$500 Silver

Here is a little factoid on Hawaii. 97 percent of its food is imported from around the world. There is only two weeks worth of food on the shelves or in storage. This is why so many of the "locals" grow food in their yards. Anyone with an ounce of brains here know to do this but the majority of people on the islands, especially over in Honolulu (which is as busy as San Francisco) don't do this and are completely dependent upon going to the market.

Right now my apples trees are in bloom and apples are set. There are avacados on those trees, oranges, tangerines and lemons. The eggplant is covered with veggies and the tomato plant has fruit on it. Baby pineapples have popped out in the pineapple patch and other trees are blossoming. I have tons of passion fruit all year round. This is one of those areas where food can be grown all 12 months but the majority of people who live here don't bother because they think having a garden it too much work. There is no real farming here either because of how farming is structured and trust me, Monsanto is trying to squeeze its way in and did create some papayas that no longer carry the enzyme the prevents cancer.

Now is the time to stock up because long term residents here realize that if they don't have it on hand it is likely not going to be here in the future. Many of their houses look like the inside of storage containers with little pathways to walk around in. There is a whole different type of mentality here that isn't on the mainland.

Is the World’s Richest Man Getting Into Silver?

[snip]
A source in mergers and acquisitions out of Europe has alerted King World News that Carlos Slim may be looking to enter the silver market in a big way. Gold and silver are in big bull markets and this is attracting the attention of some of the smartest money around the globe. James Turk commented, “If this deal does happen Eric, this is going to make the silver shorts choke.” Fresnillo has a current market cap of roughly $19 billion.

The European source commented, “This deal has been floating around for a while, but I think this time it is going to happen. It’s in his backyard. This is the world’s richest man wanting to get into silver.”

I view this as the only way for the richest man in the world to enter the silver market at this point in terms of any scale, is that your take as well?

“Yes, I agree with that. Let me just add that when he buys into it (Fresnillo) he will have the leverage to silver he is looking for. There are very few ways to get into silver with the amount of money he has, this is the most likely option at this point. He has to pay a hefty price or otherwise the deal will not happen. It is beginning to look like the longer he waits, the more he will have to pay. It is a bull market and things to tend to get more expensive, not less.”

King World News reached out to James Turk to get his comments. When asked about the potential buyout Turk stated, “If this is true he is following in the footsteps of John Paulson and his exposure to gold through Anglo Ashanti. In Carlos’s case, when you have billions of dollars to invest, it is impossible to buy physical silver in any significant quantity with the market so tight. The point I am making is that Paulson ended up buying 30% of Anglo-Ashanti for a few billion dollars giving him exposure to the gold price.

If you have three, five, ten billion dollars to invest, you cannot buy physical gold or physical silver without sending the price sky high. So what can you do? You can buy a mining company.
[/snip]

The rest is over at

King News . com

Was yesterday's fallback a buying opportunity? We may be in for a round of profit taking, sending the market lower for a while.

Even Glenn Beck has figured it out.

At Least 10 States Have Introduced Gold Coins-As-Currency Bills
http://tpmdc.talkingpointsmemo.com/2011/01/at-least-10-states-have-introduced-gold-coins-as-currency-bills.php


Legislators in at least ten states have introduced bills in the past few years to allow state commerce to be conducted with gold and silver.

As we reported, Georgia state Rep. Bobby Franklin (R) recently reintroduced legislation to force his state to conduct all monetary transactions with U.S. gold or silver coins -- including the payment of taxes.

The Georgia bill has a long way to go before become law -- but it's by no means the only state that's considering a future in gold. Lawmakers in Montana, Missouri, Colorado, Idaho, Indiana, New Hampshire, South Carolina, Utah, and Washington have proposed legislation, mostly in 2009, to include gold and silver in its accepted currency forms.

Yes Micjer

People are grogging it - well, some are. There is still not enough for a critical mass.

If I have to pay taxes in gold, then they have to supply it as a form of currency. Just like the worthless paper that you traded your blood sweat and tears for that after tax would not even buy back what you produced.

Here's another vid from our cuddly cute friends again.

Part 3
https://www.youtube.com/watch?v=AId_UiPtPpQ

http://jessescrossroadscafe.blogspot.com/


Massive Withdrawl From The Comex




It will be interesting to see how the CFTC, the Obama Administration, and the Comex deal with this situation with silver, including the disposition of the massive paper short positions that appear to be undeliverable.

It could prove to be a watershed event, or at least an interesting scandal to observe as it unfolds.


Harvery Organ's commentary:


"And now for the big silver report.


We witnessed a massive withdrawal of silver unprecedented in the history of the comex. First there was a smallish 6507 oz of silver deposited to two customers, one being 497 oz and the other 6010 oz). But just look at the huge withdrawals:

Four customers (not dealers) withdrew a total of 1,019,310 oz from the comex vaults. This is real silver leaving from 4 registered vaults. The individual withdrawals are: 579,081, 30,380, 399,994 and 9855 oz.

The dealer (our bankers) also were involved in the withdrawal of silver to the tune of 769,941 oz (there were 2 dealers involved removing 102,866 and 667,875 ozs). When you see this massive drain of silver, the fire is raging. The total silver withdrawal by both dealer and customer totalled an astronomical 1,789,251. The Brink's trucks must have been very busy yesterday.

The comex folk notified us that an amazing 85 notices were sent down for servicing for a total of 425,000 oz of silver. The total number of silver notices sent down so far total 323 or 1,615,000 oz. To obtain what is left to be served, I take the open interest for January at 153 and subtract 85 deliveries leaving a total of 68 notices or 340,000 oz left to be serviced.

Thus the total number of silver ounces standing in this non delivery month of January is as follows:

1,615,000 oz + 340,000 = 1,955,000 oz (Thursday total = 1,625,000). As promised to you, this number is rising and will continue to rise until the end of the month as our banker cartel scrambles to get any morsel of silver to satisfy the massive demand for this metal. Our bankers are stunned to see such a huge amount of silver options in a traditionally slow month.

I hope everyone caught the Eric Sprott story on Kingworld news that he is having trouble locating silver."

Carol wrote:Currency Manipulation: The IMF and WTO
Jonathan E. Sanford
Specialist in International Trade and Finance
July 21, 2010
http://www.fas.org/sgp/crs/misc/RS22658.pdf

Big business and government are at it again. I was suprised to see such a short paper from them. Normally they would waffle on for dozens of pages to justify their positions.

There was only one reference to precious metals and even that is a joke, you can see and smell the corruption..

Between 1946 and 1971, the IMF supervised a fixed parity exchange rate system, in which the
value of all currencies was defined in terms of the U.S. dollar and the dollar was defined in terms
of a set quantity of gold. Countries could not change their exchange rates from the level
recognized by the IMF by more than 10% without the Fund’s consent. Moreover, said the original
language of the IMF Articles, “A member shall not propose a change in the par value of its
currency except to correct fundamental disequilibrium.”1 This system broke down in 1971 when
the United States devalued the dollar twice without any consultation with the IMF. After a period
of turmoil in world currency markets, an amendment to the IMF Articles was adopted in 1978. It
said that countries could use whatever exchange rate system they wished—fixed or floating—so
long as they followed certain guidelines and they did not use gold as the basis for their currencies.

Well, they now have their pants well and truly down around their ankles now and I hope Silver will be a major thorn in their side. There is no mention of Silver in this report and I can betcha, they did not see this one coming.

Ok everyone back to chart school!

ABC Correction

The 5-wave trends are then corrected and reversed by 3-wave countertrends. Letters are used instead of numbers to track the correction. Check out this example of a smokin' hot corrective 3-wave pattern!




Now look at the silver market! Look familiar?

US Mint Reports Unprecedented Buying Spree Of Physical Silver

http://www.zerohedge.com/article/us-mint-reports-unprecedented-buying-spree-physical-silver


Submitted by Tyler Durden on 01/13/2011

Three days ago we noted that in just the first week of January, the US Mint had sold 2,221,000 ounces of silver "a number which if run-rated would be an absolutely all time monthly record," A quick glance at the tally today, shows that something very scary is going on. In the subsequent three days, the number has surged by 50% and has hit 3,407,000 ounces of silver! In just the first 12 days of the month we have already surpassed the total monthly sales of 9 separate months of 2010.

And some additional observations on what is becoming a physical buying frenzy from CoinNews.net:

Do you think main stream public is following our forum and reading this thread? Naw, it's GLP with their 1,108,74 plus hits every day. Are you over there leaking info again M?

Meanwhile, I have it on very good authority that the dinar is good to go. Biden was there yesterday.

Meanwhile, I have it on very good authority that the dinar is good to go. Biden was there yesterday.

Carol, they are going to have to pull this rabbit out of the hat very soon. One report I read was silver is going to explode by the middle of Feb. This will be a result of a collapsing dollar, so they better act soon to avoid the collapse.


People must be reading the info about silver somewhere to have this kind of demand for coins. It is common folk that buy the coins.

M, the info I have is pretty reliable. It's just a matter of what the RV rate will settle in at as it may start off a bit lower so the banks can make money and go up in a few weeks when the Forex rate is announced. Basically, fait accompli.

US no longer the World Reserve Currency
It was the most startling of warnings. If the US does not get its finances in order “we will have a European situation on our hands, and possibly worse”, claimed Paul Ryan, the new Republican chairman of the House of Representatives budget committee.

The consequences of not tackling the country’s mounting debt burden would be dire, he last week told an audience of leading budget experts and economists at a gathering in Washington. “We will have the riots in the streets, we will have the defaults, we will have all of those ugliness problems,” he said, referring to “French kids lobbing Molotov cocktails at cars, burning down schools because the retirement age will be moved from 60 to 62”.

As it stands today, the US borrows about 40 cents of every dollar it spends. Curbing the budget deficit has been the stated mission of Mr Ryan, a rising Republican star, for several years. But such calls for action have multiplied in Washington in recent months, igniting what some say is the fiercest debate over fiscal and budgetary policy in decades.

http://www.ft.com/cms/s/31dbce8a-1f52-11e0-8c1c-00144feab49a,Authorised=false.html?_i_location=http%3A%2F%2F

http://www.stansberryresearch.com/pro/1011PSIENDVD/PPSILC79/PR

This clip is over a year old, but Glenn Beck does explain what will happen when the world drops the Greenback as the currency of choice for oil.

When this happens, it will signal the collapse of the dollar and the start of hyperinflation.

Is JPM Covering Up a Naked Silver Short Held By China As a Claim Against the Yanks?


http://www.marketoracle.co.uk/Article25628.html


Here was their supposed deal: in or around the year 2000 and events leading up to now:

1. USA gives most favoured nation treatment to China.

2. China lends silver in a swap position. China gets dollars as collateral and USA gets silver.

3. China can get their silver back at any time say past 3 or 4 years.

4. China loves the deal as they pick up gold on the cheap.

5. It is now 2010 and China want its silver back but the usa state that the silver is gone. They can keep the usa dollars in collateral.

6. China refuses and is angry. They now massively short on the comex knowing that they will not supply the metal. It is up to the bankers.

7. They use conduits on the buy side and take delivery.
This is what O'Malia is frightened of when the CFTC sees the swap book on Morgan."

The point that both Harvey and Ted Butler have made is that China is behind the big short in silver being held by JPM and HSBC (Hong Kong Savings Bank), but if pushed for delivery will throw its unsatisfied metal claim with the US on the table and will say, 'Get it from them.'

Well some new insider skuttlebut has been released but not validated so here it is. Yesterday morning when I woke up on the 19th, I sensed the timeline had altered again and it involved China. Then today I read this from a friend.

Quote:

This an important moment in US history because we learn (below) that China has been our financial savior for some time now, but they don't want the US to turn into a poor 3rd world country with no middle class that buys Chinese goods. They essentially dictate our return to the constitution and to a metals-backed currency. A person from the United Nations contributed much positive information and new information also.

Therefore if you scan down through this transcript, you'll see that the Federal Reserve is being taken down, and the IRS also, and that new Treasury bills backed by gold have been printed and delivered to banks and is ready for announcement and use.

We've been concerned whether that move would devalue the dollars we have - like 10 old dollars to be replaced by one US treasury note. But the UN spokesperson said that transfer would be ONE TO ONE with no loss of wealth on our part.

A working dinner was shown tonight on TV with the Presidents of the US and China across the table from each other. The topic is the return to the gold standard, and implementation of BASIL III policies in US and world banks.

Since the transcript identifies people it's not being posted however the highlights are this:

A: Answer - taking down the Fed Reserve and our fiat money

B: Bill in wallet is a federal reserve note.

A: our current paper money says they are Fed Reserve money. (skip) In the 47 trillion there is 6.7 trillion to refund US Treasury - will issue new currency that will be treasury money backed by gold and other commodities. (skip) Is this all happening with Obama dragging his heels through all of this? Yes. Chinese who are here right now. 6.7 trillion is half of our debt.

B: At which point they will reissue currency that will not say fed note.

A: The national debt we owe is by the US Corporation. January 1st we are once again a Republic and won't be paid. Fed Reserve (Rothchilds, etc.) - 100 years they have been controlling this. Hong Kong from British to Chinese rule - Mr. Y was there for the turn over. Monetary system doesn't always stay in place. Fed Rserve is a private entity. They have destroyed countries. They can be removed. They sold ?? derivatives. When Civil war broke out, Lincoln went to NY Banks for $$ with 30% +_ - plan to break the union at the time. Lincoln worked to get the Lincoln greenback...will this be what we go back to - govt currency? Yes, it is going to be a treasury dollar. (skip) Chinese are not beholding to Rothchilds, etc. - they control their own money.

B: Obama dragging foot to the final hours until China arrives in Washington.

A: Chinese President coming to Washington DC today is the final push to get this done. Not a warm reception for him. Not a typical state dinner. Working dinner which is an insult to the Chinese. Interesting part is that the Chinese are wanting to insure the ...CMKX, precious metals - that is what is happening. What entity can get rid of the Fed Reserve? G-19 has the power. China pulled USD 3 months ago for trading with Russia.

B: The federal reserve does not have a standing military force. (skip)

A: This is a very complicated process - you will see in the end the reasons. Replacing the monetary ...of the US will fight to the very end dragging out bank compliance. What implication is removing the Fed Notes - in immediate future? Be an adjustment in wall st with 401K, etc.

B: Put money into money markets.

A: It won't be an immediate change in the currency.

B: The currency is already printed. (skip) planting seed in American mind.

A: Nixon removed us from gold backed standard.

B: Someone has to make the announcement that we have a precious metal currency.

A: G-20 in Korea we need gold backed standard.

B: There is not enough gold to cover the money printed. 80% precious metals - Gold and silver has not reached their capacity on cost. (skip)

A: Question - why are they doing this, economically?

B: The world economy going in the direction it is going - Obama spending a ton of money, this is going to zero itself out.

A: Step back a minute. Obama has been spending a ton of $ and don't know why - now shortly it will be zeroed out. (skip - too sensitive) ....the treasury, not the federal reserve based on 80% precious metals, 20% gold per CFO of world bank.

B: Is the US dollar going to be worth a dollar?

A: Will USD be worth a USD or be adjusted? Our USD will devalue when this happen.

B: We have ruined the vallue of our currency.

A: Since 1972 have been backed with nothing.

B: We have been causing hyper-inflation, just released more worthless money into the system..

A: Asia, Germany - we all are feeling hyper inflation - need to set all of the currencies.

B: They need to reset and revalue so everyone goes against the same currency. (skip rest)

A: Best estimate/guess for valuation between the new treasury vs existing Fed Res note?

B: Answer - Less if we are using the gold standard. (skip)

A: When comex knows how much of a short there is in gold, the price will shoot through the roof. England will come up really short. (skip)

B: If fed reserve goes away is IRS going to go away. YES. It will be phased out & restructured. Is there any concern over a world wide strike when the average people find out. TVs are doing shows and articles to try and get the public more aware. Bank seizures of caribbean banks.

A: Bank figures of Caribbean banks, notes in Africa, oil and gas company owners - central bank told them they had 10 days to pay off their notes or lose their companies. 3-5 years the bank seizures happening all over the world, central bank calling notes in all over the world took over oil and gas compnaies in Africa.

B: Millions of dollars due in 7 days to pay debt. No way they could pay.

A: If this reboot worldwide will it erase all countries debts?

B: Yes, a global reset they must forgive debt.

A: All currencies will realign - ground zero. All to start at scratch, ground zero. Brilliant plan with all of this. The Central Bank of the World is calling in all notes. Venezuela it is happening. Africa it is happening.

B: Nationalizing a company - walking in taking over by government. The people have to leave and leave everything behind.

A: The US will not nationalize - JP Morgan Chase, Citibank and others shifting over to bullion delivery vs certificates from comex. Yes, that is the next shoe to drop. Most of the Ft Knox is not owned by the US. Will US citizens debt be forgiven - NO. How will this effect Freddy and Fanny? They are gone. The derivatives will have to be announced pretty soon. Derivatives will be worthless, the fed created that tool. If they do away from Freddy and Fanny, the recipients would benefit? Doesn't know how that would work. (skip) The fed is history. When China took over Hong Kong from the British - the currencies washed out over 6 months. Reboot our debt is mostly to China now. How will this factor out? Your currency will not change - one for one - fed res note will now be a treasury note. (skip)

B: These gentlemen in China has worked hand and hand with Canada who will bring the US out of poverty. Canada and US tied to many programs with their oil and gold. China is involved with us financially. US has to have an economy that will support their export.

A: China didn't want to be left holding an empty bag. How can this benefit the US? It is wiping away a big deal of debt. it is about the fiat currency going away - all of the money pooled together. We will have e currency backed by commodities. The corporation of US is going away and US will become a republic once again once the Fed Reserve is dismantled 27 trillion distributed in US out of that there are taxes that will be paid into the US Treasury. This Treasury in 2 years should have a 10 trillion excess. G-19 is in favor of this the U.S. President is not. He will lose his job ultimately. He is not for this country. He stands for the Federal Reserve and keeping it.

B: The word we hear today is this is supposed to happen TONIGHT. (1/18/11)

A: The US has printed money and money and G-20 said this is to stop - period. There would be hyper inflation world wide - not just US.

B: You cannot flood the markets with worthless currency it has to be a precious metal.

A: Who will be the international oversight entity? G-20

B: Please support the Chinese as this would not be possible without them.

US Treasury Sec Admits US Default Imminent
By James West
MidasLetter.com
1-24-11

Timothy Geithner, U.S. Treasury Secretary, admitted in a letter to congress dated January 6th, that the United States Treasury would be forced to default on its credit obligations without clearance from Congress to raise the amount of money that the treasury is allowed to borrow.

After citing a list of 'extraordinary measures' Congress has had to resort to in the past to avoid entering a state of default, Geithner stated, "Once these steps have been taken, no remaining legal and prudent measures would be available to create additional headroom under the debt limit, and the United States would begin to default on its obligations." The extraordinary measures include, "suspending sales of State and Local Government Series (SLGS) Treasury securities; suspending reinvestment of the Government Securities Investment Fund (G-Fund); suspending reinvestment of the Exchange Stabilization Fund (ESF); and determining that a "debt issuance suspension period" exists, permitting redemption of existing, and suspension of new, investments of the Civil Service Retirement and Disability Fund (CSRDF."

That the United States has already defaulted on its obligations is beyond dispute, at this point, as its the rate at which its debt service obligations is growing exceeds the rate at which the United States GDP could possibly grow, meaning that without drastic cuts to government spending, the debt can only continue to grow.

Before our very eyes, the so-called leadership of the world's largest economy is intentionally bankrupting the country and devaluing its currency in what can only be a precursor to rampant inflation. Since the integrity necessary to manage this problem does not exist within the United States political system, the rest of the world has no choice but to stand by and watch the value of their United States Treasury Bills diminish incrementally on a daily basis. Selling them will only exacerbate the problem, but the question must be asked, how long until the remedy is preferred over the miserable condition?

Geithner goes on to say, in a remarkable baring of the national soul. However, if Congress were to fail to act, the specific consequences would be as follows:

The Treasury would be forced to default on legal obligations of the United States, causing catastrophic damage to the economy, potentially much more harmful than the effects of the financial crisis of 2008 and 2009.

A default would impose a substantial tax on all Americans. Because Treasuries represent the benchmark borrowing rate for all other sectors, default would raise all borrowing costs. Interest rates for state and local government, corporate and consumer borrowing, including home mortgage interest, would all rise sharply. Equity prices and home values would decline, reducing retirement savings and hurting the economic security of all Americans, leading to reductions in spending and investment, which would cause job losses and business failures on a significant scale.

Default would have prolonged and far-reaching negative consequences on the safe-haven status of Treasuries and the dollar's dominant role in the international financial system, causing further increases in interest rates and reducing the willingness of investors here and around the world to invest in the United States.

Payments on a broad range of benefits and other U.S. obligations would be discontinued, limited, or adversely affected, including:
- U.S. military salaries and retirement benefits;
- Social Security and Medicare benefits;
- veterans' benefits;
- federal civil service salaries and retirement benefits
- individual and corporate tax refunds;
- unemployment benefits to states;
- defense vendor payments;
- interest and principal payments on Treasury bonds and other securities;
- student loan payments;
- Medicaid payments to states; and
- payments necessary to keep government facilities open.

I personally am stunned. No mention is made of sales of assets held by the United States government. Rather than liquidate its own real estate to cover its debt, the defective and fiducially delinquent U.S. government plans to first eradicate the incomes of its poorest citizens.

If this document is not a harbinger of impending civil unrest on a national scale in the United States, I can't imagine what is. Big big changes are on the horizon though. Of that there is no doubt.

MidasLetter Premium Edition identifies 5 stocks on the first Sunday of each month from the TSX Venture Exchange that are expected to double within 12 to 18 months, 9 out of 10 times, or your money back. Subscribe now for $49 per month, or $499 for one year, at http://www.midasletter.com/subscribe.php. 30 day instant refund period from your first subscription day if not 100% satisfied.

Source: http://www.rense.com/general92/treasss.htm

Nothing like having the public by the short hairs as it is the taxpayer who gets screwed - again.

Rising Debt and Manipulation of the Gold market
by Bob Chapman
Global Research, January 29, 2011

The US welfare state rumbles on and in some sectors of business it is being encouraged. We have to assume this attitude is based on more and increasing profits. Needless to say, it is cloaked in language that refers to the poor suffering people. The economy in the US and in many other countries is being run by and for major corporate interests.

We have government paid for and controlled by wealthy corporatist interest. In America you have $14 trillion in short-term debt and $105 billion in long-term commitments. Then there is the off budget items, such as wars and occupations that adds considerably to this debt, all attuned to keep the welfare state running. Both parties refuse to cut much of anything, although the Republicans say they will. We are skeptical after watching the tax bill become an $862 billion pork stimulus package. Discretionary spending is where the cuts will probably occur if there are any.

The cost of carrying this debt becomes more unpayable and onerous daily and there is little attempt to stop it. The Fed may control the short end of the Treasury bond market, but it has minor influence on the 10-year notes and 30-year bonds. As a result yields have risen and the spread in yields between short and long-term paper has grown to 32-year highs. Needless to say, holders of long-term notes and bonds want to be better compensated because they see more risk, as US debt grows uncontrollably higher. Short-term yields have stayed about the same because the Fed controls them. The demand for capital in small and medium companies has been muted by lenders reluctance to lend for the past two years. Zero interest rates have not helped these potential borrowers that create 70% of the jobs. Funds though are readily available to the major transnational conglomerates. Government and the Fed won’t talk about it, but they are manipulating all markets, and that is a long-term negative factor because everything they do is for their own benefit – not for the people. The state of political affairs could be worse but they certainly are not good. We liken the US economy to a rudderless ship being pulled and jerked by one special interest group or another from side to side never gaining equilibrium. As long as this situation persists no headway will be made in solving budget deficits, nor in neutralizing the welfare state.

At the same time we see red flags all over Europe. It is pointed out that in Europe, Greece is uncompetitive and has a sodden public sector; that Ireland borrowed too much and was moving more to a welfare state; that Belgium was a house truly divided with financial problems; that Portugal’s economy lagged like that of Greece and has similar major budget deficits, and that Spain doesn’t have a diverse enough economy and was literally destroyed by one interest rate fits all. What no one wants to contemplate is why did this all happen? That is because banks lent them all as much money as they wanted. The bankers, the professionals, should have never lent them such outrageous sums in the first place. Now the banks with their bad loans are demanding they be bailed out. It is ludicrous and the banks should be allowed to go bankrupt, they are the experts. They knew exactly what they were doing. That is Europe’s solution and the quicker they realize it the better off the Continent will be.

As of this writing gold has fallen about $100, and silver some $3.00. Support for gold lies anywhere between $1,280 and $1,340. Many are disappointed that both metals corrected, which is natural, but they are more upset that the correction was deliberately man-made.

Part of the corrective process was that Germany supposedly was going to save the euro, or at least that is what jawboning Chancellor Merkel seems to think. Germany is not about to bail out six insolvent countries. If they do or even participate in spending of more than the original solvent euro nation commitment of $1 trillion, they may become insolvent as well. The German people are well aware of this and they won’t allow it to happen. As we reported in the last issue contingency plans are already underway to reintroduce the Deutsche mark if necessary. The euro zone countries are facing major funding all year, but the heavy end will be in the first quarter with lighter demands in the second quarter. Germany is not about to bail out sick members or the euro, especially with Irish elections coming in three weeks. Thus, we see no eminent moves by Germany.

Gold has spent the last two years moving up in price as it challenged the US dollar for supremacy as the world reserve currency. Now, inflation is again in investor’s sights, as companies are forced to raise prices 6% to 15%, after having raised prices over the past year mostly in the form of small packaging. We’d call that stealth inflation. Manufacturers and producers think they are fooling the American public, but they are not. They are just demonstrating how deceitful they are. Raw materials costs are rising and they will continue to rise and so will real inflation, and that makes gold and silver move higher to reflect the loss in purchasing power of the public and the loss of value of all currencies versus gold and silver. In our previous report this week we pointed out the massive short covering by commercials in the gold pits. Unprecedented net short reduction, which can only portent a major upward move in gold and silver. The percentage of silver short covering was not nearly as successful for JPM, HSBC, GS and Citi. That is still yet to come. It will expedite the upside as it has done recently. All the elitists have done is ended their short bias and now will join you on the long side of the market. Their tactics have given you another opportunity to buy at cheaper prices.

The bond market yields will move slowly higher on the long end for the remainder of the year and thus, bonds should move slightly lower.

Stocks, which are way overpriced, will eventually fall probably back to 10,000 on the Dow.

Bob Chapman is a frequent contributor to Global Research.

SOURCE: http://globalresearch.ca/index.php?context=va&aid=23000

I think the time for bailouts is over. They should just erase everyones debt on a global level and start all over again on a level playing field. Even the US will NEVER get out of the whole that congress dug for this nation. It is not possible. All debt from the top down to the tax payer should be erased. ALL OF IT. It is the only viable solution unless folks believe the hype about the dinar bailing everyone out. I want to believe that it could but again wherever globalists are involved they will invariably muck it up because they operated from a service-to-self agenda that is based on greed and power. They do not want to share the wealth they want it all for themselves and two great sad examples of this is the Mubarak and the Bush family. Throw in the Queen of England and the royal family as well.. and do not forget the Vatican.