From there to here.

     On Sunday I took my family out for lunch at a restaurant on the Navajo Reservation near our home in Arizona. Afterwards, we drove to an “informal” location where you can see dinosaur footprints in the sandstone. The Navajo residents nearby have set up awnings and sell jewelry. As a kid, this was always one of my favorite stops. No paved parking, no visitor center, no drinking fountain, just a windswept plain in the high desert. This time, the local entrepreneurs had ratcheted up their operation. Someone stepped out as we drove up and offered to take us on a tour. I had always suspected there were more than footprints here, that one could find dinosaur bones if you knew what to look for. As she led us further away from the parking area, the site came alive with weather-beaten bones and eggs turned to grey sandstone—a different color than the usual tan shade of other fossils I have viewed. I had been stumbling across these bones my whole life focused on the footprints. I just needed a tour guide to point out the rest of what was right in front of my nose.  How could I have been so blind for so many years? 

     The last time I looked at those footprints was in about 2007. If you had asked me back then some simple questions about the Federal Reserve System, I was equally blind and would have bumbled through some uninformed explanation trying to make you think I understood economics. I would have said that the Fed was that benign branch of the government that prints our paper money and sets the prime interest rate for banks to borrow so they can lend to us. I would have insisted that inflation occurs because the economy is complicated and you have unions and suppliers continually pressuring industry for higher wages and higher prices for raw materials. 

   To be honest, I really didn’t have a clue. But I would have balked if you suggested that the Fed wants inflation, that the Fed was NOT part of the US Government. So how did I get from There to where I am Today? Which tour guide opened my eyes? Can we learn anything useful about that journey that will help us enlighten our friends and relatives?For the next few weeks, I hope to submit a series of articles on practical persuasion, and hopefully hear in the coming months that your friends and relatives are moving from there to here, taking steps to prepare for our new economy.

   Today, I hold that the Fed was created by sociopathic, greedy, power-hungry people who want to control this nation and steal its wealth. Just last night I was thinking about the Fed, about how they promised to cut back on the Quantitative Easing and get our economy back to normal, and how what they really did was just give money to a mystery buyer in Belgium to keep up the QE Bond purchases. The Fed has lied to America and the world. The Fed's policies have destroyed our economy. The Fed creates inflation to steal the wealth of our nation, bit by bit. Worst of all, the Fed is not part of the American Government. 
       But I could not have concluded this in 2007. Why? Because of human nature: cognitive dissonance, normalcy bias, a conservative impulse to resist change, or any number of social-psychological theories that do a darned good job of explaining why I do what I do.  But the problem is not in understanding why, but in learning what we can do to help others to get from there to here. 

     Persuasion begins and ends with your credibility. Aristotle (my fine avatar on the right with his teacher,. Plato) taught that your “character,” is the “controlling factor” in your ability to influence others. Your character is made up of several factors that all work together (or against) one another in the persuasive process. 

       First is your reputation—all your failures, successes, sins, blunders, brilliance—in fact, everything from your past. People, especially friends and family know you. They must see you as a reasonable person who does not act on impulse or fall for hair-brained schemes.

       Your arguments comprise the second portion of your character. People who listen to your (or read your stuff) are evaluating your arguments, and evidence. Are you using “accepted” argument formulas, or using fallacious arguments? Is your evidence outlandish, believable? Take care not to present arguments with shaky evidence that cannot be verified, or is not common knowledge.

       The third aspect of character is the way you speak and write. What people are looking for is called “naturalness.” This one is hard to nail down in the same way as the quality of arguments and evidence. At the core, naturalness is forfeited by a “scripted” presentation, like a salesperson following a memorized flowchart, or a motivational speaker telling tried and true stories. Naturalness comes from the heart, not the head. Your passion is involved to the degree that you believe what you are saying or writing. It’s why we love to read “rants” of members here who are fed up with something. It’s why we love to hear a speechmaker lose their composure, just a bit, giving a wedding speech. We see the veneer of social respectability giving way to the heart underneath. And when you hear some slick salesman, Like our good friend Porter Stansbury, you can just tell that something isn’t natural. The words are too scripted, the voice too polished. Beware.

     But I don’t believe that “naturalness” is the problem for most of us as we attempt to teach our friends & relatives. Frankly, I believe our biggest challenge in helping others see the poor condition of the economy due to Fed policy, to wake up, and to take steps toward self-sufficiency is that we have been wrong thus far. We have been wrong about the timing of the collapse, and wrong about “metals to the moon.”  Our reputation has been damaged. 

     We have been hollering to anyone who will listen about black swans, bail-ins, liquidity crises that will freeze the banks, bank runs, market collapse, paper wealth to zero, hyperinflation and new currencies. I have withdrawn my funds twice after hearing about bank closings in America. So far, we have been wrong, and we look like idiots. 

   What makes our reputation look even worse are the charlatans out there calling for $600 silver—the pump & dump hawkers. This leads to bloggers saying we are part of a cult. They have just enough evidence with one or two arguments to make a “superficial case” while preaching to the choir of disillusioned metals investors.

     I hang around this blog, I have committed time writing up these posts, because I am convinced, convinced by several strong arguments and a mountain of evidence, that this paper system will collapse … soon. I do not want to be ruined financially, so I continue to invest 95% of my meager increase in a diverse portfolio of commodities, rather than ETFs and other paper instruments. I keep a modest pantry filled, just in case; I stock up on other items that may be needed, just in case; and I am working on building a more remote farm/cabin to live in, just in case. I am also attempting to re-habilitate my reputation with friends and relatives with conservative advice that points the right direction to the degree that they can accept it.

Retreat and regroup
     So, how do we repair our reputation? First, we admit we have been wrong and over-reacted. Now, buying $30 silver in early 2011 and encouraging our friends to do the same was not an overreaction. We were wrong on the timing. Mistakes were made in not hedging positions with out-of-the-money option contracts as the spike occurred. I bet many good traders here did not make that mistake and profited nicely in the big silver smackdown.

     So admit we were wrong (even though we dodged a bullet, economically), eat your hat, let your friends and relatives gloat a bit. You have to repair your reputation here. It may also involve saying “I’m sorry” if you panicked a friend into selling their paper and buying silver. (For the record, the several friends I persuaded to buy back then are still holding for the same reasons I am). My sense in talking with these friends and relatives today is that they are more concerned for the future than they were in 2008, even though the economy has not derailed. They sense the problems and see the gulf between what is happening in their local economies and with what Washington says is the state of the union.

     While your character must be solid in the three ways I describe above, the rationale motivating a decision must be logical and warranted by solid evidence. Also, a good persuasive presentation takes what is far away and brings it near—whether it is presented as a fearful situation or an opportunity that engages ones dreams and desires for the future. But as we bring that far-off situation near to our friends, we must stay on reasonable, solid ground that won’t crack beneath our feet and leave us in the position of Wile E. Coyote here. Metals to the moon, FEMA camps, widespread rioting & looting are all possibilities, but they are not possibilities that most people are ready to consider. If you discuss these much, people will tune you out.

     Stay on solid ground. Argue for physical metal ownership on grounds that your friends can accept—grounds like an underpriced asset, metals cheaper than the cost of mining, an insurance policy for the future, insufficient metal to fill contractual claims. Avoid arguments of "silver to 600," "total economic collapse," "mad max world." While this all may come to pass, people just cannot go there … yet.

     To help people see the real state of the economy, I suggest discussing that the Fed and other CBs want inflation, pointing out the real inflation rate they see every week in the store. Show people that the CBs are privately owned, yet run our governments and implement policies that produce bubbles and inflation. These are easy positions to support without looking like a whacko.

     We have the logical arguments and evidence in support of the wisdom of long-term metal ownership to tip the persuasion scale! If we want to encourage anyone to begin setting themselves up for the new economy, we have to found our efforts on reasonable arguments, solid evidence, delivered at a “speed” that someone can process. Too much too soon typically backfires and will damage your reputation.

     For me it was recognizing that the Fed was not who they claimed to be; the chain of logic began with understanding the Fed. The rest fell into place. If you can convince someone that the Fed is working in the interests of others, then a cascading chain of logic will lead a person to be skeptical about many more things at a pace they can accept, eventually opening their eyes, and reaching the same conclusions most of us have. But today, I cannot tell people that he Fed works on behalf of nefarious, greedy sociopaths to enslave people with debt. 

     What I wish help with from all of you is boiling down why the Fed wants inflation, and why they will lose control of inflation. I want to boil these reasons and evidence into easily understood talking points that I can memorize and explain to neophytes in the five minutes they are willing to discuss the topic.

     Many of you readers have a firm grasp on these issues surrounding the Fed and can be Plato to those of us who get it, but cannot quite articulate it. I needed a guide to point out the bones last weekend. And I need to learn a bit more about how the Fed works so I can be that guide to help my friends open their eyes to what is happening out there.




Bollocks's picture



Swift Boat Vet's picture

A first?

On the Great Philosopher's post too!  WOW

You are a great writer, and I appreciate your thought provoking posts.


Oh Bollocks you old dog!  Ya beat me!

metalsbyamile's picture

I made 3

posts yesterday regarding the deterioration of the fundamentals this market is facing.

A long day at work prevented me from the action in the markets today.Having a look , all i can say is WOW. And now the article.

Mr. Fix's picture

A reply to Green Lantern, from the previous thread: (fourth).

For context, a question from Green Lantern: This time “it is different”.

I will concede that there are many books on the subject that I can read that will explain how and why this is a cycle, and that we are about to move into its next phase. As I'm sure you know, most analysts in the gold and silver sphere have been making such predictions for the last couple of years. As you also know, I've been one of the few saying  “I don't think so”.

Now, if you'd like to use as a cycle, and include an extinction event such as Noah's flood, that is global in nature, I'm sure we could draw up a cyclical chart that tells us we are due for another one. Same with “the fall of the Roman Empire”,  we may even be able to incorporate the extinction event that wiped out the dinosaurs, since I'm sure these things happen on a cyclical basis.

What I'm talking about we might as well limit to the last couple of hundred years, and the usual boom and bust cycles.

I know that these are cyclical, they are staged by the bankers, whereby first they flood economies with cheap currency, and it doesn't matter whether it is gold backed or Fiat, when there is an abundant supply of cash, an economy will boom.

Then liquidity is always withdrawn, creating scarcity, whereby the bankers can now steal real wealth with worthless notes that they print, or even in past events, considering they had nearly all the gold, they could still buy up properties and businesses for pennies on the dollar. This is cyclical, I know that.

Admittedly, I'm looking outside of the financial markets for some of my predictions, things that aren't often talked of on Main Street, such as toxic vaccines, poisonous food, poisonous water, global radiation,  chem- trails, Weather  that is being used as a weapon, what I believe to be massive man-made droughts, food scarcity on a level that will have no possible outcome other than mass starvation, a society that has been made dependent on massive quantities of fossil fuels that can't possibly be produced long-term at current levels, quantitative easing to infinity has gone global, and there is no exit plan, and then you have quotes from treasury officials such as Timmy saying “we are just going to crash the dollar”. Everything appears to be gearing up for a colossal and coordinated collapse, with institution of a fascist police state in the West, and then there's the Georgia guide stones which is probably a fairly accurate description of where the elites  (at least some of them) are attempting to take humanity.  Our education system has left the next generation as dumb as a stump, so don't look for any brilliant ideas to save us coming from them.

We have talk of war, on a daily basis, and that alone could amount to an extinction event. At this point, I think it's just a distraction. Not to say that there won't be mass casualties, but that is already in the cards regardless. 

I say “this is not cyclical” in the context that markets as we know them, will not simply bounce back, or return to anything that resembles normalcy compared to recent history. I have concluded that the institution of the Federal Reserve was  a carefully construed plan to take down America, resulting in a new world order, and I do not see how a global currency collapse, as the result of more debt and corruption than at any time in human history can be considered cyclical.   I tend to view it as an “endgame scenario”, whereby all systems will collapse simultaneously.

Coming up with a definitive source for information is problematic, since there are conflicting opinions that span the full spectrum, between the annihilation of humanity, and everything will be okay.

I tend to fall somewhere in the middle, although I don't consider myself a centrist. I have a fairly good idea of what the general agenda is, but through overconfidence, arrogance and hubris, not to mention, many generations of inbreeding that have effectively made the elite clinically insane, I see some rather large holes in their plan.

I think to a large extent, virtually everything available for our consumption has been massaged to send a message,

on one side, such as the mainstream press “everything is fine”, will keep people from examining what's going on.

On the other side, down here in the rabbit hole, there seems to be a “resistance is futile” propaganda campaign so that people come to believe that they have already been defeated.

It is my belief that if the global fascist dictatorship is stood up to, it won't take much to collapse it.

Yes I did look at the chart, although it was after you mentioned it. Admittedly, I don't spend a lot of time looking at charts. I have said as much on many occasions.

My assertions that all of the numbers are a complete fabrication and that a chart can be painted anyway the bankers wish will not be found in a book. It is my opinion.

If I had to pick a fairly mainstream analyst who comes closest to where I think this is headed, it would be Jim Willie. He is only slightly more optimistic than I, in that I don't think the transition to the “ gold backed global trade settlement system" will go as smoothly as he imagines it will.

Some sources of information I have ignored for a long time, such as anything at King world news, and also, anyone who still posts at Kitco.

Over the past few weeks I've been making assertions on DOTS  that even bring into question globally accepted documentation which has always been referred to as “the one and only truth” for thousands of years.

I even enjoyed the picture that you posted “I am skeptical” showing an autographed copy of the book in question.

I tend to evaluate everything and draw my own conclusions, and admittedly, I am far outside the box.

Ultimately, only time will tell. You know as well as I do that my basic assertions as to where the market would head over the last couple of years (particularly gold and silver), have played out fairly predictably.

I think we are  in a current holding pattern which approximates the “cost of digging it out of the ground”, and at least long-term, I see no risk in accumulating here.

I think immediately prior to what I would consider “Armageddon”, all of the prices will collapse, as paper representations of wealth become meaningless.

I've also concluded that a “Mad Max” scenario is not outside the realm of possibility, and well worth preparing for.

Anything more devastating than that, preparations would be useless, and anything less devastating, at least my preparations will not go to waste.

I have more or less limited to my intake of “reading material” to spiritual pursuits for the time being, since I find so much of what is “in the news” or “standard model of economics” useless information at this point.

I hope this explains where I'm coming from, I do not necessarily expect many to agree.

For those that do, there's nothing wrong with preparing accordingly.

Dr Jerome's picture


That diver illustrates how I feel. Not as close to the water as I thought back in 2011, but the water is out there and I won't miss a second time.

Bollocks's picture

Excellent post Dr J

I've found that true character shines in those who are true to themselves and speak only from their own experience.

So there's honesty, regardless if they say something that later turns out to be inaccurate - nevertheless they were true and honest to their convictions at that time and were not swayed by  the general consensus.

People who are true to themselves are full of character, in my experience. They really stand out from the herd-mentality.

metalsbyamile's picture

Great expose of how many have felt or presently feel

I have a question Dr Jerome.

As we are aware, the markets can stay irrational longer than we can stay solvant.

With that in mind, will you have peace in your heart should TEOTWAWKI  not come about? I applaud your conviction and tenacity to act. The other side is the what if scenario.

As i posted in your last thread, i did all this in preparation for Y2K . Quite frankly, nothing came about as the prophets of doom prophesied. Computers did not fail, cars did not stop, ATM's did not cease to function, Planes did not fall from the sky(Yes,some suggested this was a real possibility) trains did not shut down. In the grand scheme of things it was a non-event.

As for me and my family, we moved to the country, stocked our food, withdrew our cash, and generally prepped for teh worst to come.

The food went bad(at least some)the cash went back, with interrogation  the CIA would blush from,but most of all we were stuck in a country bumpkin town with little hope of selling for many years.No snow removal,constant lights out in winter time, water pump down twice in the dead of winter on a bloody weekend.No theater, the arts become the local Christmas play,hospital and ambulance service could become life threatening if not in close proximity, grocery shopping is the family outing.

Summarizing, if you are content with what you have done no matter what the world does i say bravo.

My sincere hope is you have examined this side of your actions as i have not seen it mentioned in either thread.

There is another side.

sierra skier's picture

Credability and Reputation

You need credibility to keep your reputation in line.

When Silver dropped into the $28 range back in April 2013 my son asked about it and I told him the price was lower than it had been in 2 and a half years. He immediately bought a roll of ASEs. Promptly silver dropped more and I got the what happened question to which my answer was, How was I supposed to know they were going to slam the prices of PMs.

He did not panic and sell or belittle me because I had bought plenty as well. To this day he holds that roll of coins with the faith that when things go bad he will have something of great value along with the rest of his tangible tools and preps.

I hope some day to see his holding prove me correct and his patience rewarded.

Great post Dr. J

Bongo Jim's picture

You can...

Lead a horse to water, but you can't make him drink.

Dr Jerome's picture


@ Metals,  

At this point, I will not attempt to persuade anyone to go beyond what I have decided to do. They have to make that decision for themselves once they are awakened.

For the sake of argument, let's just say that TPTB will succeed and hold metals near the mining cost for another 20 years.

If that were to happen, I have taken a 37% loss on my "investments." Half of my real estate is currently under water, and that is where the PM funds would have gone had I not been awakened. I am not happy, but I can live with that. I am a better philosopher and teacher than a businessman or investor.

As for the other prep activities, the 6 months worth of food is not that great in financial terms. Some may go bad. We are already rotating our food stocks, eating lots of rice and beans. All other household items in our pantry will be consumed. Inflation will continue to drive up prices of everything I have bought. I noticed that PB for my favorite deer hunting equipment has increased in price 15% at the local supply in the past three months already.

My other endeavors, like organic gardening, chickens, solar power, are enjoyable and will mostly pay for themselves over time. 

My second home will be a vacation-retirement house as well as a refuge. I will pay for it as we build--no banks. I intend to retire there in a decade either way. We may move there sooner as the kids leave the nest since the location is only a 45 minute drive into my employer.

These days, I am strategically acquiring items in advance that my family will purchase later anyway, or invest in an environmentally sustaining lifestyle. We are trying not to go overboard like the wife's sister who has buckets of food across one whole living room wall. But I will not be caught unprepared if the economy does keep sliding downhill. I am content. 

@Bongo, and if you try to force an animal to drink, they just resist and push back--an appropriate proverb in this case.


flyinkel's picture

Bongo Jim

It's a great point.  Problem is, when trouble comes a calling they will suddenly be pulling their horses up to your trough.

Great post Dr. J, I am sure many here share these exact sentiments.

heyJoe's picture

Dr. J

WOW!  yes

metalsbyamile's picture

Dr J

Content. That says it all. Good for you.

Bollocks's picture

Y2K and what's happening now


What happened with y2k is completely different to what is happening now with the economies of the world.

Y2K was an uncertainty, nobody really knew in advance what would happen.

With the world economies all tied to fiat currencies, it is a certainty that they will fail. The currencies are all instruments of debt. You HAVE to keep increasing the debt or it all collapses. Yet by increasing the debt, it WILL eventually collapse.

There is NO WAY out of this.

Judging by the absolute EXPLOSION in the growth of debt over the last few years, this collapse cannot be far away.

I repeat, there is NO WAY out of this. Collapse is a certainty.

Mr. Fix's picture

We might be winning the information war, but…

Dave Hodges is a little bit more optimistic today than usual, in that the real story is getting out.

However, the  banker elites have a plan, particularly what to do if they lose the propaganda war:

Nana's picture

All You Can Do

Is warn people. Then It's up to them to take action one way or another. If they choose to ignore you, you have done what you could...but you have planted that seed and maybe, just maybe they will recall one day that they were warned...hopefully before its to late.....

1) Get your spiritual house in order
2) Get your family in order
3) Get your preps in order

ancientmoney's picture

Dr. J re: the Fed wants inflation . . .

"What I wish help with from all of you is boiling down why the Fed wants inflation, and why they will lose control of inflation."


The Fed wants and NEEDS inflation.


Because all "money" today is debt.  Growth of the economy requires growth of debt.  If debt grows faster than assets, it is the end of "money" because the debt cannot be serviced, as the collateral becomes worth less than the debt.

The housing crash killed off much collateral.  Rules were changed so banks could pretend the value of the collateral was still there, and they still do today.

InsAndArts's picture

Why Most People Simply Do Not Care

Most people work very hard to earn their living.

That's universally true today...maybe more than ever.

Yet, they never stop and actually read the words on the notes that they are paid with.

They read the numbers, not the words. The denomination not the promise of the note. You probably already know this of course. That's why everyone thinks you're crazy.

Regarding The Fed, I used to think that people were in an actual state of ignorance. That is, I could enlighten them if I had a good argument and an above average character. 

I was wrong.

Let me repeat: WRONG

How so?

Well, most people are not interested in building wealth. They may be materialistic and perhaps greedy but that's not the same thing. They don't care about the integrity of their money. The do care about Social Status and hedonic pleasure. So if the paper currency buys 1% of that big house or new car, they'll sign the contract and buy.

The reason is that most people are don't hold much currency...we do not 'save money' as a nation. "Consumer Spending" is actually 'policy' It is encouraged.  And if you do manage to work and save money you'll only find that later in life it will be taken from you when you are 'means tested' for Medicare. Perhaps slowly, but you'll bleed it out. Trust me.

Did you know that our currency, the FRN is NOT intended to be savings vehicle? I know you know this. I know you heard it before. So have I. Yet I cannot bring myself to accept it as truth. It is indeed 'play money' for the system and apparently every Alfred E. Numan in the United States is OK with that. If you're not...well, here's your tinfoil hat.  The rest of us will be partying with all this cool stuff.

Sadly, that's why nobody cares about our national wealth being stolen. We just want the stuff. We don't really want the money. The Fed knows this. That's why it's such a wildly successful scheme... it's designed to appeal to the lowest aspects of human nature. None of us should be surprised.

It is our lack of character as a people that sets policy and public sentiment and why, finally, we will be ruined as a nation.

metalsbyamile's picture

Why not have a currency backed with nothing

U.S. Exports 128 Metric Tons Of Gold Jan & Feb 2014… Supply Deficit Increases
Filed in Precious Metals by SRSrocco on May 18, 2014


Not only did the U.S. export 128 metric tons of gold in the first two months of the year, its supply deficit continues to increase.  While gold exports to Hong Kong fell in February, Switzerland imported another 28 metric tons of gold during the month, more than twice the 12 metric tons it imported in January.

metalsbyamile's picture

Inflation? Even Mickey Mouse gets in on the act

Inflation in wonderland: Disney hikes prices as much as 10%
By Jeff Macke May 19, 2014 12:13 PM

Disney (DIS) just keeps ringing the cash register. Over the weekend the Mouse House announced unexpected price increases for visitors to its Disney Land resort complex in Los Angeles. As of yesterday morning a day pass to Disney Land will cost $96, up from $92, and the popular "One Day Parkhopper" passes give visitors access to both Disney Land and the adjacent California Adventure Park will run a cool $150, nearly 10% more than the passes cost last week. Disney also said it will stop selling new annual passes which had been available to local residents.

It’s another triumph for CEO Bob Iger who chose to spend billions upgrading Disney Parks during the recession while other companies pulled back. Disney paid $1.1 billion on California Adventure alone, and now it’s cashing in. Even before last weekend’s price hikes, domestic park attendance and profits have been up double digits every year since 2011 and park attendance is at record levels.

To be sure, Disney customers are used to price hikes but the company is showing signs of getting more aggressive in recent years. The company normally waits until school lets out in June before hiking annual prices, but the Disneyland ticket boost comes immediately ahead of the unofficial start of summer with Memorial Day weekend starting Friday (the park also increased prices by 4% last June). Visitors to Disney World in Orlando took an even harder hit last February when the price of a one day pass was hiked to $99. Industry analysts are now placing bets on when the company will break the psychologically daunting $100 level with most expecting the company to hold off until 2015.

Orange's picture

Interesting - Bix Weir email

Another one bites the dust...

Barclays Head of Spot Gold Trading Leaves Bank

With the mass exodus of gold and silver "traders" from the London Fix naturally people are of course wondering about the ramifications of ENDING the "Silver Fix" in August and most likely the Gold Fix soon after.

Right? You are wondering about that Right? It keeps you up at night Right?

Well, if you aren't you SHOULD BE. I guarantee you that Jeffrey Christian is up all night...every night worrying about what's going to happen. You see, the Gold and Silver Fix are more than just numbers posted in the financial news outlets every day. They are "Benchmark Numbers" defined in every complicated gold and silver derivative contract written in the last 50 years! They are a main operating components of TRILLIONS of dollars worth of gold and silver derivatives. Many very, very complex derivatives created and promoted by the likes of Goldman Sachs starting in the 1980's by Robert Rubin and none other than Jeffrey Christian. They keep the gold and silver prices in check and they are a REQUIRED PART of the current un-backed fiat monetary system.

If those contracts die because they were poorly constructed legally...then the whole system dies.

And they were all contingent upon the "London Fix". That is/was the ONLY physical gold and silver proxy price around the world and that is what is defined in almost every gold and silver derivative contract written...including integrated into the massively complex and complicated monetary swap agreements. (And no they can't use the COMEX prices because those are point in time futures and options contracts...NOT a physical proxy.)

The death of the London Fix is leaving a gaping hole in the legal structure of gold and silver derivatives. So far, there have been no alternatives put forth....and even if there were what Counter Party in their right mind that is on the losing side of the derivative agreement would want to legally change the terms of their contract?

The situation is totally FUBAR and the criminals involved in the gold and silver rigging know it. That's why they are running for the hills!

May the Road you choose be the Right Road.

Bix Weir

Spartacus Rex's picture

Dr.J - Here's To Getting You There

Dr J, I highly recommend that you, and all other herein, read G. Edward Griffin's book “The Creature from Jekyll Island – A Second Look at the Federal Reserve”. Originally published in 1994 it has been in umpteen printings as well as updated Editions. The last edition I purchased for gifts for friends was the fifth edition. And everyone needs to grasp how simple Mr Griffin's plan to walk us back from financial Armageddon in his chapter “A Realistic Scenario”. Seriously, for a book which many would presume to be mundane, it is literally a page turner and eye opener.

My first eye opening to the Phederal Reserve ponzi scheme however was way back in the early 1950's when my grandfather gave me his copy of a book written in the 1930's by a brilliant and courageous woman by the name of Gertrude Coogan titled “Money Creators” promising to reward me for reading it and writing a book report afterward.

Ms Coogan's book is even available for free download nowadays @ 

Orange's picture

Money Creators

Just read the preface. Sounds like she is writing today, verses the 1930's.

Quite amazing.

chuck911's picture

Talking points

Great idea Turd! I will borrow from Mike Maloney with a point that seems to go across well to people. The Fed borrows money into existence. Show them "Federal Reserve NOTE" and say, "when you buy a house or car, the loan you sign is called a note. This Federal Reserve Note is a loan. The Feds own website states "when you write a check there are funds in your account to cover the check. When the Fed writes a check (creates money) there are no funds." They create money from nothing, then LOAN it at interest. Now here's the thing: you now owe the Fed the money created from nothing, PLUS the interest owed on the money created from nothing. How are you ever going to repay the loaned into existence money? There's always more owed in interest than money created. The only way is to borrow more money! Another good one, its not just the Fed, its all the banks. Once they understand money from nothing…. When you buy a house, that money is created from nothing. The bank did no work to create the money. But they give it to you at interest. You now have to work not only to repay the money (which would be bad enough, since the bank did nothing to make it in the first place) but you must work even more to repay the interest. It gets worse. Consider all the costs that go into a house. The land, concrete, materials, design. For each of these real people had to do real work resulting in tangible products. Add it all up, there's your house. Now the banker creates money from nothing and loans it to you at interest. Look again 30 years later, who made the most money from the house? For most loans you will pay more in interest than all the other inputs COMBINED and yet the banker did NO WORK in creating that money. I got a million of em Turd. Most of them from "guides" but a lot of them personally modified and a few totally (as far as I know) original to me). Hope these help. Keep up the good work!

transplanted baby's picture

I think therefore I am

Dr. J. , wonderful post.

I think we have all made a certain mental journey with the regard to our stance with PMs, the economy, etc. I began researching more about the economy and how it works to make safer investments. What I found was not re-assuring. Then, there were the hours on the internet where you can find opinions to back up any position. Being a catholic, I began to wonder if there was a catholic position. That search led me to the distributionists and the catholic land movement. This becomes basically an Amish-like lifestyle- very simple living, bartering work, minimal reliance on cash, maximum trust in God. Needless to say, like the Amish, this position is a fringe position (no offense to the Amish, I just mean that most people are not living like this). The world is not going this way. The world is hooked on money. Mammon is pretty much in control. But, like the song says, Yahweh is the God of my salvation. I ask anyone out there to consider what life would be like without money. And then when you go really deep, you see that at the bottom of this is wants, wants creation, etc. And I am reminded of the saying, “The lord is my shepherd, I shall not want”. If we eliminated wants, and just tried to get by with what has been naturally provided to us, we would probably find that “His yoke is light”.

gold slut's picture

@ InsAndArts & Dr. J

IAA, really great post!  Sad I only have one hat-tip to give.

Dr. J, by far one of the best of your articles yet (and there is strong competition).

Bollocks's picture

Nobody's mentioned crypto-currencies

for a while. So I won't either.

Apart from there's nearly 300 of the little buggers now...

Ohhh, I can't help myself .. what looks like the real deal:


Barfly's picture

I see Zombies... They're Everywhere

You know, I only truly care about waking up very few people in this world. And I pound the points home relentlessly and drip evidence that I'm correct on them every chance I get and I talk to them about value vs. price and market distortion and how measuring things in dollars is like having a ruler made out of silly putty. And most of those people still don't get it.

Some of the best quotes that I've read on the subject talk about how most people can't make the connection between their horrid diet and what they see in the mirror. They believe that the numbers on their computer screens represent actual money. They chase after little pieces of paper that have the same intrinsic value as toilet tissue. How are they going to not get mowed down by the lawnmower of monetary history? They have no knowledge base from which to proceed. A lot of people can't even balance a checkbook.

I'm not the sharpest guy in the world and it took me years of patient curiosity and continuous study of economics because I was interested in it and wanted to understand how the world really worked. And think of the average guy you know. He gets along. He has a job, he takes home a wage he can live on and have something nice now and then and provide for his family. He's not too ambitious, probably happy with where he's at and what he's got. Right? Now think, that's the average guy. By definition, half the people out there are behind the curve compared to him.

Every time I see someone blow past me in rush hour in some enormous gas guzzling SUV with music blaring about fifty octaves too high to avoid damaging their hearing and notice that their hair is obviously the wrong color and they spend way too much money on their hub caps, I just laugh. There's no helping somebody like that. Their life is dream and they're not capable of waking up. And the hard truth of it is that when confronted with reality, most of those people are probably going to self destruct.

I don't want to sound conceited, but I know I just did. But it helps to recognize where to put your energy for the best return on its investment. And waking up the masses far and wide takes a lot of energy and provides negligible return.  Worthwhile to put some energy towards, sure, because you might get some lucky random result, but that's about the most you can expect.

It's best to find the path and walk the path and let others find their own as they can. We're all on our journey and everyone cannot be saved.

flyinkel's picture

OH man oh man

I was once ordered to give "financial guidance" to an underling.   He bought a used jeep for $1,000.  He then took out a loan and spent the $4,000 on brand new hubcaps; you know the silver kind with the spinny dealies in the middle.  There is just no helping a guy like that.

Wow, what a miss!  I was trying so hard to post after GL (sarc intended smiley).  Your groupie post yesterday to me actually made me laugh, it reminded me of a two year old in a grocery store having a fit.  You constantly misquote me drawing inferences that are not there.  I like AMs work, and follow it; to tell others differently on my behalf is deceptive.  I could address all the other drivel but it's just not worth my time.  Not everything is learned looking in the rear view mirror and quoting other "experts"; this world is moving fast and there is a lot out there you don't know.

So in the vein of "A lie not answered in 24 hrs becomes the truth".  I wholly disagree with everything you said and your bully type tactics.  If I post on Russia or China or Vietnam in a thread that has nothing to do with the thread theme it is because MSM is not covering them, or is covering them with great deception, or because I have had some firsthand experience in the area, or I just believe something to be true which is normally posted as "I believe" or "I think" to give the reader a clue.  You are right I am not into big long circular thinking gobbly gook posts with large words; I did that "sell" for years feeling sort of prostituted out trying to manipulate others on behalf of my very influential masters.  I don't have to do that anymore and I won't.

Many other posters also note current interest items in the thread that affect the dollar and by their linked nature naturally affect gold.  It has been the flow, and I delight in this as it is typically excellent articles with well thought out comments and reflections and can save time getting a "daily download" so to speak.  Long winded personal attacks are diversionary in nature and do little to further this cause.  If everyone kept strictly to the title even you often stray significantly from the topic at hand, correct?  So your keen desire to call out others is the pot calling the kettle black.

You have tremendous knowledge in many areas, and share willingly.  Other times I question the purity of your intent.  Are you paid to be here?  You put a huge "all about me" post out there that left out your job. 

I called out a troll, you mean DPH?  Yes, I did call him out, he was one, we both know that; but I didn't call him a troll I simply asked if he worked for NSA based on his posts; lots of MSM information, no intuitive analysis, circular cotton candy type thinking process. 

Thread drama is non-productive for others.  GL respond with all the vitriol you want, I have already spent more time on this than it is worth.  So for the rest of the spewing, I denounce that too, in advance.  I can speak for myself; your interpretations leave something to be desired.

Green Lantern's picture

Mr. Fix, Since we are well

Mr. Fix, Since we are well beyond the discussion, and onto other topics.  I'll keep my comments brief.  Out of all the points I made relative to price of gold, manipulation, cycles, you dedicated one sentence in your rebuttal.  Then went one to repeating what I said about boom bust cycles and then on to an entirely different subject.   Doesn't make for a good discussion when your rebuttals go right back to what you say week after week and never address the more difficult subject. 

I had written a fullsome reply addressing your one sentence and your apparent misunderstanding. Lack of distinction between cycles, trends and the effect manipulation has on both.   Since you didn't deal with the subject, I have no more to say.  I've read all your thoughts on the other subjects so no need to address especially they were not relevant to the topic.    I'm not even sure you understand the meaning of the graphs AM posted.  

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