The Phaserl


Jim Willie – Gold Effect on Mining & Shale Wasteland

by Jim Willie, Perpetual Assets:

Before diving into the featured topic, let it be known that the USD-based platforms and USGovt-sponsored continental trade unions are a dismal failure, poorly crafted, poorly sold. The effect will be to accelerate the gradually accelerating USDollar rejection on a global scale. The war and sanctions angle continue to support and defend the USD, but it is unsupportable (due to crippling debt) and indefensible (due to QE hyper inflation). The previous week was the most damaging in many years from a psychological standpoint. The Chinese-led Asian Infrastructure Investment Bank (AAIB) won converts recently from Australia and Britain, but last week from Italy, France, Germany, Switzerland, Luxembourg, and seemingly Japan. A noticeable impact was observed on the Kenyan impostor squatter, who works to contain the damage. This week Turkey joined the AIIBank. Keep in mind that the AIIBank is for development projects. It begs for a more honestly stated function for the New Development Bank also promoted and funded by China. The NDB is the gigantic Trojan Horse. The Jackass has been boldly stating that the NDB is for converting USTreasurys, EuroBonds, UKGilts, and JGBonds into Gold bullion and will form the BRICS Gold Central Bank. The conversion process will send the Gold price toward $10,000 per ounce. It is written, but in secret. It will be done, from expedience. It must be, in order to put the global financial system in sound structure and equitable balance.

With the debt default from Greece and Ukraine lingering, never to go away, the big Western banks are constantly facing a failure event. However, the bigger immediate threat might be the Emerging Market debt. It is fixed in USD terms. So the debt burden has shot up over 20% in almost all such nations due to currency shifts. Therefore with debt failure on one side and banking platform abandonment on the other side, the King Dollar looks legless, castrated, full of acne, with too much evidence of voyeurism in allied bedroom windows, and too much shooting civilians for sport. The King Dollar needs a quick trip to the funeral parlor, then cemetery, in favor of the Gold Standard. The clear path has been laid out. The Gold Standard will arrive from the trade ramps, not the FOREX window. Then later, the global banking systems will discard the USTreasurys held in reserve. The event will trigger QE4, and collapse the Western central bank franchise system. Then comes the New Scheiss Dollar on a contrived platter. Gold will win, just a question of when, how, and the depth of global economic destruction.

Two important economic sectors will have a huge bearing on the gold market and price very soon. The gold mining sector is grinding to a halt, output down, profit gone, sure to affect the supply side of the gold market equation. Refer to the physical gold market, not the paper charade game run by Wall Street and London conmen shaman shills. The marginal energy sector is grinding to a halt, output from shale projects suddenly shut down, profit gone, sure to affect not so much the supply side of the oil market as the financial side. While gold output is on the downslide, the shale sector bonds are set to implode in a new crisis with a Subprime label. The US is deeply devoted to subprime, knows nothing but subprime, depends on subprime, and will choke on subprime. The USDollar is a subprime currency. Both the mining and shale energy wasteland will have an effect on the gold market, but from different powerful angles. Together they will contribute to the inevitable celebrated wreckage and shutdown of the COMEX gold market and LBMA gold market. It should be noted that the COMEX has not delivered on a gold futures contract since June 2012. It should be noted that the London Bullion Market Assn has been kept going by emergency raids of the SPDR Gold Trust (aka GLD Fund), as well as emergency supplies by both Scotia Mocatta and the Vatican-Basel twin hives.

With the mining sector in deep distress and the shale sector in total decimation, the Gold market will be given a special double barreled impetus from reduced gold metal supply, combined with huge USFed monetization possibly of energy firm debt.

Some might argue that the market will simply absorb the debt default on the shale energy front. Doubtful! The energy firms are deeply connected to Wall Street, and to the USGovt offices. They had managed the Petro-Dollar root system in Arab oil meshed with USGovt foreign policy for four decades. They still have considerable sway in the USGovt, to the point of winning waiver passes on Russian sanctions. With reduced gold supply and additional USFed debt monetization, the USDollar is truly doomed, while the COMEX is equally doomed. The world will celebrate the COMEX shutdown like the doors closing on a vast criminal enterprise. Be sure to know, that the covered subprime energy sector debt will be monetized at the same time as the foreign banking systems dump their USTreasury Bonds, an event that surely will require QE4 from the hapless USFed. They have no more credibility. Yellen’s voice does not carry like Bernanke’s, just like Jacob Lew’s voice does not carry like Geithner’s. Moreover, Bernanke and Geithner were midgets compared to Greenspan and Paulson. The diminutive cast are in place to preside over failure.


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23 comments to Jim Willie – Gold Effect on Mining & Shale Wasteland

  • Rodster

    “The conversion process will send the Gold price toward $10,000 per ounce. It is written, but in secret. It will be done, from expedience. It must be, in order to put the global financial system in sound structure and equitable balance.”

    Sure Jimmy. Everyone gold bug has been predicting $5-10K gold for 5-6 years including Jim Sinclair. They are a dime a dozen on King World News as well.

    And good luck with the sound structure for a new financial system when your boys from the East have Xeroxed the West’s financial, banking and economic models. And good luck with equitable balance when everyone around the planet is printing monopoly money to keep the BAU system going. It’s all about “infinite growth” in a finite world. The finite world always has the last laugh. In summation Jimmy, the AIIB is just a shell game and con job by the East who just want a bigger say at the table of the IMF and World Bank. You see Jimmy they are still part of the current banking cabal when the dust settles.

    • Johan

      Actually the BRICS are creating their own ‘world bank’. They don’t really give a rats ass about the Western controlled IMF and World Bank

      • Rodster

        “They don’t really give a rats ass about the Western controlled IMF and World Bank”

        I call bullshit to that. Sean posted an article last week (maybe he can find it) where Christine LaGarde welcomed members of the AIIB and China said it looks forward to having a bigger say within the IMF.

        As far as the BRICS go, i’m not sold on them either. Who Brasil? The same Brasil with it’s shit currency and economy in tatters?

        • Ed_B

          “Sean posted an article last week (maybe he can find it) where Christine LaGarde welcomed members of the AIIB and China said it looks forward to having a bigger say within the IMF.”

          Riigghhhttt… come into MY parlor, said the spider to the fly. Yum, yum.

          I’m not a Willie fan but his call on this looks closer than anyone elses’.

      • Rodster

        “China-IMF talks underway to endorse yuan as global reserve currency”

        Global Currency Soon? China “Actively Communicating with IMF to Include Yuan in SDR Basket Currency”

        “Talks Underway With China & The IMF To Endorse Yuan As A Reserve Currency”

      • Rusticus

        Johan says one thing, the Governor of the People’s Bank of China says another…

        “The desirable goal of reforming the international monetary system, therefore,
        is to create an international reserve currency that is disconnected from
        individual nations and is able to remain stable in the long run, thus removing
        the inherent deficiencies caused by using credit-based national currencies.

        Special consideration should be given to giving the SDR a greater role. The SDR has the features and potential to act as a super-sovereign reserve currency. Moreover, an increase in SDR allocation would help the Fund address its resources problem and the difficulties in the voice and representation reform. Therefore, efforts should be made to push forward a SDR allocation. This will require political cooperation among member countries. Specifically, the Fourth Amendment to the Articles of Agreement and relevant resolution on SDR allocation proposed in 1997 should be approved as soon as possible so that members joined the Fund after 1981 could also share the benefits of the SDR. On the basis of this, considerations could be given to further increase SDR allocation.

        The scope of using the SDR should be broadened, so as to enable it to fully satisfy the member countries’ demand for a reserve currency.

        Set up a settlement system between the SDR and other currencies. Therefore, the SDR, which is now only used between governments and international institutions, could become a widely accepted means of payment in international trade and financial transactions.

        Actively promote the use of the SDR in international trade, commodities pricing, investment and corporate book-keeping. This will help enhance the role of the SDR, and will effectively reduce the fluctuation of prices of assets denominated in national currencies and related risks.

        Create financial assets denominated in the SDR to increase its appeal. The introduction of SDR-denominated securities, which is being studied by the IMF, will be a good start.

        Further improve the valuation and allocation of the SDR. The basket of currencies forming the basis for SDR valuation should be expanded to include currencies of all major economies, and the GDP may also be included as a weight. The allocation of the SDR can be shifted from a purely calculation-based system to a system backed by real assets, such as a reserve pool, to further boost market confidence in its value.”
        -Zhou Xiaochuan, “Reform the International Monetary System”

        Johan says one thing, the UN Council on Trade and Development says another…

        “The rationale for the BRICS development bank has been built focussing on the major needs in infrastructure and more sustainable development[…]

        Last but certainly not least, it is crucial for development that environmental sustainability and climate resilience is guaranteed, and this requires new infrastructure. This implies reducing the environmental impacts of existing infrastructure, adapting it to a changing climate, and designing new infrastructure creatively to promote environmentally sustainable lifestyles, as well as a broader model of development. Investment in infrastructure, which enables the use of renewable energy, is an important initiative to promote development that is environmentally sustainable.”
        -UNCTAD 2014, “The BRICS: A Dream Coming True?”

        That rhetoric sounds a whole lot like Agenda 21 to me, with the paper essentially saying China, India, and Brazil are 100% on board.

        Or perhaps, Johan, you were referring not to the NDB, but the AIIB? Well, not so fast:

        The article to which Rodster refers is right here:

        Jim Willie has said numerous times in interviews, and I’m paraphrasing here, that “anyone who thinks the BRICS are run by the Anglo-Americans are IDIOTS.” Well, Jimbo, now that the Open-Source research community has proven your polemic statement to be bunk, are you willing to revise your comments? Or will you continue preaching the Eastern Mantra of Xi Xinping and his buddies from the Kuhn, Loeb, & Co. Crime Syndicate?

        There’s a helluva lot more where that came from on the “East-West Bait-And-Switch,” but as this post is getting a little long in the teeth, I’ll stop here.

        …but before I depart, be honest, Johan, did you come up with your BRICS thesis by reading policy papers, primary documents, and using your own mental faculties, or did you outsource your critical thinking to the likes of Jim Willie and a host of other “analysts” with “super secret sources?” It’s okay if you did the latter, just be more careful in the future… a mind is a terrible thing to waste 😉

  • Voice of Reason

    Yeah, I guess gold mining in South Africa is very expensive due to the fact that the low hanging fruit has been picked by the architects of the Boer War and aparthaid. You may want to check the basement vaults in the castles of Europe for the SA gold. Rhodes and DeBears were only middle men in the 200 year rape and pillage of a British colony. “The families” of extraordinary wealth in Europe stole the gold. First at $20.00/troy ounce and then at $35.00 and later at $42.00 and then got out of SA after decades of cheap gold was shuffled off to The castle vaults bypassing London in the process. It is thought that 1/2 of the world’s gold resides in these vaults. I think I ‘ll watch Goldfinger tonight.

  • Gnostic

    Wow Rodster you know your stuff, are you saying gold will not reach 10K to settle matters ?

    • Rodster

      Noooo, i’m saying the EXPERTS have been predicting $10K gold for years. So where is it?

      • Gnostic

        Oh I get your point, I don’t follow experts or weather people, I just wake up & look out the window, I suppose things will happen when they happen.

        • Rainmaker

          Its all probably relative and we could put things into perspective, monetarily. When talking about the price of gold in dollars, what is a dollar? We could go all the way back to 1913 (we probably need to go back a little further), but lets start at 1933, when gold ownership was outlawed by executive order which amended the Trading with the Enemy Act of 1917. Nixon defaulted in 1971 and Ford then changed course in 1975 with an Act of Congress that would “permit United States citizens to purchase, hold, sell, or otherwise deal with gold in the United States or abroad”. (meaning its illegal to settle trade in gold still for citizens) Note, none of the Legislation nor Executive Orders have been repealed. Gold was $20 dollars an ounce pre-1933 and at the time of the original EO, revalued to $35 p/oz, and stayed the same price for international trade all the way through the early 1970s. So in 40 years, gold has gone from $35 p/oz to $1900 back down to $1200 +/- today. Lots of crazy stuff has happened along the way, which could be, will be, rehashed to infinitude, but in 40 years, the price of gold has changed a lot. To say that we will see $10,000 gold (priced in USDs) in the near future does not seem like such a stretch (IMHO). I guess the question is, what will a USD buy you in that time frame? What will it buy you now? Might not be worth anything in the near term, which makes the whole discussion MOOT.

      • AK

        Predicting the price of Gold in dollars is a waste of time and yet that is what everybody wants to hear because that’s all people can relate to. What really matters is how much “stuff” will your Gold buy in the future. When people have lost confidence in the dollar and it continues to lose value, will your ounce of Gold during that time buy less, more or about the same as today? If your ounce of Gold will cost $1 million dollars but $1 million only buys you a loaf of bread clearly Gold didn’t do what we would expect it to during a currency crisis. My guess is that Gold will do just fine and I would expect that I will be able to buy as much if not more with an ounce of Gold in a currency crisis as I am today. If that means that an ounce of Gold costs $1 or $1 Billion is completely irrelevant.

        • Ed_B

          Agreed, AK. What we see in a lot of these comments is a dollar bias, which seems REALLY strange to me, coming from a group of people who love PMs and hate fiat currencies.

          The facts of the matter of whether or not to own PMs are both simple and clear. PMs hold their purchasing power over time. PMs cannot be devalued by governmental fiat. Some govs have tried this but can only artificially hold PMs down for a while before they lose their control. The fundamentals of economics WILL assert themselves in time, no matter what is done to control them. The Soviets found this out and the USA is now discovering this same lesson, which they could have learned just as easily from most 20th century history texts. Oh, well. Some people are incapable of learning from the mistakes of others, so have to repeat the same lessons over again. This is too bad because it is an expensive lesson and the clowns making the decisions on this won’t end up paying the bill for it… but we will. 🙁

          PMs are not an investment. PMs are money. PMs are a long-term savings plan that are independent of government economic meddling. PMs are a hedge against the inflation that is built into our fiat money system, which is how the banksters milk a country of its wealth and why they despise people who prevent this process from working… like Andrew Jackson, Abe Lincoln, and Jack Kennedy. All of these men threatened the bankster milking machine in one way or other, so had to be killed so that the milking machine could operate freely, which it has. While Jackson was not killed, there were 5 attempts on his life. Last, PMs are a form of financial “Oh, S**T!” insurance in case the unthinkable becomes all too thinkable… such as a US dollar collapse, a US Treasury paper collapse, a US stock market collapse, a credit market collapse, a derivatives implosion, or a bank holiday where people simply cannot get access to their currency.

          All investors learn some critical things very early in their investing careers. There are three of these that are particularly important and any investor who does not learn these things and take them to heart WILL regret it. They are: 1) diversification; 2) asset allocation; and 3) the use of both dollar cost averaging when buying and selling.

          Diversification is critical because it stops an investor from putting all of their money into a single investment or into a few investments. It is easy to fall in love with an idea and when we do we are then susceptible to something coming at us from left field that we never expected. Spreading our money around into various investments can help avoid the all or nothing approach to investing. In the case of PMs, we can not only diversify into a different asset class by owning them but we can also diversify our wealth out of a single currency, the US$.

          Asset allocation is critical as well because we need to balance the money we have invested so that we have reasonable amounts in various classes of assets, such as stocks, bonds, cash, real estate, and commodities. PMs fall into this latter category, along with oil and gas, timber, coal, cotton, sugar, edible oils, and various food grains.

          Finally, the use of dollar cost averaging (DCA) when both buying and selling assets can protect us from market ups and downs that might otherwise catch us off-guard and have us buying too much near market highs or selling too much near market lows.

          All of these can and should be applied to acquiring most any asset and that includes PMs. By buying our PMs regularly and in an approximately fixed dollar amount, we buy more ounces when prices are lower and fewer ounces when prices are higher. We can even kickstart this via buying a little more on the dips and a little less when prices rise. All of this will lead to owning more ounces at lower prices than any other method.

          But don’t even start thinking that any of us is smarter than the market because none of us is. Just take what the market is willing to give us and call it good; because it IS good. Timing the market is virtually impossible. Some, including me, have done it via sheer luck but that’s all it is. Warren Buffet and Peter Lynch both claimed that they could not time the market, so if two of the world’s greatest investors can’t do it, who can?

      • Rusticus

        Rodster, based on the policy papers, I think a revaluation for gold and silver is still inevitable. The questions are, then, what “currency” will it be revalued in, and will physical be redeemable for the paper certificates?

        The answers seem to be, “The SDR,” and “Not a snowball’s chance in Hell.”

        Though as a fellow researcher following this line of thinking, I’d be interested to hear how you think this will play out.

        • Rodster

          “Rodster, based on the policy papers, I think a revaluation for gold and silver is still inevitable.”

          Sure, i’ve never denied that. But when I hear gold bugs claim $5, 10, 20, 50K per ounce, no one really knows for sure. That could or might happen under a SHTF scenario and total collapse or the Gubmint could step in and confiscate/steal everyone’s gold. We just don’t know as BAU is still being propped up by central banks around the world.

    • Willie

      I think that he said the Jackass is clueless…

  • The Truth

    Wow YouTube is down. Getting this error:

    500 Internal Server Error

    Sorry, something went wrong.

    A team of highly trained monkeys has been dispatched to deal with this situation.
    If you see them, show them this information:

  • glitter 1

    I can’t recall exactly where I read/saw it,I think it was sometime around the end of 2013.beginning of 2014.A very large option was place for December 2015 for $3,500oz Gold.I remember saying to myself,hmmm,somebody knows something,well we’ll just have to wait and see.
    Seems the timing of that may be just about right.It’ll work for me!

    • Eric

      Lindsey Williams (who I know nobody here finds credible any longer but I do) said a long time ago that they need to get gold to $3,000 by 2016.

      I still think it’s going to 3500 and beyond and would be a whole stinkin paper reserve note that 5 years from now in 2020 we’ll be laughing at how we were debating such tiny numbers back then in 2015.

  • John

    We got to $1900.00 back in 2011 before the Govt & Fed changed the margin requirements for metals and crashed the bull market in gold & silver.

    So we can expect to see 5 – 10 thousand dollar gold after the bush/cheney crime team spent us 5 trillion in the hole, followed by the obama/biden crime team spending us an additional 8 trillion in the hole, once all the manipulation stops.

  • Joe Schmoe

    Yawn. Old news Jimmy. You’re getting a little late on the draw here and even with all your vaunted “sources,” you still don’t see what’s going down.

    It’s SDR’s buddy. The world is not going to go up in smoke. There’ll be an equitable trade balanced SDR reliquidation using the clean balance sheet of the IMF.

    King dollar will take it on the chin, and their may very well be a trade dollar and a treasury dollar, but none of that’s a big secret that comes out of highly placed secret sources.

    More and more it’s apparent the Jackass is just parroting what any interested and assiduous reader can find elsewhere in more reasoned and measured analysis and exposition elsewhere on the internet. Then he repackages it with a little Jackass attitude and some thankfully inimitable Jackass stylistic flourishes and serves it up cold for his audience.

    Congrats on your enterprise Jackass.

  • Ed_B

    The amount that gold will be revalued to all depends on the reason for and purpose of the revaluation. If the purpose is to match the huge amount of debt in the world in preparation for bringing the world’s finances back into balance, then, yes, we could easily see gold set to $40-50k per oz. If it is to partly back sovereign currencies, then it would still be increased quite a lot but not this much. Perhaps this is where the $10k per oz. figure comes from? But a lot of this presumes that the revaluation occurred under today’s economic and financial conditions. It won’t because these kinds of things take a lot of negotiating, voting, haggling, and other procedures that take lots of time to get sorted out. If a decision was made today for this, it would still be at least 5 years and perhaps more, before they were ready to implement it. By then, who knows what the starting price of gold will be? No one knows this because it depends on so many different people and cultures as well as many different economic and financial factors.

    A couple of things are pretty clear in all this, though. First, the Chinese have a LOT of gold and continue to buy it in large amounts. Second, because the Chinese own a lot of gold, they will be very interested in having a say in its price… a BIG say… and it will be in their best interest if the price of gold is as high as possible.

    Because of all this, it seems wise to me to own some gold. It just might be the best currency in the world and one that everyone will want to own. But if we wait until the gold valuation situation is clear, it could well be too late because it could be priced beyond our financial ability to own it. Gold seems relatively cheap today but how long with that last in a world of exploding debt and declining industrial production?

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