ULTIMATE COST OF 0% MONEY Jim Willie CB December 29, 2010
Use the above link to subscribe to the paid research reports, which
include coverage of critically important factors at work during the
ongoing panicky attempt to sustain an unsustainable system burdened
by numerous imbalances aggravated by global village forces. An
historically unprecedented mess has been created by compromised
central bankers and inept economic advisors, whose interference has
irreversibly altered and damaged the world financial system,
urgently pushed after the removed anchor of money to gold. Analysis
features Gold, Crude Oil, USDollar, Treasury bonds, and
inter-market dynamics with the US Economy and US Federal Reserve
monetary policy. Since the early 1990 decade, the nation’s maestros
have promulgated the notion that cheap money is a beneficial factor
for the sustenance of wealth, for economic development, for the
standard of living, for the robust industries, in general for the
American society. Nothing could be further from the truth, but even
today the reckless US economists from the Keynesian Camp and their
controllers from Wall Street have convinced the multitudes that
cheap money is a good thing. Cheap money comes with a deadly
ultimate cost. The inept professor occupying the US Federal Reserve
Chairman post has gone on record claiming the US banking sector has
a secret weapon in the Printing Pre$$ that it can use with zero
cost, in its electronic form. Nothing could be further from the
truth. The Clinton & Rubin team began the distortion of the
Consumer Price Index, ostensibly to reduce Social Security and
USGovt pension benefits in cost of living raises. They wanted to
cause a massive USTreasury Bond bull market, and succeeded in doing
so. They wished also to bring down the USTreasury Bond yields. The
infamous Fed Valuation Model dictated that as rates rose, stocks
fell. So the scheme to manipulate the bond market began with the
venerable craftsmen of rigged markets, ruined engines, and
mega-fraud schemes. They taught from their high priest pulpits that
cheap money was good for the financial markets. Nothing could be
further from the truth. Many analysts have sought the underlying
root cause for the systemic failure of the USEconomy, the US Banks,
and the USFed itself. One can start in pursuit of answers by
looking at the cause being a sequence of costly wars and the
ensuing monetary inflation, followed by lost industry to
globalization and price inflation. The Vietnam War had a powerful
consequence of inducing Nixon to exit the Gold Standard, a linkage
few if any economists or even gold analysts make. But the true
singlemost cause of wreckage is the artificial low forced cost of
money, the near zero cost of usury. The subtitle to that billboard
is that CAPITAL IS TRASH. Imagine in a nation that developed,
promoted, and exploited the fullest riches of capitalism, embarked
upon a path to destroy capital without even the recognition by its
best brain trusts. Their mental chambers have been totally
corrupted by the justification that inflation is a positive force
that must be managed. Nothing could be further from the truth. The
consequences of artificially cheap money, the wrecked pricing of
usury, ultimately is capital destruction and economic failure. POX
ON HUMANITY My friend and colleague Rob Kirby calls the
artificially low cost of money, the cost of usury, to be the pox on
humanity. It is actually a pox on the entire economy, in which
humanity resides. The Jackass calls it acidic paper mixed in the
cauldron to dissolve capital. The points of this article expose the
most glaring blind spots of USEconomic and USBanking, a
mindboggling failure that has delivered the United States of
America to the doorstep of the Third World. The sins committed are
almost precisely what Banana Republics have done, and faced ruin.
The annual $1.5 trillion USGovt deficits are proof positive of the
failure. Those deficits are grossly under-stated when hidden costs
of war are factored, and when hidden costs of nationalized acid
pits like Fannie Mae and AIG are factored. Leave alone the costs of
endless war and its seamy motives. Consider the many sides to free
money, the forcibly low cost of usury. The 0% usury cost has
destroyed capital, with the recent destruction seen as in an
accelerated phase. The 0% money encouraged asset speculation, not
business investment. The steady stream of nonsensical labels to the
USEconomy are comical. The Macro Economy ten years ago fizzled. The
Asset Economy six years ago fizzled. The bylines of a Jobless
Recovery offer insult to one’s intelligence. Nothing could be
further from the truth, since no such contraption exists. The 0%
money even encouraged drainage of real assets, like gold. The
Clinton-Rubin gang altered the gold lease rate toward 0% in an
experiment. Almost the entire gold inventory was drained from the
USTreasury and its secure storage facility at Fort Knox. It was
essentially stolen from the front door using official trucks. In
defiance, the USFed and USDept Treasury continue to refuse an
independent audit. With artificially low rates come complete
destruction of capital formation, as economic laws have all been
commandeered. The outcome features a shortage of everything
valuable and a climax of central planning to manage the
destruction. Witness the stream of nationalized failures, whether
financial firms or critical industrial firms. Now General Motors
(Govt Motors) produces an electric car twice the price of Toyota,
rotten fruit. Witness the Home Buyer Tax Credit which has ended.
The USFed as central bank has a bloated ruined balance sheet. The
last remaining question for the august USFed is whether they will
declare bankruptcy and liquidate, since their net value is between
minus $700 billion and $1.2 trillion, OR whether they will attempt
to purchase the remaining few $trillion of home loans from Fannie
Mae and take property title to 30% to 35% of American homes. That
would serve as a Fascist Manifesto of collectivism in a sense. The
tragedy is that the USEconomy has chronically suffered from an
absence of capital investment. Some analysts point to a prohibitive
US corporate tax structure. With a recent Japanese decision going
into effect, the USGovt takes the top spot with a 39.5% corporate
tax rate. The European nations range between 24.0% and 30.2% by
comparison. Rather, the Jackass submits, the more pressing and
acute problem is the 0% usury rate. It is common between the US and
European Union, which faces a fracture. The United States shipped
most of its factories to China, in an abandonment of capital
structures and their legitimate wealth engines. The US economists
applauded the move, calling it a Low Cost Solution. It was in fact
a ruinous movement, one that replaced wealth engines with debt
burdens. The climax is coming, with a higher cost structure across
the USEconomy, and shortages where prices are kept down
artificially. US businesses see little prospect in capital
investment, at least not within the United States. They sit on
cash, and see little usage for it. So they speculate with it, a
contradiction that capitalism exists in the US at all. In the next
chapter, future price inflation will be called economic growth, the
next travesty!! Look for an increase in empty sections of
supermarket shelves for food, and gasoline stations shut down. It
will be an end symptom. Look for a collapse of Municipal Bonds, as
the states and cities are in a late stage of implosion. The impact
of the semi-permanent housing bear market has local impact. Even
banks have far less money in ATMs, a signal of the supply chain
being interrupted. That is as much a sign of a supply chain problem
as a solvency problem for the big banks. The ultimate problems are
the cost of money, control of governments, the coordination of
central bank policy, and the control system that enables the entire
fiat system to perpetuate and continue. The desperate response has
been to throw 0% money into the system, primarily the big US banks,
$trillions of worthless money, and expecting to produce a remedy.
It is folly on the stage in global view. Rob Kirby summed it up, as
he said “It is like taking 100 gallons of water into the desert and
pouring it into the sand to promote growth. Nothing happens,
nothing grows, and people die of thirst.” It is the climax folly of
the Keynesian attempts, something in fact that Keynes himself never
advocated. EXTREME BRUTE FORCE TO MAINTAIN For the 0% cost of usury
to be enforced, all connected financial structures must be attuned,
distorted, and brought in line with the artificially priced
markets. The enforced long-term rates are managed by means of
Interest Rate Swap contracts. Their volume went in overdrive. The
Interest Rate Swaps have inherent embedded USTBonds built inside
them. The IRSwaps produce therefore huge USTBond demand, enough
artificial demand to enable the finance of unlimited USGovt
deficits. The maestros are not stupid, just corrupt. In fact, 84%
of all credit derivatives have no end user, an exercise of pure
bond market control. The portion of the credit derivatives with
bonafide end users is negligible. Another $150 trillion in total
credit derivatives from bank holding companies does not show up in
the graph, which is from commercial banks. Recall Goldman Sachs
changed their status to holding company, partly to conceal their
credit derivative holdings, but also to qualify for USGovt slush
funds in the TARP Fund program. The group of big banks have total
derivatives greater than the global GDP, which should offer a
warning signal to economists, but instead they refer to it as
providing stability in an unstable world. The USFed claims that the
bond market determines long-term rates, but it does NOT. The
Interest Rate Swap contract serves as a powerful mechanism to
control long-term rates, using leverage from the more easily
enforced short-term side of the USTreasury Bill market where the
USFed exerts daily control with Fed Funds. Note the skyrocketing
interest rate derivative tally, which is 84% of all credit
derivative contracts. Note the miniscule volume of credit
derivatives with actual end users, in the lower flatline. This is
the smoking gun of ruined financial markets, in particular the bond
market whose job it is to set the cost of usury!! Thanks to Rob
Kirby for a fine graph. In a recent interview, a fool on a
financial network recommended JPMorgan as a stock investment,
claiming the firm would benefit from rising interest rates. The
level of ignorant recklessness is without bounds. As the 10-year
USTreasury and the 30-year USTreasury yields have risen markedly in
the last six weeks, the stress to JPMorgan has been so acute that
some astute financial analysts like Jim Rickards have suggested
that JPMorgan is burning money at an unprecedented clip, and at
great risk. The enforcement of 0% money by IRSwaps has become
extremely costly, as the leverage has backfired in JPMorgan’s face.
It is a reflection of the burned capital. Take a walk down history.
Clinton made a deal with the Wall Street devils. In the Clinton
Admin, from January 1993 to January 1995, Robert Rubin set the
stage, did the spade work, and made the necessary preparations.
During that time, he served in the White House as Assistant to the
President for Economic Policy. In that capacity, he directed the
National Economic Council, a creation by Clinton after his
coronation in the presidency. With his squire Lawrence Summers,
they developed the Gibson Paradox at the USDept Treasury. That
provided the high priest ideological dogma required to alter the
cost of usury. Many recall Rubin as the Goldman Sachs superstar of
currency trading desks. He was also head of their gold trading desk
in London through the 1980 decade. He became Treasury Secretary in
the Clinton Admin in January 1995, succeeding caretaker Lloyd
Bentsen. From this important privileged post, he prepared to raid
the national gold inventory for private Wall Street benefit. The
volume of credit derivative growth accelerated in the Clinton-Rubin
years, only to skyrocket since. The chart is proof. That unbridled
growth occurred at the same time as the Tech-Telecom Boom &
Bust, the Housing-Mortgage Boom & Bust, and the climax of
ruin when the US banking sector died in September 2008. It will no
more be revived than a dead man in a morgue will be revived from
massive blood transfusions. The US banking sector has no pulse.
Blood from large scale transfusions continues to collect in the
form of Excess Bank Reserves held at the USFed, obscene bank
executive bonuses, each a major eyesore never seen before in US
history. ALL MARKETS BADLY DISRTORTED Speculation became the norm,
not capital investment. The ugly response has been heavy asset
speculation, not investment in capital intensive industry. A clear
consequence of 0% usury cost is the massive distortion of all
financial markets. The trend has been for US industry to leave the
nation, and seek lower labor costs, less federal regulatory
obstacles, to lands where capital is valued and industrial output
is held in the highest regard. The steady stream of wrecked markets
will be written about in US journals for a generation. Witness the
mortgage bond market and its ruin. Its pathogenesis includes a
particular Wall Street specialty with leveraged Collateralized Debt
Obligations useful to hasten to vanishing act of capital. This was
financial engineering at its finest. A typical CDO bond that lost
15% rendered the bond holder with a total wipeout, a complete loss.
The housing market led the decline in mortgage bonds, as collateral
was eliminated, as revenue stream was eliminated, as bank
portfolios suddenly saw a climb in the REO bank owned properties
taken in foreclosure. The homes clutter the bank balance sheets
more with each passing month in a heap of fetid rot. The control
mechanisms to maintain desired price ranges for bonds, stocks,
energy, and currencies were available. However, the property market
failed on the maestros since Fannie Mae & Freddie Mac were
forced to show financials on their balance sheet. The Chinese were
actually a key player in the housing & mortgage blowup, as
they abandoned the GSE Bonds. In doing so, they forced the issue
and urgently pressured the USGovt to indeed prove they backed the
Fannie Mae Mortgage Bonds, the so-called USAgency Bonds. The big US
banks continue to speculate, and not lend much to businesses. The
0% usury cost is like a flesh eating disease. It causes gross
negligence on asset management. It causes financial counselors to
suggest speculative investment portfolios. All things become a
grand carry trade game. The big US banks prefer to play the
USTreasury carry trade, than to engage in business lending. Capital
controls keep the money in the bank casinos. Even the stock market
has been exposed as a fraudulent private game. The shock in May to
the stock market exposed the role of Flash Trading. The culprits
were not prosecuted for either market rigging or insider trading.
They continue to ply their trade. The flash trading mechanisms
control the stock market similarly, like Interest Rate Swaps do
with bonds. In the aftermath, it was revealed that ten stocks can
dominate half the daily trading volume. It was revealed that the
average time held for stocks is minutes, not months, in a grand
Round Robin of Wall Street firms buying and selling stocks to
themselves, thus propping stock prices. It was revealed that over
80% of stock trading volume was from the empty chamber of Flash
Trading. Another ruined market, verified by almost 30 consecutive
weeks of outflows from US stock funds. The American public has
States, the destruction of capital is so widespread, so universal,
so perverse, that the maestros encouraged the development of
vehicles extremely useful to accelerate the destruction. An
addictive American mentality helped the process, fresh off the Me
Generation. Recall in 2001 when USFed Chairman Greenspan showed
open frustration with the bond market. Greenspan openly urged the
long-term interest rates to come down, so that housing prices would
rise and support the consumer society. He attempted (and succeeded
for five years) to prevent the natural course of a major stock
market plunge to be followed by a major housing market decline, as
history would have dictated. He knew it would have been the end of
the US financial structures, with big US banks going bust. That is
whey he resigned in late 2005. He did not wish to preside over his
handiwork disaster. He did not want to reap the harvest of the
seeds of destruction he sewed. Greenspan essentially assured the
USTreasury Bond market that the vigilantes would be killed off, and
enlisted the aid of JPMorgan with Interest Rate Swap contracts.
Notice the acceleration in the above graph after 2003. The housing
market boom ensued. It was unique. This time around, second
mortgages were easy. Home equity lines of credit were easy.
Origination fees (points as closing costs) were held down. Some
people refinanced every 12 to 18 months. People without income had
home loans approved. A street bum in St Petersburg Florida owned
four properties bought with nothing down before he died. Income and
asset verification became an annoying irrelevance. The end result
was that the entire US housing market morphed into a gigantic ATM
machine. Cheap money overbuilt the homes (MacMansions) and brought
the 2nd and 3rd homes into play. From the year 2000 to 2007, the
amount of mortgage equity removed from assets was astonishing.
People ate capital in a veritable frenzy. The graph shown here is
of equity withdrawal as a percentage of disposal income. From 2% to
8%, the trend was revealed as a quadruple. The trend was cheered by
USFed Chairman Greenspan. With the home price declines came a new
American phenomenon, negative home equity. The current figure is
23% of Americans owe more in their home loans than their homes are
worth on the market. They are prisoners of capitalism gone awry.
The ruin of the US homeowners is the symbol of the US systemic
failure. So are food stamps and tent cities. The trend turned to
tragedy. Instead of investment in capital equipment, factories, and
providing the fertile ground for robust job growth with legitimate
income, the nation did the opposite. Investment instead was made in
the $trillions on devices to drain capital, namely homes, shopping
malls, and big box retail stores. The nation turned into a
consumption engine whereby 70% of the US Gross Domestic Product was
devoted to consumption. In a sense, the nation ate their homes and
shopped until they croaked. Following the binge, came the current
trend with mortgage defaults, home foreclosures, and bankruptcies.
Lest one forget, the tent cities of homeless. To think that a
collection of homes could supplant a collection of factories to
drive economic progress and sustain a standard of living is the
greatest folly in the history of the USEconomy. It is the last
chapter of failed Keynesian policy. Remember well, it was blessed
by Greenspan as good and wholesome and legitimate. He also blessed
as sophisticated, legitimate, and robust the entire offload of debt
risk with credit derivatives. THE GREENSPAN LEGACY IS OF RUIN, but
in particular ruin from 0% usury cost as its root disease. The
perversity is so deep that home builders have often morphed into
arbitrage outfits, who purchase wrecked development project homes
and sell them to Fannie Mae. Even PIMCO has become a major buyer of
wrecked housing portfolios with hopes to unload them onto Fannie
Mae. Even big US banks have made the rules for home loan
modification so twisted, that huge 25% profits can be snagged by
merely forcing foreclosure, then sending the wreckage through the
FDIC. The rules have been changed to favor the banks. Other
arbitrage funds have sprung up to deal with mortgage backed bonds,
as the vibrant funds have turned into processors of ruined capital.
Regard these all as recyclers, no different than scrap metal, scrap
paper, and scrap plastic processors that we are familiar with. The
nation has not only created vehicles to drain and deplete capital,
it has created recyling process plants to handle the wrecked
capital. For the unrecoverable toxic waste paper, go to Fannie Mae.
So the investment trend enabled accelerated depletion of capital,
the shortage of factories, and the removal of legitimate wealth
engines. It is like making bread without wheat. FREE LICENSE FOR
FRAUD Few if any analysts make the connection that 0% usury costs
and heavy speculation instead of capital investment go hand in hand
with the fraud strewn about from the Fascist Business Model. Put
aside the war machine, its missing $2.2 trillion in defense
appropriations, its missing $50 billion from the Iraq
Reconstruction Fund, its annual sacred defense budgets that surpass
the entire world combined. Focus instead on the bank fraud,
centered upon mortgage bond fraud, Municipal Bond fraud, Treasury
Bond fraud, and the diverse counterfeit of same. See the packaging
of quickly ruined mortgage bonds as unqualified buyers rendered the
bonds worthless in double quick time. Then the ruined mortgage
bonds as housing market declines rendered the bonds worthless (or
badly impaired) despite the buyers having good credit. See the
auction bond fraud for Muni Bonds across the land. See the naked
shorting of USTreasury Bonds in order to supply operational funds
that kept financial firms humming, made evident by Failures to
Deliver. Not one prosecution has taken place against a Wall Street
bank. The civil cases all result in a settlement that later proved
to be bland. The license to fraud has become a mere cost of doing
business for the large corporations, led by the big US banks. The
0% usury cost is the business card to the national fascism
umbilical cord to the USGovt from the banking sector. It enabled
the development of the Syndicate, and its flourish. The economists
have been reduced to carrying clipboards to track the fraud as they
utter mindless drivel about the justification of Too Big To Fail.
The slogans should be TOO BIG TO SAVE and SO BIG, SO CORRUPT. The
extraordinary efforts and attempts to save the big US banks will be
the precise policy that leads to systemic failure and the
USTreasury Bond default, all in time. The corrupted financial
markets are the province of the Syndicate in charge, which rules
over the SEC, the CFTC, the FDIC, and the debt rating agencies.
They also control the USCongress, painfully evident in the outcome
of the Financial Regulatory Bill that enhanced their power. They
rule from their exalted perch at the USDept Treasury, where Goldman
Sachs has presided since 1995. They and the USFed have strangled
the nation with a 0% usury noose. LIGHT A FIRE UNDER GOLD &
SILVER The US economists and the US bank brain trust provide many
lousy analysts. They are good propaganda artisans, a craft
developed in the 1930 decade in a land not so far away. Their
repeated lies are echoed by the obedient US press and financial
networks. The current drivel they spew is that Gold is in a bubble.
Nothing could be further from the truth, since the USTreasury Bond
market is the global gigantic bubble. Gold cannot be in a bubble
since gold is money. Money is never in a bubble, since, well, it is
money. Gold might someday be subject to downdraft pressures, if and
when the paper asset world is so incredibly depressed that the
value of bonds goes below the cost of producing the embossed raised
print colorful bond certificates. A precedent can be drawn from in
the housing market, where in some areas the price of houses has
gone 15% below construction costs. When USTBonds are valued less
than their printing costs, let me know then and only then about a
gold bubble. The US economists and the US bank brain trust are
lousy analysts because they miss, overlook, and ignore the four
primary driving forces behind the gold & silver bull
markets: When the price of money is well below the inflation rate,
gold rises and silver soars When government deficits go far beyond
the ability of bond markets to finance, gold rises The global
monetary system has been exposed as faulty, supported by debt, so
gold rises No restructure or remedy is permitted, only gigantic
bank welfare, so gold rises. These are four principal foundations
to the valuation of Gold within the fiat money system. The truth is
that Gold is constant, and the USDollar and other paper instruments
like assorted types of bonds vary in value relative to gold. The
mindset of the US public and European also is so twisted that they
believe Gold varies in price. It is fixed. The USDollar and various
US$-based bonds are losing value so fast that Gold appears to be
rising in a breakout in all major currencies (US$, Euro, Pound,
Yen). The USDollar and USTreasurys are in a powerful bubble, at
risk of puncture. That puncture is the USTreasury default, with the
associated declaration that the USDollar is no longer valid legal
tender to purchase imported products in the world market. Think of
the USEconomy bidding up a currency in order to purchase crude oil.
With each successive month, the USDollar would go lower in order to
supply the crucial supply of oil to the USEconomy. The USDollar
will someday not be legitimate to satisfy commercial trade
contracts. That day will see the United States slide into the Third
World. It is moving quickly in transition through the Second World
with its tagline of Jobless Recovery. The real price of money is
somewhere around minus 7%. Calculate the price inflation as 8% by
the Shadow Govt Statistics folks, up from a steady level a smidgeon
lower for several months. The true CPI is rising. Subtract 8% from
the cost of money at 1%, given generously, tied to the prevailing
short-term USTBill yield. So the real price of money is big
negative, like in the minus 7% range. Translated, it means
generally that paper based financial assets (include housing) are
losing 7% per year in value. Long ago, when mortgages dominated in
the home valuation process, the home lost its status as a hard
asset and became a financial asset adjunct perversion, a proxy.
Translated, that means to borrow money and invest in hard assets,
one should expect a positive 7% annual return, conservatively
speaking. It pays to invest in Gold during such conditions. It
always have been profitable to invest in Gold during such
conditions. The US economists and the US bank brain trust
consistently ignore this important point. The spiraling USGovt
deficits have become a regular fixture, with gaping shortfalls of
$1.4 trillion each year. Remember in mid-2008 the nation was told
that the $1.4 trillion deficit would be reduced to below $1
trillion easily in 2009. It was not, and repeated the $1.4
trillion. Remember in mid-2009 the nation was told that the
previous two $1.4 trillion deficits would be reduced to below $1
trillion easily in 2010. It was not, and repeated the $1.4
trillion. Finally, the USGovt deficits in current projections are
estimated to be well above $1 trillion, as reality has struck. The
$1T deficits are a permanent fixture. Thus the Quantitative Easing
#2 is in place, since the USTreasury does not want the shame from
failed auctions to reflect badly on the USDollar or the other
galaxy of US$-based paper assets. They masquerade as containing
value, when they are largely trash items. They can no longer
compete against Gold. If truth be known, Wall Street executives are
trashing their corporations and buying gold in private accounts as
counter-parties. They will someday dump their corporate losses on
the USGovt and ride into the sunset zillionaires. Then comes the
USTreasury default. The global monetary system is crumbling, as all
major currencies are mired in deep trouble, stuck in quicksand,
pulled down with perennial deficits and extremely sluggish
economies. The secret is out, the jig is up, that the major
currencies are nothing more than denominated debt coupons. These
arguments of a broken monetary system, the search for legitimate
safe haven, the colossal aid packages for the banks that broke the
system, the corruption within the big US banks (see mortgage bonds
and home foreclosures), these factors have been thoroughly
discussed in Jackass articles to date. But the topic of 0% usury
cost is something that needs to be discussed more widely and fully.
The 0% usury cost encourages a war of investment in tangibles led
by gold & energy, of investment into tangibles and out of
the bank-run financial centers. The fast rising price of gold
& energy (silver too) are a vivid screaming report card of
failure. Money in the form of gold represents money taken out of
the corrupted banking system. Its value rises, or more accurately,
the value of all else besides gold falls. Witness the climax of
failure. The fact that the big US banks are in no way even
attempting to remedy, reform, and restructure the system is the
additional jet assist to Gold & Silver. Any true
restructure would begin with their liquidation as corporations,
with fire sales of their nearly worthless assets rotting on their
balance sheets. They would be forced to cede power and control of
the USGovt and its Holy Grail, the USDollar Printing Pre$$. That
event will come tragically only during a USTreasury default and
assumption by the Receivership Tribunal, already formed. As more
phony money is devoted to false fixes, more bank welfare, and
wasted goony projects like Clunker Cars, Home Buyer Tax Credits,
General Motors buyouts, Fannie Mae nationalization, FDIC home
foreclosure processors, TARP Funds, and the many charades that make
the USFed a virtual banking system, the Gold & Silver
prices will seek their rightful value. Gold will move well past
$2000 per ounce, and Silver will move well past $50 per ounce,
before June 2012 as my forecast. Then they will double again when
the USTreasury default goes face to face with a new global monetary
system. The Boyz are soiling their pants with the runup in
USTreasury Bond yields, a well-kept secret. So they are trying to
paint the tape on the Gold price, trying to keep it down. It will
not work. They cannot paint the Silver price tape at all, since it
has great industrial demand. It is making new highs, trampling
JPMorgan in the process, in a Silver Shetland Pony stampede. The
Golden Stallion stampede comes soon enough. THE HAT TRICK LETTER
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