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 News From The Front  

 

Prior dewdrops of wisdom from the illustrious Sage of Wexford are retained for posterity below:


  
NEWS FROM THE FRONT, April 9, 2015


It is somewhat maddening to hear the spinmeisters out of Washington and Wall Street trying to put lipstick on our Pig of an Economy, but the trend for U.S. growth is now clearly down, down, down.  I get no joy from this developing fact, since your money and my money was wantonly spent in the $Trillions over the last 6 years by Uncle Sam and Grandpa FED to attempt to produce the much-ballyhooed escape velocity that has turned into Re-Entry Velocity.  Bureaucrats have never proven to be smarter than the free workings of a capitalistic  market, so we should really not be surprised at the utter wasting of a dwindling American resource:  SOLVENCY.

I hereby knight this blossoming DEPRESSION the Obama Depression, Phase II, because it is about time this skills-challenged head of state is held responsible for something.  BUT MAKE NO MISTAKE, THIS IS A STRUCTURAL DEPRESSION THAT INITIALLY BEGAN IN 2007 THAT WILL TAKE SEVERAL DECADES TO EXIT.  Fundamentally changing America he certainly has, and it will take 20 years alone just to recover from this Harvard man's policies and actions.  Furthermore, and even more directly to blame as political hacks at the Central Bank level, the Federal Reserve can also take a big bow, I just wanted to keep the name of the economic disaster we are well within short and not-so-sweet.  You know ..... Name Recognition since Bush was blamed for everything including measles coming across our Southern Border.

The Dollar's recent spurt as a Lesser-Evil Currency has run into the reality of a softening U.S. economy that may not see an interest rate increase by the recalcitrant/ groin-holding Fed until the Fall, but it will happen because even real-world-challenged academics can see the stock and bond and housing bubbles they have blow for the third time this millennium.  Time to tap the brakes as the cliff is coming up rapidly.  Just think how much stronger the U.S. economy would be today if we all had enjoyed interest income at 5% minimum over the last 6 years??!!!Duh, big time.

The big banks should have been allowed to fail back in 2008, since there are plenty of regional/local banks solvent and capable of taking over their deposits net of washed out liabilities.  But the U.S. economy has become a political football that the apparatchiks in Washington just can't leave alone for a minute, and we the citizens have suffered mightily because of their utter ineptitude.

Do not be concerned if the Dollar finds its feet again, because there are many examples of strong Dollar periods in U.S. history coinciding with strong Gold and Silver prices.  The backing and filling that we have seen over the last several months in the bullion markets is very indicative of a market where sellers are being washed out over time, and buyers are coming in on any price declines.  Overall sentiment in the gold and silver markets has hardly ever been this negative.  New bull markets are seldom formed with a "V" type bottom, but usually from a consolidation pattern that wrings out the last sellers who of course have sold toward the bottom in price.  Bank of England in 1998 comes to mind.

Large scale gold and silver purchases have been made at WCM to date in 2015, so I can attest to the fact that the "smart money" is re-entering this classic/time-tested hedge against utter collapse of the global financial system as we currently know it.  THAT HAS BEEN MY LONG-TERM FORECAST, but the timing is more imminent today than it even was in 2005.  I forget the exact figure, but the lever pullers of the world have added some $57 Trillion in new debt since the Fall of 2008, so this collapse is going to be of record proportions, scope, and duration. 

Gold and Silver will shine in this catastrophic environment because the citizens of the world will have totally lost faith in Governments' abilities and fiat currencies to turn the tide this time around. 
Confidence has been waning for some time now, but the Obama Depression, Act II, will convince the last believers that Government or Central Bank intervention will not prove effective or lasting to avoid economic and financial system disaster.  Sounds harsh, but that is what we are faced with at this junction in time.

The East continues to advance as the price setting region for both Gold and Silver going forward.  China has been a leader in this regard, but I expect Russia and India to continue to accumulate gold and silver reserves to eventually break away from Western & Dollar domination on the global financial and international trade stages.  Sanctions against Russia, which I feel are totally justified based on their annexations over the years, not just in Crimea/Ukraine but in Georgia as well, have accelerated this process for the Soviet Union of 2015.  I fully expect a blitzkrieg style invasion of the Baltic States before the Melba Toast in Chief leaves office; NASA super space diapers on route to the White House for this event.  The Soviets as an enemy of the West are back in full force under Dictator Putin.  Stalin would be proud of him.

Politics aside, we live in a very dangerous world and things are not getting safer under current leadership around the globe.  Invest as if you are in a WWI trench with mustard gas being hurled your way.  Things are about to get very nasty.  Got Gold?  Got Silver?

The Sage of Wexford, following the Yellow Brick Road to survival.

 



The persistence of negative monthly changes AND the dip of the Annual
Change into negative territory virtually guarantee Recession at this
point.  Putting lipstick on a pig?
 




This key element to the "American Dream" is where the American Consumer's
Balance Sheet is:  DEPRESSED FINANCIALLY & Incapable of even taking
on cheap debt; one still has to pay-off principal, Yellen.
 




I REST MY CASE.
The ability of Americans to afford a home, even if prices stagnant, is not improving.
 


Whoops, retail investors seem to be voting with their feet:
And that is a VOTE OF NO CONFIDENCE in current stock market prices!
 

 


  
 

NEWS FROM THE FRONT, May 17, 2015

I want to encourage all of my loyal readers to visit David Stockman's economic commentary pages at:  http://www.davidstockmanscontracorner.com.  As a former Chairman of President Reagan's Economic Council, Mr. Stockman is more than qualified to comment and invite contributors' articles on the sad state of affairs known as the United States AND the global financial system & global economy today.  Plus, I agree with the vast majority of statements and positions he takes with the exception of foreign policy where David is a bit of an isolationist, a posture that has allowed ISIS to expand its deadly grip upon the Middle East with the massacre of thousands of innocents.  David writes daily, and I will probably be writing less and less into the future as I re-direct my attention to other matters at hand.  I have been writing commentary on precious metals almost uninterrupted since 1999, and it is no longer much fun hearing myself sound like a broken record.

The price action in both Gold and Silver over the last several weeks has been very positive and constructive to a resumption of the Year 2001 Super Bull Market in Precious Metals; no, we have not exited this bull market, we have just experienced an interim bear that will cause the vast majority of weak hands to exit.  Although the common belief is that Gold leads Silver in price behavior, I think we have entered a period where Silver will be the leader.  Once Silver can stay above $17.50 for at least a trading week, I think we are off to the races again; the $18 level is an even better resistance/support level.  Granted, chart analysis is not a panacea for successful investing, but is another tool that can give one some idea as to where prices may be headed in the near term.  We have been in a consolidation zone in the precious metals for over eight months now, and significant accumulation of both Gold and Silver has occurred during this time.  These two monetary metals are now held in the strongest of hands and most of the sellers have been washed out at this point.  India, China, and Russia, to name just a few who are massing significant Gold reserves (and China likely is hoarding Silver as well due to its history with this monetary metal) to back their currencies with as the Dollar slowly or abruptly loses Currency Reserve Status around the world.

Not to mention the fact that the Dollar has retraced a solid 7% on the DXY over the last several weeks from its Prettiest Witch in the Gaggle of Currency Witches high of around 100 that lasted about 3 seconds.  It is not mandatory that the Dollar be in a freefall for both Gold and Silver to advance toward their price targets of over $5000 per ounce for Gold and $180 per ounce for Silver.  But the Dollar will decline in terms of Gold and Silver in the years ahead, no matter what the Greenback itself does over this time.  Those targets are more firm in my mind than ever since the $200 Trillion in debt that the world has added to its gigantic Debt Burden since Fall, 2008 is going to end very badly in the declining economic environment we are firmly within.

JP Morgan has had much to do with the suppression of Silver prices since 2011, and I strongly suggest that you do a Google on Morgan's hoard of silver to get a very good idea as to the reason why.  They are making the Hunt Brother's look like paupers in the sheer size of the silver tonnage that they have acquired in one form or another:

http://www.shtfplan.com/headline-news/report-jp-morgan-chase-prepares-for-crisis-by-stockpiling-silver-an-exceptionally-large-amount_04242015

There are many other very insightful articles on this subject, but the gist of the matter is that Morgan sees a collapse coming just as Goldman does and is taking a Soros-sized position to benefit greatly from the surge in prices as global investors wake up and flee most fiat currencies en masse starting this year.  What I think is going to happen to Morgan, though, is that our interventionist/intrusive Government is going to confiscate Morgan's hoard at some point in the interest of national security, a belated prosecution of Comex trading rules after the fact, and in an effort to try to protect the Dollar's value since most of the Gold in Fort Knox and NYC has been hypothecated and lent down the river, never to return.  Why is it taking over 8 years to repatriate Germany's gold supposedly stored at the New York Fed????????????????????

As the Sage has predicted on these pages for years now, it may well be the Global Bond Market that is the Black Swan that poops all over Wall Street, the global economy, and the global financial system.   AND THAT TREND CHANGE FROM 32 YEARS OF ALMOST UNINTERRUPTED LOWER YIELDS AND HIGHER BOND PRICES HAS NOW ENDED.  Granted, two weeks of bond rout do not a Bond Bear make, but the rapidity and severity of the reversal is historic in magnitude.  Furthermore, the ridiculous, outrageous, and criminal reduction of Sovereign Bond Yields into negative territory of late probably caused most Government Bond investors to ponder the following erudite QUESTION:

HOW CAN ALREADY FINANCIALLY COMPROMISED GOVERNMENTS CONTINUE TO SERVICE RECORD DEBT LEVELS IN A DECLINING ECONOMIC ENVIRONMENT WHERE REVENUE STREAMS ARE GOING TO SHRINK LIKE OBAMA'S POLL NUMBERS ON TRUSTWORTHINESS!!!!!!!!!!!!!!!!

And don't forget that there are Quadrillions of Dollars of Derivative Contracts written against this rising sea of increasingly Bad Debts that have likely been ignited into the implosion of Fail To Deliver (default by any other word) that we will see in the months ahead.

And on that cheery note, I bid you good day.  Sage of Wexford, seatbelt strapped tight for the rough ride ahead and the ensuing rocket ride on the Metals.

 



A flat-topped Wedge Pattern usually ends in a severe break to the Downside!
 


Middle20150504
 

Middle Class Debt Still 2X Higher Than 25 Years Ago
Janet, the old "pushing-on-a-string" phenomenon.


 



NEWS FROM THE FRONT - June 21, 2015

As my aged fingers blaze across the keyboard on this Summer Solstice day, the days are going to be getting shorter, not only for the planet, but for the likes of Greece and the global economy and financial system.  The failed strategy of politicians and Central Bankers of "Kicking The Can Down The Road", in addition to Zero Cost Money, HAS BEEN A ROARING DISASTER FOR THE INHABITANTS OF THE PLANET.  Greece has already defaulted on a myriad of loan agreements with the bureaucrats of Europe, so we are just waiting for the Fat Lady to sing at this point and the runs on the banks of Europe to get into full swing.  The Greek Drachma will be reincarnated in a much devalued version, but at least the citizens who built the Acropolis in days of former glory will not be told by the Germans what color pants to put on in the morning.

But who is going to save all of the holders of Greek Sovereign Debt that will go down to virtually zero in value?  Certainly, the German citizenry will rebel at just the thought of more bail-outs for Europe, not to mention the German banking system and hedge fund speculators, so the future of Euroland is much in doubt and chaos and re-valuations of all assets financial are in store in the days and months ahead.  The Domino Theory has been re-born as we once again see how inter-connected the world of finance is in this age of record debt creation and obscene total leverage, imploding financial derivatives enter Stage Left.  A new phase to the Obama Depression, Phase II, is well underway as the global economy gets softer and softer by the minute.  Dark skies overhead, and they are not just summer thunderstorms.

Gold and silver continue to build a very respectable base for future launch, albeit at lower levels from last month's communication.  My faith and total investment in these real money assets has never been greater.  The world we now live in has seldom been more dangerous.  Trying to pick the absolute bottom in this almost 4-year Bear Market in Precious Metals is a fool's game, as when the Fat Lady gets up and bellows ( totally Politically Incorrect, but sue me!), prices for Gold will move $100 to $300 in a single trading day, and for Silver will move $1 to $3 to boot.
So put a clothespin on your noses, and push the Buy Button with the knowledge that $1200 Gold is substantially cheaper than $1900 Gold, and $16 Silver is a screaming bargain compared to $49 Silver at the 2011 interim peak.  Buy straw hats in winter.

Build up as much cash as possible OUTSIDE OF THE BANKING SYSTEM because your bank may be associated with some entity that is going to be in the chain of failures precipitated by Greece, China, or even little-old Austria.  $10,000 to $20,000 in cash stuffed in a diaper pail in the backyard would not be unwise or even unseemly.  We will have a Bank Holiday, I see no way around it.  The global economy will come to an abrupt STOP when its payment system locks up and no one trusts the receiving or sending party to be around tomorrow for actual transaction settlement.  Prepare for the worst, and be pleased if the result is not a dire as I paint.

I still think the Fat Lady will sing before the leaves turn colors in the Fall.  Everyone and his uncle are looking for the Big Event to occur in either September or October, but I think THIS TIME WILL BE DIFFERENT and while you are sunning yourself at the beach, the hammer will come down, possibly from none of the suspected suspects.  And if you are building cash to employ at the drop of a hat when the dirty deed happens, BE ADVISED THAT THERE MAY BE RESTRICTIONS ON WIRE TRANSFERS AND CASH WITHDRAWALS THE NANOSECOND BEFORE YOU LEAP INTO ACTION.  When the global banking system implodes, and me thinks it will be a 2015 event, any account even remotely tied to it will be frozen like Hillary when asked a legitimate campaign question.  REDUCE YOUR TOTAL EXPOSURE TO THE U.S. AND GLOBAL BANKING SYSTEM AS MUCH AS POSSIBLE.  You will be glad you did, and you will live to fight another day while many, many homo-sapiens will be ground into financial dust.

The Cheery-As-Always, Sage of Wexford, but a more-right-than-wrong analyst for over 18 years now and counting.

 



Likely coming to a bank near you.
 

ABOOK June 2015 Durable Goods ex trans
Key element of U.S. economy going down, down, down;
No faith from business in the Obama Recovery!!
 


NEWS FROM THE FRONT - July 10, 2015

We have now entered the final end-game for the world's financial system and global economy, at least those systems we have had since World War II.  Sounds ominous, doesn't it?!  Moi, the Sage of Doom.  But also, a Voice of Reason in a Sea of Irrational and Irresponsible Behavior.  Also a Sea of Speculation floating upon an ocean of unprecedented TOTAL DEBT AND LEVERAGE.

I think there were plenty of other Black Swams landing on the heads of the world's Central Bankers and so-called "Leaders" well before Greece took that monumental vote to reject Euroland Austerity and Suffering (self-inflicted, of course).  The failure of a major bank in Austria bringing down an entire Austrian province, the failure of The Motor City, Detroit, the imploding stock bubble known as the Shanghai Stock Exchange, the implosion of the Midwestern shale-oil industry in America with the plunge in oil prices, the record inventory of vehicles, both new and used, on American dealer lots today, the persistent decline of the U.S. economy over the last 3 quarters ...... all come to mind as precursors to the historic COLLAPSE we will see unfold in the weeks and months ahead.

I should throw in a U.S. Federal Reserve that is the epitome of the Deer In The Headlights with no discipline to take away the punch bowl after the party goers are literally falling all over themselves in a drunken stupor of Liquidity Intoxication.  But the fly in that ointment is a Global Bond Market no longer as liquid as in the Fall of 2008 by a factor of some 30% to 40% due to changes in bank regulations and capital requirements.  Wow, can these pikers screw up a good party or what!  Kind of like they are blind-folded trying to pin the tail on the jackass.  Of course, nothing good about hollowing out the productive capacity of the Global Economy at the expense of the citizen on the streets and for the enrichment of those already at the top of the food chain.

THE THOUGHT OF NO INTEREST PAID ON MY BANK DEPOSITS OVER THE LAST SIX PLUS YEARS LITERALLY BOILS MY BLOOD.  Time for Americans to start escrowing their Tax Payments until Uncle Sam comes to his senses.  A velvet Revolution by the Worker Bees of America is close at hand.  Don't Thread On Me.

I would bet Scratchy Throated Bill Clinton's ( the dude sounds like he is dying! ) next speaking fee that the Chinese, via a henchman such as Goldman and/or Morgan is purposely suppressing the gold and silver prices via uncovered PM Shorts to accumulate as much of both Monetary Metals in order to institute the New World Order currencies just around the corner BACKED BY SOMETHING OTHER THAN A PRINTING PRESS

Now JP Morgan-Chase has the largest Silver hoard the world has ever seen, both physical and paper, so it is difficult to determine who is on First, but we can be pretty sure who the players are and what their motivations are!  Gold and Silver prices will soar once these players are ready for the screws to be turned.  AND WE ARE VERY CLOSE TO THAT MOMENT.  THE FAT LADY IS NOW CLEARING HER VOICE.

And don't forget Russia, a country led by an ex-KGB operative bent on re-asserting the power and influence of the Old Soviet Union partially by diminishing the strength and influence of the United States.  Computer glitches at the NYSE, United Airlines, and the Wall Street Journal this week are just a preview of the chaos our enemies will create to weaken our once-great country even further.  DISRUPT A COUNTRY'S FINANCIAL SYSTEM AND ECONOMY AND BRING IT EVENTUALLY TO ITS KNEES.  That is their overt strategy and the CLUELESS, INCAPABLE IDEOLOGUE IN THE WHITE HOUSE HAS, ONCE AGAIN, NO PLAN FOR COUNTERING SAME.

Physical demand for both Gold and Silver are soaring around the world and the prices are depressed, HOW THE HELL DOES THAT HAPPEN IN A FREE MARKETPLACE??!!! Normally, it never happens, but manipulated markets are giant springs ready to explode at any moment when TRUE PRICE DISCOVERY REASSERTS ITSELF ...... AS IT ALWAYS HAS DONE THROUGHOUT HISTORY.  And this time is not different.

The U.S. Mint has a moratorium on new sales of U.S. Silver Eagles with record demand coming from around the world, at prices that we have not seen in 5 years ....... SOMETHING IS TRULY ROTTEN IN DEMARK ( OR NEW YORK! )!!

Stay the course ....... says the Patient Sage of Wexford.  Employ cash as you liquidate financial and real estate assets over the months ahead to re-deploy to Precious Metals that are soon to end their 4-year bear market with a Bull that will leave most in the dust.

 
 



Volume will always lead price action in financial markets.
 



One way to beat the West and sanctions is to offer trade in rubles,
bypassing the Dollar and weakening same.  Still the only True Money.
 



NEWS FROM THE FRONT - August 29, 2015

Oops, I almost forgot to update this min-epistle, I have been so busy professionally and personally.  If you think I am falling asleep at the helm, send me a nasty email!  I may just send an NSA drone over your way to respond.  Us seniors have to be awoken every few hours we are so dopey and sluggish.  Actually, at 66, I can still out-ride, out-rope, and out-shoot the vast majority of the citizenry out there!  I is getting ready for the Second American Revolution coming our way.

Buyers for gold & silver, as well as fancy colored diamonds, are coming out of the woodwork and buying tangible assets in size with gusto.  Today's prices are not going to be seen again for a very, very long time.  That is not the salesman in me speaking.  That is a professional investor speaking who is telling you to quit piddling around and pull the trigger on bullion and colored diamond purchases.

If you are a stock and bond investor, RUN LIKE THE WIND TO THE CASH REGISTER WITH PROCEEDS FROM SALES.  I have told you repeatedly on these pages that the jig is up for the cheap-money induced rallies in both financial assets, and Treasuries will not be a safe haven in this unfolding DEBT COLLAPSE, the magnitude of which the world has never seen.  Once confidence is shot to hell in a financial market, like it is now in the stock market, NONE OF THE FUDGED STATS COMING OUT OF WASHINGTON ARE GOING TO PUT HUMPTY-DUMPTY BACK TOGETHER AGAIN.  The revised 2nd Quarter GDP number was politically goosed to try to keep the sheeple from panicking, but John Williams, as always, sees that the emperor has no clothes: 
Upside Revision to Gross Domestic Product (GDP) Was Unstable and Nonsensical

More on this fudge at a later date, but just talk to any businessman as to how the U.S. economy is doing and you will see that the Obama Recession/ Depression is well underway.  I just look at delivery times from coast-to-coast for my bullion products, and they are getting to their destinations, once shipped, in record time.  We have backlogs in silver products now that go out 3 to 4 weeks, and in gold products that go out 7 to 10 days.  I TOLD YOU SO, I TOLD YOU SO.  For months now, I have been correctly predicting that huge physical demand for gold and silver would overwhelm producers regardless of the artificially soft prices coming across the tape.  This is just the beginning folks.  When backlogs get out to 8 weeks, which they will, especially in silver products, my distributors will no longer take my orders because the cost to carry the trade for two months is prohibitive in a low-margin business such as bullion wholesaling.  Nothing personal, just a reality that occurred during the Stock Market Collapse and Bullion Buying Panic of 2008.  History does repeat itself.

THE DEBT COLLAPSE OF 2015 IS OFFICIALLY UNDERWAY.  That is the headline from the Sage of Wexford's moonbeam news service, and there is no turning back with additional Quantitative Easing from the world's central banksters, retention of savings robbing interest rates, or fiscal stimuli that have been utter jokes from the outset of this Depression.

Gold and silver could go down a little more from here as leveraged traders have to get liquid to cover margin calls, but this is an opportunity to pick up the precious metals on the cheap.  The financial markets are on the edge of waterfall declines, and if one reads Jim Sinclair's excellent website commentary at www.jsmineset.com, the Plunge Protection Team has already failed to levitate the fainting stock market on more than one occasion this month.  The fix is in.  Stocks down BIG, bonds down BIG when creditworthiness becomes a valuation element for Sovereign Bonds as it has for centuries, and Precious Metals into a resumption of the 2001 Bull Market that will make your head spin.

$10,000 Gold is not out of the question, which would put silver over $600 per ounce.  I am going to have to revise my long-term projections of both metals based upon what I see happening now in the most debt-laden world ever imagined!  Stay tuned.  And the Sage is not smoking any Oxford party favors left over from Billy Bob Clinton's college days .... a least a century ago looking at the guy who can barely get an intelligible word out these days.  He sounds like he swallowed tacks.


S.P. ( Sage Postscript )

And what could be one major trigger for a rise in U.S. bond yields?  China selling U.S. Treasuries to intervene in the currency markets in support of the now devalued Yuan.  $100 Billion is estimated to have been sold over just the last two weeks to prevent too cheap of a Yuan that gravely complicates the Peoples' Bank of China's constant manipulation of its domestic economy.  Just one more fly in the ointment for a continuation of the status quo in global financial markets and economies.  The dominoes are falling all over.

Turns out, Emerging Market Central Banks are also selling U.S. Treasuries in order to attempt to support their sinking currencies with rapidly deteriorating economies and financial systems.  More fuel for the fire of a bond market sell-off regardless of the purported "safe haven" bull crap expounded about sovereign bonds.  Junk is junk even with lipstick.

 



Why should such a financially savvy country hold the paper of the largest debtor in the
history of the planet ..... FOREVER???!!
 



NOW I WANT ALL OF YOU STUBBORN, UNINFORMED STOCK INVESTORS
OUT THERE TO PUT YOUR ARMS UP IN THE ARM OVER YOUR HEADS
AS YOU GO OVER THE STOCK PRICE CLIFF, CONEY ISLAND STYLE!!!

NOTE THE MONSTER GAP DOWN.  FIRRRRRRRRRRRRRRRRE.
 



NEWS FROM THE FRONT - October 4, 2015

This installment will be short and sweet this month, even though I confess I missed last month's entry.  I do get tired of repeating the same old warnings and diatribes month after month, but am currently taking a victory lap in recognition of the Sage being oh so right one more time.  Not always right as to timing of a catastrophe, but usually spot on as to the basis for the change in a major financial or economic trend.  Tough to pat myself on the back at this age, but giving it a try!

Now the reversal in trend for stock prices is well established as my gnarly old fingers fly across the keyboard, and the even bigger question is:  "When will bond prices follow suit and yields finally begin to rise to reflect the historic series of defaults of unprecedented magnitude that are headed our way???"  The loss of confidence in the Fed or any worldly Central Bank to come to the rescue at this point WITH ANY EFFECTIVE REMEDY has sealed the fate of global stock markets, and it is only a question of time when the world's thirsty borrowers start coughing up giant hairballs when it comes to repaying even interest due on a sea of rotting loans out there.

The economic environment is souring rapidly all over the world which makes any projections of growth in EPS for stocks a bad joke at best and a very costly mistake at worst.  But the so-called "flight to safety" into bonds and out of stocks will not last much longer as bond investors realize that the abilities of Governments, Corporations, and private citizens to repay any portion of interest/principal due each month will become increasingly more difficult, if not impossible, as the global economy sinks further into the Greatest Depression the world has ever seen.  Bonds are not a "safe-haven" today because of Default Risk, Interest-Rate Risk, and Currency Risk ..... just to name a few valuation components to bond pricing that are coming back into vogue along with the very-absent Bond Vigilantes of yore.

J.P. Morgan, Goldman-Sachs, and Bank of America can take a bow now as to having suppressed the gold and silver markets for over 4 years, but they will soon be bowing out of this game, rigged to their advantages during massive accumulation modes, because the U.S. market for one is losing its place as the primary trading venue for the Precious Metals.  As the primary INFLUENCES to prices and physical metal continue to move East, these scoundrels will see that the cost to short either metal will be too high in relation to the exposure of a major DELIVERY DEFAULT on any bullion exchange in the world.  Morgan in particular would not be amassing such a huge inventory of PHYSICAL SILVER if the officers of that tainted bank did not see spectacularly higher Silver prices in the future being right around the corner.

Granted, settlements of bullion futures contracts can be made IN CASH FOR THE EXCHANGES TO SAVE FACE AFTER MASSIVE DELIVERY DEFAULTS, BUT ONCE AGAIN IT IS NOW ALL ABOUT CONFIDENCE IN ANY ENTITY TO DELIVER ON ITS CHARTER AND RAISON D'ETRE.  The up-until-now-quiet sheeple of the world are now ready to stampede and trample those bureaucrats that have lied to, misled, and stolen from the passive masses that today are finding it hard to put food on the table, cloths on their backs, and roofs over their heads.

Physical demand for both Gold and Silver is off the charts today, and as a successful bullion broker I know first-hand that lead times for Silver products can be out 6 weeks and for many Gold products lead times are already out 10 days to 2 weeks, the latter very unusual.  This situation harkens to the Fall of 2008 when Gold fell to some $740 per ounce and Silver fainted to a mere $9 per ounce, BUT EVEN NOW THEY ARE BOTH NICELY HIGHER AT $1130 AND $15 per Ounce, respectively, even with all of the B.S. manipulations going on!!!!!  To the point, we bullion dealers could not keep up with demand then, had to stop taking orders on certain products with excessive lead times, and watched premiums over spot go to the moon AS WE ARE NOW SEEING AGAIN TODAY IN THE FALL OF 2015.

This Debt Collapse is only going to accelerate in the days and months ahead.  Keep 3 to 5 months of living expenses in cash hidden somewhere that you can remember (us seniors are like squirrels on LSD when it comes to hiding things from ourselves!), buy as much Gold and Silver as you can afford, and get the Hell out of Stocks and Bonds and even Real Estate as quickly as your digits can hit the SELL button.  Consider fancy colored diamonds also, because I just did a valuation for a family estate AND THESE VERY RARE CARBONIC WONDERS HAVE DONE VERY WELL during the last 6 years even while bullion prices were trashed.  DIVERSIFICATION OF TANGIBLE ASSETS just like you were taught in discount brokerage school.

We certainly live in interesting times, but these will be deadly times for many.  Look for countries in distress to initiate major military interventions in an effort to stir nationalism and divert the suffering citizens' attention away from the misery that their governments have created with irresponsible and even criminal fiscal/economic malfeasance.  China and Russia will be two major players in this respect.  They have been accumulating Gold and to some degree Silver so that they can operate at will and thumb their noses at the Western Democracies when most major currencies fall to levels more aligned with their intrinsic purchasing powers.  These two enemies of FREEDOM will make sure that the Dollar loses Reserve Status within the next 5 years.  Remember, you heard it here that by 2020 there will be other currencies or baskets of same replacing the Dollar in daily international trade to a greater, not lesser, extent.

A HISTORIC BOTTOM FOR BOTH GOLD AND SILVER IS NOW IN PLACE.  INVEST ACCORDINGLY, BUT WITHOUT PROCRASTINATION.  The window for available supply is going to close tighter and tighter in the days ahead.

Sage of Wexford, ready and able.

 



Cost reductions to boost EPS have obviously been the main drivers to
 earnings growth in the Obama "recovery".  Without renewed growth in sales
volumes, corporations have little hope of maintaining current stock prices
 for executive option exercising.  LOOK OUT BELOW.

 

Global-earnings-SP-500-MSCI_AC-1988-2015

Trailing, not exaggerated projected, earnings are the truest measures of how
 Corporate America is doing AND WHAT VALUATIONS SHOULD BE PUT
ON THEIR STOCK PRICES.  Earnings are plummeting along with global final
demand for goods and services, so you know where stock prices are headed
in the days and months ahead!!!  GOT GOLD?!  GOT SILVER?!

 



When the lowest-rated Credit Risks get endless sums of
credit regardless of their ability to repay both interest &
principal especially in the new Obama Depression,
LOOK OUT BELOW!  Another telling example of Central
Bank enabled lending gone mad.  Does not end well.
 

 



NEWS FROM THE FRONT - November 13, 2015 ( BOO! )

While trying to get that last wink of sleep this morning, I started thinking about what to write in this month's missive on the State of Our Confusion.  The book and movie, Peter Pan, came to mind because the sneaky, devious Crocodile with the ticking clock inside could be the Ticking Debt Bomb that is swimming around the world, ready to go off any minute now.  Actually, it has already gone off in Austria, Greece, Portugal, Brazil, and China, but only the Sino-Situation is the one that dominates the financial press.  This is because it is the Mother of All Financial Time Bombs in relation to the size of the economy and financial system of China.

Then we turn to Captain Hook who had the grave misfortune of losing his hand to the Croc and having somewhat limited use of that appendage as a result; so this is a compromised Leader of the Ship, a pirate ship at that takes what is not its own.  Captain Hook could be the Global Economy and Financial System, frantically looking out for the Ticking DEBT Bomb, our Croc, and being less of a full-fledged pirate because of it.

Then we have Tinker Bell who is always flying about trying to get things done with a modicum of success, and Fed Governor Janet Yellen comes to mind as this character.  Tinker always has good intentions, but is a little "flighty", excuse the play on words.  Gov. Yellen has finally summoned up the courage to even think about increasing U.S. interest rates at the Fed Funds level A WHOPPING 1/4% AFTER ALMOST 7 YEARS OF PROVIDING FREE MONEY TO THE SPECULATORS OF THE WORLD.  This money has done nothing for the U.S. economy or the average Man/Woman on the Street, except to sink them further into more crushing debt, but has enriched Wall Street speculators (investors ...... NOT!), leveraged buy-out Kings, dodgy Hedge Funds, and wonton/ irresponsible borrowers of every stripe.

Now, we come to the main character of the popular story, PETER PAN, who never wants to grow up and just wants to play all day long ........ FOREVER.  Thought of making that player the Governments around the world, but I think the American Consumer fits the bill even better.  Complain to Central Casting if you think I have erred here.  But we Americans have been wanting and getting something for nothing for some 65 years now after WWII, AND THE BILL IS COMING DUE.  Unfortunately, we have pulled consumption into the present that will make less resources available for generations to come who will be burdened with crushing debt loads at all Governmental levels, not to mention Personal Debt levels as well.

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Now, we turn from Never Land to Bullion Land.  DON'T BE DISCOURAGED BY THE CONTINUED SUPPRESSION OF GOLD AND SILVER PRICES.  We are in a wash-out or terminal phase to an interim Bear Market within a Super Bull.  Be a buyer of both metals on dips, picking up more at every $35 to $50 move in Gold, up or down, and every 35 to 50 cents move in Silver, up or down.  We are very, very, very near a turning point in both precious metals, because the Debt Bomb has already exploded in numerous corners of the world, our U.S. oil exploration and production industries for one, and things are only going to get worse in the weeks and months ahead.  DEBT COLLAPSES ACCELERATE WITH TIME, THEY ARE NOT LINEAR.

We can thank Bank of America, Goldman Sachs, and JP Morgan-Chase for these cheaper prices, especially in silver, where the premiums for Sovereign Mint Silver Coins have decreased of late due to discouraged buyers.  But I would follow the Smart Money that is buying in size as the Precious Metals market stays depressed; smarter investors than the Sage of Wexford are big buyers in here.  They see the light in the tunnel, and it is a speeding/ runaway train headed right for us.  And to quote the Rothschild's one more, obnoxious time:  "BUY WHEN THERE IS BLOOD IN THE STREETS", a very Halloween kind of analogy.

BUT WHEN PHYSICAL SUPPLY CONTINUALLY COMES OFF THE MARKET AND STAYS IN VERY STRONG HANDS SUCH AS MORGAN'S ( not praising JP here, just a cold observation of this Opportunist of the Nth Degree that can operate outside of commodities regulations to date! ), eventually, wait for it now, prices respond as they have over millennia to the Forces of Supply & Demand.  No entity or manipulation can reverse this Economic Reality for long, and this bear in the PM's has now gone on for over 4 years.  The Bull is just pawing the ground, anxious to charge out of the gate.  In the case of Gold, China and Russia are shoveling as many tons into their vaults as they accumulate Rotting Dollars in trade or sell from reserves, so they are prescient enough to see the handwriting on the wall regarding the Yankee Reserve Currency's current life expectancy.  These two entities are disgorging their reserves of U.S. Treasuries, so Yellen won't be the only force pushing interest rates higher in the months to come.

Shelve the bunk about a strong Dollar and higher interest rates being bad for the Precious Metals.  So-called "normal" relationships are not going to survive in the extremely abnormal environment that we find ourselves within.  Confidence in leaders, governments, and systems sinks by the day.

Have a Happy Thanksgiving, and give thanks for the bounty you enjoy as an American and the freedoms you still have.  We are a spoiled lot, we Americans, but eventually one has to pay the Piper.  That Piper, that Crocodile, tick tock, tick tock, tick tock, is lurking right below the Pirate Ship of Government that has stolen from generations of Americans to come.

Ungraciously, The Sage of Wexford.

 




While business sales continue to roll-over as they have since mid-2014,
 business inventories have perversely continued to grow:
Expect an inventory adjustment period dead ahead which will contribute to
 the Obama Recession already in full swing.  Stocks living on borrowed time.

 

 

  
PRIOR DEWDROPS OF WISDOM VIA "News From The Front"
 

 

News from the Front - ARCHIVE III



 

The information and opinions contained within WCM's "News From The Front" have been compiled or arrived at from sources believed to be reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness. Neither Wexford Capital Management, David W. Young or the Company's agents or assigns accepts any liability whatsoever for any loss arising from the use of this free newsletter or its contents. All periodic "ezine" articles posted on www.goldsilverbullion.com are strictly for informational purposes only. No statement or expression of any opinions contained within this electronic newsletter constitutes an offer to buy or sell any financial securities or surrogates mentioned herein. Readers are encouraged to conduct their own research and to perform extensive due diligence and/or obtain professional financial advice before making any investment decision, especially in the exceptionally volatile asset markets of today.  WCM's Principal, David W. Young withdrew the Company's Registered Investment Advisor status with the S.E.C. and the Virginia Division of  Securities in May of 2005 and no longer offers financial-asset managed accounts receiving continuous supervision of assets.  WCM's principal, David W. Young, was a Registered Investment Advisor in good standing from October, 1985 to May, 2005.  Furthermore, the company does not engage in any fee-based or compensatory provision of financial or investment advice.  The brokering of tangible assets sales via U.S. Rare Coins, Precious Metals Bullion, and Fancy Colored Diamonds is the sole business of Wexford Capital Management and the company cannot be construed under any measure as being in the "financial newsletter business".




 



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