Guest Post: "Lies, Damned Lies & Statistics, by Jim Quinn

Thu, Jul 23, 2015 - 12:02pm

We write every week about the endless SPIN and MOPE from a mainstream press that is desperate to maintain the illusion that all is well. This latest from Jim Quinn exposes just a few of the whoppers for the propaganda that it is.


by, Jim Quinn of

The government released their monthly CPI report this week. Even though it came in at an annualized rate of 3.6%, they and their mouthpieces in the corporate mainstream media dutifully downplayed the uptrend. They can’t let the plebs know the truth. That might upend their economic recovery storyline and put a crimp into their artificial free money, zero interest rate, stock market rally. If they were to admit inflation is rising, the Fed would be forced to raise rates. That is unacceptable in our rigged .01% economy. There are banker bonuses, CEO stock options, corporate stock buyback earnings per share goals and captured politician elections at stake.

The corporate MSM immediately shifted the focus to the annual CPI figure of 0.1%. That’s right. Your government keepers expect you to believe the prices you pay to live your everyday life have been essentially flat in the last year. Anyone who lives in the real world, not the BLS Bizarro world of models, seasonal adjustments, hedonic adjustments, and substitution adjustments, knows this is a lie. The original concept of CPI was to measure the true cost of maintaining a constant standard of living. It should reflect your true inflation of out of pocket costs to live a daily existence in this country.

Instead, it has become a manipulated statistic using academic theories as a cover to systematically under-report the true level of inflation. The purpose has been to cut annual cost of living adjustments to Social Security and other government benefits, while over-estimating the true level of GDP. Artificially low inflation figures allow the mega-corporations who control the country to keep wage increases to workers low. Under-reporting the true level of inflation also allows the Federal Reserve to keep their discount rate far lower than it would be in an honest free market. The Wall Street banks, who own and control the Federal Reserve, are free to charge 18% on credit card balances while paying .25% to savers. The manipulation of the CPI benefits the vested interests, impoverishes the masses, and slowly but surely contributes to the destruction of our economic system.

A deep dive into Table 2 from the BLS reveals some truth and uncovers more lies. Their weighting of everyday living expenditures is warped and purposefully misleading. Let’s look at the annual increases in some food items we might consume in the course of a month, living in this empire of lies:

  • Ground Beef – 10.1%
  • Roast Beef – 11.8%
  • Steak – 11.1%
  • Eggs – 21.8%
  • Chicken – 3.7%
  • Coffee – 3.4%
  • Sugar – 4.2%
  • Candy – 4.6%
  • Snacks – 3.5%
  • Salt & Seasonings – 5.3%
  • Food Away From Home – 3.0%

Despite these documented increases, the BLS says food inflation only ran at 1.8% in the last year. They show large decreases in pork, seafood, dairy, and vegetable prices. I grocery shop every week. I buy milk, fish, and vegetables and the prices have not fallen. The price of pork products has decreased from all-time highs, but is still well above prices from a few years ago. The BLS fraudulently keeps the food price increase lower by assuming you switch from beef to pork when the price of beef soars. That assumption does not lower the price of food. The assumption essentially builds in a lower standard of living for you in their model of the world. The other ridiculous assumption is the weighting for food eaten away from home. Giving this a weighting of 5.8% is outrageous when everyone knows obese Americans are chowing down at Taco Bell and the millions of other purveyors of toxic food sludge multiple times per day.

If you are like me, you probably need to live someplace. Food and shelter are the most basic of needs in a society. But according to the BLS they account for less than 50% of your expenses. Let’s examine some shelter related costs to see how badly the BLS is lying in this area:

  • Rent – 3.5%
  • Owner’s Equivalent Rent – 3.0%
  • Insurance – 3.1%
  • Water, Sewer, Trash – 4.7%
  • Household Operations – 3.6%

There is so much wrong with the BLS data, I don’t know where to start. The rental market has been on fire since 2012. Builders are erecting apartments at a breakneck pace. Independent, non-captured, neutral real estate organizations show rents surging to all time highs, growing by 5.1% on an annual basis. Real rents in the real world have grown by 14% since 2012. The BLS says they’ve grown by 9%. Who do you believe?

It’s funny how the mysterious owner’s equivalent rent calculation spits out a 3% increase in the last year. National home prices, based on Case Shiller data and NAR data shows prices up between 5% and 10% in the last year and up by 25% since 2012. Mortgage rates have risen to 4% from the low 3% range. Property taxes are soaring across the country as indebted localities rape taxpayers to pay for their gold plated government benefits and pensions. Evidently the BLS just ignores prices, mortgage payments, and real estate taxes when calculating their lies.

The final outrage is the weighting applied by the BLS to the owners equivalent rent. It accounts for 24% of the CPI calculation, virtually the same as it did in 2007. In case you haven’t noticed, the home ownership rate has plunged to 22 year lows since 2007, as millions of foreclosures booted people out of homes and millions of millennials are so loaded with student loan debt and stuck with low paying Obama jobs that home ownership is a distant dream. How can the BLS continue to weight home ownership at the same level when the percentage of rental units has soared?

There is no question the BLS should have dramatically increased the weighting of rental housing. In reality, the large increases in rental rates and the surge of rental households reflects a much higher inflation rate than is being reported by the government. The BLS figure is a blatant lie. The recent report from the Center for Housing Studies reveals the falsity of the government reported propaganda. Over 20.7 million renter households (49.0%) pay more than 30% of their income on housing. More than a quarter of all renter households, or 11.2 million, spend more than 50% of their income on housing. The median US renter household earned $32,700 in 2013 and spent $900 per month on housing costs. Renter housing costs are gross rents, which include contract rents and utilities. If the median renter household spends 33% of their income on housing costs how can the BLS give it only a 7.2% weighting in the CPI calculation?

The Center for Housing Studies report drives a stake into the heart of the manipulated, politically massaged, false data put out by the BLS to keep the masses sedated and their bosses fat, happy and rich:

Over the span of just 10 years, the share of renters aged 25–34 with cost burdens (paying more than 30 percent of their incomes for housing) increased from 40 percent to 46 percent, while the share with severe burdens (paying more than 50 percent of income) rose from 19 percent to 23 percent. During roughly the same period, the share of renters aged 25–34 with student loan debt jumped from 30 percent in 2004 to 41 percent in 2013, with the average amount of debt up 50 percent, to $30,700.

The faux journalists in the dying legacy media act baffled by the continued real decline in retail sales when the answer is staring them right in the face. True inflation in essential living expenses combined with declining real wages and increasing debt burdens has left the average household with little or no money to spend.

The next blatantly manipulated false data is related to healthcare. Let’s peruse some this detailed inflation data:

  • Prescription Drugs – 4.8%
  • Non-Prescription Drugs – Negative 1.6%
  • Medical Equipment – 0.0%
  • Medical Care Services – 2.3%
  • Hospital Services – 3.5%
  • Health Insurance – 0.7%

Anyone living in the real world knows Obamacare has resulted in a tremendous increase in demand for drugs, medical services, and medical equipment. Health insurance companies, drug companies, drug wholesalers, hospital corporations, and drug stores are reporting record profits as their stock prices hit all-time highs. When was the last time you saw prices drop or stay flat in the healthcare arena?

It is patently outrageous for the BLS to report an annual health insurance cost increase of a mere 0.7%. The annual cost of employee sponsored health insurance is 6.3% higher than last year, with the employee portion skyrocketing by 8.0% based on real data in the real world. I work for the largest employer in Philadelphia, with the most negotiating clout against insurers, and my portion has gone up by 10% to 20% annually for the last five years. Everyone working for a company has experienced the same or higher increases.

Even the Obamacare exchanges are seeing double digit premium increases in many states. Studies from Price Waterhouse Coopers and McKinsey found increases in average premiums between 6% and 10% across the country. It takes major cajones for the BLS to report 0.7% health insurance inflation, but their job is not to report factual information. Their job is to keep the ignorant masses ignorant of their plight. The bigger the lie, the more likely it is to be believed. The even more ridiculous aspect to the BLS data is that health insurance is weighted at .75% in the CPI calculation. The median household income in this country is $52,000. Employees are paying approximately $4,000 in health insurance per year on average. That is 7.7% of their income. The BLS weighting is absurd. Using a true inflation rate and true weighting would add at least 2% to the CPI figure.

Another area that impacts every American every day is transportation. People need to drive or take public transportation in order to live their lives. Here are some more crucial inflation data points from the BLS:

  • New Cars – 1.2%
  • Used Cars – Negative 0.7%
  • Gasoline – Negative 23.3%
  • Vehicle Leasing – Negative 1.1%
  • Vehicle Insurance – 5.1%
  • Parking & Tolls – 2.4%
  • Public Transportation – Negative 3.2%

So we have near record levels of new auto sales, driven by subprime auto debt and 7 year 0% financing, with average vehicle prices at all-time highs, and the BLS reports prices only went up 1.2% in the last year. Edmunds, the authority in auto data, says prices went up 2.6% in the last year. Do you believe the BLS model or real data from the real world, broken down by automaker and vehicle? The even more ridiculous contention is that used car prices fell. I’ve bought two used cars in the last year and I can attest that prices are not falling. Edmunds reported that used car prices have risen by 7.1% in the last year. Leases as a percentage of total auto sales is also at record levels. Does this really jive with a decrease in leasing expenses? I think not.

There are 254 million passenger vehicles registered in the United States. We have a record level of auto loan debt totaling $1 trillion and a record level of auto leases. According to Edmunds, the average monthly car payment is $479. That is $5,748 per year. That equals 11% of the median household income. Why would the BLS only give this category a 5.7% weighting? Bankrupt states across the country have been jacking up tolls. The BLS says they went up by 2.4%. My beloved state of Pennsylvania has increased them by 10% per year for the last three years. The BLS says the cost of public transportation is plummeting. Has a Amtrak or any municipal public transportation system EVER reduced fares? Not a chance. They need more revenue to fund the government pensions of their union employees.

There are a few other categories that might be of interest to you:

  • Banking Fees – 5.9%
  • College Tuition – 3.4%
  • Childcare – 4.3%
  • Sporting Events – 8.8%
  • Pet Care – 3.5%
  • Cigarettes – 2.5%
  • Alcohol Served Away from Home – 4.0%

Isn’t it delightful that your friendly neighborhood Wall Street bank gets free money from the Fed, charges you 18% on your credit card balance, pays you nothing for your deposits, and then jacks up your bank fees? The relentless inflation in college tuition is being driven by the relentless doling out of student loans by the Federal Government to people who aren’t intellectually capable of completing college level material. The $1.4 trillion of student loans will never be repaid. The taxpayer will be on the hook for hundreds of billions in write-offs.

To celebrate the near zero inflation reported by your friendly government drones at the BLS take your family of four to a baseball game, spending $160 for tickets, $25 to park your car, $20 for two warm beers, $10 for two sodas, $24 for four hot dogs, and $10 for an order of cheese fries. Make sure you toast Greenspan, Bernanke, Yellen and the rest of the Federal Reserve governors who have purposefully reduced the purchasing power of your dollar by 96% over the last century.

You know your true level of inflation. You know it’s not 0.1%. You know it’s somewhere between 4% and 10%. You know your government is lying to you. You know the captured corporate media perpetuates the lies. You know those in control of the government must lie to keep their Ponzi scheme going. You know they are just following the Edward Bernays playbook. They want you to believe it’s for your own good. Do you think it’s for your own good?

“The conscious and intelligent manipulation of the organized habits and opinions of the masses is an important element in democratic society. Those who manipulate this unseen mechanism of society constitute an invisible government which is the true ruling power of our country. …We are governed, our minds are molded, our tastes formed, our ideas suggested, largely by men we have never heard of. This is a logical result of the way in which our democratic society is organized. Vast numbers of human beings must cooperate in this manner if they are to live together as a smoothly functioning society. …In almost every act of our daily lives, whether in the sphere of politics or business, in our social conduct or our ethical thinking, we are dominated by the relatively small number of persons…who understand the mental processes and social patterns of the masses. It is they who pull the wires which control the public mind.” – Edward Bernays – Propaganda – 1928

About the Author

turd [at] tfmetalsreport [dot] com ()


Jul 23, 2015 - 12:04pm



Jerry T
Jul 23, 2015 - 12:04pm



What If
Jul 23, 2015 - 12:11pm



Mr. Fix
Jul 23, 2015 - 12:21pm


"LIES, DAMNED LIES & STATISTICS" are pretty much all we talk about here now.

The truth and the official version of everything are mutually exclusive. cheeky

Jul 23, 2015 - 12:24pm

John Williams Nails it today / emphasis mine

"In the circumstance of continuing deterioration of conditions in the domestic and global financial, economic and political arenas, holding gold to preserve the purchasing power of one's wealth and assets is not an issue of near-term profit or loss, but rather of financial and potentially even physical survival. Irrespective of short-term price volatility in precious metals, held through the unfolding crises, physical gold and silver remain primary hedges—core protection—against the instabilities ahead. Underlying fundamentals eventually will overwhelm and overcome the interventions and manipulations.
Held through the crises, for example, physical gold will preserve the purchasing power of the funds put into it, while retaining liquidity and portability. Further, with core assets so protected and liquid, other options open up in terms of handling less-liquid hard assets such as real estate. A more-extensive discussion on this will follow in Commentary No. 738 of July 27th."

Jul 23, 2015 - 12:26pm

FIF!!! Chalk up another Top

FIF!!! Chalk up another Top 5... Ag goes up...Ag goes down....I buy and hold...eventually, I'll be on the right side of this mess!!!

Jul 23, 2015 - 12:41pm

User stats


...and I suppose that position can be interpreted statistically to indicate that I am in the 3rd standard deviation above the norm among this blog community in terms of not having much better to do today than to check what is going on here and being playful enough to claim a top posting spot. But I have conflated two variables into one bell curve chart (bored and playful) and good statisticians always isolate their variables.

Jul 23, 2015 - 12:47pm

The housing market data...

...has been strong lately. Permits, existing home sales...were better than the expectations. But may be its been a rush to buy a house before the Fed's expected rate hike? I think so.....and see a slowdown ahead.

Jul 23, 2015 - 12:56pm

housing market

Yes, it has been strong. I am trying to use this as an opportunity to get out closer to the top. Rents in my area are absurdly high while the wages of real people are the same as the rest of the state. But houses have also rebounded to near 2007 highs. My own home (purchased in 2013) has appreciated by 40%. Unfortunately, the real estate we are trying to sell in the midwest is still difficult to move. Prices are pushed up by optimistic realtors, but good buyers who will pay those prices are missing. And have you seen the reams of paperwork required to get a home loan and make a purchase?

Back in 2012 I figured the economy would collapse by now and I'd be negotiating with banks on short sales or foreclosures. I am still underwater on 4 of 6 rental homes. We sold two for a break even. Just trying to escape the real estate system we so naively blundered into back in 2005 while trying to become wealthy. Tax write-offs are little consolation.

Jul 23, 2015 - 1:00pm
Jul 23, 2015 - 1:06pm

It's hard for gold to get any traction before...

...the Fed's rate hike is being resolved. It needs to go away. They will keep the "scare" as long as they the Damocles swords over us. It needs to go away!

Jul 23, 2015 - 1:18pm

0.1% inflation? ...

A couple days ago, I got the annual analysis of my escrow account from my mortgage lender. There are only two things this account covers: real estate taxes and homeowners insurance.

The increase in escrow payment for the coming year .... (drum roll) ... 10.3%

Fuck you BLS and the ANALysis you rode in on! Just sayin'

wax off

Jul 23, 2015 - 1:27pm

Just got an idea ...after reading your post Doc.

Going for a bike a ride... to work on my cholesterol. The heck with that! Trying to stay healthy before getting rich....or rather poor ...what is most likely, when looking at my portfolio.

Jul 23, 2015 - 1:53pm

Happy and sad day

Just back from LCS with Mrs Silver66 and this picture is the only record of her purchase

We stopped by the Boat Club on the way home and she was careless and dropped her new stack into the water. Alas I did not have my scuba gear so we can only talk about her stack now.


Jul 23, 2015 - 2:03pm
Ruislip Ranger
Jul 23, 2015 - 2:13pm

Leveraged inverse gold ETF?

can someone please point me in the direction off a good one , probably about time i started covering my long position with something other than blind faith

Jul 23, 2015 - 2:16pm


Charma is a bitch

Texas Sandman
Jul 23, 2015 - 2:24pm

Doctor Copper

Looks to have broken 2.40/lb today. Unless it's lost its ability to forecast economic trends, this is big.

We may get $2.00 silver sooner rather than later.

Jul 23, 2015 - 2:28pm

Hunt for the mystery gold bear raid leader? sure, why not

Uncle Teddy has been charging the masses 30 bucks a month to lead them around looking for Bigfoot (illegal manipulation)

Now ZH wants to send us out in the woods in search of the Mystery Gold Bear Raid Leader (MGBRL)!!! Well, at least it's free. But wait a minute!!!

Forest dense trees woods path nature HD Wallpaper

you thinkin' what i'm thinkin' ???


...what if Bigfoot is the MGBRL?? 

Jul 23, 2015 - 2:36pm

@ Riuslip

For miners - JDST is stellar (though don't ride for weeks) - this alone has saved my ass

DZZ is good and safe for gold (less contango)

DSLV is a beast for silver

The HUI is at a CRITICAL level here at 110...we may very well see our capitulation in the coming days.

I'm LOADING UP at HUI 50-70.

Jul 23, 2015 - 2:37pm
Jul 23, 2015 - 2:39pm
Jul 23, 2015 - 2:43pm

For Those Without Common Sense

Listened to an interview with Keith Neumeyer the other day (First Majestic) and he talked about his new venture into First Mining Finance Corp. I have an order in for some shares of FFMGF, which appears to be the US version. Who knows.

Safety Dan
Jul 23, 2015 - 2:55pm

Memorandum From the Chairman

Memorandum From the Chairman of the Council of Economic Advisers (Heller) to President Kennedy Source

Washington, August 9, 1962.


Why we need an interim international monetary agreement

1. To prevent and to counter speculation against the dollar.

Against our $16 billion of gold are outstanding $20 billion in short-term foreign dollar claims (half official, half private). This potential liability can be vastly increased if and when our own citizens sell dollars abroad for foreign currencies or for gold. Consequently we are constantly in danger of a speculative “run” against the dollar and the U.S. gold stock. There have been three runs in the last two years—one in the fall of 1960, one in the spring of 1961 after the revaluation of the Deutschmark, and one this summer ended only by your Telstar statement.[i] An international agreement, and only an international agreement, will make it perfectly clear that there is no profit in speculating against the dollar—not just the U.S. but all the major monetary powers together will be publicly committed to concrete measures to defend it.

2. To eliminate the whims and prejudices of currency speculators and bankers from the making of U.S. policy. The vulnerability of the dollar to failures of confidence means that the U.S. Government is not master in its own house. For unless the international financial community, taking its cues from Wall Street, has “confidence,” there can always be a speculative run. Thus Chairman Martin reported to you that the dollar's “bad press” is the reason the Fed moved to higher interest rates this summer in spite of the economic slowdown at home—in effect, New York bankers have learned that one way to get higher interest rates on their loans is to talk down the dollar abroad.

3. To allow the U.S. time for an orderly and constructive adjustment of its balance of payments. We cannot and do not seek to avoid the adjustments needed to eliminate the basic deficit in our balance of payments. Our basic deficit is not large, and it is declining, cost and price increases in Europe are slowly but surely working for us. The basic deficit is a danger only because its continuation may contribute to a speculative run. By itself it is clearly within our ability to finance for several more years with gold or credit—or to eliminate by drastic action. But hasty drastic action is what we want to avoid—we don't want to impair the defense or development of the Free World, or to restrict trade with new tariffs and quotas, or to slow down economic growth in the U.S. and the Free World. With the time which an agreement would give us, we can balance our international accounts in an expanding and liberal world economy.

5. To provide time to negotiate a permanent improvement in the world monetary system. Quite apart from the temporary difficulties of the dollar, the world payments system needs to be systematically improved: (a) to defend all currencies against speculative attacks, (b) to internationalize the burden of providing international money, which now falls almost wholly on the dollar, and (c) to provide for an orderly increase in world liquid reserves to financegrowth in trade and production. A permanent agreement can be negotiated, and the necessary legislation(like repeal of the gold cover) obtained from Congress, only if the monetary system is in the interim defended against rumor and speculation.

6. Why a visible formal agreement is preferable to continued improvisation. The techniques which would implement an interim international monetary agreement are essentially the techniques the Treasury has been so skillfully developing this last year and a half. But the Treasury has been using these techniques on a secret, day-to-day, piecemeal, ad hoc basis. There are great advantages to a systematic, public, formal, multilateral agreement governing their further use:

(a) Without such an agreement, improvised expedients to avoid, postpone, or conceal small gold lossesrun the risk of impairing the very confidence they are intended to sustain. Even foreign governments may not have full confidence in unilateral or bilateral operations to which they are not parties.

(b) Without an agreement, the U.S. does not obtain—in return for gold sales and guarantees given to foreign official and private dollar-holders—any assurance that present unguaranteed dollars will not be converted into gold. With an agreement, we will receive a quid pro quo of the greatest importancea “standstill” on conversion of present official dollar holdings.

(c) Only an international agreement, convincing to the public in its announced size, duration, and concrete provisions, can effectively defend the dollar against speculation. Confidence in the dollar cannot be maintained by our protestations alone, or by U.S. currency operations alone, no matter how skillful. The only way to send speculators permanently to cover is to have a clear public commitment to defend the dollar from all the major monetary powers. In the absence of such commitments from other governments, our best efforts to reduce balance of payments deficits and gold losses have not succeeded in sustaining confidence.

Walter W. Heller3

[i] Exert:

[ 6.] Q. “Mr. President, several times recently you expressed concern about the gold drain. Why does the United States, of all of the major nations in the world, permit foreign holders of its currency to exchange it for gold, and while this practice continues, even if we achieved a balance of international payments, would we be able to stop the drain of gold? 

THE PRESIDENTIf the United States refused to cash in dollars for gold, then everyone would go to the gold standard and the United States, which is the reserve currency of the whole free world - we would all be dependent upon the available supply of gold, which is quite limited. Obviously, it isn't enough to finance the great movements of trade today and it would be the most backward step that the United States has taken since the end of the Second World War.

We have substantially improved our position this quarter, the second quarter over the first quarter. Our loss is down to almost a third of what it was in the first quarter. Our loss, based on the first and second quarter of this year, is about half of what it was last year, and about a third of what it was the year before. We hope that we can bring our balance of payments into balance by the end of next year. 
We are not going to devalue. There is no possible use in the United States devaluing.
 Every other currency in a sense is tied to the dollar; if we devalued, all other currencies would devalue and so that those who speculate against the dollar are going to lose.

The United States will not devalue its dollar. And the fact of the matter is the United States can balance its balance of payments any day it wants if it wishes to withdraw its support of our defense expenditures overseas and our foreign aid.

John F. Kennedy, July 23, 1962

Safety Dan
Jul 23, 2015 - 3:00pm



Posted on July 22, 2015 5:32 pm by Jon Comment

Good evening Ladies and Gentlemen:
Here are the following closes for gold and silver today:
Gold: $1091.40 down $12.00 (comex closing time)
Silver $14.72 down 5 cents.
In the access market 5:15 pm
Gold $1094.25
Silver: $14.80
First, here is an outline of what will be discussed tonight:
At the gold comex today, we had a poor delivery day, registering 2 notices for 200 ounces . Silver saw 0 notices filed for nil oz.
Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 242.46 tonnes for a loss of 61 tonnes over that period.
In silver, the open interest fell by a tiny 15 contracts despite the fact that yesterday’s price was up by 2 cents and the gold price was pummeled. The total silver OI continues to remain extremely high, with today’s reading at 190,226 contracts now at decade highs despite a record low price. In ounces, the OI is represented by .951 billion oz or 135% of annual global silver production (ex Russia ex China). This dichotomy has been happening now for quite a while and defies logic. There is no doubt that the silver situation is scaring our bankers to no end as they continue to raid as basically they have no other alternative. Today again, we must have had bankers contemplating falling off the roof due to silver’s refusal to buckle with respect to open interest.
In silver we had 0 notices served upon for nil oz.
In gold, the total comex gold OI rests tonight at 459,760 for a loss of 7912 contracts as gold was down $3.30 yesterday. We had 2 notices filed for 200 oz today.
We had another withdrawal in gold tonnage at the GLD to the tune of 2.38 tonnes/ thus the inventory rests tonight at 687.31 tonnes. The appetite for gold coming from China is depleting not only gold from the LBMA and GLD but also the comex is bleeding gold. I thought that 700 tonnes is the rock bottom inventory in GLD gold, but I guess I was wrong. However we must be coming pretty close to a level of only paper gold and the GLD being totally void of physical gold. In silver, we had no change in inventory at the SLV / Inventory rests at 328.834 million oz.
We have a few important stories to bring to your attention today…

This post was published at Harvey Organ Blog on July 22, 2015.

Nomi Prins-Fed Trapped in Money Printing Policy

Nomi Prins-Fed Trapped in Money Printing Policy
Jul 23, 2015 - 3:23pm

Sorry for posting it...we've seen enough.

But can you imagine the headlines: "Gold below 1000", "Gold 995", "Gold 985" ? In every major newspaper, TV channel, website, Time Square. In every country (with exception of North Korea or Syria) and few uninhibited and exotic islands.

I think, it's been their goal behind the Sunday's hit....malicious sham concocted four years ago. I wish to be wrong....but you see what the cronies are doing....We all have got the front row in this "free and fair market" show.

Jul 23, 2015 - 3:23pm

John Batchelor - Gordon Chang on China & PI & India & Vietnam

Here is good 38 min Podcast, 1st 10 min on Chinas Navy making all neighbors together due to its aggressive build up in SCS. Next 10-20 China nuke; 20-32 space; 32-40 China push to Azores we cannot let China put base in Mid Atlantic

2nd podcast: first 10 min China Gold holding;10-20 China Mega Cities; 30 min stop Iran

Jul 23, 2015 - 3:24pm

JDST is stellar?

Hi Nadgeskaul , yes it sure looks like its had a good run.But doesn't that look scary now ,is that a island reversal top? I am not quite sure how these 3x bear funds work,Is this implying a bottom in the miners here ? PLease say yes "~"

Anyway ,my many mining stocks are sure getting hammered,hui looks like triple bottoming at 112 though {i haven't looked for an hour though} ......ok 110. Time too walk around the airpark...........maybe to blacken my mood further i will go see how much LCS will pay for silver..... i will guess his bid is$17.50 {Canadian} ask $24.75 for a silver maple. I will let you know

Safety Dan
Jul 23, 2015 - 3:26pm

Gold, Silver, Equities:

Gold, Silver, Equities: Megaphone Patterns

BY IWB · JULY 23, 2015

by Gary Christenson

Examine the 20 year log scale chart of monthly gold. I have drawn lines connecting highs and lows. The result is an expanding channel or megaphone pattern. The increasing prices are exponential (log scale chart) because of exponential increases in debt, money supply, and Keynesian craziness, although I have no graph to prove the latter.


Examine log scale charts for silver, crude oil, the Dow Transports, and the S&P 500 Index. You can see similar exponential increases and megaphone patterns of much higher highs and deeper lows.





I have circled important chart lows and highs, and related lows and highs in the MACD and TDI at the bottom of the charts. I have also added dashed lines indicating my estimate of the future direction of prices.

WHEN? Ask the high frequency traders and central bankers, since they exert substantial influences on prices, but market forces cannot be repressed forever.


  • Prices for gold, silver, crude oil, other commodities, and equities are exponentially increasing in the long term.
  • Debt and money supply have increased exponentially and have driven prices much higher. Equities benefit for years and then commodity prices benefit for years.
  • Equities have enjoyed a very long bull market. It may have topped.
  • Bonds have been in a 30+ year bull market. When some European yields go negative past five years duration, it is time to anticipate the death of the bond bull.
  • Central banks want to levitate bonds, levitate equities, and repress commodity prices. Clearly they have temporarily succeeded. Their ability to manipulate prices may survive a while longer, but commodity prices will eventually follow the increasing debt and money supply. Debt and money supply will increase, so in the long term commodity prices will also increase, unless there is a violent reset.
  • Higher gold, silver, and crude oil prices are coming. Lower prices for bonds and equities are coming.


Craig Hemke: Another Comex Oddity

Robert McHugh: China’s stock Market Crash Likely Headed West

George Smith: Why Central Banking Persists

Charles Hugh Smith: Diminishing Returns

Gary Christenson

The Deviant Investor

Jul 23, 2015 - 3:31pm

Weekend Typhoon for Japan # 12 Tropical Depression 12W (Twelve)

Rainy Season has officially passed, but Typhoon in full Swing; this typhoon has had really slow build up and has drifted west and kind of surprise to Okinawa 

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Key Economic Events Week of 1/21

1/22 10:00 ET Existing Home Sales
1/24 9:45 ET Markit Manu and Svc PMI
1/24 10:00 ET Leading Econ Indicators
1/25 8:30 ET Durable Goods
1/25 10:00 ET New Home Sales

Key Economic Events Week of 1/14

1/15 8:30 am ET Producer Price Index
1/15 8:30 am ET Empire State Mfg. Index
1/16 8:30 am ET Retail Sales
1/16 8:30 am ET Import Price Index
1/17 8:30 am ET Housing Starts
1/17 8:30 am ET Philly Fed
1/18 9:15 am ET Capacity Utilization and Ind. Prod.

Key Economic Events Week of 1/7

1/7 10:00 ET ISM Services Index
1/7 10:00 ET Factory Orders
1/9 2:00 ET December FOMC minutes 
1/10 Speeches from CGP, Goons Bullard and Evans
1/11 8:30 ET CPI

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