Kitco Essay
Roger Wiegand 8-27-12
Commentator’s Corner

Federal Reserve Is An Impotent Rodent – Gold Prevails

 

The USA’s private banker club, the Feral ‘er Federal Reserve, has come to the end of the road.  With each and every QE event, it takes much more inflationary-cash-bonds-credit-push-media-talk to manage and move these markets, keeping them on the right side of the fence.

 

The FOMC and their other central banker gang members have obtained full control of the interplanetary money and credit system by stealing anything that moves and piling on gargantuan debts beyond any comprehension. Who can count into the trillions? They can’t and we can’t either.  It doesn’t matter any more as all logical thinkers understand these bills and debts will never be paid, can’t be paid, and they were never meant to be paid either.

 

This entire 1913 central banker credit promotion was about power, control, and instigation of           one global currency.  They knew all along they had to smash the middle class and make all folks government dependent.  Owning the ability to originate credit and currency out of thin air is the primary tool.  Well, so far it’s working, but the forthcoming backlash will indeed be something to behold. We recommend reading Adam Fergusson’s book “When Money Dies” to learn the ending.  It is beyond ugly. We really don’t care and have zero compassion for these gangster leaders.

 

To keep the game in play they have to maintain the central banking structure and system which includes the following tools:  The USA’s FOMC, central banks in all major nations and a few smaller ones, the IMF, World Bank, Bank for International Settlements, ECB, the UN, parts of NATO and the related military establishments in all of these sectors.

 

It’s no longer working as critical pieces and parts are falling off the banker/political truck.

 

Since these boyz have stolen it all and they hold all the paper, the really big and nasty surprise is that their huge bag of loot now goes valueless; as in bathroom tissue has more intrinsic goodness. So what can the FOMC do with their creation: this stinking bag of credit crap? They can only shuffle the window dressing deck chairs, perpetuate media lying and hope for the best in their grand game of extend and pretend.  Meanwhile, their pleasant little lives are crumbling.

 

We can all plainly see its coming apart with a sinking morass in Europe, falling exports in China, fear in the global stock markets, and those on-going, massive corporation lay-offs as CEOs struggle to build cash and hunker down for the nuclear credit winter now upon us.

 

The victim’s list is miles long including colleges and universities, private capital, savings, pensions, employment, small business, larger corporations, global stock and credit markets, business credit, and of course government itself as in Greece-land makes a crash landing.

 

About three years ago we clearly remember one day when we were doing a complete run-through on all our major charts to note primary signals from each and every one of them. The objective was to find major trends, sort out the weak sisters and discover the best of the best.  One market trend can be helpful, but if you assemble a picture of several moving parts in several markets, clarity prevails.  And, did it ever prevail on that particular day!

 

Wow! On that very day, we exclaimed out loud that ALL were in crash and burn mode with not one of them showing anything positive.  This was some time ago and the exact date is fuzzy but it must have been just prior to the marvelous extravaganza fun time known as the 2008 Lehman disaster.  And, of course, the following announcement of TARP CITY after our esteemed USA Treasury Secretary finished his paperwork giving himself immunity from criminal prosecution.

 

 

Since those days, we have seen stuff we could not even imagine in a fiction novel.  Government loans to private industry in prodigious amounts, lawless activity running amuck with no congressional discussion or approval, court decisions from a comic book, and numerous political favors covered with billions in unlawful handouts.  Who would have thunk it?

 

Well, get used to it, as you have not seen anything yet. The second Obama administration will continue to expand their particular brand of social communism in America and throughout the world.

 

The forthcoming American apocalypse will be preceded by similar events in Europe. The only good thing for the United States is we will have front row seats to a European crack-up unknown in prior history.  This gives Americans a good idea of what happens to us when we get our turn in the Greater Depression Repression barrel in the near future.

 

Europe (being composed of so many small and a few larger nations) with numerous languages and cultures will slide back into former tribal divisions we understand so well from reading history books.  Recall those tribal national histories of medieval Europe and you get the picture.

 

Those with long memories and a good education of Europe from 1875 through 1945 can pretty much guess what happens in the next European decade.  First, Germany’s neighbors are becoming very uneasy as to where Germans go next in the aftermath of this economic disaster. They remember very clearly the years of 1914-1918 and 1933-1945.  Will this happen again? We think not, given the social, educational and awareness status of Germans today, but who knows?

 

However, if you think Germany is going to roll over and be the ECB paymaster for all of Europe in our current credit game, think again.  When the Euro Currency and Euro-land central banker and political power ends -it is ending- the wrath of Germany will be, shall we say, quite interesting.

 

Early signals in the United States which are causing greater fear are: encroachment-demands of politically correct speech, media spam spinning control of the news, illegal gerrymandering of voting districts to control elections, shifts in political power to the courts and to foreign agencies like the UN, more creation of group rights versus individual rights, escalation of racial problems related to welfare, voting, housing, courts, and retaliation. These are all creating further division.  The illegal immigration problem has moved to a point where illegals are given full rights of legitimate American citizens.

 

As the above list spreads, more cultures will move toward segregating themselves into sectors and housing where they stand alone in defiance of others.  Much of this is hereditary in the cultures, but much of it will simply be for pure safety and self-defense.

 

Attempts to seize guns or gold will not work nor will they probably become law.  Both are for the most part uncontrollable. However, gold transactions can be heavily taxed and controlled through both new and old law.  We would expect most of these types of things would tend to slide under the radar and be buried in any prominent national discussions.

 

As economic reality arrives, entire systems of credit and collection, growth, failures, and market relationships come into question.  We’ll hear more pathetic cries for shared sacrifice and attempts to induce the herd to give up their cash, credit and social rights for the good of people.  At first some fools will comply…a little… but then a massive shift goes toward each man and woman for himself or herself, leaving the politically correct herd in the dust.  These ideas and that very social movement will collapse and die under the weight of Greater Depression Repression II.

Our readers and those following this kind of thinking know what to do.

 

The movement toward hard assets has long been underway among forward thinkers.  Migration away from “The System” and into one of Virtual Independence is the trend.  It’s not new to some of us but the street herd is newly shifting in that direction, following those advanced thinkers who have gone there before the majority.

 

And, what becomes of the FOMC and their buddies?  Well, a bill was passed to audit these folks but we see no action when the results are found.  Rather, the FOMC and numerous other controlling agencies will just cease to exist when their power and credit punch bowl is smashed into the smoking ruins of international bond markets.  No bonds, no cash, no money, no power.

 

Gold this week has found its legs along with silver.  Obviously, those with market power will try to sell it and suppress it.  Listen carefully: this cannot work forever. Outside influences in Asia and other nations could care less what happens in the FOMC’s Paper Land. They would just as soon end it as not, and that’s where markets go as powerful Asians and Middle Easterners buy gold.

 

Take reasonable preparations and be an independent, operating in a daily realm outside of the system.  As one old family neighbor, a Mennonite farmer once said: “The 1930s for us was a big yawn. Nothing changed and we had no hardships.  The only thing different for us is we had lots of good, clean, extra farm food and we helped to feed our neighbors. It all went along just fine.”

 

We wonder what happens in urban locations where those folks are living on plastic day-to-day?  It’s probably just better to not think on that one for very long. That could make nightmares.

We did forecast the last two larger gold rallies including this week’s move.  We did technical analysis forecasts in 2005 for gold at $2,960 and silver at $156.  Both numbers have been re-done creating new data.  Alf Field’s TA did a recent forecast of $4,500 gold.  Our previous one for his cycle was $4,450 …close enough.  We can see a silver high of $256 and one of our best analyst friends says $450.  Of course, they’ll all take more time.  We think we are safe with current PM rallies until 2017, and maybe even until 2024. We’re not certain about the 2024 date extension for now.

The Greater Depression Repression II is swiftly taking hold now and layoffs will be legendary. Housing has -20% more to drop for the USA national average.  Joblessness goes to 30%-35% and food stamps over 50 million to 60 million.  We get a 2013-2014 World War in the Middle East and Obama is re-elected.  Inflation goes to hyperinflation.  Not happy stuff but it’s not the end of the world either. Somebody please tell us when the global bond markets crash for good and we’ll tell you when this can all get better and we can start all over again, maybe with a partially backed fiat gold currency.

Roger Wiegand is the writer and editor of Trader Tracks Newsletter for gold, silver and energy traders.  Roger provides recommendations for short and longer term traditional stock shares, futures and commodities trading with specifics for individual trades. Stay tuned for more of Traderrog’s insights and predictions via his exciting new daily audio subscription.  Coming soon! Details at www.wavelengthpublishing.com

Roger also is a regular contributor to The Korelin Economics Report ( www.kereport.com) , the highest rated daily internet radio program listened to throughout the world dealing with politics and hard assets. He is also a regular guest on the Weekend Edition of The Korelin Economics Report which airs on radio stations across the U.S. on Saturdays and Sundays.

 

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