Please watch, post, or forward if you wish.
Please watch, post, or forward if you wish.
I believe I have written a couple of times in the past regarding Harry Dent’s “dented logic”. I did so after reading fearful e-mails from holders of gold and silver. Well, Harry Dent is at it again. He has advertisements everywhere, the latest posing as an “article” on Zerohedge where he says gold will be crushed to $700 in a market panic.
He claims a financial and market meltdown is coming to which I wholeheartedly agree because the math not only supports this, it guarantees it at some point. The problem is this, he is trying to scare anyone and everyone he can AWAY from gold by claiming gold will trade to down to $700 and maybe even $250!
First, if gold were to “trade” down to $700, it would solely be traded at that price on paper exchanges and virtually no physical gold would ever change hands at the “exchange prices”. We saw this in 2008 when gold and silver prices were crashed on the COMEX and LBMA. For example, silver was quoted at around $9 an ounce …but the problem for buyers was they could not find much of any real physical silver available for under $15! Before going further, I should mention it is a distinct possibility that paper prices do actually collapse for the simple reason they are only “contracts” and not actually metal. As Jim has long asked, “what is the value of a contract that cannot perform”? The answer of course is zero, and this is exactly where contracts that cannot deliver real metal should approach.
Please listen to Bill’s interview with Prep Aussie down under.
Part 2, Politics and the Rule of Law
December 28, 2017
In this section we will look at “politics and the rule of law” (or the lack of). If you remember, WikiLeaks dumped all sorts of information from the second half of 2016 on. Much of the information was gleaned from John Podesta’s personal e-mail account …and none of it has ever been claimed to be fake e-mails so we can assume they are true. In fact, the reaction to the information (e-mail) dump was to point fingers at “who stole” them and the “illegality” of obtaining them. Never mind “what” the e-mails exposed!
2017 turned out to be the “aftermath” of the many initial shocks from 2016. We have been revealed in 2017 many instances where what first appeared in 2016, was far more severe, rampant, and went way further down the rabbit hole (and up the chain of command) than we could have ever imagined. 2017 served us platter after platter of dirt, each one piled higher and the stench worsened markedly as the year progressed. For instance;
This one has to sting any supporter of Bernie Sanders. Come to think of it, it has to really sting ANY “American”!
Donna Brazile: I found ‘proof’ the DNC rigged the …
She must know of others because “one” does not create a pattern …what would make her so fearful?
Part 3 Sleaze, Various Other Truth Bombs
December 29, 2017
We scratched the surface on Government, finance, politics and the rule of law so far. Today, let’s take a look at sleaze and fraud. The sleaze part is not just “sensational”. It is important because in many cases it crosses any decent person’s red line and should piss anyone off who reads it or discovers it.
The first part is certainly not all inclusive but is wide ranging. That said, 2018 looks to be shaping up as barn burner for the arrests of child molesters and human traffickers. Not only are there over 10,000 sealed indictments, President Trump shocked the world by signing this executive order. https://www.whitehouse.gov/presidential-actions/executive-order-blocking-property-persons-involved-serious-human-rights-abuse-corruption/ I do have concern over this as I believe it steps over the line of considering someone guilty before being proven innocent. Seizing assets prevents one from defending themselves, but if this is necessary to stop what is going on in the world of pedophilia, so be it.
December 26, 2017
Here we are at the end of 2017 with more “truth bombs” released than I could have imagined! In fact, I believe we probably received more “truth” in just one year than collectively in all of human history. This is a sad statement because it also means we have lived behind more lies than at any time prior. Also surprising is none individually have cracked the dam called “confidence”. But do not be fooled as it looks as if the entire dam is moving, particularly in the last few weeks!
As we have stressed all year long and prior, our entire lifestyle relies on credit …and credit relies on confidence. The “truth bomb” thesis from the very beginning came from our belief that confidence will break once enough lies are fully and obviously exposed showing our entire lives (standard of living) as a fallacy. The global standard of living has evolved hand in hand with the credit bubble, it will also deflate hand in hand as the bubble pops. “Truth” will be the catalyst!
The topic is so broad it had to be broken down into 3 (possibly 4?)parts. Our goal is to build categories from individual stories shedding light for you the reader to connect dots. During the year, we heard from readers asking “why” we discuss, politics, the rule of law, geopolitics/international tensions rather than sticking to economics, finance, and ultimately silver/gold? The answer is simple, as the various lies are exposed and the dominoes begin to fall, each truth will create a drop in confidence and push more and more capital out of the rigged casinos toward “safety”. It is human nature to pull in your horns and go back to basics when trust becomes and issue. Another way to say this is for “scared” money, all roads will lead toward gold and silver because they ARE “trust” on their own. The road to silver and gold are paved with many broken promises …which truth bombs are in the process of fully exposing!
Since the outsized dumps of paper gold and silver dating all the way back to 2013, we goldbugs have claimed COMEX was ripe for a delivery default. We were of course viciously trolled and called crazies in comment sections after going through the logic of how much was being sold and how much open interest there was going into “first notice” days versus inventory.
We were called chicken littles because each delivery month would see open interest collapse going into and during the delivery process and default from excess demand always evaporated at the last moments. I wrote several times and questioned the logic of accounts that were fully funded to take delivery…they just “went away”. It defied logic to say the least. We also speculated but could never prove these fully funded longs were “bribed” to not take delivery. It turns out we were correct and wrong at the same time. As it turns out, it looks like some fiat did change hands AND deliveries were made after all but it turns out they have been hidden and did not come from COMEX per se!
Koos Jansen originally found that “EFP’s” (exchange for physical)were being used to divert long’s being delivered to, away from the COMEX and toward London. James Turk then took the baton and actually found the reporting of EFP deliveries on the CME website! As a background, EFP’s have actually been around since 1974 but rarely if ever used. They were originally created as a stop gap measure for a way a short could deliver in an emergency situation. Now, we have discovered this “emergency measure” is being used on a daily basis and in HUGE amounts! For years, Harvey Organ followed all movements in COMEX gold and silver but the final analysis never equated with logic because we did not have this missing “EFP” piece.
To explain as an example, this past Friday saw a decrease of roughly 10,000 Dec. gold contracts. In the past we would wonder why 1,000,000 ounces of gold did not stand for delivery since the accounts were fully funded and ready to take delivery? We also see that 15,000 EFP contracts were written…which means rather than losing 1,000,000 ounces standing, there were actually 500,000 more totaling 1.5 million ounces in the delivery process for just the one day. To put this in perspective for you, Friday’s 1.5 million ounces works out to about 47 tons…in just one day. COMEX claims to have a whopping 28 tons of deliverable gold currently…(less than 900,000 ounces)! Is this “legal”? Yes, I guess you could say it is. Is it “transparent” and has COMEX, CME or even the CFTC alerted the public that this is how deliveries are being made? If nothing else, settling the majority of demand in this fashion is “sneaky”, certainly not transparent.
These EFP transactions have now become “normal” business practice. By looking back to October, roughly 8,500 contracts each and every day were being EFP’d…call this a pace of about 17 million ounces of gold for the month! This equates to eating up total global annual gold production in less than five months assuming no other demand at all. Obviously this cannot continue as London, nor anywhere else has an infinite horde to divest. (As a complete side note but parallel in my opinion, do you remember when QE was used originally for “emergency” purposes and is now considered “normal business practice”)?
The question now becomes “how long can they continue to deliver” at this pace before supply is exhausted? As London’s books are closed and secret, we cannot do the math but we do know they face an impossible task.
Remembering a little history, during the 1800’s, Britain absolutely beat up on China financially, diplomatically and even in war. China was forced to turn ports over to Britain, enter into unfair trade deals and even divest Hong Kong. China was humiliated, lost much of their gold and saw their silver devalued by the West.
We know massive amounts of gold have been going East from the West, this is fact. We also have speculated for years that Western central banks have been supplying gold in order to support currencies and credit markets. Has the clandestine movement of “public” gold away from Western vaults occurred? In my opinion yes, and I do believe this will become a very hot topic and be considered a truth bomb by the public…they will see it as the Treasury being pilfered.
How long and how much gold has been bought by and delivered to China? I believe 20,000 tons at least, which means some of it was “official” Western gold. The Chinese by the way have VERY long memories. They have not forgotten their past treatment. Are they gutting “Britain and the West” by purchasing much of our gold? Are they now returning the favor 150 years later? I have to say, they certainly have good reason to if this is the case.
So there you have it folks, is this COMEX living up to their nickname as they are now caught red handed? The longs have not been abandoning their requests for delivery as we were led to believe. Instead, the deliveries are being diverted to London and not reported by COMEX in their open interest nor delivery figures.
At this point, nearly any short sale to “open” based on COMEX inventories are virtually naked…not to mention each time several million paper ounces are dumped in minutes to crush price. Does this mean COMEX blows up tomorrow? No, but it does mean we now understand “how” the paltry inventories have been protected and how real delivery has been diverted away from annihilating the COMEX inventories. “Fair and transparent price discovery”? I don’t think so but I do believe the Russians and Chinese have seen this day coming. Why else have they have set up markets and clearing facilities of their own? I believe the obvious answer is in the question above…”fair and transparent price discovery”!
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