Posts Categorized: Bill Holter

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When it comes to the latest US stance vis-a-vis China’s currency manipulation, the jury is out, and based on two recent statements it is more confused than ever.

Religion and politics, are both hot button issues no matter how you slice it, touchy subjects, if you will. Speaking, or writing about them, usually elicits rage, or anger …especially when they are mentioned together, or connected. Un-noticed by most is a ground shaking occurrence, whereby these two highly explosive issues are being joined at the hip. I do not want to anger anyone over their beliefs, so what I write below is entirely my observations of what is seemingly non-apparent to the financial community and to the public at large.

The issue at hand is a potential game changer; negotiations between the two largest holders of gold in the world; “a deal between china and the vatican”.

It was reported yesterday… the Pope has been in talks with China to advance, or bring into the open the Catholic Church’s presence in China; aka Christianity within the nation.

First, I highly doubt these talks are still in the preliminary stages. Rather, the reported negotiations are probably more of a “trial balloon” to a done deal, substantially already made. As you can see here, there is dissent and fear regarding any deal made. I deeply believe, that on the surface, the “public” side of the argument has far more meaning than meets the eye, maybe I am being too cynical, but I have given what I present here with considerable thought. I have a potential theory, if it is incorrect so be it, but the topic is certainly worth exploring in depth.

Some background; you may remember, that in the middle of last year we had a number of world leaders (including President Xi, Obama and the Pope) publicly mention a common refrain, about a “more equal and fair world, as well as a more equal distribution of wealth in the world”? BINGO!…I took these statements to be a veiled warning, of an upcoming “reset” among nations and peoples, whereby the rich, those country’s on the Dollar Standard, would lose wealth and purchasing power to those countries who’s standard of living suffered under Dollar Inflation (the poor). The most obvious way to accomplish this is seemingly a strategic move to reorganize the world trading standard, or even abolishing the dollar as the world’s reserve currency. This makes sense, as I view it, because the U.S. (West) has advantages when it comes to standard of living via borrowing or outright printing money to consume other countries productivity and natural resources. Please keep this thought in mind while reading further.

No matter what you hear or read about China being a “capitalistic” nation, their roots are Marxist, Socialist, or whatever term you would like to use. “Free market capitalists” they are not,


Judging from many statements by the Pope, he is also a socialist and as mentioned,…has also spoken of a “more equal and fair distribution of wealth in the world”. From a political ideology standpoint, the Vatican’s influence under a Jesuit Pope and China ruled by an appointed leader are in many ways very close in their world views, in my opinion.

So, what to make of all this? Is the Pope trying to spread Catholicism and China openly embracing it, or is this happening tied to something much, much deeper in fact? Let’s take a step back and look at a couple of commonalities they each hold. First, they each have, or reach, a huge population of over 1 billion people in some form or another. Combined, Catholics and Chinese represent roughly two of every seven people on the planet, or close to 30%. Let’s call this a huge base, for lack of a better term.

Secondly, and much more important, though not “official”, China is THE largest holder of gold on the planet …followed by none other than; The Vatican! Yes, you may tell me the U.S. is “THE” largest holder of gold, with 8,100 tons and you would be “officially” correct …but wrong in reality, as explained many times prior, as the Fed and Treasury continue to resist an audit of same. On the back of a napkin I can show China accumulating 20,000 tons or more. (You might also not agree the Vatican is a large holder of gold, I would ask, and how exactly were they paid during WWII to aid the travels and passports of refugees?) By the way, Franz Pick said before he died, The Vatican held more gold than anyone could imagine. I can “imagine”.

Do you see the dots connecting here, between China and The Vatican? My assumption is, there is now a joining of the world’s two economic giants, both in size and wealth, which the last I knew equals “power”! Seemingly this coming together by these powerful forces gives rise to the old axiom;

“He Who Has the Gold Makes the Rules.”

Now I have to venture, is this rapprochement between the Vatican and China part and parcel

of a New World Currency Order, whereby the yuan becomes the concentric world reserve currency, in some fashion, tied to the International Monetary funds Special Drawing Right (SDR)? Maybe, but who really wants that albatross around their neck? History has seen nation after nation assume world currency status only to be hollowed out financially and economically after years of abusing the privilege.

I theorize that China and The Vatican will revalue gold to levels unattainable by individuals and making it very difficult for sovereign treasuries and/or central banks to catch up. As the largest holders, they can effectively “make the price” … the higher they make it, the greater their wealth (and thus power)! I have to ask… What if China marks up gold but does not assume reserve currency responsibilities? What if they mark up gold and let the markets decide what each “currency” is worth …versus gold …based on how much gold held?

Please understand this…China has been financially abused by the West for centuries. Silver was devalued at the turn of the 20th century as a way to impoverish China as they were a Silver Nation. If the above is correct, or even close, and gold is revalued, then what will happen to the exchange ratio of silver to gold? Will the current 70-1 ratio hold or will silver be priced closer to God’s ratio of closer to 10-1?

As a side note, do you still wonder why President Trump has called China the “Grand master of currency manipulation”? Does he have a head’s up, or inkling, that a reset is in the works? I suspect he does.

If this theory is correct, at least we will have a true American as president and working on our behalf as opposed to a leader giving up the keys to the kingdom and throwing its people under the bus in the name of “fairness”? The “One World Government,” or “New World Order Types” as they identify themselves, are strongly opposed to the individual liberty movement rearing it’s head here there and everywhere. Seemingly, the “people” have thrown a monkey wrench into their plans for a One World Order; here and there and everywhere. Populism to them is like a rapidly spreading cancer, that must be stopped dead in it’s tracks. My assumption is; THE WORLD IS ABOUT TO BE HUNG ON A CROSS OF GOLD.

(aka, Wm. Jennings Bryan).

Standing watch,

Bill Holter

Holter-Sinclair collaboration

Comments welcome

The reason why is that shortly after Treasury Secretary Mnuchin said in a Bloomberg TV interview that there is “no urgency to brand China a currency manipulator”, and that no announcement on currency manipulation will come before the Treasury’s April report (which contradicted an October pledge by candidate Donald Trump to direct his Treasury secretary to name China a manipulator on the first day of his administration), hours later Reuters released an interview with Trump in which he accused China of being a “grand champion” at currency manipulation, adding he had not “held back” in his assessment that China manipulates its yuan currency.

“I think they’re grand champions at manipulation of currency. So I haven’t held back. We’ll see what happens.”

This morning China responded Trump’s accusation, when Beijing said it has no intention of using currency devaluation to its advantage in trade, which presumably excludes China’s August 2015 devaluation which unleashed a period of acute market volatility. Chinese Foreign Ministry spokesman Geng Shuang said he hoped the United States could “fully and correctly” view the exchange rate issue.

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During the weekly interview, Bill and Jim discussed President Trump and wondered whether he truly understood gold. The following YouTube video from three years ago suggests he does.

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I must be getting old, I can remember .45’s at less than a dime a shot!


The Coyote Principle


• The Governor of California is jogging with his dog along a nature trail. A coyote jumps out and attacks the Governor’s dog, then bites the Governor.

• The Governor starts to intervene, but reflects upon the movie “Bambi” and then realizes he should stop because the coyote is only doing what is natural.

• He calls animal control. Animal Control captures the coyote and bills the state $200 testing it for diseases and $500 for relocating it.

• He calls a veterinarian. The vet collects the dead dog and bills the State $200 testing it for diseases.

• The Governor goes to hospital and spends $3,500 getting checked for diseases from the coyote and on getting his bite wound bandaged.

• The running trail gets shut down for 6 months while Fish & Game conducts a $100,000 survey to make sure the area is now free of dangerous animals.

• The Governor spends $50,000 in state funds implementing a “coyote awareness program” for residents of the area.

• The State Legislature spends $2 million to study how to better treat rabies and how to permanently eradicate the disease throughout the world.

• The Governor’s security agent is fired for not stopping the attack. The state spends $150,000 to hire and train a new agent with additional special training for the nature of coyotes.

• PETA protests the coyote’s relocation and files a $5 million suit against the state.


• The Governor of Texas is jogging with his dog along a nature trail. A coyote jumps out and attacks his dog.

• The Governor shoots the coyote with his state-issued pistol and keeps jogging. The Governor has spent $.50 on a .45 ACP hollow point cartridge.

• The buzzards eat the dead coyote.

And that, my friends, is why California is broke and Texas is not.


Posted by & filed under Bill Holter.

GATA forwarded a fabulous link yesterday to Hugo Salinas Price’s latest writing. This is a very short read and represents visually what Richard Russell said for years …”Inflate or Die”. Please read it carefully because if you do not understand it, you will not understand “why” mathematically we are about to go through financial and economic disaster.


Looking at this graph, you will notice the parabolic move began in 1971. This was possible because “debt” had previously been constrained by the amount of purported U.S. gold holdings. De linking from gold allowed literally parabolic growth in new debt issuance. The increase in reserves really started to accelerate around the year 2000 and went vertical beginning around 2008. These were both years when the economy (and markets) began to seriously falter. It has been my contention that these years also coincided with “debt saturation” milestones where Kirk called down to the engine room demanding “more power”.

Before moving on, let’s look at how Ponzi schemes work and how they die. At first, there are few investors so adding even one more sucker to the pile is meaningful as his capital can be parceled out into meaningful “dividends”. But as the scheme grows, say to 100 unsuspecting souls, one more new investor only equals 1% “payouts” to the group. Then as the pool gets even larger at 1,000 or more, one new mark is almost meaningless. As the returns shrink, people begin to look elsewhere and bail out spelling the beginning of the end. If you look at the above chart again, it pretty much mirrors the birth, growth, maturity and coming death of all Ponzi schemes…doesn’t it?

Looking at the chart from a real world vantage point, the last two plus years has been more than a minor hiccup …the parabolic “trend” has clearly changed and reversed. Mr. Salinas Price wrote that Mr. Trump has communicated desires to eliminate the trade deficit which will expedite the decline of paper reserves. I would remind you what Mr. Trump said yesterday, “the dollar is too high”! This is further evidence of a move away from globalism toward nationalism. A “lower” dollar will help our exports while curbing imports. This will truly not be good for an over levered world that relies on product sales to the U.S. to pay their debt service. Another way to look at it is through the eyes of “Smoot-Hawley” glasses, we already know what happens to trade when tariffs are erected, trade volumes implode.

For the last few years, even with the U.S. trying and struggling to “play the game”, the debt structure had already begun to slow and roll over. Now with Mr. Trump at the helm, it looks like the U.S. will no longer play the game. Simply put, “game over” will be rapidly seen and understood as inevitable where no amount of hope will trump “policy” nor Mother Nature! The credit contraction is here and now, if you know this and understand what it means, then you know where it will all end.

As mentioned at the beginning, Richard Russell’s most famous quote was “inflate or die”. With regard to the above chart, Sir Richard was saying “inflation” (growth of debt) must either continually go up AND at an increasing rate …or it rolls over and dies. This is exactly why for the last few months I have harped on “credit” and why it is so important. Credit conditions all over the world have been tightening. The greatest fear of the Federal Reserve has always been a credit contraction that could not be reversed …their greatest fear has arrived and in spades! Please understand that “credit” affects EVERYTHING. Production, consumption and the “ability” to consume, and importantly “distribution”. Without credit, the economic, nor financial world will turn …which of course will affect the “social world” as stomachs begin to growl in hunger.

You see, unlike past “reflations”, there is now little to no unencumbered collateral left (even including sovereign balance sheets) anywhere in the world. The amount of existing debt (Ponzi clients) is so large, new additional debt (new Ponzi clients) has little to no effect on the entire pool. In other words, we have reached and past the point of “debt saturation” where the ability to add meaningful debt does not exist. The availability to obtain new credit is winding down. Assets are now in the process of being sold to pay existing debt down, very similar to Ponzi clients asking for their money back. Mr. Trump’s proposed policies of weakening the dollar and balancing the trade deficit will only speed the process …into complete and utter chaos. The “utter chaos” part is easily forecast because of debt levels compared to current production, and financial derivatives are often 10 times or many more the underlying assets themselves. “Orderly” will not be used to describe the coming liquidation process!

Standing watch,

Bill Holter

Holter-Sinclair collaboration

Comments welcome,

Posted by & filed under Bill Holter.

Bill Holter, of sits down with Maurice Jackson of Proven and Probable to discuss why owning physical precious metals is paramount not just for investors, but citizens as a whole. Mr. Holter conveys why Banks, the world of academia, and Media cast doubt on ownership of physical precious metals as he provides the distinction between money and currency. We will address why the word money is not and cannot be printed on a Federal Reserve Note. In addition, Bill will provide investors the choice of precious metals he prefers and best storage options for investors. Finally, we will address what actions you the investor need to take!