Guest Post: "This Is Your Recovery and This Is Your Recovery Without Drugs", by Jim Quinn

Tue, Aug 19, 2014 - 6:41pm

Earlier today, our pal Jim Quinn posted to his site an essential and compelling new article. It is so well-written and important that I immediately wrote Jim to ask if I could re-post it here to TFMR as a guest post.

You've often heard me complain about the SPIN and MOPE that pours forth from your television or computer. Every analyst or network with a stake in perpetuating the current system seems to drone on endlessly about the "economic recovery" and the wonders of the stock market. That is why writers like Jim Quinn are such a valuable resource. Jim can cut through the BS and slay the MOPE dragon better than most, as the article copied below demonstrates.

Please take the time to read this piece. Then, please, do me a favor. Forward this page to your entire address book: Time is running out and it is incumbent upon all of us to continue to warn/educate as many as possible.


"This Is Your Recovery and This Is Your Recovery Without Drugs",

by Jim Quinn

"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks…will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered…. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”Thomas Jefferson

Does this chart portray an economic recovery in any way? Wages have been stagnant since the START of the supposed recovery in 2010. Real median household income, even using the highly understated CPI, is on a glide path to oblivion. You just need to observe with your own two eyes the number of Space Available signs in front of office buildings, strip centers and malls across America to realize we have further to fall. Low paying, part-time burger flipping jobs aren’t going to revive this debt saturated economic system. But at least the .1% are enjoying their Federal Reserve created high. Fiat is a powerful drug when administered in large doses to addicts on Wall Street.

The S&P 500 has risen from 666 in March of 2009 to 1,972 today. That is a 196% increase in a little over five years. During this same time, real household income has fallen by 7%. There have been a few million jobs added, while 11 million people have left the labor market. According to Robert Shiller’s CAPE ratio, the stock market valuation has only been higher, three times in history – 1929, 1999, and 2007. He seems flabbergasted by why valuations are so high. Sometimes really smart people can act really dumb.

The Federal Reserve balance sheet was $900 billion before the 2008 financial crisis. Today it stands at $4.4 trillion. The Fed has increased their balance sheet by 220% since the March 2009 market lows. Do you think there is any correlation between the Fed puppets printing $2.4 trillion and handing it to their Wall Street puppeteers, who used their high frequency trading supercomputers and ability to rig the markets so they never lose, and the third stock bubble in the last 13 years? It’s so self evident that only an Ivy League economist or CNBC anchor wouldn’t be able to see it.

Let’s look at the amazing stock market recovery without Federal Reserve heroine pumped into the veins of Wall Street banker addicts. If you divide the S&P 500 Index by the size of the Federal reserve balance sheet, you see the true purpose of QE1, QE2, and QE3. It wasn’t to save Main Street. It was to save Wall Street. Without the Federal Reserve funneling fiat to the .1% banking cabal and creating inflation in energy, food, and other basic necessities for the 99.9%, there is no stock market recovery. The recovery has occurred in Manhattan and the Hamptons. It’s been non-existent for the vast majority of people in this country. The wealth effect and trickle down theory have been disproved in spades. The only thing trickling down on the former middle class from the Fed is warm and yellow.

The entire stock market advance has been created on record low trading volumes and record high levels of monetary manipulation. Even though the Federal Reserve has driven senior citizens further into poverty with 0% interest rates, those with common sense have refused to be lured back into the lion’s den. They have parked record levels of fiat in no interest bank and money market accounts. They are tired of being muppets led to slaughter.

Quantitative easing was supposed to force little old ladies into the stock market and consumers to spend their debased dollars before they lost more value. The spending would revive the dormant economy just as the Keynesian text books promised. It didn’t happen. The peasants haven’t cooperated. Quantitative easing and ZIRP sapped the life from the middle class as their wages have stagnated and their living expenses have skyrocketed. Mission Accomplished by the Fed. Of course, the CNBC bimbos and shills would declare this $10.8 trillion to be money on the sidelines ready to boost the stock market ever higher. I love that storyline. It never grows old.

The MSM, government and Wall Street continue to flog the story about a housing recovery. It’s been nothing but a confidence game based upon the Fed’s easy money and the Wall Street scheme to buy up foreclosed properties with the Fed’s money. The scheme was to artificially boost home prices by restricting home supply through foreclosure manipulation, in order to allow the insolvent Wall Street banks to get out from under their billions in toxic mortgage loans.

Shockingly, the Case Shiller home price index has soared by 25% since 2012 despite first time home buyers being virtually non-existent and mortgage applications plunging to 14 year lows. How could that be? Don’t people need mortgages to buy houses? Isn’t real demand necessary to drive prices higher? Not when Uncle Ben and Madam Yellen are in charge of the printing press. Housing bubble 2.0 has arrived. I wonder if the Federal Reserve balance sheet increase of 50% since 2012 has anything to do with the new housing bubble.

It seems a similar result is obtained when dividing the Case Shiller Index by the size of the Fed’s balance sheet. The real housing market for real people is worse than it was in 2009. The national home price increase has been centered in the usual speculative markets, aided and abetted by the Fed’s easy money, managed by the Wall Street hedge funds, and exacerbated by the late arriving flippers who will be left holding the bag again. The Fed/ Wall Street scheme has priced young people out of the market and has failed to ignite the desired Keynesian impact. Investors/flippers account for 34% of all home sales. Foreigners with no knowledge of value metrics account for 30% of all home sales. The lesson of history is that most people don’t learn the lessons of history. The 2nd housing bubble in seven years is seeking a pin.

If ever you needed proof of the confidence game in its full glory, the chart below from Zero Hedge says it all. Mortgage rates have been falling for the past year, home builders have been reporting soaring confidence about the future, and the National Association of Realtors keeps predicting a surge in home buying any minute now. One small problem. Mortgage applications are in free fall, new home sales are at 1991 levels, and existing home sales are falling. Home prices have peaked and are beginning to roll over. The Wall Street hedgies are all looking to exit stage left. Young people are saddled with over a trillion of government issued student loan debt and millions of older subprime borrowers have been lured into more auto loan debt. Home sales will be stagnant for the next decade.

Quantitative easing will cease come October, unless Yellen and Wall Street can create a new “crisis” to cure with more money printing. By every valuation measure used over the last 100 years, stocks are overvalued by at least 50%. By historical measures, home prices are overvalued by at least 30%. Ten year Treasuries are yielding 2.4%, while true inflation is north of 5%. With real interest rates deep in negative territory, the bond market is even more overvalued than stocks or houses. These simultaneous bubbles have been created by the Federal Reserve in a desperate attempt to keep this debt laden ship afloat. Their solution to a ship listing from too much debt was to load it down with trillions more in debt. The ship is taking on water rapidly.

We had a choice. We could have bitten the bullet in 2008 and accepted the consequences of decades of decadence, frivolity, materialism, delusion and debt accumulation. A steep sharp depression which would have purged the system of debt and punishment of those who created the disaster would have ensued. The masses would have suffered, but the rich and powerful bankers would have suffered the most. Today, the economy would be revived, saving and investing would be generating needed capital for expansion, and banks would be doing what they are supposed to do – lending money to businesses and individuals. Instead, the Wall Street bankers won the battle and continue to pillage and loot the national wealth while impoverishing the masses.

The arrogance, hubris and contempt for morality displayed by the ruling class is breathtaking to behold. They think they are untouchable and impervious to norms followed by the rest of society. They may have won the opening battle, but will lose the war. Discontent among the masses grows by the day. The critical thinking citizens are growing restless and angry. They are beginning to grasp the true enemy. The system has been captured by a few malevolent men. When the stock, bond and housing bubbles all implode simultaneously, all hell will break loose in this country. It will make Ferguson, Missouri look like a walk in the park. I wonder if the occupants of the Eccles building in Washington DC will get out alive.

“It is well enough that people of the nation do not understand our banking and money system, for if they did, I believe there would be a revolution before tomorrow morning.”Henry Ford

About the Author

turd [at] tfmetalsreport [dot] com ()
Does Feb19 Comex gold close above $1250 on Friday?
Total votes: 183


El Gordo · Aug 19, 2014 - 6:46pm

Am I first?

Dang, gotta say something here to post.

I Run Bartertown · Aug 19, 2014 - 7:18pm

Good to see Jim Quinn

is still welcome here. I was worried that his un-PCness might make the local squeaky wheels get squeaky.

For anyone interested, that end quote by Henry Ford is not all he had to say about banking. Not many are willing to pay the price for being more specific, but he was.

4 oz · Aug 19, 2014 - 7:37pm

I'm my own Silver Fix-er!

I'm my own Silver fix-er!

Added to my stack again today..... love these crazy low prices!



SteveW I Run Bartertown · Aug 19, 2014 - 7:44pm

@IRB: Banking

"For anyone interested, that end quote by Henry Ford is not all he had to say about banking."

Rather cryptic comment. You're not confusing Jim Quinn with Jeff Nielson of bullionbullscanada are you?

Marchas45 · Aug 19, 2014 - 7:44pm

I Bought

today also but gold for a change. Also I should have a package tomorrow with some goodies. Lol Keep Stacking

achmachat · Aug 19, 2014 - 8:05pm

re: henry ford

i think bartertown is referring to the fact that Ford was an outspoken antisemite.

I Run Bartertown · Aug 19, 2014 - 8:21pm


"Rather cryptic comment. You're not confusing Jim Quinn with Jeff Nielson of bullionbullscanada are you?"

Sorry, I was referring to Ford.

Quinn is unPC in his own right (see his 30 Blocks of Squalor series).

edit - lest I be misunderstood as critical, BOTH are precious gems of truth.

AlienEyes · Aug 19, 2014 - 9:36pm

Henry Ford

Before calling someone a racist, you might ask yourself, did he have a good reason for not liking jews.

sierra skier · Aug 19, 2014 - 9:43pm


Not anything that I see. They keep telling us things are getting better,,,

Urban Roman · Aug 19, 2014 - 9:43pm

Management of Perception

Even Jesse is using the same sequence of words. Can't remember whether he has written them in sequence this way before:

Gold Daily and Silver Weekly Charts - Cap, Cap, Cap

DayStar · Aug 19, 2014 - 10:31pm

Harvey's Up! (TFMR)

Harvey's Up!

  • Mark O'Byrne: The people of China were banned from owning gold bullion by Chairman Mao in 1950. This means that the per capita consumption of over 1.3 billion people is rising from a miniscule base. This suggests that demand will consolidate at these levels and could again return to record levels - particularly if there are losses in the Chinese property market or stock markets. Since the market in China was liberalised, gold in yuan terms has risen by more than 250% while the stock market has performed poorly. Culturally, India is known to have the greatest affinity for gold in the world. China had a similar cultural affinity prior to the "cultural revolution" and in time its levels of gold ownership will likely rival those seen in India, Vietnam and other Asian countries. Within the lifetime of many Chinese people living today is the experience of hyperinflation as many middle aged and elderly Chinese people experienced hyperinflation in 1949. Therefore, as in Germany, there is a greater awareness of what inevitably happens when a central bank debases the paper currency. The People’s Bank of China’s official gold reserves are very small when compared to those of the U.S. and indebted European nations. They are miniscule when compared with China’s massive foreign exchange reserves of more than $3 trillion. The People’s Bank of China is continuing to quietly accumulate gold bullion reserves. As was the case previously, they will not announce their gold bullion purchases to the market in order to ensure they accumulate sizeable reserves at more competitive prices. They also do not wish to create a flight from the dollar – thereby devaluing their sizeable dollar reserves. Expect an announcement from the PBOC, sometime later this year or in 2015, that they have trebled or even quadrupled their reserves to over 3,000 or 4,000 tonnes. 
  • Katherine Rushton: Paul Robson, a former trader at Rabobank, has become the first Briton to plead guilty to being part of the worldwide conspiracy to rig the Libor interest benchmark. The executive, who worked at the Dutch bank's London office, admitted before a New York court to one count of bank fraud and wire fraud, as part of a conspiracy that also involved the taxpayer-backed Lloyds Banking Group. The scheme, which was designed to boost profits at the companies involved, which affected mortgage rates and pension payments around the world, estimated to have cost the public trillions of pounds.
  • Koos Janeson: Weekly withdrawals from the Shanghai Gold Exchange (SGE), which equals Chinese wholesale demand, have been nearly flat for four weeks in a row. 33 metric tonnes have been withdrawn in week 32 (August 4 - 8), up a modest 4.2 % w/w. Year to date 1,127 tonnes have been withdrawn, annualized 1,831 tonnes. Gold premiums also remained flat, around zero. The total volume of gold contracts traded on the SGE during week 32, including the Chinese OTC market, was 131 tonnes. On the Shanghai Futures Exchange (SHFE) the traded volume was 365 tonnes, added to the SGE volume makes 496 tonnes (counted unilaterally). In comparison, on the Comex the weekly volume was 2,092 tonnes and it's estimated that in the London Bullion Market 25,000 tonnes are being traded weekly. 
  • Harvey: China now allows 3 more banks including the big foreign bank Standard Chartered to import gold. What China is trying to accomplish is to have Shanghai not only a physical market but also incorporate a futures exchange (backed by physical gold) whereby a price discovery mechanism would be established. This would be a dagger to the Comex as everything will leave that crooked casino to the more honest Shanghai. I would like to point out that Singapore will be ready with its futures and physical gold exchange this September. 
  • Harvey: I think you can sound the alarm bells as silver has advanced continually at the SLV. As you can see above, 3.07 million oz was "added" to inventories. We know that India is importing roughly 25% of global annual demand. I strongly feel that the silver addition is a paper addition and not real metal. As for gold we are also seeing rising inventories. We are of the opinion that the GLD gets its gold from the Bank of England through a swap arrangement and this swap (with dollars) is never unwound. Then gold leaves the GLD and heads to more gold friendly confines like that of Russia and China. The fun will begin once the Bank of England demands its gold back. Gold trading: Gold had a firming tone throughout the night and reached its zenith at the first London gold fix (3 am) at $1302.20 and from that point it was all downhill as gold finished the day at $1295.50. As I have pointed out to you, the bankers continue to whack gold trying to influence silver as they are concerned with it's high open interest resting tonight at 165,052 coupled with a low price of $19.42. This is totally incompatible in the real world. 
  • Dave Kranzler: How come no one discusses that fact that, day after day, silver and gold trade flat to higher when the eastern hemisphere is open but, for some reason, as soon as the Comex trading floor opens, the price of gold and silver get demolished. In the last 23 hours silver had a low of 19.57 about 3 PM EDT Monday. Then when Comex opened this morning, silver had a quadruple top at 19.70 and then plummeted $0.28 in about 3 hours for no apparent reason. It seems that the fine fellows at the Comex perceive some sort of trouble with the fundamental outlook for silver that no one in the rest of the entire world outside of the Comex silver trading pit is able to understand. I will say that it is becoming more apparent by the day that some very smart, deep-pocketed money is accumulating the mining stocks, especially the juniors. 
  • Chris Powell (GATA): The U.S. gold reserve likely has been mobilized through leasing to suppress the gold price, Singapore fund manager Grant Williams tells King World News tonight, adding that eventually more nations that deposited their gold with the U.S. government will start asking for its return and it won't be available either. 
  • Nick Miroff: Madre de Dios is the center of illegal gold mining in the western Amazon. The miners' dredging equipment and the mercury they use to tease gold out of alluvial sediments has led to some of the most appalling environmental destruction anywhere in South America, turning lush forests into lunar wastelands. Photographer Dominic Bracco and I wanted to see it up close. But the jungle camps where the miners work are notoriously lawless and miles from any help. Foreigners -- especially foreigners with cameras -- are not welcome. It was a jarring ride through ruined landscapes of man-made deserts and sickly craters. I'd never seen humans do anything so hideous to the planet. In just a few years, vast stands of forest had been totally annihilated, as if hit by a massive napalm strike. The longer we stayed to talk, the more we also seemed to be attracting people who really didn't want us there. It was time to split. Chris Powell: This is what gold price suppression does to the environment in Peru and elsewhere. There's money only for subsistence workers, none for remediating the landscape.
  • Chris Powell (GATA): Central banks trying to suppress the price of gold, GoldMoney founder and GATA consultant James Turk says today, are most afraid that "trend followers" will jump into the market and suppression tactics are aimed at scaring them out. 
  • Thomas Biesheuvel (Bloomberg): Monday's CHART OF THE DAY ( ) shows how world output breached an annual 3,000 metric tons for the first time last year. That’s while demand dropped 11 percent to 4,080 tons and gold prices tumbled 28 percent, the biggest slide since 1981. In the first half of 2014, demand also shrank 7.2 percent from the same period a year earlier, according to World Gold Council data. “The downside is driven by the industry continuing to supply gold at a loss,” Bristow said in an interview. “We’re not disciplined as an industry, we’re not in good shape as a gold mining industry.” Randgold’s stock is the best performing among major companies with producing mines in the past decade. Investors that cut gold holdings as prices fell from highs have yet to plunge back in. The metal held in exchange-traded products totaled 1,728 tons by Aug. 13, according to data compiled by Bloomberg. 
  • Lawrence Williams (Mineweb): So now we have had three days of the new LBMA Silver Price – the new name for the London Silver Fixing given that the term ‘Fix’ is somewhat discredited in modern-day parlance. The banks involved in the old system, which had fallen to two, wanted to withdraw from it, in part because they felt the process, even if it was a totally honest system, which it probably was, could lay them open to having to defend expensive, and probably spurious, lawsuits and the London Bullion Market Association took upon itself to go out and set up some kind of new silver benchmarking process at very short notice. And is this new process any more transparent than the old one – one of the main charges laid against the old Silver fixing process. The answer so far is probably not! 
  • Bill Holter (Miles Franklin): The latest 13F holdings report showed that Soros nearly doubled his short position betting heavily against U.S. equities. He also holds a large position in the ETF GLD and has outsized option positions betting on junior miners so it's apparent he believes in the merit of gold. Is he right? Does he "know" something that we don't know? He is positioned for a crash and will profit when one occurs. To answer the question, I believe yes, he probably does "know" for a fact what is coming to pass. So is there a point to me writing about George Soros' positioning himself for a crash? Well yes, because he has a very long term track record of being correct and correct in very big ways. If you are already positioned in this manner or some form of it, you now have something to strengthen your convictions. 
  • Bill Holter on a hypothetical crash: Where would we be right now if Ukraine really did wipe out a Russian convoy? What if Russia does just start the engines and roll into Ukraine? That all "supposedly" happened this past Friday, today is Tuesday so we would have had 2 full trading days behind us. Again, hypothetically, what if the Dow Jones was down 700 points on Friday and another 1400 points on Monday, what would you do today? Would you buy the dip? Would you sell? Would you do nothing and just wait for the smoke to clear? What about gold and silver? What if gold was up $90 on Friday and $230 on Monday? Would you be a buyer here at the new price of $1,600+ or would you wait and hope to be able to buy some on a pullback? Or would you hit the sell button and wipe your brow in relief that you could sell your gold at a break-even from metal purchased in 2012? How would you react to $27 silver? Remember, this is what George Soros is positioned for, what do you think he would be doing? I cannot answer any of the above questions because only you personally may have an idea as to what your thought process might be. I caution you however, in the heat of battle, what you believe now may be very very different from the reality when you are faced with it. My personal thought process is this, once the collapse starts it will be bigger and farther reaching than anything we have ever seen before. In fact, I believe what is coming will be 1929, 1987, 2000 and 2008 all wrapped up into one big toilet flush! 
  • Tyler Durden: More than 7,000 troops from China, Russia and four central Asia countries have gathered in Inner Mongolia for their biggest joint drills "to fight terrorists". The drills are purportedly to prepare troops to protect the so-called Silk Road economic and transport belt that will run through central Asia from China to Europe from terrorist attack, but as one analyst notes, "it is kind of rare to have an anti-terrorist mission which uses battle tanks." Furthermore, as part of a drill: *RUSSIA TESTING S-300, S-400 SYSTEMS IN ASTRAKHAN REGION: RIA. So, surface-to-air missile tests? Not very "de-escalation"-y. Perhaps this statement is a clue, "we are trying to exercise together to coordinate our troops to meet any potential eventuality."
  • Tyler Durden: An American journalist, James Foley who was previously held captive by pro-Gaddafi forces for six weeks in Libya, was captured again in 2012 in Syria by - at the time 'unidentified' gunmen - which we now know was ISIS. James Foley - a freelance reporter from Boston - was kidnapped Thanksgiving Day 2012. He was beheaded by ISIS today. They are threatening to behead another journalist, Steven Sotloff. 
  • Tyler Durden: Austria has 2 Ebola cases. *AUSTRIAN PROVINCE SUSPECTS EBOLA IN TWO CASES, APA REPORTS. Two men who arrived in Austria last week from Nigeria have been hospitalised on suspicion of carrying the Ebola disease, a regional Austrian governor said today. Blood samples were sent to a laboratory in Germany with results expected later today, Josef Puehringer, governor of Upper Austria province said. The two men were hospitalised in Voecklabruck after developing a fever following their return from Lagos and were currently being held in quarantine, Puehringer said. The World Health Organisation (WHO) figures show 1,229 people have died among the 2,240 reported cases in Guinea, Liberia, Nigeria and Sierra Leone. The latest numbers include 84 additional deaths from 113 new cases reported between Thursday and Saturday. The UN World Food Programme is preparing to deliver food to 1 million people over the next three months.

All this and more on...

The Harvey Report! surprise


erewenguy · Aug 19, 2014 - 10:44pm

The US Gold in Fort Knox is Secure, Gone, or Irrelevant

The US Gold in Fort Knox is Secure, Gone, or Irrelevant

Posted on August 19, 2014 by Gary Christenson

Gary Christenson - Deviant Investor

In 1950 the US owned about 20,000 metric tons of gold – approximately 640,000,000 troy ounces. By August 15, 1971 when President Nixon “temporarily” closed the “gold window” that hoard had decreased to about 8,100 tons (Fort Knox, the NY Fed, and other locations). The US government had been overspending, exporting dollars oversees, and other governments had “cashed in” those dollars for gold. At that rate of decrease, the US gold hoard would have been entirely dissipated by now. Perhaps it is gone!

President Nixon had a choice – default on the US promise to redeem dollars with gold, or reduce spending. Like any prominent politician he chose to continue spending and to blame the problem on someone else – the “international money speculators” but it might as well have been the Russians, Democrats, the French, Communists, an ethnic group, or the weather – anyone but those responsible – The President, Congress, and the bankers.

Forty three years later (since August 15, 1971) the “temporary” policy is still in place, the US government has officially redeemed no dollars for gold, and the US economy has deteriorated.

Category 1971 2014

National Debt (6/30) $398 Billion $17,600 Billion

Nat. Debt Increase/yr $27 Billion $894 billion

Middle Class Doing okay Poorer

Fort Knox Gold Audited 1950s Audited 1950s

Option One: Assume all the US gold is still in the vaults and unencumbered.

1) An audit would dispel considerable concern and increase the credibility of the Federal Reserve, Wall Street, and the US government. Congress should demand an audit (and that is as likely as flying pigs, Middle East peace, and Wall Street donating their 2013 bonuses to charity).

2) The US national debt is approximately $17.6 Trillion – about fifty times the current market value of the US gold. Clearly selling all the US gold would not fix the insolvency or debt problems of the US government.

3) Hint: This option is not viable.

Option Two: Assume all the US gold is still in the vaults but leased or hypothecated once or perhaps many times.

4) Don’t expect anyone at the Fed or the Treasury to admit leasing or hypothecation.

5) However an audit would still improve the credibility of the Fed, the Treasury, and the US government. Probably not going to happen…

6) This option, that the US gold remains in the vaults, seems unlikely but remotely possible.

Option Three: Assume almost all the US gold is gone – leased, sold, lost, stolen, whatever.

7) There is nothing for the Fed or the US government to gain and much to lose by admitting the truth. Hence the truth will not be forthcoming.

8) Don’t expect anyone to be indicted or prosecuted.

9) Massive theft and the resulting cover-ups do not sound unlikely or impossible, especially after the revelation of multiple other scandals and thefts.

10) The sale of millions of ounces of gold into the market over the past two decades certainly helped control the rising price of gold and helped mitigate the weakening of paper currencies.

11) Option three makes the most sense to me. It probably can’t be proven, but it is plausible that central bankers and government officials have chosen this option.

Does The US Gold Really Matter?

The US government spends roughly $3.5 Trillion per year and adds nearly $1 Trillion each year to the national debt. The official 260,000,000 ounces of gold are currently valued at about $340 Billion. The President and Congress would burn through the market value of that gold in slightly more than a month.

The Federal Reserve has “printed” well over $3,000,000,000,000 since the financial crisis of 2008 – about ten times the current market value of all the gold that the US supposedly still has in its vaults. Global annual gold production is about 2,500 tons, about 80,000,000 ounces or about $105,000,000,000. One hundred five billion dollars in global gold production is produced through the considerable efforts of the global gold mining community. But the Fed chose to “crank up the printing presses” and effortlessly created over $3 Trillion in new digital dollars since 2008. The Fed has temporarily saved the banks, the US credit rating, the bond market, the S&P 500 Index, and the upper 1%, and will continue to do so for as long as they can sell the recovery story to manage the crisis.

All the US gold, when priced in current dollars, seems rather unimportant in relation to the QE1, QE2, QE3, QE to Infinity, and “print or die” economics. The crystal clear implication is that the market price of gold is undervalued and the dollars, yen, pounds, and euros are considerably overvalued. That realization has not reached mainstream media, but it will eventually become common knowledge.

I assume that from the perspective of the Federal Reserve, all the US gold is merely a legacy asset with minimal significance. And since the US gold has little or no significance, then it seems likely the gold has not been preserved, and that there is no benefit to the Treasury, The Fed, Wall Street, or the US government in performing an audit, admitting or denying gold leasing, or even discussing the subject. Business as usual…

The Fed recently refused to allow Germany to inspect their gold which supposedly had been safely stored in the NY Fed vaults for several decades. Clearly, the implication is that the German gold is also gone, there is much wrongdoing to conceal, and telling the whole truth is not a viable option. Business as usual…

Bottom line: In my opinion the US gold is largely gone and probably the gold supposedly stored at the NY Fed for other countries is also mostly gone. Sadly, it matters to very few people, and the world will continue to print many more paper and digital dollars, euros, pounds, and yen. Long live the value of paper, or so we should hope, since the inevitable reckoning and proper valuation of all paper assets, when it occurs, will be ugly, distressing, and dangerous.

The game won’t last forever, but governments and central bankers will do whatever it takes to maintain the illusion of the solvency of paper assets, the status quo, the global bond bubble, and the global currencies bubbles.

-SilverIsMoney- · Aug 19, 2014 - 11:12pm

Two things I give Quinn major props on...

1st) Correctly stating it's the .1% and not the 1.0% - the bottom half of the 1% interchanges almost every year. These are your working class millionaires so to speak. I grew up around these people and many of them worked 12-14 hour days every day to get to where they are. They busted their asses every step of the way and deserve everything they've got. When people do not understand the distinction between the 1.0% and .1% I get pretty upset because it's vitally important to understand the difference. The real issue today is not rich people vs poor the issue is that the richest among us (.1% or even .01%) have created all sorts of cartels that monopolize different games for their own interest which fucks over the rest of us. All of this QE currency that has enriched them, and destroyed the middle class, has been a result of their monetary cartel otherwise known as the FED. 

2) This part...

We had a choice. We could have bitten the bullet in 2008 and accepted the consequences of decades of decadence, frivolity, materialism, delusion and debt accumulation. A steep sharp depression which would have purged the system of debt and punishment of those who created the disaster would have ensued. The masses would have suffered, but the rich and powerful bankers would have suffered the most. Today, the economy would be revived, saving and investing would be generating needed capital for expansion, and banks would be doing what they are supposed to do – lending money to businesses and individuals. Instead, the Wall Street bankers won the battle and continue to pillage and loot the national wealth while impoverishing the masses.

This is so key to understand... when the next crisis comes we've got to stand up and demand they actually let it happen. Only once this entire system melts down and all of the bad debt is wiped away can we truly begin a new... the correction will be devastating but brief. Iceland had it right...

gazzmann · Aug 19, 2014 - 11:27pm


I have to echo your sentiments re: working class millionaires. We can't make the mistake of just blindly taking shots at "the rich". I was not raised around a lot of money, and only posses a modest amount myself. But most people I know that have done well are extremely hard working, and it's been my experience are pretty decent people.

The idea I would suggest is to go after the criminals!!!!! No matter how rich or well connected. But to just blindly go after "the rich", I think is unjustified and dangerous.

Exhibit A: France

flyinkel · Aug 20, 2014 - 5:11am
ancientmoney · Aug 20, 2014 - 8:55am

The JPM/DOJ fraud knows no bounds . . .

"It was the largest financial settlement of all time, and it kept Wagner’s complaint away from the prying eyes of the public. One thing is clear: Dimon’s claim that his own bankers and traders had done nothing wrong in the years leading up to the financial crisis wasn’t true. “The investigators and the lawyers were uncovering very viable evidence,” explains Associate Attorney General Tony West, who headed up the settlement negotiations on behalf of the Justice Department. “I think there was recognition that we had enough evidence there that would support the complaint and would support a robust lawsuit.”

In another instance, Wagner found that JPMorgan’s bankers had decided to eliminate a bunch of low-quality “stated income” loans—mortgages that had been granted without documented proof of the borrower’s income—from a pool of mortgages they were going to buy and securitize. When the originator of the mortgages objected to JPMorgan’s decision to remove these loans from the pool, a group of JPMorgan managing directors—including bankers, traders and salesmen—met with the originator and decided to buy two of the loan pools anyway, including those with the squirrelly mortgages. JPMorgan then proceeded to bundle “hundreds of millions of dollars of loans from those pools into one security.” Wagner found that between the start of 2006 and the middle of 2007—when the mortgage securitization frenzy was at its peak—JPMorgan packaged and sold securities containing thousands of mortgages that were rated by a third-party evaluator to be of extremely low quality, meeting few, if any, of the bank’s underwriting standards.

This, then, is the story of what happens when a hubristic CEO—often described as the reigning king of Wall Street—is confronted by a narrative he thinks he can control but ultimately cannot. It’s the tale of Jamie Dimon’s agenda and how it got derailed. But it is also the story of how the Justice Department has decided to handle the outrageous behavior of all the big Wall Street banks in the years leading up to the financial crisis. Unfortunately, it shows just how far the government is willing to go to avoid naming names, as well as to keep especially revelatory evidence of wrongdoing out of the hands of the American people. (Somehow, this is the new normal.)"

buzlightening · Aug 20, 2014 - 2:52pm

Add this to the hope and change recovery x files!

The 35.4 Percent: 109,631,000 on Welfare

August 20, 2014 - 4:35 AM

By Terence P. Jeffrey

food stamps

(AP File Photo)

109,631,000 Americans lived in households that received benefits from one or more federally funded "means-tested programs" — also known as welfare — as of the fourth quarter of 2012, according to data released Tuesday by the Census Bureau.
The Census Bureau has not yet reported how many were on welfare in 2013 or the first two quarters of 2014. ........................................Lets see how many fane stream media paid pimps put this front & center in tonights news broadcast? Broadcast=Whorecast. 

sierra skier · Aug 21, 2014 - 6:47pm

What programs does this figure include.

Our household now benefits from SS and Medicare. As both of these programs have been deducted and paid for out of earnings through our lives I do not consider them Welfare, but many do. I saw no indications after a brief look at the first link and the 2nd link was a dead end.

I know legally the government does not have to pay SS but it was taxed and paid for through 45 years in the workforce. It is not an entitlement like EBT cards, section 8 housing, welfare, obama phones and medicaid to name just a few.

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