This article was contributed by Tom Beck of Portfolio Wealth Global.
I asked Tom Beck, founder of PortfolioWealthGlobal.com, to email me his thoughts about the incredible story of the Dollar Credit Squeeze, the Repo Operation by the FED. What he put together was so compelling and educational that I asked his permission to share it with you. Please read!
In September 2018, I bought 50 ounces of gold eagles at $1,200. The following week, gold hit $1,180 and I issued an exclusive alert in the newsletter, along with this REPORT, in which I called the bottom. I’ve never done that before, but the research was so accurate that it would have been a sin not to.
This alert went out one day before gold bottomed, and anyone who bought gold, silver, or my 4 MUST-OWN stocks has made a killing since then.
My premise back then was that the FED had hiked interest rates TOO FAST – no, not too high as some are suggesting because the economy can function even with 3% or 4% on the Fed Funds Rate. But the speed at which they tightened caused such dollar liquidity that I knew that this was the end, especially when Powell (who is CLUELESS) said that “we’re a long way from neutral rates.” To me, that’s like a cab driver telling me to buy NASDAQ penny stocks in the Dot.Com days.
A couple of days ago, we saw this over-tightness in action; the FED has to pull a Repo Operation, which means that the system that greases our economy – the system that BROKE in 2008, the intra-day lending between banks – was about to snap.
Unlike in 2008, when there was over-leverage, today there’s EXCESS CASH. In other words, a dollar shortage in the emerging markets while the institutions are cashed up is a new phenomenon.
It means that the FED is about to print currency – when the banks have healthy balance sheets and can do lending.
Trump has basically been calling for this type of scenario for over a year; the media deemed him nuts, but he was DEAD-ON. He was right.
Bottom line, it’s September again and I’m calling it again. Gold will not spend much time at the $1,500 level.
JPMorgan has just been accused of market rigging and if they’re forced to cover the shorts, silver could hit $20/ounce in milliseconds.
Watch like a hawk the spread between the S&P 500’s dividend yield and the 30-yr bond yield. There is no logic that the world would lend money to Washington until 2049, and get paid the same income as it would from buying stocks.
Two things are about to occur:
Gold is going to $1,600 – Don’t get left behind!
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Back in 2009 The Keiser Report featured a “Buy Silver, Crash JPMorgan” segment on their show that went on until 2011. They encouraged people to buy up all the available silver so JPMorgan would not be able to fill it’s contracts. This almost succeeded as silver went up to close to $50 an ounce in 2011 because of short supply. Bought silver here until 2011, then mostly stopped.
Trouble is, the regulators raised margins five times in 2011 when silver was going up. That forced prices down and allowed JPMorgan to clear it’s shorts and make a profit. Collusion?
JPMorgan may have learned a lesson from Stacy and Max’s push to crash them and now they own the most physical silver of any bank…500 million ounces. Will silver go up much since they have the market cornered? They have more silver by a long shot than the Hunts did when they cornered the market in 1980 (and got taken out by .gov with a margin call they couldn’t cover). The Hunts cornered the market to force prices up…JPMorgan did it to keep prices from going up.You don’t take out JPMorgan with a margin call on silver when the regulators are in their pocket.
It’s good to have some precious, but as long as the majority is in the bank’s hands and the .gov is in the bank’s pocket, best of luck on prices.
P.S. Just because some of their traders got caught manipulating silver, don’t think it won’t continue. They claim no knowledge and “rogue traders”. The bank will skate and others in their organization will continue the HFT and spoofing to control prices of precious.
The majority of the world’s PM’s have been transferred from London & New York to Beijing, New Delhi & Moscow.
I said here many times when the manipulators take the brakes off, Silver will sling shot higher. I see $20 to $24 easy peasy. been waiting since Spring of 2015 back in heavy, and waiting and winning again soon. I dumped all scrap junk silver back in 2011 sold all of it at $42 an Oz. I like winning, do you? Buy Low – Sell High. Watch the high Price-ratio Silver to Gold Drop back to 50 to 1. 83 to 1 now and Silver massively undervalued yet. I can buy as much Silver bullion @ just .25 cents an Oz over Spot. That’s .999 fine Silver.
“It’s good to have some precious, but as long as the majority is in the bank’s hands and the .gov is in the bank’s pocket, best of luck on prices.”
That is a clear, to the point true statement.
So, what impact will happen to the dollar, gold, and oil with the upcoming Saudi War on Iran,
supported by USA ?
THE PROPHETS HAVE FORETOLD OF THE THINGS NOW COMING TO PASS.
Prepare, and be ready for more middle east wars impact on us and on our economy. But what to do when the S really, really HTF ?
Yeah, the class actions are forming. The more the price-rigging syndicate resists the adjudication, the more legal costs they will eat.
Who cares if they’re too big to fail anyway? The moral hazard guaranteed by the explicit Fed backing fuels criminal activity under the premise whatever the TBTF does, it’ll get free money to pay off the damages.
This one is too big to wave off as a fine. Alongside Fed’s pledge to maintain market stability, captured regulation shines through in hand-slapping fines. Miniature compared to the profits criminality brings, these fines flaunt the political influence that the wealthy banks wield in our unregulated crony capitalist system.
This Medici complex moves control over the economy to the political class, in increasingly obvious corruption and gain for the elite. As the plutocratic, klepocratic orbit diminishes the authority and legitimacy of the the state, wars and outright looting of public resources ensue. The chief means of this perversion of control is in the TBTF, market-backing promise offered by the Federal Reserve and its monopoly control of our money and its willful redirection to the vaults of companies complicit in the price-rigging of metals. Unsurprisingly this comes out in ongoing mafia-style protection by the government in its collusion with wealth production and whatever thievery it requires to sustain the narrative.
Total bullshit. Your desperation smells like Lola on Sunday morning.
No criminals from JPM were exposed.
A sunny day in Equador doesn’t mean jackshit to the atoms on the planet Uranus.
Gold/Silver on resting on the edge of a cliff.
Gold 1430, 1270, then 1190;
Silver 17, then 15.50, then 14… all likely before 1/1/2020
Good shot at $25 oil within 12 months.
All with record highs after record highs in S&P/DJIA.
I think old Bert works for J.P. Morgan. You people take note of Bert’s predictions and see if this happens the way he says.