Obama’s Newly Printed $Trillions Stays Essentially In The Financial Service Industry Of The Richest 1% ~ It Does Not Go To The Working Middle Class!


Marc Faber, who authors the Gloom Boom & Doom newsletter, is usually pretty bearish on stocks and bullish on gold.

gold iraq soldier

Lately, though, gold doesn’t seem like it can catch a bid.

“Despite the continued reverberations regarding the Cyprus bailout and its involvement of bank deposits, gold struggled to maintain the positive momentum created in the first two weeks of March and instead now looks very likely to move lower, towards $1580/oz,” wrote Deutsche Bank commodities analyst Xiao Fu in a note this morning.

So, what does Faber have to say about it?

This morning, on Bloomberg Surveillance with Tom Keene and Alix Steel, Dr. Doom was asked why gold wasn’t holding up.

This is actually an explanation as for why Gold/Silver is to go up. ~ Volubrjotr

Here’s his explanation:

When you print money, the money does not flow evenly into the economic system. It stays essentially in the financial service industry and among people that have access to these funds, mostly well-to-do people. It does not go to the worker. I just mentioned that it doesn’t flow evenly into the system.

Now from time to time it will lift the NASDAQ like between 1997 and March 2000. Then it lifted home prices in the U.S. until 2007. Then it lifted the commodity prices in 2008 until July 2008 when the global economy was already in recession. More recently it has lifted selected emerging economies, stock markets in Indonesia, Philippines, Thailand, up four times from 2009 lows and now the U.S.

So we are creating bubbles and bubbles and bubbles. This bubble will come to an end. My concern is that we are going to have a systemic crisis where it is going to be very difficult to hide. Even in gold, it will be difficult to hide.

Faber is, of course, still bearish on U.S. stocks. He told Bloomberg that he sees “considerable downside risk” in the market.

Business Insider



The Chinese are the “put” to the price of gold, the backdrop.  The lower the price goes the more they accumulate.  And the Russians and Indians are right there with them.  The manipulation is a PAPER, highly leveraged manipulation.  It will not work much longer.  Sinclair says, and he has been there before, the paper market will go to cash.

There will be NO margin on Comex gold and silver contracts.  In other words, buyers may as well go to the physicals because without “margin,” there will be no reason to hold paper contracts.  The Hunt brothers were brought down when the silver market went to cash.  This time, when it happens again, it will be something to behold.

And if you think the bullion banks (JPM and friends) will get their due, Sinclair has said for years that they will be the ones who are LONG when it happens and make the most money off of the swing.  I guess that leaves the hedge funds holding the bag, because it is a zero-sum game and for every long there is a short.

It will be something to see, and a wonderful thing to be a part of, if you are on the right side of the move.  I say, if you’ve got two or three years to wait, you will probably see it happen.

Read More Here

Gold SilverBig Secret Folks => Silver: Criminal History In The Making ~ With Silver Not Being Mined ~ Gold Is 5Xs More Abundant Above Ground Than Silver!

Miles Franklin