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The gold and silver markets are coming apart from the severe shortage of metal, compounded by the overblown paper market. Economist Jim Willie tells us that his contact in the banking business informs him that three major banks are nearly insolvent. He is part of an interview with Jim Willie:
http://www.silverdoctors.com/jim-willie-everything-points-to-gold/
Willie stated that the allocated gold account theft scandal will break soon, and could be the largest bank scandal in history.... the next Western bank to fail will trigger a massive contagion throughout the Western banking system, potentially bringing even Goldman Sachs and JP Morgan to their knees!...
The most important point to start with regarding the gold market is that there’s no equilibrium regarding supply and demand. According to basic economics, what you should see is that demand clears supply and the supply satisfies the demand. We’re not seeing either! We’re seeing shortages and huge demand. Shortage in supply, and unspeakable demand across the whole world. We’re seeing pockets of shortages, pockets of different availability, different prices here and there, different premiums here and there- the whole market is disrupted!...
The dominant player in the COMEX gold inventory draw-downs you mentioned is JP Morgan. What’s even more telling of the criminality besides the empty vaults is the ravaging and the pillaging of the GLD holdings! They are going down massively with the plummeting JPM and COMEX inventories....
It’s so ugly that in the silver market, JPMorgan has not yet satisfied and delivered on the June silver futures contracts! It’s so ugly that using hidden entities that Andrew Maguire has detected in London, JPM is using hidden entities to hog 90% of the July silver deliveries! It appears that JPM doesn’t have the silver to meet June delivery, and is trying to replenish their own vaults by taking delivery in London, secretly, to replenish their inventory! Where are they getting it from? Maybe the SLV!
The JPM clients have removed between December and June- close to 40,000 kg of gold- thats 40 metric tons. While JPM’s house account has removed over 40 tons in the same period! What’s the lesson there? It appears JPM’s best friends and clients don’t trust them anymore!...
My best German source informs me that 3 major banks are in trouble, and these 3 banks are fighting every single night to fight off insolvency and failure. He says CitiGroup in New York, Barclays in London, and Deutsche Bank in Germany- every single night are in trouble.
The important thing to keep in mind about Deutsche Bank is that it won’t go down alone if it goes down at all. If it fails, it will take along with it 3,4,5,6 or 10, or 15 other banks! It will be 1 or 2 quickly, then a 3rd and 4th a few weeks later, another, then before you know it, all of Italy and their major banks would be kaput....
Don't bet your money that Deutsche Bank will go down, but if it does, the next day its going to be Citi, Barclays, HSBC, Morgan Stanley, Soc Gen, and big threats to JP Morgan and Goldman Sachs!
In conclusion, Deutsche Bank owns $25 trillion in OTC swaps with the Central banks and other major banks, so expect a daisy chain of derivative failures for the $1.6 quadrillion derivative market if it were to fail! Deutsche Bank cannot break down by itself. It would result in the complete breakdown of the European Monetary Union!...
A bank failure contagion, that’s whats going to push gold way over $2,000/oz again. Silver is going to be moving over $100 and gold is going over $5,000, I’m as certain of it as I am that the sun will rise in the east in the morning come January.