Four Blood Moons Calling? Greek Elections again, S&P Minicrash, Gold bear over?

Well, if the whole blood moons thing is correct, which I still doubt but it is possible, then the picture has to start deteriorating fast. Like now, within the next two months. According to Blood Moon Theory or whatever you want to call it, we have until Hoshanah Rabba 5776 for the world to change somehow.

Today, the S&P broke medium term support at 2040, gold is up again, miners up 20% since bottoming late July, China crashing again, VIX up 25% in one day. I’m long gold and miners (obviously), no longer short China anymore, but long the VIX expiring in November since covering the China short.

Let’s clarify this “China devaluing” mumbo jumbo for a second. China has a “peg” to the dollar. That means the PBOC doesn’t allow the Renminbi, or Yuan or whatever they call it, to trade below a certain exchange rate with the dollar. They control it by buying or selling dollars whenever it gets too close. China is not “devaluing” its currency so much as simply letting it trade below a previous peg without the PBOC selling dollars to strengthen it to within an arbitrary peg. Why are they doing this? They think they need to in order to “stimulate exports” which is a bunch of crap, like saying you need to take hit of your crackpipe to think clearly. Yeah, maybe for 3 seconds, but then you go nuts.

Now Vietnam and Kasakhstan and a whole bunch of other countries few people care about economically are doing the same thing. The peg is manipulation. Releasing that peg is allowing the free market to trade the currency.

I’m in the US now, and this is the first time in years I’ve even put on main stream financial media around market close today just to see what they say. The bullshit is so thick you can’t cut it with a chainsaw. Nobody has any clue what they’re talking about, and they all say that in different words.

Greek elections are happening again. My hope is Yanis Varoufakis will get off his butt and run for Prime Minister in a new party. He’d win hands down, I think, and send the banksters to hell. He’s the only one that would do it. September 20th apparently is the date.

Gold is on its way up past $1,150 after bottoming (hopefully) at $1,072. If this is the bottom, it’s been a long time coming.

When the S&P broke support since February when it steamrolled through 2040, it was in the last 15 minutes of trading today. If stocks don’t bounce back sharply tomorrow morning early, then the next support levels are at 1972. If that gets broken, 1820 is next. Tomorrow is a very important day for stocks. If they don’t bounce early, they probably won’t bounce.

Let’s see what happens.

OH MY GOLD! BitGold a Service so Beautiful I Shed Tears of Joy!

WOW! I go to 321gold.com last week to check the spot price. And I see this article about something called BitGold. To open an account for free, just click on that link or the link in the menu bar above. Apparently, they are a gold-backed Paypal service where you can buy gold with bank transfer, credit card, bitcoin, debit card, whatever you want, and store your gold in one of 6 vaults around the world.

You can redeem your gold physically for a $25 shipping fee. That’s it. The minimum delivery is 10 grams. That’s about $400, which is the smallest redemption minimum I’ve ever heard of.

The only fees are a 1% commission on each transaction, so if you buy $500 worth of gold, they get $5 on the buy, and $5 on the sell.

This is essentially a 100% backed gold standard bank account. That’s what it is. If it catches on, it will be huge.

And it is not open to US residents. (UPDATE: NOW OPEN TO US RESIDENTS) I signed up for an account and uploaded my Israeli driver’s license. Then they asked for my cell phone, and sent me a code by text to make sure I was physically in Israel. I now have a BitGold account and can buy physical gold down to a 10 gram cube and have it sent as payment to anyone else with a BitGold account, or have it physically delivered to me here in Israel.

This is just awesome. I literally shed tears of joy when I saw this.

And their stock, XAU on the Toronto Exchange, is going totally bonkers. Up 45% just today.

I wish them all the luck in the world, and soon I will be one of their competitors!

Six Days Until Greece Defaults

Things are starting to fall into place. We almost have another gold flag today. We may yet if gold turns positive by the end of the day. It is barely down.

Stocks are way down. Bonds are down hard. Dollar is tanking.

Gold is even. But oil is up.

In any case, this will all get much worse come Tuesday May 12, when Greece has to repay €775M to the IMF, but probably does not have the money to do so. According to Zerohedge, there will be no deal by Monday, May 11. Here ZH isn’t just speculating, but quoting a source. So they’re probably right here.

Further evidence for no deal by Monday is that Tsipras and his Syriza socialist wacknutters just reversed a measure passed by the previous government to fire 15,000 useless bureaucrats. They will now be rehired, because putting human robots on the payroll of a European backed bailout is the moral thing to do, I guess.

I’m sure the IMF will be really happy about this. You have no money but you hire 15,000 people to do nothing but shuffle paper and screw up the economy. There’s no way Greece is getting any more money. Forget it.

We’re 6 days away from D-Day, finally, on Greece.

Hasta La Vista, Eurozone.

The Global Economy is Within 6 Months of Collapse

I’m feeling more comfortable now giving a more exact time frame for when this all goes down. It’ll happen in the next 6 months.

I still may be wrong because I don’t have a direct line to God, but I’m opening myself up to people calling me a stupid alarmist if I am. I’m confident enough now to risk that.

Greece is going to default sometime in May. Varoufakis is now meeting with a sovereign default lawyer. and the Fed is going to raise rates at some point in June. Those two things together are enough to screw with the bond markets which are showing negative yields for the stronger States like Switzerland and Germany. Negative yields mean that people are paying governments for the privilege of lending money to them. German 4-year bonds are yielding -.2%. That means people are giving Germany $100 for the privilege of getting back $99.80 in four years.

People think I’m insane. That’s insane. It’s about to reverse.

Price inflation will follow a bond slaughter, indebted countries will be applying all their tax revenues to debt service, meaning all your taxes go to banks. And of course, precious metals will explode very suddenly.

Let’s give it a 180 day countdown. It’s tax day isn’t it? April 15?

April 15.

180…

Peter Schiff: Stay the Course, Things are About to Get Rough

Peter Schiff’s understanding of economics, while not as good and in depth as Robert Wenzel’s for instance, is still very good when it comes to the end game. Whereas someone like Wenzel is arguably better at spotting more twists and turns within the business cycle, Schiff is good at pounding away at the inevitable.

While Wenzel holds that the Fed will nominally raise rates around September, Schiff holds that they won’t, and at that point, the cat will be out of the bag and everyone will realize that rates will never, ever rise.

Wenzel holds that rates will rise nominally in September, but will not rise fast enough to damper the coming price inflation. I don’t know which one is correct. I lean towards Schiff.

The key takeaway from this is that when spotting a bubble, you either look like a fool before it pops, or you look like a fool after it pops. Right now I, he, and all gold bugs, look like fools. But not for much longer. Bring on the ridicule now. Heap it on. In the end, we will have the last laugh, and it will be a big one.

Here he is, in one of his most powerful video blogs in recent memory, in my opinion.

The meaning of “Devaluing a Currency” – Gold Versus the Euro

Stream of consciousness ahead…

The world right now is a disturbingly long and intricate wall of dominoes. The Greek domino is teetering.

Thinking about the structure of the whole Eurozone project. 13 countries in Europe come together to share a single currency. A single fiat, unbacked, paper currency. It sounds all wonderful and Kumbaya, no? Europe, which for hundreds of years did nothing but slaughter itself in war after war after war, is now coming together to share a currency. It must be heaven on Earth, or that’s what they thought when they set the thing up.

Thinking about this just now, a gold light went off in my head. As often happens in this head of mine. If a shared currency is such an idyll, and indeed there are economic advantages, then bloody hell why not gold, or silver, or something real? We all know what would happen at such a suggestion. The MSM and the econometricians will all bark like wild dogs about how insane the idea is, the barbarous relic etc., the evils of gold and the dangers of hard money blah blah blah.

But why can’t I sound left wing freedomy and enlightened when I agree that I want one world currency, I just want it to be a commodity for God’s sake? Why does that have to sound as if I’m insane, backward, twisted, mangled, outdated and whatever else? A paper union is all wonderful and enlightened and beautiful, but a gold union is disgusting outdated and crazy? Why?

Evil in this world has gotten really sophisticated. A level beyond what most of us imagine. As Murray Rothbard said, it is the intellectuals, the PhD’s, the professors, that mold the thinking of the average guy on the street who doesn’t have time to think for a living. They team up with the State to dumb us down, everyone from our high school teachers who tell us to “rock the vote” to that prick Jonathan Gruber who is the absolute perfect example of a professional state sponsored piece of garbage faux intellectual, who teams up with the State to “advise” it in its next operation of massive theft in exchange for millions upon millions of dollars. How much money did Gruber rack up “advising” the Feds about how to glue Obamacare together with a wad of phlegm? Millions…upon millions of dollars.

They dish out the total bullshit. We eat it. They get millions. We get robbed. That is how it works. And one out of a thousand people – if that much – are able to see it, while the rest of us drool on about how we have to vote and it’s our holy obligation to do so.

And so it is with the grand Eurozone scheme. The European Jonathan Grubers all lubed up with their government sponsored PhD’s and the rest of their reeking intellectual trash all go out of the huddle and totally brainwash the populace into singing Kumbaya as a unified paper currency union is set up. Explain to us why the paper union is so great and wonderful and other vomit, and why the gold bugs are all insane crazy armageddonist preppers who should be committed.

So why demonize the gold people? Call them “bugs”? Because, when it’s a paper union, somebody has to control it. Somebody has to have the power – the absolutely exclusive power – to print it. And here’s the key my friends: Whoever has the power to print it, has the most powerful resource on the continent. And who is that?

It’s Germany.

But gold, if you have a gold currency, nobody nobody nobody can print it. You can either mine it, produce it, or trade for it, in honest to goodness economic activity. Nobody has a power-given advantage over anybody. People have to trade their advantages with each other in what is called import and export. There is no competitive devaluation. There is no devaluation at all! Ever! If you go bankrupt you go bankrupt!

Because what is devaluing a currency? That phrase we hear so often out of the mouths of those elitist PhD thugs clothed in such elegant language?

It’s when a government goes bankrupt, and instead of going out of business like any other bankrupt company, they print the paper money to death, “devalue it”, pay back their debts in nothing but in name only, and all the citizens end up with worthless paper, everything stolen from them.

Can you imagine the ludicrous suggestion of a private company, say Apple, going bankrupt, and then in order to pay back its debts, printing dollars? Wow would that start a riot at Apple headquarters. Apple suggesting the dollar be devalued so it can pay back its debts in worthless paper. Screwing every other dollar holder while it gets away from its creditors. The idea is crazy. But for the government, whenever they go bankrupt, they just literally, steal everything from everybody by destroying the currency everyone was forced by law to use. And the intellectual rats all say something sophisticated and complicated and meaningless about the necessity and elegance and beauty and classical music about “devaluing the currency” – everybody stay calm as you are raped, we are just “devaluing the currency,” no need to panic. It’s just “devaluation” that’s all. A beautiful wonderful thing too complicated for you to understand. I have a PhD.

And here’s my bill for $10 million in new currency for advising you on the best way to “devalue the currency”.

So let’s cut the Orwellian crap. “Devaluing a currency” is just an economic elitist phrase for “steal everything from the people you rule by inflating the money that you forced everyone to accept, to death, so nobody has anything left, empty out everything, take it, and to hell with everyone else.” That’s what it means.

So why is an artificial, central-bank-controlled paper union a Utopia, a “Grand Project” while a natural, voluntary gold union among anyone who wants to trade gold is insane crockery? So say the elitist intellectual establishment vermin? Because governments cannot devalue gold. Not unless they steal the entire supply from everybody like FDR yemach shmo and then arbitrarily declare a new price for it.

It’s not about European Unity. It never was. If it was, there would be no currency by force. There would only be what people want to voluntarily use as currency. That has always, always been gold and silver. Give people a choice they choose that.

The Eurozone is about control, slavery, devaluation. Control by the German government over everything. It’s always about control. Power.