Thursday, June 14, 2012

Gold and Silver are hedge against financial / economic repression ------By Shan Saeed

Strategic analysis of the Global Economy
I had shared this insight 3-year back in a TV channel that Gold and Silver were hedge against uncertainty and chaos. Gone are the days when Gold/Silver were hedge against INFLATION. Now, I am sharing a new punch line i.e. Gold and Silver are hedge against FINANCIAL & ECONOMIC REPRESSION. We are living in historic times where financial market chaos and uncertainty is giving rise to a new structure and landscape to the global markets.
In order to know what is really going on in the world, investors need to first shut off the parade of mainstream media clowns and start tuning into alternative media. One commentator recently pointed out what should seem obvious to anyone who actually has a brain and uses it.
1.   What is the real story behind the incredible lack of reporting regarding the European crisis — especially in the countries of Greece, Spain, and Italy right now? Spain will leave Euro or Greece or Germany
2.   Why has Citigroup been put in charge of issuing "digital-identity badges" to individuals that work for Defense Department contractors?
3.   What will happen to JP Morgan in the next 2-years? Will it collapse like Lehman Brothers?
4.   Saudi Arabia is pumping more oil to get Obama elected to secure shale gas deals in the long run.
5.   Why does the United Nations want to govern the Internet? Why aren't more people getting upset about their attempted power grab?
6.   Rare earth and Water will become the new source of war in the revised world order?
7.   Will Chin’s economy and growth trajectory cool off?
I am sure many of you could add more questions about other truly serious issues facing the world on an individual, national, or on the global basis. I bring these items to your attention because if you are trying to be a wise investor, it is mighty difficult to have success when you don't know the truth about things.
We are living in a time of unprecedented events. Throughout world history, there have always been good times, bad times, wars, rumors of wars, and problems that may have seemed insurmountable at the moment.
I read an article that clearly illustrates the necessity for alternative media to help us wrap the arms around this situation.
Raoul Pal was a Goldman employee who co-managed the hedge fund sales business in Equities and Equity Derivatives in Europe. After Goldman, he was the founder of Global Macro Investor, co-manager of GLG Global Macro Fund in London for GLG Partners, one of the largest hedge fund groups in the world. This is not some doomsday sprouting windbag arbitrarily pasting together disparate charts to create 200 page slideshows.
With Pal's resume, this is someone who is well-connected financially and knows things most others don't.
His latest writings—specifically his latest presentation — are what I want my readers/ investors /people to pay attention to, as it portrays the most disturbing and scary forecast related to these derivatives for the global economy:
  • We don't know exactly what is to come, but we can all join the very few dots from where we are now, to the collapse of the first major bank...
  • With very limited room for government bailouts, we can very easily join the next dots from the first bank closure to the collapse of the whole European banking system, and then to the bankruptcy of the governments themselves.
  • There are almost no brakes in the system to stop this, and almost no one realizes the seriousness of the situation.
  • The problem is not Government debt per se. The real problem is that the $70 trillion in G10 debt is the collateral for $700 trillion in derivatives...
  • Yes, that equates to 1200% of Global GDP and it rests on very, very weak foundations...
  • From an EU crisis, we only have to join one dot for a UK crisis of equal magnitude.
  • And then do you think Japan and China would not be next?
  • And then do you think the U.S. would survive unscathed?
  • That is the end of the fractional reserve banking system and of fiat money.
  • It is the big RESET.
Pal continues:
  • Bonds will be stuck at 1% in the U.S., Germany, UK, and Japan (for this phase).
  • The whole bond market will be dead.
  • Short selling on bonds — banned.
  • Short selling stocks  banned.
  • CDS  banned.
  • Short futures  banned.
  • Put options  banned.
  • All that is left is the Dollar and Gold.
It only gets better (we use the term loosely)...
  • We have around six months left of trading in Western markets to protect ourselves or make enough money to offset future losses.
  • Spend your time looking at the risks of custody, safekeeping, counterparty etc. Assume that no one and nothing is safe.
  • After that... we put on our tin helmets and hide until the new system emerges.
How did we allow this to happen?
Do you want to know where we stand and what is going to happen to the U.S. economy and global economies?
Stop listening to the mainstream media and start getting acquainted with what is going on with this terrible derivative situation.
No wonder Ben 'the Liar' Bernanke has to tell so many lies... He told the American public after QE1 there would be no need for QE2 and yet QE2 came in.  As of today, he is telling us there is no need to do QE3 — but plans are already under way for exactly that.
If you listen to what Ben says in the mainstream media, you are almost certain to lose your shirt in the investment world in the coming months and years ahead.
SILVER- Extinct just 8 yrs from now!!!!
That's how long it will take for the supply of silver to be completely wiped off the face of the earth, according to the U.S. Geological Survey. That's why you need to be buying silver right now — only not in the way that you think...90% Silver has been mined. Silver is a poor’s man Gold.
A global economic disaster and resulting paradigm shift had to happen at some point, and it appears that time has come. I think, we are now coming to a point where there is no more "kicking of the can" down the road.
History clearly shows that governments and central banks can hide their mistakes for many years, but they all eventually go bust. What we are witnessing in Europe, in my opinion, is just a precursor for what will eventually come to London, the United States, Japan, and China.
People ask me if the bull market in precious metals is over. Most of these individuals are the very ones who are still listening to the mainstream media, who have a constant propaganda machine to bash the precious metals.
Let's look at this thing from an objective standpoint for the past 12 years to help you understand if you haven't already figured it out...Each and every year for the past 14 years, I have been bullish on owning gold and silver. Now, realize I am not talking about the fraudulent paper representations of gold and silver like pooled accounts, certificate programs, or ETFs...
You will never see the full benefit of those investments as the precious metals soar to levels the average investor can't even understand at this point. The reason: They are not backed with real metal as is fraudulently advertised.
I also want to mention the fact that for eleven years in a row, gold and silver have hit a new high each and every year since 2001.
When gold was at $350, I remember the mainstream media coming out in droves saying how gold would never cross $400 and was most likely headed to $150. Each and every year for the past eleven years, these manipulative morons have said the same thing as gold kept tracking higher and higher. They were wrong, and people like me have been right and got the appreciation for my strategic insight.
Who are you going to listen to? Why would the secular bull market in precious metals be over at this point? Has anything changed for the better?
Of course not. They are getting much worse very quickly... and governments and their central banks don't know what to do about it other than create money out of thin air and pump it into the system.
It's not working. Look at what Merkel and the Euro jackals told us just three months ago that all has been solved with debts in the European Union and not to worry. Now we find out there is plenty to worry about, and QE3 will be happening in a big way despite what the banksters say.
The fact is that after reaching each and every new high the past eleven years, the precious metals markets have always corrected back 10% to 25% from the latest high before trekking to the next new high.
The Reason to own Gold and Silver have never been stronger than right now. They will become even more so in the coming months and years ahead as the calamity of governments and politicians is fully exposed for the entire world to see. Wall Street has been losing "clients" ever since they had to be bailed out by the government...JP Morgan's recent $2 billion trading loss is just the latest example.
And people are going to become irate as they lose their savings, pensions, etc., etc. As Richard Maybury recently said in his Early Warning Report, the evidence is quite clear:
“Socialism doesn't work. The leviathan state in Washington needn't be overthrown because it is committing economic suicide. Like the Kremlin in the Union of Soviet Socialist Republics two decades ago, the whole statist structure is collapsing of its own weight, because it is rotten to the core. The trouble we have been seeing all over the world during the past several years is the beginning of this spontaneous disintegration everywhere.”
Get ready for gold and silver to make a run to the next new highs before the year is out as the problems with debts, fiat currencies, and derivatives all come to a head at once. It's not going to be pretty for those who are unprepared, so do what you can to get your house in order before it's too late...
Secure your future by taking position in Gold and Silver. Ownership of physical gold and silver that is in your possession will be paramount to your financial success in the coming months and years ahead. Eventually, the right mining stocks could offer insane leverage to drastically higher precious metals prices.
And if you want to know who the last man standing will be in the coming debacle, you need only heed this quote by George Bernard Shaw:
You have a choice between the natural stability of gold and the honesty and intelligence of the members of government. And with all due respect for those gentlemen, I advise you, as long as the capitalist system lasts, vote for gold.

Disclaimer: This is just a research piece and not an investment advice. All financial transactions carry a RISK. 

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