JP MORGAN GOBBLES UP A MINIMUM OF OVER 31 TONS (POSSIBLY UP TO 186 TONS!) OF PHYSICAL GOLD!

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Back in August 2015, I noted that Goldman Sachs and HSBC had taken delivery of a huge tonnage of physical gold, probably purchased near the lows. Physical bars of gold are, by definition, a very long term investment in the yellow metal. At the time, the two banks were telling clients and others not to buy gold, even as they were loading up on it, themselves.

Let’s fast forward…

Starting in December 2015, JP Morgan began buying tremendous quantities of physical gold, as opposed to paper/electronic gold futures, forwards, ETF certificates etc. From December 1, 2015 to December 29, 2016, the big bank purchased and took physical delivery of over 31 metric tonnes worth of bars of the yellow metal for its house account at COMEX alone.

In other words, it now has a physical gold pile which, at minimum, is worth over $1.1 billion at $1,140 per troy ounce, and it is an asset of the corporate bank. By May, 2016, unlike the actions of GS and HSBC in buying while advising clients to sell, analysts at JP Morgan were beginning to encourage customers to buy gold also.

Let me repeat that the enormous purchase of 31+ tonnes of traceable physical gold occurred at New York’s COMEX exchange. The so-called “OTC” gold market in London is five times larger than the gold market in New York City, and if they were buying at COMEX, they were probably buying in London also. The problem with London is that the “LBMA” is not a formal exchange with disclosure rules and regulatory oversight. It is simply an informal collection of banks who operate by agreeing to a common set of rules of engagement. Transactions are secret.

We will never know how much physical gold has been purchased in London by JP Morgan, HSBC, Goldman Sachs or anyone else. However, if JPM’s purchases happen to be synchronized to market size, with New York’s COMEX, they will have purchased another 155 metric tons, for a total of 186 tonnes of gold. Either way, JPM is now in the realm of a sovereign sized gold holding. Most countries hold less than 31 tonnes of gold. Only a handful own more than 186 tonnes.

Why would a commercial bank, like JPM, make such a huge investment in physical gold bars? Is it just opportunism? Is it because they know that gold prices are going to rise dramatically? Do they know this because, as many have alleged, the company houses the most important or some of the most important people who run the gold price manipulation scheme? That’s fun to say but it makes no sense as a explanation for the purchase of so much physical gold. JPM may or may not be a gold manipulator, but that fact is irrelevant with respect to this question.

Generally speaking, the idea behind gold price manipulation is to mint a quick paper profit. If you can convince a foolish and incompetent American President to subsidize your front-running operation, by claiming that it is a way of “stabilizing the value of the US dollar”… all the better. Getting a government subsidy increases profits and reduces risk. But, there is no good reason to choose physical gold as your avenue of manipulation and every reason not to. For one thing, it is a non-leveraged investment. For another, it is more difficult to trade than shares of GLD, other ETFs, gold futures contracts, and mining company shares. All of the latter are far more efficient investments so long as the question of being able to get the real thing doesn’t come up.

In fact, all the big banks, including JPM have bought significant stakes in various gold mining companies over the last 2 years. Why spend money to store and insure physical bars of gold when it is more efficient to mint your profits by simply buying more mining company shares? That’s why the purchase of so much physical gold is puzzling. It seems to me that something bigger must be going on behind the scenes.

JP Morgan is the US Treasury and Federal Reserve’s most important proxy in financial markets. For example, it manages the Fed’s entire mortgage bond portfolio. Physical gold is not normally something that is on the top of the trading floor’s list of preferred products. These purchases are now tying up a significant percentage of the bank’s capital. In order to put so many resources into physical gold bars, JPM’s top management would have had to approve the action. That means the purchases must be supported by some very good underlying reason.

Top JPM management knows a lot more about the inside story about what is going on, behind the scenes, than we know. Is something big about to happen that will dramatically raise the value of real physical gold bars, above more convenient forms of gold ownership? I can think of only two scenarios that would make a large pile of physical gold bars the best corporate investment for a big bank (as opposed to its customers).

One scenario is that JP Morgan knows we have reached the end game and are on the cusp of the long anticipated collapse of the synthetic gold market (ie: gold futures, forwards, “unallocated” storage, maybe GLD etc.). If the gold derivatives market collapses, people will accept only physical gold for a very long time afterward. That would make a physical gold hoard far more profitable than even shares of a mining company. Remember, it takes time to mine more gold. But, the holder of a huge pile of existing bars can sell them, right away, when the level of panic is extreme, at the very top of the market, when demand (and prices) are at their highest.

Another scenario involves being at the cusp of a massive change in the world’s monetary system. If JP Morgan’s top management knows that physical gold is going to be a key part of what replaces the fiat US dollar as the international standard of exchange, and if that change is not very far in the future, it would make perfect sense to buy physical gold. Again, the holder would be in an excellent position to sell the gold bars to third parties (mainly, I suppose, to other banks and even nations) at the very top of the market.

The scenarios I’ve listed, above, are the only ones that come into my mind at the moment. That is not to say that the list is complete. Are there any more possible scenarios that provide a logical answer as to why JP Morgan is investing so much of its capital in such a huge number of physical gold bars?

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20 thoughts on “JP MORGAN GOBBLES UP A MINIMUM OF OVER 31 TONS (POSSIBLY UP TO 186 TONS!) OF PHYSICAL GOLD!”

  1. Considering the huge silver stock pile JPM owns, I can’t believe their gold ownership bodes well for small investors like me. I own silver too—ever since 1981. And it is the same price now as when I bought it.
    Could it be that JPM realizes that the paper game is in its death throes and so must own physical gold in order to continue to depress the gold market?

    1. When the crash comes and the banks fail, those ‘paper gilts’ will be in the bank and become bank property. This is why people are expecting Governments to bring in laws to enable them to ‘confiscate’ peoples physical gold & silver.
      But banks having physical will allow them to continue trading, as Gold becomes standard for all currencies.

  2. JP Morgan is a giant ship. Gold is an anchor. Nice to have a heavy anchor when the big storm approaches. It is not enough the be tied up at somebody else’s dock as that could give way. The Captain knows that the anchor is heavy and is a liability as the ship travels from port to port rarely using the anchor at all. But still it must be bought (sic).

  3. Please consider that JPM is effectively a branch of the U.S. government , so it’s actions may well be on behalf of the U.S Treasury. Seems like a piddly amount of gold in that case ? Well if you’ve squandered the 8,000 tons previously in Fort Knox, you’ve got to start somewhere.

  4. It seems quite likely they are buying because of the science I have developed, that is, economic science [they all know me of course and what I do]. I paste below this info for you now:

    1.) my task to build an economic science began around 1990 or so but much preparation was required before even beginning to undertake this work and that preparation effectively started when I was 16 yrs old, in 1974 2.) for many years I was examining the history of science and realized that I should be able to create a science of history 3.) my French father-in-law, a medical doctor and surgeon, gave me in the mid1990s a one page summary of the most important events in history, published by a French encyclopedia; I carried this around the world with me, in my travels, and one day I suddenly understood why Johann Gutenberg was able to invent the printing press just several years after two major events, the fall of Constantinople in 1453 and the end of the 100 yr War, also in 1453; these two events marked the “bottoming out” of the world economy at the time, and hence the very rich, the powerful elite, were very much weakened and even destroyed which meant that they could not stop powerful and brilliant inventors like Johann Gutenberg 4.) it appears that the “bottoming out” of the economic cycle took place sometime between the 12th and the 15th centuries, and this is confirmed by the growth of the population 5.) I prefer to use the term “wealth-creation science” instead of the commonly used “economic science”; we are creating wealth, and it is the science of creating wealth that we need to examine and study and develop
    6.) CENTRAL THESIS OF THEORY: the human animal lowers the cost of transmitting information from one brain to another and this results in science/knowledge and science/knowledge results in the development of the 3 fundamental sources of economic growth and development – which means of course wealth-creation; there are three distinct phases of human history, three periods where the cost of transmitting information/knowledge was dramatically lowered, resulting in an explosive increase in the fundamental sources of economic growth and development; between each phase there is a clear downturn, a collapse of living standards and growth as well as population 7.) there are THREE fundamental sources of economic growth and development: energy for power ideas/knowledge/technology for efficiency the cycle for adaptation
    8.) there are THREE secondary sources of economic growth and development: commerce debt central banking power/policy 9.) since the year 2000 it appears that we’ve not had any economic growth in the United States, we may have had a little growth, but adjusting for inflation I am doubting there has been any significant growth, and the stock market on Wall Street reflects this 10.) GDP (Gross Domestic Product) is an inaccurate and bogus measure of wealth-creation and economic growth 11.) the USA is a very corrupt place, the government is very corrupt, the ruling establishment is corrupt and indeed criminal; the media is criminal; the powerful in Washington are like a criminal syndicate 12.) my work has resulted in me identifying EIGHT LAWS which make up the core of my science (see image at worldaffairsmonthly.com) 13.) this science of mine should enable us to accurately predict in general outlines the future, especially during the transition from Phase 2 of human history to Phase 3 14.) this science of mine is naturally undergoing “testing” and while I am confident it is highly valuable – it certainly is in my opinion the first real economic science – I do think it will require another five years or so of “testing” and confirmation 15.) there are only two “unknowns” at this point: the length of the transition to Phase 3 of human history the depth of the transition 16.) the United States will disappear like Rome, it will disintegrate and disappear, from bankruptcy, civil conflict and war; virtually all the prominent American institutions will be destroyed 17.) what to do with your investments? I am not a professional investor, though I do have plans to launch a hedge fund destructivecapital.com; I recommended 4 sectors in 2007 and I would still recommend those; I can explain my specific investment advice in an article which I will write; precious metals will rise in
    value very high as we pass through the transition to Phase 3 of human history; when Phase 3 begins, say in 20-25 yrs, the precious metals will sell off, violently 18.) the value of money will go to zero during the transition to Phase 3 of human history; precious metals and “tangibles” will go very high in value, land, diamonds, tools, anything which can effectively serve as money; I think it is possible for gold to go as high as $100,000-200,000/ounce; silver to $20,000; copper will go even higher in relative terms, because it will be the precious metal for the masses 19.) another innovative approach to economic science is my application (original it seems) of the 80-20 rule to the financial markets; 80% of investors pile into the markets in the last 20% of the bull or bear run; and this will be the case with the transition to Phase 3 of human history; 80% of the people will only come to believe my theories and science in the last 20% of the transition to Phase 3 of history; they will therefore be wiped out, perhaps both financially and physically 20.) this science I have developed is of course for the benefit of the public, it is yours and you are free to apply it as you like, it is all there for you to study and scrutinize 21.) it really does appear that “economic science” is a fraud, bogus garbage, a scam – until I developed my own science; “economists” are mostly scammers and charlatans 21.) what about inflation? Yes, we will undoubtedly have inflation, ample inflation, but it is still very early in the transition to Phase 3 of human history; but please note that since 2000 there has been considerable inflation in the United States; inflation is very difficult to measure, but precious metals will indeed give you a reasonably accurate estimation of the inflation in the economy 23.) 500 yrs of falling commodity prices ended in 1999/2000 because of the failure of the 3 fundamental sources of growth; during these 5 centuries these 3 drivers of growth were always expanding, hence living standards always rose and the human population always grew 24.) wealth inequality in the United States will grow relentlessly until Phase 3 of human history begins; wealth inequality began growing strongly in the early 1980s; wealth inequality is a reflection of little or no growth in the economy
    worldaffairsmonthly.com

  5. What with so many Major Nations of the World apparently choosing the same course of actions recently as you have described above in an effort to also survive the calamity ahead . . . . . would it be prudent for us common folk to increase our gold holdings above the normally recommended 10 to 15%?

  6. Perhaps the rules that determine risk capital for banks are behind the acquisition of gold. Avery may know whether a bank-owned hedged position is tier one capital but an unhedged short position, however profitable, is not. Locking in the spread by buying the gold converts the position into tier one, a requirement that bank regulators require for enhanced capital adequacy. BTW, this is just a guess.

  7. Dana, I have seen your question and I assume you may be asking me. Well yes, acquiring as much precious metal as possible as soon as possible is strongly recommended [eg. gold as well as the other precious metals] . I will paste some more info below which will amplify and clarify what I am doing and thinking. The first is a letter to my aunt and uncle and the second is a letter to Mr. Vladimir Putin:
    _________________________________________________________________
    12/24/2016
    Dear Don and Violet
    it has been a very long time since we communicated, I am sorry for that, I have very good memories of visiting you in NJ and Don and I going to NYC together etc. what I have to tell you is very simple, not complex I am becoming famous now for my theories on how the human brain works and functions I am a member of the Society for Brain Mapping and Therapeutics / worldbrainmapping.org in April 2016 I will present a paper to the society in Los Angeles and formally introduce my understanding to them, but they are already informally aware Wes Ashford is an acquaintance of mine, he is a PHD and MD and he works at Stanford and is a specialist on alzheimers and dementia / look him up / he has just been named the president of SBMT but I knew him before he was named “Dr. Ashford is the Director of the WRIISC at the VA Palo Alto Health Care System, a Clinical Professor (affiliated) in the Department of Psychiatry and Behavioral Sciences, Stanford University, a Senior Research Scientist at the Stanford/VA Aging Clinical Research Center and Alzheimer’s Center, and a staff psychiatrist at the VAPAHCS. Dr. Ashford is an authority on Alzheimer’s disease, mild cognitive impairment (MCI), traumatic brain injury (TBI), and experienced in the recognition, diagnosis, and treatment of these and numerous other neuropsychiatric disorders. He has contributed major innovations to the fields of neuropsychological testing, brain imaging, and dementia treatment, with more than 100 scientific publications on Alzheimer’s disease, MCI, genetic factors in Alzheimer’s disease, and testing methodologies. Dr. Ashford is a Scientific Board Member of the Northern California Alzheimer’s Association and Chair of the Memory Screening Advisory Board for the Alzheimer’s Foundation of America. Dr. Ashford’s training includes a BA from UC-Berkeley; an MD from the David Geffen School of Medicine at UCLA; and a PhD in Neuroscience from UCLA, where he set up the Alzheimer’s PET Scan Study. He is a prolific scientific writer and speaker as well as a frequent presenter at international conferences.” I am also acquainted with Robert S Fisher, a professor at Stanford Medical
    School, MD and PHD, Fisher is a specialist in epilepsy and he is a neurologist “Dr. Fisher is Maslah Saul MD Professor and Director of the Stanford Epilepsy Center. He had research awards from the Klingenstein Foundation, EF, CURE and NIH. He published 160 peer-reviewed articles and 4 books. He was named 1996-2016 in Best Doctors in America. He received the Ambassador Award from the International League Against Epilepsy, the 2005 AES Service Award and the 2006 Annual Clinical Research Award. Dr. Fisher is Past-President of the American Epilepsy Society, and has served on the Board of the ILAE and as Editor-in-Chief of the Journal, Epilepsia. He is past Editor-in-Chief of the website epilepsy.com. His research is on new devices to treat epilepsy. Clinical Focus Epilepsy Neurology EEG Consciousness, Loss of Convulsion, Non-Epileptic Epilepsy, Complex Partial Epilepsy, Generalized Epilepsy, Temporal Lobe Epilepsy, Tonic-Clonic” now I mention these men not because I am impressed with them, but I know that you will be impressed you need to see my “credentials” and here they are! I don’t give a shit about these medical guild members, generally, but these two men are friends of mine and they are honest and sincere and want to do the job well…..as I do your neurologist is not anything but a quack, probably, the drug you are taking is worthless, probably, you will have to let me know what it is violet is taking, I will probably recommend she not take it, but depends on what it is this problem violet has very likely dates from the time when her brain was developing, when she was a young girl, probably around the age 5-7, something like that, this is my theory, and I know this because I am using my brain science, completely original by the way, to understand what dementia is and alzheimer’s is just another variation of what we call dementia the problem is not a disorder or disease, it is simply brain death by the way, fisher and I spoke about 1 yr ago and the reason we talked is because months before talking to him I realized what epilepsy is and let me assure you it is not what the medical authorities think it is fisher was not completely shocked at what I said, and he basically said he agreed with me this is a big deal and it will not surprise me that the nobel foundation gives me their medical award, but I will also get one in physics, for how the human brain functions, by the way I am also now getting world recognition for my original economic science and I will not be shocked if the NF gives me their award for economic science / the nobel foundation approached me back in 2008 or so back to violet’s brain: I will state that this problem is again traced to her child brain development, the build out so to speak, the brain configures itself, there are more than 100 billion neurons, what configures it and how? The system or network organizes itself, and this is not done during the day when you are conscious and you are doing “cognition” it happens during sleep, and also during a child’s awake hours when the child is playing, the sleep function is augmented by play during the day, when the child’s brain is developing and let me tell you this is a very rapid development or build out and the chances of something bad happening are reasonably high so the authorities are all full of shit, they are ignorant, they do not know what they are talking about, bullshit artists that only are interested in taking your money and making money it occurs to me that violet was having a problem when her mother pavlina was hauled off to be “treated” for being crazy, violet’s security was ripped apart and she was very vulnerable (disruption of sleep function) at that point, anyway, this is what I suspect violet for 30 yrs or so has not slept properly, there has been a small daily deficit for 30 yrs and therefore the brain has not been able to respond to the challenge which is to get configured correctly so what I recommend for my aunt is that you restore her sleep function, completely this is difficult and may take some time, but the best way to accomplish this quickly is for violet to physically exert herself, also mentally, for at least 5hrs a day, maybe more in the first months she has got to become physically exhausted from exercise so much so she sleeps and after 5 months of this she will be restoring her sleep function and this will reverse the course she is on right now, which is that she is likely destroying “grey matter” at a pretty fierce pace and within about 5 yrs of “diagnosis” she will die this does not have to happen in my opinion and I am very confident that I am right she is battling a powerful force, but if she is able to completely restore her sleep function then she can stop this oncoming brain death sleepwalking out in the winter cold (physical exercise, exertion) is what the brain likely wanted to do, got me? Don and violet, please consider what I am saying to you, there is no destiny that violet must die and the brain does not have to shut down fisher told me, “tom you have as much knowledge of the brain as I do, if not more” there are other details I can share with you, but this is the core information to pass to you by the way, lithium can help the grey matter and you can take some micro dose of lithium violet not a large amount, a small amount, I will let you know how much, maybe 300 mcg a day, perhaps a little more
    yours, Tom
    __________________________________________________________________
    December 24, 2016
    Mr Vladimir Putin
    President of the Russian Federation
    Moscow Russia
    Dear Mr. Putin, I figured it was time to write you a letter and convey some information to you. As you might know, I publish WORLDAFFAIRSMONTHLY.COM on the net, and have been since the spring of 2002. It is possible you also might know that Mr. Donald Trump contacted me in late 2007, sending me his book “Kick Ass and Think Big” [I believe that was the title]. I did an interview with Mr. Trump, which went well. So here is the information I wanted to convey to you and your government: I foresee excellent and very close relations developing between the United States, Russia, and China. The world is undergoing a powerful shift to a new and much more advanced stage of development. I have enclosed a summary of the “economic science” I have created. I am confident it will interest you. Mr. Dennis Tubbergen of Everything Financial Radio (everythingfinancialradio.com) has interviewed me three times. You might want to listen in, on the net. There are three tasks ahead for humanity: 1.) we will come to understand child brain development and function and seek to optimize this development; 2.) we will come to understand adult brain development and function and seek to optimize this development; 3.) and we will build and develop what I call Xipho technology, and this will of course be an optimization of communication technology. Xipho technology will be a convergence of three technologies: internet technology, semiconductor technology, and satellite technology. It is my “creation” and it dates from 2003 or so, even earlier. So you will see that this current world we put up with is coming to an end. It is largely nonsense and stupidity. I would be keen to talk to you, and do an interview. I can come to Moscow if you wish. I am keen to know what you are thinking about the world, and the future of the world. By the way, this letter will be reaching you too late to wish you a merry Christmas, apologies for that. But a late best wishes is better than none at all! By the way, many years ago my wife and I, when we were very young, visited the Soviet Union, Moscow and Leningrad. It was a pretty gruesome experience, to be honest, but I was much impressed with the Russian potential and Russian forbearance. Sincerely,
    Thomas Pochari

    1. Tom, So you are recommending 100% physical gold and silver? I have thought about getting out of the system.You don’t believe in owning anything else like mining shares? I cant believe you told Putin that visiting Russia was a pretty gruesome experience.Did he write back?

      1. Hi Scott, yes this is what I would recommend, however as you will note below [I have re-pasted the 24 with an effort to format] I tend to think that “tangibles” will be pretty good overall, as a supplement to gold, silver, copper [see #18 below]. Mining shares, well sure, in a few particular cases they will be useful, but the peak production of precious metals will devalue these operations quite sharply and moreover you will undoubtedly see nationalization of the mines as time passes. I would be wary of mining shares therefore. I told Dennis Tubbergen that we likely have some 16-20 yrs before things really deteriorate, but heck this estimate might not be realistic, could be sooner. “getting out of the system” is what I recommend, surely. JP Morgan will be followed by other large global banks, I am sure. As for Putin, I posted the letter to him on the 26 Dec so it is too early to know if he will reply, though I have a hunch he will. Seems he might have gotten the letter in time for him to decide not to retaliate by throwing our American diplomats. Anyway, getting out of the system is what I would strongly recommend.

        1.) my task to build an economic science began around 1990 or so but much preparation was required before even beginning to undertake this work and that preparation effectively started when I was 16 yrs old, in 1974
        2.) for many years I was examining the history of science and realized that I should be able to create a science of history
        3.) my French father-in-law, a medical doctor and surgeon, gave me in the mid-1990s a one page summary of the most important events in history, published by a French encyclopedia; I carried this around the world with me, in my travels, and one day I suddenly understood why Johann Gutenberg was able to invent the printing press just several years after two major events, the fall of Constantinople in 1453 and the end of the 100 yr War, also in 1453; these two events marked the “bottoming out” of the world economy at the time, and hence the very rich, the powerful elite, were very much weakened and even destroyed which meant that they could not stop powerful and brilliant inventors like Johann Gutenberg
        4.) it appears that the “bottoming out” of the economic cycle took place sometime between the 12th and the 15th centuries, and this is confirmed by the growth of the population
        5.) I prefer to use the term “wealth-creation science” instead of the commonly used “economic science”; we are creating wealth, and it is the science of creating wealth that we need to examine and study and develop
        6.) CENTRAL THESIS OF THEORY: the human animal lowers the cost of transmitting information from one brain to another and this results in science/knowledge and science/knowledge results in the development of the 3 fundamental sources of economic growth and development – which means of course wealth-creation; there are three distinct phases of human history, three periods where the cost of transmitting information/knowledge was dramatically lowered, resulting in an explosive increase in the fundamental sources of economic growth and development; between each phase there is a clear downturn, a collapse of living standards and growth as well as population
        7.) there are THREE fundamental sources of economic growth and development:
        energy for power
        ideas/knowledge/technology for efficiency
        the cycle for adaptation
        8.) there are THREE secondary sources of economic growth and development:
        commerce
        debt
        central banking power/policy
        9.) since the year 2000 it appears that we’ve not had any economic growth in the United States, we may have had a little growth, but adjusting for inflation I am doubting there has been any significant growth, and the stock market on Wall Street reflects this
        10.) GDP (Gross Domestic Product) is an inaccurate and bogus measure of wealth-creation and economic growth
        11.) the USA is a very corrupt place, the government is very corrupt, the ruling establishment is corrupt and indeed criminal; the media is criminal; the powerful in Washington are like a criminal syndicate
        12.) my work has resulted in me identifying EIGHT LAWS which make up the core of my science (see image at worldaffairsmonthly.com)
        13.) this science of mine should enable us to accurately predict in general outlines the future, especially during the transition from Phase 2 of human history to Phase 3
        14.) this science of mine is naturally undergoing “testing” and while I am confident it is highly valuable – it certainly is in my opinion the first real economic science – I do think it will require another five years or so of “testing” and confirmation
        15.) there are only two “unknowns” at this point:
        the length of the transition to Phase 3 of human history
        the depth of the transition
        16.) the United States will disappear like Rome, it will disintegrate and disappear, from bankruptcy, civil conflict and war; virtually all the prominent American institutions will be destroyed
        17.) what to do with your investments? I am not a professional investor, though I do have plans to launch a hedge fund destructivecapital.com; I recommended 4 sectors in 2007 and I would still recommend those; I can explain my specific investment advice in an article which I will write; precious metals will rise in value very high as we pass through the transition to Phase 3 of human history; when Phase 3 begins, say in 20-25 yrs, the precious metals will sell off, violently
        18.) the value of money will go to zero during the transition to Phase 3 of human history; precious metals and “tangibles” will go very high in value, land, diamonds, tools, anything which can effectively serve as money; I think it is possible for gold to go as high as $100,000-200,000/ounce; silver to $20,000; copper will go even higher in relative terms, because it will be the precious metal for the masses
        19.) another innovative approach to economic science is my application (original it seems) of the 80-20 rule to the financial markets; 80% of investors pile into the markets in the last 20% of the bull or bear run; and this will be the case with the transition to Phase 3 of human history; 80% of the people will only come to believe my theories and science in the last 20% of the transition to Phase 3 of history; they will therefore be wiped out, perhaps both financially and physically
        20.) this science I have developed is of course for the benefit of the public, it is yours and you are free to apply it as you like, it is all there for you to study and scrutinize
        21.) it really does appear that “economic science” is a fraud, bogus garbage, a scam – until I developed my own science; “economists” are mostly scammers and charlatans
        22.) what about inflation? Yes, we will undoubtedly have inflation, ample inflation, but it is still very early in the transition to Phase 3 of human history; but please note that since 2000 there has been considerable inflation in the United States; inflation is very difficult to measure, but precious metals will indeed give you a reasonably accurate estimation of the inflation in the economy
        23.) 500 yrs of falling commodity prices ended in 1999/2000 because of the failure of the 3 fundamental sources of growth; during these 5 centuries these 3 drivers of growth were always expanding, hence living standards always rose and the human population always grew
        24.) wealth inequality in the United States will grow relentlessly until Phase 3 of human history begins; wealth inequality began growing strongly in the early 1980s; wealth inequality is a reflection of little or no growth in the economy

  8. This is extremely interesting. Startling, even though I have followed the thought of the world change for some time. It appears to be a ticking economical time bomb!! Unfortunately our world is wrapped in fiat currency which will explode into fragments of nothing. Countries have experienced it, but now the world will !!

  9. Gold and Silver are wealth! As long as the Federal Reserve remains a private corporation ( not connected to the United States Republic) corruption will continue, especially due to Washington D.C. being a soveriegn country of it’s own, As is downtown London, and Vatican City! Currency will die !!Will there be a world wide currency?? Will it be backed by gold and silver as before. Silver and Gold certificates?

  10. The pendulum is presently swinging away from political-economic confederations spanning disparate smaller groups of culturally/genetically distinct populations. Should this trend prove deep and durable, I would expect the fiat currencies/monetary systems which underpinned those confederations to also crumble. However, the current anticipatory move to physical gold represents only half-baked thoughts on what may come next. Gold, they reason, will always be universally recognized as having tradeable, relatively constant intrinsic value. But what if the global supply chain substantially falls apart? Could smaller political economic systems replace the current status quo with a very different, as-yet-unseen regional supply chain model? We arguably dont need massive factories anymore. Effective micropower solutions exist (solar for an individual farm/home/business). 75% of the rationale for global supply chains was cost arbitrate, driven primarily by lower tax and regulatory structures outside the OECD. Subtract the efficiency of the global shipping/logistics chain, and global supply chains become a massive liability rather than advantage. . . All this drive to the point that gold may not be the answer at all in a world where small/micro poli-economic systems rule.

  11. I have a question and I may be naive in asking but here it goes. JPM’s balance sheet shows roughly 2.3 billion in assets. Are you saying about half their assets are physical gold holdings? Also, don’t they also have a massive amount of physical silver? They seem like serious gold bugs if these numbers are even close to accurate.

    Perhaps the banks do know something is going to change in the valuation of gold. Perhaps as Rickards postulates, a major revaluation of gold in USD is anticipated. If not explicitly maybe implicitly becuase there is no othe move.

    Heck, my portfolio isn’t even that lopsided in metals. And I am a gold bug.

  12. Most meaningful post award goes to “tackingnews”. Want to make the world more fair and just while solving 50% of ALL problems in it? Abolish to FRS and get back to honest banking. The FRS has corrupted our society and our culture and institutions to include:
    politics, law, medicine, education etc? For example, think of the song: “Brother Can You Spare A Dime”. They even admit they were the cause of the 29′ crash and subsequent depression.

    And further to the post by “Fondue” I submit the following for your consideration regards corrupt politics and hedgemony by the FRS.
    The FRS goes around dumping on everyone and leave us to clean up the mess they create.

    http://www.plata.com.mx/mplata/articulos/articlesFilt.asp?offset=140&fiidarticulo=303

  13. While not a personal believer in astrology, the following article by Bill Meridian provides some historical insights about the Federal Reserve System.

    http://www.billmeridian.com/articles-files/fed-new.htm

    If we peel back the layers of the FRS corruption–along with the social and cultural consequences to our country and the world–it’s
    actions can best be described as ‘crimes against humanity’.

    Here’s another well written description of this monstrosity.

    http://www.tfmetalsreport.com/blog/8075/42-years-fractional-reserve-alchemy

    While I believe that truth is stranger than fiction, it is my sincerest hope that the importance of Avery’s novel will become apparent to all.

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