The government’s special inspector general in charge of oversight of the Troubled Asset Relief Program (the “TARP” bank bailouts) – Neil M. Barofsky – wrote a stunning editorial for Bloomberg yesterday, concluding:
Americans should lose faith in their government. They should deplore the captured politicians and regulators who distributed tax dollars to the banks without insisting that they be accountable. The American people should be revolted by a financial system that rewards failure and protects those who drove it to the point of collapse and will undoubtedly do so again.Only with this appropriate and justified rage can we hope for the type of reform that will one day break our system free from the corrupting grasp of the megabanks.
See this for background.
This is not the statement of a raving blogger (although some of the best reporters write blogs) or a conspiracy theorist living in his mom’s basement (even though some conspiracies are real).
This is the former government official who oversaw the bailouts.
And just where did all that TARP money go?
July 21, 2012
Today billionaire Eric Sprott spoke with King World News about his greatest fear. Sprott literally shocked KWN by saying, “My biggest black swan, Eric, is that I think I’ll be right one day. My worry is that one day they just shut everything down.” Sprott, who is Chairman of Sprott Asset Management, also added, “They (central planners) say, ‘You know what, we just can’t keep this up anymore, the whole Ponzi (scheme), we just can’t do it and we shut it down.’”
Sprott went on to say that all of the markets would then “freeze.” But first, here is what he had to say about the ongoing ciris in Europe: “It’s beyond the ability of governments to deal with all of these weak countries. There are only one of two answers: Yes, someone could print as much money as they want. Maybe they could print $5 trillion and say, ‘We’ll back up all of the banking systems.’”
“And then one could maybe say the problem is solved. Of course the problem is, if they print $5 trillion, everyone knows they can’t back it up with anything. Then you will lose confidence in the currency and you will go into hyperinflation because people will realize that real things are safer than paper things, including bonds and stocks and things like that.
So there are only two choices, they’ve got to print or there are going to be some defaults, which is the natural offspring of a Minsky moment....
“Sooner or later you have to write off the debt or you have to inflate it away.
Continue reading the Eric Sprott interview here
Embry - Expect Shortages Of Gold As Soon As Next Month
From Eric King, KingWorldNews.com
July 23, 2012
“We are moving toward a fundamental shortage of gold, and I believe it may start as soon as next month. I think the bottom is being put in right now. You see once again with the stock market trading lower, they just turn the algorithms on and grind the price down.
But this action is all just building a massive base in gold. I think the big issue going forward is this growing shortage of available physical gold. I strongly believe one of the reasons for the shortage is a lot of it is headed East. The last four or five months of the year gold should challenge and easily take out its all-time high.
For what it’s worth, there is an enormous amount of interference in the gold and silver share market. I think that will end as soon as gold and silver break their highs. When that happens, I think it’s going to unleash a rally in these stocks that is absolutely going to stun people. People will be shocked that don’t understand the full extent of the manipulation and how cheap these stocks have become as a result of it.”
Continue reading the John Embry interview here
London Trader - The LBMA Gold Price Fixing Scheme Is Over
From Eric King, KingWorldNews.com
July 20, 2012
With many global investors still concerned about the recent price action in gold and silver, today King World News interviewed the “London Trader” to get his take on these markets. The source told KWN that “... the LBMA’s price fixing scheme is coming to an end.” The source also said that because of this, the eventual “move in gold and silver will literally frighten most people.”
Here is what the source had to say: “It is now beginning to be discussed, openly, that the unallocated gold is not at the banks. This is definitely the case with many of the allocated accounts as well. The reason I’m pointing this out is you have a more ‘open’ disclosure that’s taking place with regards to this.”
“This tells me there is something major that is happening behind the scenes. It tells me that the LBMA’s price fixing scheme is coming to an end. You have these naked short positions, that are incomprehensible to most people, in both gold and silver....
“As this scandal is brought to light, that the unallocated gold and silver are not there, and much of the allocated gold and silver is not at these banks either, and as you see these naked short positions unwound, the world will witness a massive price rise in in both gold and silver. The move in gold and silver, at that point, will literally frighten most people. They simply won’t understand what is happening.
When someone goes to a bank and deposits money, if you look at the small print, you don’t actually own that money, you’ve simply loaned it to the bank. The banks will then turn right around and lend ten to one or whatever leverage they determine to use with your cash. Well, when there is a run on the banks, as there has been in Europe, the money is printed by governments and given to the customers to calm things down.
The underlying problem here is that when the run on physical gold and silver begins, how will the banks print the gold and silver? It’s not possible. So something is brewing here. There’s no smoke without a fire. The reason this information is beginning to be discussed more openly is because of legal reasons. They need to be able to say, ‘We disclosed to people that the gold and silver wasn’t there.’
Yes, this will include a scandal at the LBMA in those unallocated accounts. The paper leverage in the LBMA system is off the charts. Investors believe their gold and silver is sitting in those unallocated accounts, and they will be in shock when they find out it isn’t there.
We are talking here about a run on the bullion bank. As this unfolds there will be a failure. These people will only receive the fixed price before trading is halted. This will not be called a default. Then there will be a massive gap in the price of gold and silver. But the bullion banks will not be allowed to go bankrupt during this process. There is a ring of counterparties here. If one of them fails, the whole system can fail. So they will not be allowed to fail.”
Continue reading the London Trader interview here
It should be OBVIOUS now, print money - Precious Metals WIN. Default on global sovereign debt - Precious Metals WIN.
IT'S WIN WIN FOR GOLD AND SILVER!!!
Got Gold You Can Hold?
Got Silver You Can Squeeze?
It's NOT To Late To Accumulate!!!