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Banking Cartel CRASH Consequences, Gold and Silver Investor Opportunities & Threats!

  • A worldwide financial and economic system collapse is coming. It will make the first Great Depression look like a picnic. The Illuminist privately owned central banking cartel will print (electronically create) money out of thin air like crazy. Their ponzi scheme and fiat currency fraud will be exposed. People will wake up and realize that they have been lied to for decades. Fiat currencies are just worthless pieces of paper printed by Illuminist governments. They are backed by nothing.
  • If governments can really create wealth by printing money, they should go the whole hog and print $10M for each American. They should do away with all taxes and print and spend all they want. The reality is: no government can create wealth. Wealth creation can only be done by the private sector not government, public serpents. Fiat currencies worldwide are all heading towards toilet paper status via competitive devaluations.
    Banking Cartel CRASH Consequences, Gold and Silver Investor Opportunities & Threats 
    …Increasingly, Credible Evidence indicates that the International Banker Cartel* and Allies are about to suffer their First Significant Loss since President Andrew Jackson (“The Bank tried to destroy me, but I destroyed it first” – Ed. a Paraphrase) liquidated the Second National Bank of the United States in 1833.
    We must hasten to add that we do NOT believe the Entire Mega-Bank Cartel* is about to collapse – far from it. Indeed, overall The Cartel’s Power was enhanced by the supine U.S. Congress’ Passage of the ostensible FinReg Bill.
    What we do mean is that the Cartel’s* (in its Modern incarnation led by the Private for-Profit Fed) years-long, ongoing, and hitherto mainly successful, attempts to suppress the Price of Gold and Silver, may Collapse in the next few weeks. Or at least become even less effective than in recent months.
    Deepcaster and others have recently made the case that there are many good reasons for the Prospective Collapse of The Cartel Precious Metals Price Suppression Regime and soon. We and several others have called attention, for example, to the mounting evidence that Major Gold Repositories likely do not have anywhere near the Physical Gold they represent they do (see “GOLD: Opportunities + Threats = Opportunities” (06/11/10) in the ‘Articles by Deepcaster’ Cache at and the Quotes from A. Douglas and J. Willie above).
    Most recently GATA Board Member Adrian Douglas has made a significant contribution (see Quote above) to the Evidence of such Chicanery and, therefore, to the body of Evidence that such a Collapse may be close at Hand.
    Thus The Critical Issue we address today is: In the event of a Collapse of The Cartel’s Precious Metals Price Rigging Operation, what are the likely Collateral Effects? And how can we Profit and Protect. Yes, Profit and Protect, because not all the Collateral Effects will be Positive, not at first anyway.
    The First, and Most Obvious likely Positive Effect is that those who have placed a significant portion of their Wealth in Gold and Silver, and Gold and Silver Mining Shares, will be richly rewarded due to a Massive and very rapid increase in their Wealth as measured in Fiat Currency Terms. Holders of Physical Bullion and Quality Mining Shares will be especially richly rewarded. As well such a Fiat Currency Crash in terms of Gold and Silver may temporarily cause Equities Markets to Bounce.
    That is because, in that event, it would take more weakened Fiat Currency (in Purchasing Power terms) to purchase Equities, thus increasing their Nominal Prices). But the accompanying loss of faith in Government and the Financial and Economic Systems, would likely cause such a Bounce to be short lived.
    Thus, such a Stratosphere Launch of Precious Metal Prices, will almost surely be accompanied by a Massive loss of faith in, (and Purchasing Power of) Fiat Currencies in General, and in the Governments and Central Banks that sponsored them. This would likely rapidly launch a Devastating Hyperinflation (manifest in the Fiat Currencies), Weimar Republic style.
    Even in the event of such a Hyperinflation Investors are likely to favor Tangible Assets over depreciating, or even apparently appreciating, “Paper” Assets. In other word, such a Precious Metal Prices Regime Rigging Collapse could trigger or exacerbate a Worsening Hyperinflation. As Fiat Money increasingly rapidly loses its Purchasing Power its Velocity increases, thus exacerbating it rate of loss of Purchasing Power (cf. The Weimar Republic) in a Lethal Spiral. Such a Scenario would likely breed Panic with a consequent Assault (whether justified or not) on Government and Other Institutions, and consequent Societal Turmoil.
    In such an event, Bank “Holidays” and a Governmental attempt to confiscate Precious Metals (a la the Gold Reserve Act of 1934) could be The Order of the Day. In this event, holding Bullion in Legal Tender Coins might provide some protection from confiscation, as the Numismatists Exception to the 1934 Act did in the 1930s. But before addressing further likely consequences of The Collapse,
    it is essential to consider what is likely to occur in The Run-Up to The Collapse.
    First, it is highly likely The Cartel would be the first to know when their Precious Metal Price Suppression Regime Collapse (i.e. Gold and Silver Price Launch) would likely come, before anyone else, and would be able to prepare. Just what would that preparation likely entail? It would likely entail preparing to impose a Successor Regime which would perpetuate and Maximize The Cartel’s Power and Profits.
    It would also likely entail the attempted the much Broader imposition of some Global Currency (which already exists in its Fetal Form – the IMF SDR’s). And it would likely also entail the attempted further imposition of powerful Globalist (as opposed to Internationalist) Institutions. The Sovereignty of Major Nations and the Civil Liberties (such as they are) of their Citizens would be at greater risk even than they are today.
    In sum, as the evidence indicates, and as we have earlier laid out, The Cartel most likely has, and is likely already implementing, a comprehensive ‘End Game’ Plan (for more details read our “Surmounting The Armageddon Scenario & Cartel ‘End Game’” (2/26/10) in the ‘Articles by Deepcaster’ Cache at Given that The Cartel is surely preparing, we should prepare too – The Coming Crisis is also an Opportunity. Consider the following Facts, and then Our Strategy and its Upside Potential:
    Powerful Forces should continue to impel Gold and Silver upward as Richard Russell explains:
    “The public doesn’t understand that the stock market is in the process of topping out. Even as business news turns rosy, stock holders are beginning to show losses. So while the public is losing money in the stock market, they are missing out in one of the greatest bull markets in history the gold bull market, which is now heating up. The smart money of the world is fleeing fiat currencies and loading up on gold as well they should.”
    Richard Russell, Dow Theory Letters
    The “Gold Bull Market… is now heating up…” to where? So let’s consider just what those inflation-adjusted Gold and Silver highs could be. John Williams of provides a cogent answer:
    “Even with the June 8th historic high gold price of $1,246.00 per troy ounce, the earlier all-time high of $850.00 (London afternoon fix, per of January 21, 1980 was not breached in terms of inflation-adjusted dollars. Based on inflation through May 2010, the 1980 gold price peak would be $2,384 per troy ounce, based on not-seasonally-adjusted-CPI-U-adjusted dollars, and would be $7,595 per troy ounce in terms of SGS-Alternate-CPI-adjusted dollars.
    In like manner, the all-time high price for silver in January 1980 of $49.45 per troy ounce (London afternoon fix, per has not been hit since, including in terms of inflation-adjusted dollars. Based on inflation through May 2010, the 1980 silver price peak would be $139 per troy ounce, based on not-seasonally-adjusted-CPI-U-adjusted dollars, and would be $442 per troy ounce in terms of SGS-Alternate-CPI-adjusted dollars.” (emphasis added)
    “Inflation Update, Housing and Production”
    John Williams’ Shadow Government Statistics, 6/17/10
    What is immediately striking about these numbers is how far below the Inflation-Adjusted Highs Recent Highs are.  It is important to consider just how far. As we write, Gold is trading around $1230/oz. The Gold Price of $1230 is a mere 16.2% of the Real Inflation-adjusted 1980 high of $7, 595. And the Silver Price at about $18/oz. (as we write) is a mere 4.1% of the 1980 Inflation-adjusted high. Yet above-ground stores of Silver are Small relative to Demand and are depleting! These figures show how effective The Cartel has been in suppressing Precious Metals prices in recent years. These numbers also gives us an important Clue regarding the potential highs for Gold and Silver.
    In sum, both have dramatic Price Appreciation Potential. Thus, in light of repeated Cartel attacks on Gold and Silver Prices in recent years, Deepcaster has developed a Strategy to Maximize Profits and Minimize losses from these Cartel Price Suppression attacks. This Strategy also is designed to enhance the chances of Profiting from a Cartel Precious Metals Price Suppression Regime Collapse. Key Aspects of that Strategy are:
    1. Recognizing that while The Cartel is still Potent, it is significantly less potent than it was even a few months ago due primarily to: …..
    2. Thus we recommend that Investors follow their lead with a significant portion of the funds you allocate to Precious Metals purchases committed to purchasing, and taking Personal Delivery of, Physical Gold and Silver.  …..
    3. Do not give Short Shrift to Gold and Silver Miners. …..
    4. Buy the Dips! And as for determining approximate Interim Bottoms of these dips, Deepcaster has developed helpful Guidelines …..
    5. Finally, we recommend that Investors not keep their Physical Gold and Silver in Bank Vaults …..
    In sum, had the price of Gold not been suppressed, and in light of the ongoing Economic Crisis, it should already be priced in excess of $7,600/oz (and Silver in excess of $450/oz), the approximate 1980 inflation-adjusted highs. It is reasonable to expect to see those prices in the next very few years, or sooner, given the Cartel’s recently impaired ability to sustainably take down Precious Metals Prices.
    The Gold and Silver Bull Market has only just begun and a Crash of The Cartel’s Precious Metals Price Suppression regime would impel it higher faster. That’s the Good News. The Bad News is that Bullish launches of Precious Metals prices are likely to be accompanied by increased Social Stress and Turmoil, as the world adjusts to a Renaissance of Real Money – the Precious Metals.
    Indeed, the Boy Scout Motto is appropriate here: “Be Prepared”. 


August 30, 2010 - Posted by | Economics | , , , , , , , , , ,

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