first majestic silver


October 15, 2013

Given the title of this commentary; it would be understandable if readers mistakenly assumed that this would be more yammering about the nauseating, U.S. Debt-Ceiling Farce. But that is a piece of staged theater, and this is an article about precious metals – and the two subjects have no connection.

Of course one would never realize that fact in reading the pseudo-analysis of the mainstream media. In that fantasy realm; precious metals prices jump higher or lower every time a Republican or Democrat passes wind. This is despite the fact that none of these Drones can articulate how this Farce has any relevance to the gold or silver markets.

Sure, a U.S. debt-default would be “bullish” for precious metals, but so would a million-and-one other things. “All roads lead to higher precious metals prices,” not because gold and silver occupy some divine niche in the Universe; but because of the mindless, dead-end economic policies of our Clown Politicians.

Nearly all of the economic problems across the West are caused by too much debt and too much money-printing; yet all the Clowns know how to do to “fix” our economies is to pile-on even more debt, and print-up even more paper. Indeed, what these Clowns have previously called “bail-outs” is where one of these Deadbeat Debtors is given a mountain of new debt, all of which originates out of newly-created banker-paper.

As has been explained many times in the past; with the money-printing and debt now both well past any point-of-no-return, only two outcomes are possible for our economies (and societies) – and one or both of these outcomes must occur in the near future. A familiar chart articulates this better than any words can do.

This is the money-printing which B.S. Bernanke spent six months telling the world he was going to begin to taper. A vertical line. Pedal to the metal. Yet after six (more) months of “crying Wolf”; Bernanke couldn’t bring himself to ease off the accelerator even the tiniest degree, warning the world the U.S. economy would collapse if he did so.

The U.S. economy (and with it, the other Western dominoes) has become nothing but a surreal, real-life version of the movie “Speed”. It’s not going anywhere, but it has to go there as fast as it can – or it will blow up. There are two important differences between “Speed” and the U.S. economy, however.

In “Speed”, there were actually people attempting to defuse the bomb on the bus. And “Speed” was just a movie. The U.S. economy is real-life, and here no one is even trying to defuse the bomb.

For five years; B.S. Bernanke has promised us that he was going to defuse the bomb, through one of his “exit strategies”. But after five years of lies; Bernanke is about to be replaced by someone even more “dovish” on the money-printing meter. More importantly; if Bernanke couldn’t pull the trigger when the U.S. economy was supposedly “growing”, obviously no Bernanke successor will do so now that the U.S. economy has clearly begun accelerating downward (again).

In previous commentaries; I have equated the money flowing through our economies as the “blood” of these economies, for obvious reasons. It is literally the “capital” in capitalism. But if money is the blood of our economies, very obviously the velocity of money (above) is the heart-rate. And as readers can clearly see; the U.S. economic “heart-beat” now barely registers – having plunged to all-time lows.

The only way this coma-economy will ever be taken off of its money-printing life-support is to euthanize it.

Just as the (upward) exponential chart of U.S. money-printing guarantees near-term hyperinflation; the (downward) exponential curve on U.S. money-velocity simply guarantees death – total economic collapse. The two false-hills in the exponential collapse of U.S. money-velocity represent what I have previously characterized as “defibrillation”: literally shocking the U.S. economy with explosive injections of money-printing.

Yet those previous “shocks” did nothing but temporarily feign life in the U.S. economy; and now, with Dr. Bernanke continuously shocking the U.S. economy with even higher voltages, we don’t even see a twitch. If this were real-life medicine; the life support would have already been turned off; the funeral arrangements already made.

And so we continue our “countdown”. The diminishing uncertainty in this countdown has dwindled to two variables. Will the U.S. choose suicide-by-implosion (too much debt and/or a reduction of money-printing), or suicide-via-hyperinflation (simply too much money-printing)? The other variable is we don’t know whether Suicide will take place tomorrow, next month, or next year.

The Debt-Ceiling Farce is, in fact, nothing but a puppet-show (in the most literal of terms). It is a contrived “crisis” which serves to distract the Sheep from economic collapse while the “show” continues, and which can have only one of two endings.

As noted previously; one possible ending is that the decision has already been made to “pull the plug” on the U.S. economy. The Debt-Ceiling Farce is merely a sham to murder the U.S. economy (now) with an artificially-induced debt-default – in order to conceal the fact that the economy was already “terminal”.

Alternately, we’ll be subjected to the surreal schlock of “a last-minute deal to avoid disaster”. More $trillions in new, U.S. debt will be authorized, and all the Sheep will be expected to cheer this fact. Look again at the two, previous charts. Is there anything to cheer about here with more of the same?

We know simply from looking at these charts that “more of the same” will not/cannot possibly breathe any life into the U.S. economy. At the same time; we also know (as a mathematical certainty) that “more of the same” money-printing must result in near-term U.S. hyperinflation.

“The good news is the Governor has granted you a stay of execution. The bad news is you’re scheduled to be executed next month.”

Hurray! And if there is  “a Deal” in the U.S. now; then there will simply be another ‘death-row’ farce, another year or eighteen months down the road. Hurray!

Then there are precious metals, our two Hostage Markets. Here we have the world’s most obvious financial crime-in-progress. In the face of soaring demand; we have inventories teetering on default and miners being driven into bankruptcy – because a cabal of Banksters is criminally manipulating the markets, preventing prices from rising (dramatically) so that supply can meet demand.

The two Hostages are on the verge of being murdered; yet the Top Cop in our commodity markets (the CFTC) just finished announcing it was unable to see the slightest evidence of wrong-doing. It is a verdict as Machiavellian as “cheering” an announcement of more, new debt.

And so we continue our “countdown” here as well. But as with the Debt-Ceiling Farce; our countdown has nothing to do (directly) with any of the fiction being peddled by the Corporate Media. These talking-heads are merely handed a script each day to parrot, which they do faithfully.

Do none of the Sheep think it the slightest bit strange that hundreds of these “reporters” all simultaneously reporting on events with different eyes/ears can all churn-out identical tripe day after day after day? Presumably even a herd of clones would exhibit some differentiation in their viewpoint, simply based upon the behavioral differences of one’s upbringing.

Today, the Media Parrots tell us that the two precious metals markets are hostages of the Debt-Ceiling Farce. In tomorrow’s script; some new, totally irrelevant tripe will be put forth as a “reason” why the Hostages remain in bondage, with prices unable to rise so that supply can meet demand.

But as with our other “countdown”; this Countdown can also have only one of two endings – neither of which are ever mentioned in the irrelevant discussions of the mainstream parrots. We will have bullion-default, or Decoupling, where the world officially shuns the Banksters’ totally fraudulent paper markets. Real bullion, bought and sold by real buyers at real prices.

Our two “countdowns” have more parallels. Both of them must end soon. Indeed, either or both of them could come as soon as tomorrow. In fact, in the Final Script (where some of the Truth must ultimately emerge); it wouldn’t come as the tiniest surprise to see both “countdowns” end simultaneously.

Default or hyperinflation for the U.S. economy? Default or Decoupling for precious metals? These are the real dramas unfolding before us. Ignore the noise of the mainstream parrots. Ignore the Puppet-Show (and the Puppets). They serve merely to annoy us, amuse us, and (mostly) distract us from reality.


Jeff Nielson

Jeff NielsonJeff Nielson is co-founder and managing partner of Bullion Bulls Canada; a website which provides precious metals commentary, economic analysis, and mining information to readers/investors. Jeff originally came to the precious metals sector as an investor around the middle of last decade, but soon decided this was where he wanted to make the focus of his career. His website is

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