Will someone that understands this article please give me a simple overview. Thanks.
We are getting very close to the time when the excrement will hit the blower requarding the US Dollar.
Timmy “The Used Car Salesman” is going to China this weekend for talks (pleading) for them to keep buying our worthless paper (dollars). Look for talks to be described as “productive”.
The thesis is that to support the dollar the FED has been lending gold which is then sold short to depress the international price of gold. There are now a lot of contracts out there for delivery of the gold, the gold no longer actually belongs to the US Govt, and as soon as folks who lent gold they don't have have to make good on the gold, the valuelessness of the US$ will become apparent and we will look like Zimbabwe.
I don't kwow whether to lend any credibility to the theory. On the other hand, the US economy is clearly under stress. How many folks do you meet in an average day who do something that you regard as providing a good or service that someone ought to want to pay for, and how many folks just sit there and collect "rents" to obstruct the world with rules, regulations paperwork, process, prohibitions, and more fees? What net does America produce anymore that anyone else wants? We don't make computer components except the AMD or Intel processor. We are a nation of consumers, and obstructors and awfully damn arrogant about it, actually.
I’d say go down to the header “Comex Stress Near a Breaking Point” and read just that section, as a start. I don’t know if that’s a good summary of the whole article but it’s a decent primer on the relationships among The Dollar, gold / silver, and interest rates.
The goldbug theory of gold manipulation is that the gold price is an indicator of the level of fiscal irresponsibility in the monetary system, and “They” are keeping the price of gold down (some say it should be $3000 now not $1000) in order to imply that all is well.
Simple overview- your gold and silver is going to be worth a lot more. Your government (and it’s fiat currency) is going to be worth a lot less.
Interest rates are about to spike up bigtime. This will have all kinds of nasty implications.
If you have land, grow food and make a lot of money.
If you have ammo, keep as much as possible for as long as possible.
That’s what I’m getting from the article anyway. I read Jim Willie all the time, and he usually talks way over my head. But he’s pretty darn astute.