Sunday, August 2, 2015


Sunday, July 19, 2015

Inflation is probably going to come back with a vengeance

Inflation is much higher than the government reports it. I follow the numbers of John Williams at ShadowStats. I also look at prices of goods and services that aren't counted in the CPI, but they're things that we have to live with day in and day out. Things like the rise in medical expenses, the rise in college tuitions, the rise in a lot of other everyday living expenses that aren't captured in the CPI.

There's no doubt we’re in a situation where, even though inflation is reportedly tame, there is inflation, and it’s constantly eroding the purchasing power of all currencies. And because interest rates are lower than the inflation rate, that erosion of purchasing power means you're losing wealth with bank deposits. If you put $100 in a bank today, at the end of the year, you maybe have a $100.50 because of the interest that you're earning, but your purchasing power might be $98 or $97. In other words, you're losing wealth by holding fiat currencies.

There has also been some impact limiting inflation, to a certain extent, from declining oil prices. Oil went all the way down to $43 a barrel. Oil is now back up to $60 a barrel. Gasoline has risen five weeks in a row. Inflation is probably going to come back with a vengeance as crude oil prices go back to a more normal level, which, in my mind, is something over $80 a barrel. So my view on inflation is that it will worsen.

- James Turk via HAI

Tuesday, July 14, 2015

They're going to follow the Cyprus script

Remember that Greece has 320 billion euros of debt. The European Central Bank has about 112 billion euros of that debt. The ECB is not going to take a loss on that debt. They're going to follow the Cyprus script. They're going to take the money deposited in Greek banks to repay themselves, and bank depositors are the ones that are going to be hurt as a consequence. Depositors in Greek banks are going to lose money just like happened to the people in Cyprus who had deposited their money into Cypriot banks.

- Source, James Turk via HAI

Thursday, July 9, 2015

There are still a lot of problems in the banking system

It’s basically meaningless in the sense that nothing fundamental has changed for the better for the dollar. The federal government is still running huge deficits. There's still too much debt. There are still a lot of problems in the banking system. There's just too much money-printing going on around the world.

What's happened is that for six months or so the dollar rallied because of all of the problems that were emerging in Japan and in the Eurozone. The dollar jumped all the way up to 100 on the Dollar Index, but it was an emotional knee-jerk reaction. People were moving their money into the dollar to avoid the problems plaguing other currencies. They were also drawn to the dollar to try generating a rate of return, or if that was not possible, to at least avoid the negative interest rates in the euro, yen and Swiss franc.

- Source, James Turk via HAI

Saturday, July 4, 2015

Global Money Bubble Getting Close To Bursting

The money bubble has not yet burst, although we’re getting close to that moment in time. We’re seeing some unusual events that have occurred over the past 12 months.

For example, although interest rates have moved back up recently, a couple of weeks ago, people were paying money to have the German government take their money for 10 years. That's a sign something is amiss. Capitalism doesn’t work that way. If you pay to have your money decrease over 10 years, you're destroying capital.

Still, we haven't had the pop of the bubble yet, but we’re on a clear trend toward the bubble popping, which it will if we don’t go back to sound money policies. The popping of the bubble means that fiat currencies will no longer be used and trusted in commerce the way they are now because people will have lost confidence in them.

- Source, James Turk via HAI

Monday, June 8, 2015

Calculate In Not Only Dollars...But Ounces

James Turk (best-selling author, speaker and investor) joins me to discuss the state of the economy and his best-selling books. (The Dollar Collapse and The Money Bubble) James has over 40 years experience in international banking, finance and investing.

He is the co-founder of where they sell and manage assets for over 20,000 customers and entrusted with the storage of over $1.2 Billion in precious metals.

Wednesday, June 3, 2015

Silver in Backwardation- No One Wants the Counter-Party Risk!

James Turk joins us this week for a MUST LISTEN show discussing:

1. Silver Has Been in Backwardation Since January- No One Wants the Counter-Party Risk!
2.The writing is on the wall for Greece- Bail-in appears inevitable!
3.When Greece is bailed-in, Will Contagion Rip Across the Banking Systems of France, Italy and Spain?
4.Turk Explains Why Fiat Currency is Coming to a Conclusion
Governments Will Come Back to Gold Either Willingly, or Kicking and Screaming!
5. When the Big Black Swan hits, Will Americans Finally Wake Up to the Encroachment of Fascism?
6.Why it is Prudent to Protect Your Wealth With THINGS...Not Promises!
7. Turk Explains Why Buying Gold Today at $1200 is Better Than Buying Gold at $35 in 1971!

Tuesday, April 28, 2015

James Turk Global Collapse With A Golden Backlash

That’s the thing the global economy has been trying to come to grips with since 2008. We still haven’t solved these debt problems. In fact, they’ve become worse since 2008 because the total quantity of debt in the world is up substantially from the levels that prevailed in 2008.

Mr. Turk references 2008 on three occasions in these two statements. In the past seven years, what must be understood is everything has changed. Everything is far worse than it was in 2008. Consumer debt is much higher, student loans are beginning to default at ever escalating levels and inflation, according to model that was used during the Reagan administration, is running at approximately 6-7%. China is no longer supporting our national credit card habit (national debt) in the way that it did just a few years ago.

If you own the gold you are in a much better position than if you don’t own the goldtaking it down to the trade level and I think that’s very, very important. They take the I.O.U.’s of countries that can’t fulfill on that promise; because at the end of the day, goods and services are paid for with goods and services. If you pay someone with an I.O.U. for a good that you receive the person that is giving you that good isn’t really being paid. He’s not being paid until he converts that I.O.U. into some good or service that he needs or he wants.

We’ve got this huge accumulation of I.O.U.’s around the world expressed in global reserves and a lot of the global reserves, the I.O.U.’s, are going to be defaulted upon.

That is basic economics 101. The United States has not practiced basic economics 101 for over 40 years. Since Nixon “temporarily” closed the gold window on August 15, 1971, the United States has not fulfilled our obligation to the rest of the world in actually paying, in really money, for our goods and services that we have received from around the world. The world is tired of being broke and destitute while we, the ones that are actually indebted, live high-on-the-hog.

I think London has been pretty much emptied out – I don’t think there’s a lot gold left in London that’s available for shipment elsewhere. – James Turk, Shadow of Truth podcastLINK

The rate of the flow of gold from western bank and investment vaults into Asia accelerated in the first quarter of 2015. India just announced that it imported 125 tonnes of gold in March, more than double the amount imported in March 2014. And 625 tonnes of gold was withdrawn from the Shanghai Gold Exchange during Q1, up 10.8% from Q1 2014. In that all gold purchased in China – other than the gold purchased by the PBOC – must pass through the SGE, withdrawals from the SGE represent the China’s gold demand (not including the PBOC). China only produces 400 tonnes per year, or 100 tonnes per quarter. This means recycled gold plus imports must account for balance of demand.

Just from combined demand from India and China, there is a supply deficit of gold. In fact, the global gold market has been functioning with a supply deficit since at least the mid-1990’s. Frank Veneroso was the first analyst/consultant to figure this out based on conversations in his meetings as a consultant with the world’s Central Banks. Veneroso predicted that eventually the price of gold would have to explode higher once the demand completely overwhelmed the supply.

GATA picked up on Veneroso’s work and began a campaign to educate the world about the western Central Bank schemes being used to keep the price of gold suppressed in order to prop up the legitimacy of paper fiat currencies.

James Turk has been a long time consultant to GATA and, in my opinion, knows as much about the global gold market as anyone. Turk was the first analyst to look at the original GLD prospectus in 2004 and conclude that it was little more than paper gold:

The GLD prospectus is quite clear that the shares are not backed by gold. It says the structure was designed to track the price of gold.

Dave Kranzler (Investment Research Dynamics) and I hosted James Turk on our Shadow of Truth project. We cover the latest developments in the Greece/EU saga, the condition of “backwardation” in the London gold market and the catastrophic level of debt globally. We also discuss in-depth why GLD likely has very little physical gold sitting in its vault that is legally owned by the Trust and the reasons why the supply/demand deficit will lead, eventually, to much higher prices for gold.

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