The Phaserl


GUEST POST: Those CRAZY Gold Bugs!

by Bill Holter, SGT Report:

Rather than write about the economy, the markets or geopolitics, today let’s look at something a little different. It’s important every once in a while to step back and take in the big picture because we are all guilty of getting too close or “finite” if you will. We fight the daily battles while losing sight of what the war is really about. Gold advocates otherwise known as “gold bugs” have been worn down by the daily battles, some have even forgotten what the real war is. Gold bugs, these are the “crazies” out there who are described as nuts or “conspiracy theorists”. We know now they were not “theorists” at all. JP Morgan’s $32 billion paid in fines along with many other fined and censured firms is proof of conspiracy FACT!

The term itself “gold bugs” is disparaging as if gold advocates are like some sort of cockroaches running around and dirtying up the place. It is true that some “advocates” go off half cocked and see everything as a conspiracy, I have even come across some who are so fervent they believe in gold as some sort of “religion”. It is not. “Gold” as JP Morgan once said “is money, nothing else”. Gold is in fact money, it is real money that has value on its own and not “legislated” or as it is in today’s world, “mandated upon” the public. Most Americans who are reading this may have a difficult time understanding it even though true, many foreigners are nodding their heads with a slight smile! It should be pointed out, everything these crazy gold bugs have been saying about the world from a “fiscal” standpoint has and is in fact coming to fruition. It has not happened “when” nor as soon as they believed it would (me included), because the current insanity of balance sheets could never have been imagined even 10 years ago …however, “timing” does not change “the ending”!

Stepping back and looking at the forest rather than the trees, collectively a very large part of the world is in a state of bankruptcy even though not declared, recognized or admitted. No matter how you look at it or on what level (state, corporate or individual), the standard of living is broadly in decline globally. (Yes I know, that top 1% or even .1% is living well and improving with each drop of sucked blood they receive from the system.) While choosing this topic to write about, I had no idea how fortuitous the timing was. Within 15 minutes of beginning this piece, a link to an interview of none other than Alan Greenspan, Richard Fisher, and Lawrence Lindsey hit my inbox!

I could only chuckle after watching the interview because my entire writing can now consist of “yeah, what they said!”. Rather than write an entire article on this, I believe it might be better to let you watch what I was going to write, and we can move on to the “motives” of these three telling “mostly” the truth. If you watch this interview, please keep in mind this one question “…and the alternative is”?

Why exactly would these former Federal Reservists hint that, mathematically, logically, intuitively and in real life, IT’S OVER! They did back peddle a little bit as the interview went on but “why” or better yet why now? I believe they know what the crazy gold bugs have been saying all along is true and the day of reckoning is very close at hand. They must be trying to get “out in front” of what is coming so they’re on the record for historical and “legacy” purposes. Nothing else makes any sense. Are they “trying” to torpedo the system or to break confidence? I highly doubt it but after watching the interview, would any kid with a paper route invest their money into the current system? Are they trying to bad mouth the Fed now they are no longer employed there? No, in fact, they each one pointed the blame at Congress. It’s Congress’ fault we are in this mess! “They” (Congress) spent the money and made the promises which cannot be honored and will ultimately be broken.

There is a punch line of course, one these three men don’t want you to hear! Actually, the joke AND the punch line are both one in the same, “the money itself is bad and is the core to ALL economic and financial problems!”. You see, Congress could never had authorized all of the spending if the Treasury did not have the “money” in its coffers. Yes Treasury could have borrowed money but would have been restrained if “money” was gold or something “real”. The only way that Congress has been able to get away with bankrupting the country was with the aid of … yes, the FEDERAL RESERVE these guys used to work for! The Fed has in fact underwritten the scheme, if there was no Fed …the leverage could never have been built into the system. Greenspan, Fisher and Lindsey of course know this but they can never admit it. Were they to admit it, it would be an admission that they knew all along they were driving the bus over a cliff …with a roadmap wide open!

All three spoke about the current state of interest rates and the unsustainability of the situation. They ask “why”, for what good reason are interest rates at levels only justified by a crisis? The answer of course is; we are still in a crisis, we never exited and if rates HAD been increased …their greatest fears would have already been realized! Mathematically, rates cannot go higher because of the inability to service interest payments (not to mention blowing up the leveraged interest rate derivatives) would come front and center. They are trying to say the inability to pay is guaranteed to come …but is a future event. If rates were to rise now, it becomes a current event. It’s really this simple!

Lawrence Lindsey even said at the 45 minute mark, “this is how they all end …including Zimbabwe”! All “what” Larry? Fiat currencies? Or central banks who issue them? This brings me to another article which has come out and ties in perfectly. Actually, it ties in so well we can bring this entire article full circle and back to one of the gold bugs most central theses. Zero Hedge posted an article regarding a systemic bet being made by billionaire hedge fund manager Paul Singer. Mr. Singer’s strategy is simple, he calls it the “bigger short”. He believes interest rates have only one way to go, up. He also believes we will see far more staggering defaults than we did in 2008-09. He believes shorting the debt of the world is a no brainer trade and one where you can win ALL the marbles.

Zero Hedge of course picked up on the “minor flaw” in this strategy. The very same flaw I might add that Harry Dent, Martin Armstrong and others are missing. You see, when you “win”, you must be “paid”, but paid in “what” is the question. Assuming Mr. Singer is correct and the system does collapse on itself and he “wins”. His win of course will be HUGE …but, he will be paid in dollars or euros or whatever fiat currency his trade is done in. What will his winnings be worth if the currency itself is worth nothing? It reminds me of Mikhail Barishnikoff in the movie “White Nights”, he had a stack full of worthless rubles and threw them handful after handful up in the air while saying “rubles, rubles, lots and lots of rubles”. He had money …but it wasn’t worth anything.

You see, the currencies themselves are supported by the very debt Mr. Singer is selling short and expects to collapse! Which now brings us back full circle to the crazy gold bugs. This is exactly what they have been saying all along, a debt default will also mean a collapse in confidence of the currencies themselves and direct “fear capital” back into real money. This will create huge demand, force supply into hiding and additionally revalue gold higher because the currencies themselves are losing value and confidence. Gold bugs are not so different from those who see the dangers in the system from overheated markets and over leveraged debtors. The only difference is that these nut jobs want what hasn’t been for nearly 50 years, they want TRUE and REAL “SETTLEMENT”! They actually want to get paid in something real! How crazy is that?

Regards, Bill Holter for;
Holter-Sinclair collaboration

image credit: Wikipedia

Paying for the Past | 2015 Fiscal Summit

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50 comments to GUEST POST: Those CRAZY Gold Bugs!

  • andyb

    Bill: those of us gold bugs can visualize the end game when fiat collapses. But you made a good point, although in an oblique way; when the SHTF, your PMs will be relatively worthless in commerce UNTIL, and only until, a new currency(or devalued existing currency) is established and/or stabilized. That’s why you need six months supply of food and water, and barter items like booze and cigarettes, as well as the means to protect your entire stash.

    • Eric

      gold and silver is used to transfer your wealth into the next paradigm, which will come in most of our lifetimes.

      But you are correct andy, food, water, toilet paper, guns, ammo, first aid, medical, vitamins, supplements, a roof over your head that’s paid for…these should all come first.

      And for the dum dums… bank stocks look outstanding! haha! no thanks.

      • matt

        hm..opened that link and watched as far as the intro..the faces on those 2 parasites was enough !!

      • Ed_B

        Another thing that will be in HUGE demand will be feminine hygiene products, which make great battlefield dressings, and all kinds of soap and other cleaning products. During hard times, infection is one of the big dangers to us all. In combat, body odor can be detected by the human nose at up to 25-30 yards, which is a huge tactical advantage. By keeping clean, this advantage can be neutralized. By having plenty of soap of various kinds, the risk of infection can be greatly reduced. They used to say that “cleanliness is next to Godliness”. It may be but it surely is part of a healthy lifestyle. Staying healthy when professional medical care may be difficult or even impossible to get is an absolute necessity.

        • lastmanstanding

          Ed, I am not planning to let anyone on the battlefield get that close to me!

          Regardless, I get wonderful handcrafted local soap from a friend…in bulk.

          “don’t go down without one helluva fight”

    • Silver or gold will be the primary barter item IE money after a crash. If people think that things will stabilize and a new “by decree” currency will be ordered then they would want gold/silver which could be sold for the new fiat. If people get to choose their own monetary system we would choose what we always choose, silver and most likely gold too.

      • Ed_B

        Agreed. Silver and gold can be a huge help in getting whatever wealth we have across the transition from an old to a new currency. If the dollar dies or goes into an inflationary death spiral, holding our wealth in gold and silver will protect us from all of the death throes of the dollar. Once it is truly dead and a new currency arises, we can use our gold and silver to purchase whatever amount of that we feel necessary. Keeping it to a small amount would be good, though, because we could go through multiple currencies before one arrives that is strong enough to last for a while.

    • Bill Holter

      your metal carries your wealth from here to there.

  • No One

    Yes, andyb, barter will be the immediate form of trade. and it is a great idea to accumulate the items cash either won’t be able to buy or will be astronomically expensive to buy. although PMs will also be a great barter item, it would be wiser to save those for the new system. the USA might move to extremely draconian measures by then though. so, keep in mind a possible move out of the country like pre-WWII germany. water will be the best escape. Know someone with a good boat? Got one yourself? it could save all you hold dear.

    • glitter 1

      “Yes, andyb, barter will be the immediate form of trade.”

      With all due respect,if the US experiences currency collapse,derivative meltdown,stock market collapse that results in a Bank Holiday(no cash,no ATM,no credit card)and subsequent SHTF scenario,it will not just effect individuals,it will result in Businesses and Companies to come to a standstill/shutter,lay off employees.Barter sounds good,but you can’t pay your mortgage,insurances,bills,utilities,groceries for very long without cash flow.A scenario of this nature(for however length of time)will result in a period of complete chaos.Most will be unprepared and shell shocked in the ensuing chaos.Yes after a time Barter will have a place,but you can’t pay your major monthly expenses with barter.Debt Free or closest to it will be the best position to be in,however this is the furthest thing in the vast majority’s mind,which will guarantee the shock and chaos.
      I live in Monmouth County NJ and saw first hand,with Hurricane Sandy what the effects of a week without electricity portends.No gas,no bank atms,no supermarkets,no traffic lights,nothing is moving.On the third day panic was setting in,one can only imagine a three week or longer closure of the Banking System,no atms,no gas,no credit cards,the entire system will grind to a halt.I’ve witnessed it and it isn’t pretty,especially at the gas lines for those one or two that had generator power to pump gas for cash.

      • Jeff

        You are 100% spot on Glit! I too live in coastal NJ and lived through Sandy (exit 30… we had the eye). Had a foot of water on my first floor. It gave me great perspective of what it’s going to be like when this thing kicks into high gear. You are so right about utilities which is what I fear the most. If it happens over the winter you will see people freeze to death in their own homes. How are you supposed to barter some booze for natural gas to heat your home? People who focus strictly on the financial side of this have no idea what they will have to do just to live another day. By the way Glit… what the hell keeps you here in ‘jersey?

        • glitter 1

          Currently my wife and I care for her 92 year old Mother,who lives with us and suffers from advance dementia.We want to leave,but really can’t right now as long as Mom is with us.However,we discuss with regularity about getting the flock out of Jersey!It’s a shame because I/we grew up at the Shore and loved it,but we can’t stand being fleeced with taxes any longer.

          • Jeff

            I wish you well with your MIL. I figured it was something along those lines that keeps you here. My wife and I have two high-schoolers and as soon as they’re “on their way” whether that means college or a job, we’re leaving ‘jersey. And yea, like you, it breaks my heart. Been here my whole life and love the shore but it’s just too damn expensive and too corrupt. I’m looking for more freedom and less taxes. Best of luck from the south.

      • No One

        even if you live in your car you will certainly need food and water. these items are primary on my barter list, not alcohol or cigarettes, although they will have value too.

        • Ed_B

          Yep, as will coffee, tea, and chocolate. Even a little taste of normal times will be VERY welcome to most people.

        • Bill Holter

          you need as much of every different item as is feasible, EVERYTHING will have barter value. How much exactly is BIC lighter worth t someone o needs to light a fire?

      • Ed_B

        “Barter sounds good,but you can’t pay your mortgage,insurances,bills,utilities,groceries for very long without cash flow.”

        Maybe not but at that point NO ONE else will be able to pay their bills either. When something like this affects an entire society, the rules will be forced to change until a new financial situation can be created. We won’t need to pay those bills because no one will be paying them.

        “A scenario of this nature(for however length of time)will result in a period of complete chaos.”

        Indeed it will, hence the need for being independent of the local grocer for 6-12 months while this is all being worked out.

        • Eric

          Personally I think cash flow should come by working for it. Use your labor, clean houses, sell junk on ebay, whatever but do it without risking much capital. Dividends are nice and still work to some degree but you are risking capital. Refinance a mortgage, shop around for new insurance, grow your own groceries. It’s not how much you make. It’s how much you save.

          • Ed_B

            ” It’s not how much you make. It’s how much you save.”

            Exactly right, Eric. I have tried to advise people on how to better manage their finances and am often told, “I don’t have enough money to worry about “managing” it. Wow. This is EXACTLY the kind of person who NEEDS to manage what they have most carefully.

            • Eric

              Ed. lol. I don’t have enough brains to think. I don’t have any useful skills to humanity and I don’t make enough money to buy gold but I did take a nice vacation around the globe last summer.

              What was that line from the matrix reloaded? The merovingian said, “how can one have time if one never takes the time?”

            • Bill Holter

              depends on “what” your savings vehicle is.

              • Eric

                Indeed it does. I like gold and silver, guns and ammo, food and water, but sadly most still can’t get past just floating on credit from month to month.

                When you get paid, you always pay yourself FIRST!

        • lastmanstanding

          +1…when this bitch blows, survival will be the only thing on everyone’s mind.

      • Bill Holter

        distribution will break down.

  • Craig it's all gone

    Bravo SGT (good article), and BRAVO to the wise commentators who frequent SGT and other “worthy” sites.

    It leads me to believe that perhaps as many as 5-10% of the population understands things pretty good. (But of course, it’s probably only about 1-3% who understand things good enough to survive,, if, if, if, they have truly prepared in enough ways to live thru the next 5 years.)

    Save, stack grow, prep enough food, seeds, gardens, and PM’s to make it thru to the “other side” of the calamity.

    How many wise people actually live OUTSIDE of populated areas which will become dead zones of disease, city-wide-fires, starvation, violence, backed up sewage systems, no more grid,,no more water or gas for a long long time.

    How many areas where at least 40% of everybody has a garden big enough to feed 2 people all year long?

    How many people live in areas where nobody lives closer than 100ft or even 200ft from house to house?

    Back at the beginning of the 1900’s,, most people knew how to grow food, preserve food, and live without grid power or city water & sewer systems. Perhaps only 10% of the population lived in big cities with water & sewer systems.

    But today? I don’t think even 10% of the population lives off the city-water-grid system.

    It’s gonna be BAD for those 90%. Prepare wisely, or die fearfully.

    • glitter 1

      I have read that at the time of The Great Depression 55% of the population lived on the farm or able to sustain themselves and some others,today it’s 5%.It’snot going to be pretty.

      • Eric

        glitter… read through the resume section on craigslist. It is definitely getting pretty ugly.

        • glitter 1

          My wife shows me the Public Notice Section of the Asbury Park Press on Saturdays.The PNS is where the Sheriff Sales on Foreclosures/Tax Sales is posted.It’s usually anywhere from 3-6 pages for Ocean County,it’s dozens upon dozens of people loosing their homes and it’s every week,yeah we’re in a recovery all right!

          • Craig escaped Detroit

            I still can’t sell my “Detroit home”,, it used to be worth about $110k (before 2008), and today, I’d be LUCKY to get $20k. Most homes near mine,, sell for about $5k-$10k.

            There are some neighborhoods inside the Detroit city limits, where SO many houses had been bulldozed, burned down & over grown,, I have honestly seen WHITE TAILED DEER running wild in the “grasslands-&-prairies of Detroit”).

            There is some forested land (a 10 mile long “county park”) and small river that runs thru parts of Detroit. some wild life still lives in the area.

            I know FULL well about the “degradation” of the big city, as I have collected TONS of scrap metal from empty, dilapidated buildings, houses, etc,,and sold for scrap.
            Detroit (in 2014) had a back log of more than 60,000 houses scheduled for Demolition.

            I forget how many properties were up for “tax auctions”.. I’m sure it was MORE than 100,000 of them. Such a mess.

            In about 10 years?, Detroit will be reverting back to FARMLAND after 75% of all the structures are burned to the ground, and nature fills in the gaps. But who can grow anything on such contaminated land? GMO corn anybody?

          • Ed_B

            Ya just hafta know what the code words mean. “Recovery” = Wall Street and DC are doing fine. That everyone else is sucking is irrelevant to these ass-clowns. 🙁

            • lastmanstanding

              Ya…I wonder what the alcohol and food tab for these pricks is this eve?

              Just a swipe of the plastic and once again, taxpayers and shareholders are on the hook.

    • Bill Holter

      “ugly” is coming.

  • iguana green

    What will come after collapse is anybody’s guess.
    Let’s try and see what these guys on this video are really saying?
    It seems to me that they all know what is coming as a result of their criminal doings.
    But I listen to these guys and can’t help but wonder why are they saying this stuff now? Are we really near the time? Or do they talk casually about it because there’s years left before the collapse.
    Maybe the bankers are waiting for the first guy to “sit down” at this party so they can go ahead and shut it down and put blame on that first guy sitting down?
    It’s coming alright. But the big question always and still is………….. WHEN?

    • Craig escaped Detroit

      Iguana & everybody,
      Here’s some advice that will never make you lose. Stack PM’s today, and shop for long term food (which does NOT need refrigeration), and plant your gardens, as if THIS is the year when people will starve to death.

      If it does NOT happen this year, then you’ll have had time to PRACTICE your gardening and you’ll have more time to stack more PM’s and food.

      Remember, it’s better to be 5 years TOO early than it is to be 5 minutes TOO late. If you are late, you will die. IF you are early? It just gives a few more Darwin Dummies some extra time to poke fun at you.

      Let them laugh now, because later, you’ll be able to buy their HOUSE, car and boat,, for a 25 ounces of silver and a 20 pound sack of potatoes, 5 gallons of water and 2 rolls of toilet paper.

      Don’t be the poor fool who must beg for the potatoes and toilet paper.

      Now, plant your gardens, stock up on SEEDs, garden chems, and all kinds of “Amish” supplies for growing & living.

    • Ed_B

      “What will come after collapse is anybody’s guess.”

      Maybe it’s just me but it seems clear as hell what will happen after the collapse… a die off of biblical proportions. I do not make this comment flippantly or without a lot of thought going into it. It will be worse than we can possibly imagine… MUCH worse… because it will be completely outside our realm of experience and knowledge.

    • Bill Holter

      being prepared one second too late is a lifetime.

  • James in NY

    Hello Jade Helm
    Shits getting real

    I hate to be the first to point this out, but human meat is plentiful. If you have something they want, you won’t need to hunt for food. You best want survival bad or your not going to make it. Lock and load.

  • James in NY

    Hello Jade Helm
    Shits getting real

    I hate to be the first to point this out, but human meat is plentiful. If you have something they want, you won’t need to hunt for food. You best want survival bad or your not going to make it. I hope your aim is true and blood doesn’t faze you. Your about to enter HELL. Welcome to the purge!

  • Jerry

    Bill Holter is wrong about what JP Morgan said. JP Morgan did not say “Gold is money, nothing else”. JP Morgan actually said “Money is gold, and nothing else.” It makes a big difference. The misquote simply says that gold is money and that is all gold is, only money. The misquote does not exclude anything else from being money however. The correct quote though says that the only money is gold and that nothing else is money except gold. It excludes everything else from being money.

    This was stated by JP Morgan during his testimony before the Bank and Currency Committee of the House of Representatives.

  • James in NY

    No one ever admits blame, the Fed blames congress & the school system. Congress plays the he said she said game. The rest of us in reality land go WTF! The good ole boy train just keeps rolling on.

  • James in NY

    So here it is should you find yourself in an apocalypse scenario…..

    What does human flesh taste like?

    Veal. In his 1931 book Jungle Ways, American adventurer and journalist William Buehler Seabrook provided the world’s most detailed written description of the taste of human flesh. Seabrook noted that, in raw form, human meat looks like beef, but slightly less red, with pale yellow fat. When roasted, the meat turned grayish, as would lamb or veal, and smelled like cooked beef. As for the taste, Seabrook wrote, “It was so nearly like good, fully developed veal that I think no person with a palate of ordinary, normal sensitiveness could distinguish it from veal.”

    • Eric

      That’s probably why the jewish rabbis grind it up, put it in mcdonalds breakfast sandwiches, and call it “kosher.”

      You deserve a break today.

      BLOOD SACRIFICE FOR MCDONALD’S (DVD) feat Zionist Rabbi abe finkelstein & James Wickstrom (HQ)

    • Ed_B

      Those who have actually tasted human meat sometimes refer to it as “long pork”. Not sure if that is because of the texture, flavor, or appearance. In extremis, however, people can and will eat other people. They know that it is not socially acceptable but that won’t prevent the starving from eating something to stay alive.

  • Ed_B

    “He had money …but it wasn’t worth anything.”

    No, he has CURRENCY, not money. Money has intrinsic value, paper does not.

    “The only difference is that these nut jobs want what hasn’t been for nearly 50 years, they want TRUE and REAL “SETTLEMENT”! They actually want to get paid in something real! How crazy is that?”

    Yeah, that’s pretty darned crazy at that. How dare someone want REAL money in exchange for REAL goods? Sheesh. If that catches on, no telling where it might lead. 😉

    It’s not difficult to foresee a time coming in the not too distant future when things that we need, such as food and fuel, can ONLY be purchased with something else of intrinsic value and not valueless paper. When, not if, that happens, those who have silver will be able to buy all that they want and only after the needs of those who have silver to spend are satisfied will those with paper money get any food or fuel.

    • Eric

      Ed, my Dad still thinks that digital credit, cash, and treasury bonds work the same as money right now.

      Of course I told him no they don’t.

      People just don’t get it. They won’t get it until they go to the store and there is no food to purchase, then return home to find their house has been broken into and all the food is gone. They won’t get it until they lose everything.

    • Bill Holter

      they “do work” (present tense) they “won’t” work (future tense).

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