Jim Willie Discusses The Bond Bubble, Part II


This podcast picks up right where Part One left off, as Jim is about to discuss "the bond carry trade".

The Bond Carry Trade is the process by which, since 2009, the TBTF banks have been able to "pretty up" their balance sheets by showing massive profits on their bond portfolios. The banks borrow from The Fed at near-zero interest rates and they re-invest that same money into 2-3% yielding treasuries, keeping the spread and booking it as quarterly profit. This allows CNBS and other media to tout their equities as "cheap" and "undervalued" when, in fact, they are insolvent zombies.

As you might imagine, The Bond Carry Trade is only one of the topics Jim covers here so sit back, relax and enjoy yourself some Jackass. TF


gold slut
Oct 5, 2013 - 10:53am


Now, I can die happy (and sad at the same time)!

Oct 5, 2013 - 10:56am

Carry Trade

Will continue until they think more money can be made fighting the Fed than playing along with this game.

The Doc
Oct 5, 2013 - 11:01am

Thurd!  Always great to hear

Thurd! Always great to hear Jim's thoughts. Keep up the great work TF!

The Doc
Oct 5, 2013 - 11:03am

More Saturday Metals Radio..

Metals & Markets: Cartel Desperate to Stop the Bleed of Physical Gold!

On this week’s Metals & Markets, The Doc & Eric Dubin discuss:

Oct 5, 2013 - 11:20am

No Vault podcast

I was trying to cobble together some stuff but there really isn't much to talk about and I don't want to waste anyone's time on the weekend.

So, no Vault podcast today. The action will resume, of course, on Monday.

Oct 5, 2013 - 11:28am


Thanks for the rest of JW's interview. And, for free!

Oct 5, 2013 - 11:35am

Oct 5, 2013 - 11:45am

Two weeks from today

Santa will have another Q&A, this one in Washington DC. You should be sure to check it out if you're in the area.


Oct 5, 2013 - 12:05pm

chirp chirp

i usually have a tuff time keeping up with all the blogs comments and links and such...Can it be that alot of the heavy hitters are Government paid bloggers both pumpers and dumpers and are on furlough????


Oct 5, 2013 - 12:12pm

TomMack - Good point!

Will internet trolls be on furlough, or are they bankster hires?

It would be funny to see them change their tunes when the paychecks stop rolling in...actually saying what they really believe, perhaps?

edit to add: On the other hand, maybe they are "ESSENTIAL" personnel.

Oct 5, 2013 - 12:18pm

Dr. Weld's report

I never heard of this guy before, however if you listen to his brief video, he states that his source inside the state dept. says that the plan is to have the stock market fall by about 4,000 points over 7 days and institute marshal law as the dollar falls by about 40%.

He gives the date as mid Oct. give or take a few days.

A few weeks ago I mentioned ticker symbol FAZ 3 times short that was at about $29,000 at its peak in 2008 and currently around $29. I just might buy a little insurance.


Oct 5, 2013 - 12:36pm

Small Community Survey

I was wondering if anyone else has began to receive calls from people that you have tried "enlightening" as to the financial situation these day. Only to have them doubt your sanity.

Are they now calling asking What is going on?

I have had more calls in the last few days than I have well........Ever


Strongsidejedi benque
Oct 5, 2013 - 12:41pm

@benque - Essential or not

Internet trolls could be paid under Dept Homeland Security. If under DHS, then the troll is considered "essential".

It's no coincidence that as the gov't is on furlough, we're seeing stories about DHS and NSA going after Tor.

Oct 5, 2013 - 12:52pm

Response to JW on swimming

Glad to hear that Jim Willie is a strong swimmer.

I had no idea that jackasses could swim. Every jackass in Washington appears to be unable to keep their head above water as the rising tide of debt overwhelms them.

Oct 5, 2013 - 1:29pm

Miami Vice

As I was listening to Big Willie's description of the Panamanian Drug money safe haven for Banks, I could not help but recall the very last episode of "Miami Vice", which aired way back in 1989. The show actually took place in the mid-eighties , as did Noriega's tenure. In that last episode Crockett and Tubbs have identified the top drug king-pin, and have decided to go after the the top-dog (Noriega), and quit wasting their time with small players. They immediately find themselves invited to NYC and there confronted by Wall St bankers, who tell them they require the drug trade to maintain their profits and cash flow. The bankster offers them both millions in their Swiss retirement accounts, if they cease and desist their pursuit of the big players. Crockett and Tubbs are not deterred and head back to South Fl, to go after the big honcho. There they are then apprehended and accosted by agents of the CIA and DEA who threaten to kill them if they try to de-stabilize their, "Drug enforcement", territory which is the source of their jobs, and "on-the-job" bonus monies and perks.

The two of them are forcibly disarmed, and left without recourse, ride off into the sunset. End of show and series.

Now as a little background; the entire series was modeled by writers who themselves were advised by the local DEA and police departments. What Jim is now 'divulging' about the Bankster/CIA/drug mafia - was known by everyone in the drug "industry", all along, all the players. It's a very big profitable industry. Our troops now guard the poppy fields in Afghanistan - your tax dollars at work.

My main take-away from Jim's revelations: Everybody is in on a fkn scam but me an you - and I'm not so sure about you.

Spartacus Rex
Oct 5, 2013 - 1:31pm
Oct 5, 2013 - 1:33pm


It is difficult to make concrete changes

late in the game.

We have made many mistakes since 1776 and have traveled down a wide road of destruction. I like the old proverb: "A swarm in May is worth a load of Hay; A swarm in June is worth a silver spoon: but a swarm in July is not worth a fly:"

Well we are in October and are faced with decades of planting weeds and now many are wringing their hands. Yes some are "waking up" but the nightmare is not over and without a true change of direction the outcome will be as written. We do not really understand what we have lost. It is not only the big problems but even the little items "the little foxes spoil the vines".

Example: The wife and I took our usual 2 mile walk in the park. I noticed a young school girl on her way to school and coming down the sidewalk toward us. She was about 14. I said good morning to her as she passed by and she turned her head away from us and walked onward. I said to the wife "wow, that is really an awful thing that has happened in our culture. Here we are two old, slow, grey haired boomers and not a cause of concern for anyone in a totally public place". My wife said "that is how they have been taught to protect themselves". I said "yes I know, however, it is at a great cost."

We have been turning our heads from Truth for hundreds of years and have walked onward but now the chickens have come home to roost. jmo


Oct 5, 2013 - 1:37pm


looks like the house just approved back pay to to furloughed workers ... let the trolling begin

Oct 5, 2013 - 1:44pm

The man who lit himself on fire.

You know, I just searched the web and cannot find much about him 24 hours later. If setting yourself on fire at the Mall in DC is not a political act meant to send a message, then tear up my PhD in rhetoric and fire me from teaching. Story getting buried! I wonder if our fine leaders will ever release any information at all about this man. We all recall Khaled Said who set himself on fire in Egypt and brought down a government. What if this guy's name and his tragic story of oppression goes viral in this country? Not sure how they don't know who he was if he was conscious and talking as they transported him. He was thanking people who helped him. Two emergency personnel with him on the ride and nobody asked "What's your name, sir?" Hmmm... I wonder if DC cops shot him too? And I wonder what happened to the tripod that was seen next to him? I betcha we don't hear anaother word about him in the MSM. And then you have Jesse Ventura calling both parties "gangs" and suggesting a revolution and his own bid for president. This guy is a real performer. He knows how to put on a show--and performance is far more important than platforms in national elections in our time. What if he takes the agenda and ideas of Ron Paul and makes a run? What if Ron Paul backs his candidacy and campaigns on his behalf. Ventura has the charisma, ortorical skills and apparent toughness that were lacking in Paul's candidacy. (Actually Paul shows plenty of mettle going nose to nose with Bernanke and others, but his physique doesn't match Ventura's.) Can you see Ventura on Leno criticizing the corruption with 30% and rising unemployment in new college grads? Hillary, he just might be tougher than you. I wonder if the system will last that long...
Spartacus Rex
Oct 5, 2013 - 2:02pm

@ Dr. J

Gee, I thought it was actually some guy in Tunisia named Mohammed Bouazizi who set himself on fire after being refused a vendors permit, that brought down his gov't and started this whole "arab spring".

Oct 5, 2013 - 2:04pm
Oct 5, 2013 - 2:08pm

My assignment to myself...

To write a simple Silver introduction type of document that I could email to someone that is totally clueless as to the world's silver situation. Not necessarily as from "me". But just info for them to do 'whatever'..

I want to help people, i really do. But I have to admit, that part of me wanted to write this so that if any of 'my people' take no action and don't get into a Silver position, they can't come back to me and say "how come you never told me... yada yada?" At the same time, I don't want them to be doing anything based on "well you told me xyz etc etc.." So it would be a tricky little balance.

Well, i did it. I wrote the thing, and i'm going to paste it below and share with you guys. And indeed, I may be mentally challenged, but doing this was a mental challenge.

I wanted to keep it simple, real-world, and readable for anybody from my mother, to the folks at the bar, the church, the gym, bikers, truckers, skaters, whoever...

I share it here for a few reasons-

1- Please give me any feedback/constructive criticism that might help. I never claim to be a writer, you won't hurt my feelings.

2- Maybe others here would find it useful to send to their people. Since they didn't write it, it might get them past the old "a prophet is never listened to by his/her own people" thing.

3- people are SO different in 'what they hear'/perceive. More than just feedback on the writing, it would really be cool (imo) to get conceptual feedback.

Remember this is intended for the total Silver newbs of the world. Like we once were.

Thanks for reading and any feedback if you have the time. Here 'tis --


Silver Report

October 2013

United States of America

To all Americans from sea to shining sea- the following information regarding your acquiring 1 Troy ounce of .999 pure silver is going to directly impact your life in the very near future.

How acquiring silver works- If you walk into any silver and gold coin shop in the United States and attempt to purchase silver bars or silver coins, the person behind the counter is going to sell you those items for x amount of dollars per the troy ounce weight of the item.

What is a Troy Ounce? Precious metals are measured, and marked in Troy Ounces. 1 troy ounce weighs about 1.1 regular ounces. Not much difference, but for E.g. a “beverage” that you buy at the store that is marked “12 oz” is regular ounces. That same beverage on a scale that weighs things in “Troy Ounces” would only weigh about 10.9 ounces. Why the difference? Who knows, the whole story is surely on the internet, but the reason it’s mentioned here is so you don’t go into a coin shop and get confused when you see “Troy Ounces” stamped on a silver bar. And also so you don’t buy x ounces of silver and then go weigh them on your kitchen scales and expect to see the same number of ounces. That’s it, the precious metals will be marked in Troy ounces, it’s slightly different than regular ounces, it’s no “Big Deal”, just how it works.

What is a big deal is how the price is determined. This is a really big deal, and a really great deal for the buyer and here’s how it works. Every coin shop or precious metals dealer in the United States of America sells silver bars or rounds or coins for a dollar amount referred to as the “Spot Price”, plus whatever small (negotiable) premium they add on to the price.

For example, let’s say you walk into the store and see a shiny 10 oz (10 Troy ounce) bar of .999 pure silver that you like, and you ask “how much for that 10 oz bar?”. The dealer (seller) will check the internet for the current “Spot Price” of silver, let’s say it’s $25 per oz., then he/she will add the premium, let’s say $2.00 per oz (total $27 per oz.) and tell you- “$270.00, for the 10 oz bar”.

Ok, that’s simple enough, so what’s the big deal? The big deal is that the “Spot Price” that the dealer looked up to set the price of your 10 oz. silver bar! It’s published as what is called the silver price index. And that one single solitaire “silver price index” is determined, and broadcast by a small group of New York City, and London bankers who for several years now have had complete control of the ‘silver price’ that all silver miners, refineries, wholesalers, jewelers, dealers etc have been, and still are, functionally forced to use in their silver dealings.

Now, you can do your own internet research regarding the bankers of fiat currencies and how that hundreds and hundreds of times over the past several thousand years… every time fiat currencies have displaced silver and gold as money (as they currently do)… the banker’s fiat currencies ALWAYS fail, and silver and gold ALWAYS return to their monetary position. Just know that regardless of the banker’s motivation for running their silver price index the way they do, you (as of this writing) can walk into a precious metals shop and walk out with 1 Troy ounce of .999 pure silver for less than $25.00 ! You may not know it now, but this is a RIDICULOUSLY unreal opportunity for you.

In current world supplies, silver is even more rare than gold. Silver is the most light reflective (shiniest), heat conductive, electrical (energy) conductive, metallic element in the universe. And it’s real money!

That 1 Troy ounce of silver was first mined out of the Earth, then shipped to a refinery, where it was purified to a .999 fine purity, then it was tested/weighed/minted/etc etc… packaged and shipped again to your dealer, and you can pick one up for around $25.00!

For $25.00 you can barely get a 20 minute haircut from one person with pair of scissors and a fifty dollar set of clippers! You think something funny might be going on with the ‘silver price index’? Well, there is, and you can benefit ‘big-time’!

And we aren’t even going to give the bankers who run the silver price index a hard time here. Because, if it were not for their little silver price index, how many $1.00 paper currency notes do you suppose you would have to trade for that 1 Troy ounce of .999 pure silver money? Maybe 3000?... 5000?... 17,000? It’s hard to say exactly.

ALL of the failed fiat currency systems of the past have ALWAYS reached the point where ALL of their fiat currency units were not enough for that 1 Troy ounce of pure silver.

So, if 50 Trillion dollars exist in our current but “definitely past its prime” currency system… then the real price of silver, (not the price set by the banker controlled price index), would have to be somewhere between $25.00 and $50,000,000,000,000.

And you’ve seen the news, we’re probably a whole lot closer to the big number than just $17,000! But, fortunately for anybody who has yet to acquire their first ounce of silver, the banker’s silver price index is still in effect and today you can go buy a full ounce of .999 pure silver for only $25.00!

And, if you have never bought silver, that’s probably how much you should go buy. 1 oz. Rather than sit around over-thinking all the things about buying precious metals that you don’t know, just look up the location of your local coin shop and go walk in the door. They won’t think buying only 1 oz is weird or that you aren’t worth their time. The fiat currency bankers like to make you feel that way so you’ll think they are important. Precious metals dealers, like their product, are usually quite ‘real’ and unpretentious.

Ask to see bars, rounds, minted coins, then pick whatever you like. 99% of the population has probably never actually held a bar of pure silver in their hand; it will be a very interesting trip. Take the kids. If it’s ladies day out shopping… go together! If you have questions, go ask. Just buying 1 oz. and having real money that is money because it’s money and not because a group of bankers say it’s money, will be something you have to actually experience.

You can over-think bigger silver acquisitions on your next trip, even if it’s later the same day! But making that first trip a “1 oz. trip” will make for a no-pressure, fun, learning experience, and “CONGRATULATIONS”! At even 1 oz. of .999 pure silver you probably just joined what will be the top 1% of the world’s wealthiest people in real money terms. Get to 5 or10 ounces someday and you’re definitely there.

But what if by the time you read this the banker’s silver price index is up to $50.00, or $250, or $2000.00, or $Whatever.00 per Troy ounce of silver?? Don’t worry, and don’t play the “coulda, woulda, shoulda, song” in your head.

If the dealers, coin shops, people on Craigslist, etc. are still selling .999 pure silver based on the price of the bankers silver price index, then the price is still WAY BELOW WHERE IT SHOULD BE. Eventually the price will be whatever a buyer and seller agree to, and that will be hundreds and thousands more per ounce than today’s ridiculous banker controlled index prices.

Just go get that first ounce, you will see. Send this information to your people. If your people go get that first ounce, then they will see.

And someday, that is probably sooner than most people realize, everybody who went and got that first ounce will be so glad they did that the only thing they might worry about is how to best share this information with others.


Remedial reading for you silver gurus indeed, but for what it is.. what's needed?

Oct 5, 2013 - 2:34pm

Yes Ventura

He impresses me a lot. Ventura for president.

Oct 5, 2013 - 2:42pm

Panamanian dollar peg

I think it dates back to the foundation of Panama as an independent country separate from Columbia. We placed in the treaty (which included our control of the Panama Canal zone) a requirement that Panamanian Balboa coinage mimic US coinage. In fact, I believe it has always been minted in Philadelphia. A former LCS owner I knew stated that Panamanian silver coinage would trade at a discount of only about 5% from US silver coinage because the dealers knew it had been minted in the US, but it was not common knowledge.

Oct 5, 2013 - 3:05pm

I stand corrected

Thanks Spartacus,

You are correct. Khaled Said was beaten to death by Egyptian cops. The Bouazizi burning was in Tunisia just prior to that. I get my facts mixed up at times and depend on editors to straighten me out.

Oct 5, 2013 - 3:10pm

Things keep moving

Things keep moving faster.

One wonders if Bernanke is now taking regular calls from Mr. Shadow.

"Your currency is of no importance. I. Need. The. GOLD."

"I will be among you soon."

Stay frosty, bitchez.

Oct 5, 2013 - 3:21pm

"Lies, damned lies, and statistics"

The US has developed impressive skills at manipulating data, so there's no good reason (except for out-dated concerns over laws and ethics) why President Obama can't retire from office with a "balanced budget" as his crowning glory. The reported GDP, government revenues, total national assets and other statistics are already looking, shall we say, counter-intuitive.

Oct 5, 2013 - 3:46pm

Shiff explains it perfectly.

(unfortunately, on the alex jones show, but hey - you can't have everything, eh )

starts at 2.30


Oct 5, 2013 - 5:19pm

DC is a wreck

We already knew this.

I could list the names of goof ball politicians in Washington DC but I'll save the readers the eyesore.

On the other hand, within the past few weeks, it is relevant to point out that we have had a mass shooting in the Navy Yard, a strange car chase ending in the shooting of a black female driver while her 18 month old was in the car, and now a man sets himself on fire on the National Mall.

And, we are told that investment in gold and silver is "for barbarians"? Odd, right now, I think those with gold and silver holdings are more confident than people without. Is that true of people holding stock?

Oct 5, 2013 - 8:00pm

Bolivia 'drug dealers' throw $1m from plane

Suspected members of a drug trafficking gang in Bolivia have thrown a bag containing more than $1m (£615,000) from a low-flying plane.

The cash was supposed to be collected by other gang members on the ground in eastern Santa Cruz province, said Interior Minister Carlos Romero.

But they missed the target and the bag was seized by Bolivian anti-drugs police, who later made several arrests.

Bolivia is one of the world's top three cocaine producers.

The authorities say the money - in US dollar bills of various denominations - was wrapped with a seal from a bank in neighbouring Paraguay.

They believe it was going to be used either to build a cocaine production centre or to set up a fake commercial enterprise in Bolivia.

"Three Bolivian citizens have been detained in the operation," said Mr Romero.

Guns and vehicles were also seized near the town of Rincon del Tigre.

Bolivian police had been monitoring the gang, which is believed to be well organised and with links to several countries.

Peru, Bolivia and Colombia are the world's biggest coca leaf and cocaine producers, according to the United Nations Office on Drugs and Crime.

Coca leaf production is legal in small amounts in Bolivia, where it is used to alleviate the effects of the high altitude. But the production of cocaine is banned.


Ben Bernanke was taking notes

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