistently low growth in advanced economies and emerging fragilities in the developing world cast clouds on the global fiscal landscape. In advanced economies, with narrowing budget deficits (except, most notably, in Japan), the average public debt ratio is expected to stabilize in 2013-14. Yet it will be at a historic peak (about 110 percent of GDP, 35 percentage points above its 2007 level). Simulations show that maintaining the overall budget at a level consistent with the IMF staff’s medium-term advice would bring the average debt ratio to about 70 percent of GDP by 2030, although in a few countries it would remain above 80 percent. However, the large debt stock, the uncertain global environment, weak growth prospects, and the absence of well-specified medium-term adjustment plans in systemic economies like Japan and the United States complicate the task.

One of the graphs (page 14) is also noteworthy. It simply shows the unreliability of the forecasts of institutions. Even the report refers to it by saying “Relative to previous projections, fiscal deficits are somewhat larger in most countries, reflecting a weaker economic environment.”

debt projections vs actuals 2013 money currency

GoldSilverWorlds staff concludes that our fundamental vision has yet another time been confirmed. The black hole in the monetary world, which is called “banking”, is not capable of controlling its own devil, which is leverage. Our monetary system is based on debt based credit. Central banks have deteriorated the situation since 2008/9 and are now caught between a rock and a hard place. Prepare yourself, the reality is that more bail-ins, confiscation and financial repression is coming, contrary to what the good news propaganda tries to tell. Physical precious metals are the safest way to protect.

(Original source: dutch media site NOS.nl; Courtesy of GoldSilver.com bringing this article to our attention)

http://goldsilverworlds.com/money-currency/imf-discusses-a-super-tax-of-10-on-all-savings-in-eurozone/

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