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Grant
Grant
12 years ago

Ignoring variance in the gold price over this given two year period, a monthly increase in demand by $20 billion (say for sake of argument half of this $40 billion a month is going to gold) would imply a $240 billion per year increase. Considering the US govt has a *documented* 8133.5 tonnes of gold, at a $1750 spot price that’s only ~$450 billion. I think we can all agree that this gold tonnage number is probably wrong, but that still seems like a massive pouring of money into the gold market that would easily be noticed by both a huge spike in price of gold due to a massive demand increase and evidence of the large purchases by the big banks.

That will let us know, at least in a term of 3-4 months, whether or not this theory is sound. I find it slightly implausible just by the amount of tonnage of gold we are talking about with this scheme, but it certainly sounds possible.

*NOTE* I’m no expert */NOTE*

Rottenclam
Rottenclam
12 years ago

Wow. Just awesome, Jack. I could see these videos going viral (well, as “viral” as a video about QE3 can go).

The last 3 minutes really rocks, because you circle back to your core message of providing solutions. Thanks again.

Roberto
Roberto
12 years ago

If you go to yahoo finance and look up AAPL as an example and look under major holders. You will find JP Morgan as a top institutional holder of Apple Inc. It is another area where banks invest the money they will get from the Fed. I can see the stock market being driven up by the banks buying. We can do the same and invest in the stock market. But keep in mind that if the banks can drive a stock up, they can also take it down. I would be looking at buying mining stocks.

Insidious
Insidious
12 years ago

Governments and large institutions don’t need to buy gold in the commodity markets. And of course its in their best interests to hide their actions and intentions for as long as possible.

As an example, the Chinese government purchases mining companies or directly buys the entire output of mines from mining companies. While this shrinks market supply, and therefore may have an impact on market pricing, there’s no way to know how much gold they’ve purchased or control.

Markets are manipulated, and these are very powerful/rich entities that have a vested interest in keeping the prices down.

Here’s a recent example:
http://www.silverdoctors.com/cartel-dumped-2x-annual-us-silver-production-on-market-in-15-min-to-smash-silver-under-35/

Personally, I hope they hold the prices down as long as possible.. so I can buy more. =)

Prepper Website
12 years ago

It was a great podcast today. I’m glad you did the video too. It’s a good visual. I’m def. linking to it. Thanks for all you do.

Peace,
Todd

???
???
12 years ago

Could somebody make a mp3s for these videos plz? My FF add-on doesn’t work for some reason

JoeO
JoeO
12 years ago

Isn’t the logical outcome of these videos the eventual confiscation of most property. People who have loans will not be able to pay for the basics. They will be forced to take out loans or mortgage their homes that they now own, free and clear.
Since most people do not get raises equal to the inflation rate, the feds will own a higher percentage of the economy. The faster they print, the more they own.
This is going to be worse that I ever imagined.

Insidious
Insidious
12 years ago
Reply to  JoeO

Yup. Largest confiscation of wealth in history.

notaxes
12 years ago
Reply to  JoeO

so if the FED is now the holder of home loans, will they be the ones to forclosing on the property?

notaxes
12 years ago

right, remember that the FED is actually a Banking Cartel made up of member banks. So if Bank of America has a underwater loan and the FED buys it, they are essentially buying it from themselves. So what do they benifit from doing this? The FED shows a loss so now any profit the FED makes will not have to be paid back to the tax payers like they are required to do. The video charts the banks and FED as being separate, when in actuality they are one in the same, more like a self serving revolving door.

notaxes
12 years ago

another consequence of QEF is that smaller independant banks (not member banks tied to the Federal Reserve banking cartel) are now at a huge dissadvantage. There will be no one to buy their bad loans. This could squezze them out of existance. This is what cartels do.

Charlie
Charlie
12 years ago

Thanks Jack! These videos are really helping me wrap my head around this.

Insidious
Insidious
12 years ago

Listening to this made me entirely rethink the purpose of a ‘down payment’.

Purpose 1: Home buyer provides ‘reserve’ cash (+ a little more) for bank’s journal entry
Purpose 2: Home buyer provides cash to Bank to purchase assets (gold etc.) with. Bank makes journal entry.

Bank 2, Purchaser 0

Lance
Lance
12 years ago

That was a great explanation and very well may be what the plan is. But the issue I see is that the western central banks don’t call all the shots. There are other nations like China and Russia and they can see what is up and will look after their own interests. China especially is buying gold like there is no tomorrow and the Fed’s game isn’t going to work if gold and silver go up too fast. If they go up too fast, then more people will lose faith in the dollar, and eventually enough will wake up and get rid of dollars to get precious metals. In fact just yesterday silver exploded to over $35 an ounce and between 10:35 and 10:50am EST, an astonishing 62.5 million ounces of paper silver were indiscriminately dumped on the market to induce the sell-off- nearly twice US annual silver production of 36 million ounces!! This took the price back to under $35 again. Will they be able to continue to do this forever? I don’t think so. Every time they do will mean more buying by China, etc. It can’t continue. The markets have a life of their own and eventually the central banks will lose control, and probably sooner than anyone thinks. They won’t have 3 or 4 years to complete their plan. It will probably start to blow up 6 to 12 months from now and then the question will be how orderly a new paradigm can be slipped in. So as Jack says, start preparing now because difficult times are coming.

Master K
Master K
12 years ago

Can anyone say hyperinflation? That’s what QE3 will do.

Muddy Fork
Muddy Fork
12 years ago

I keep telling myself, ‘this hard work will pay off.’ as we’re doing things. In all reality it already has. I’m like my grandfather more and more everyday. Thanks Jack and everybody else who’s leading this fight for consciousness.

Curious
Curious
12 years ago

What happens to those that are not fortunate enough to have land/home paid off and now rent due to relocation for jobs but have food storage?

Brent Eamer
Brent Eamer
12 years ago

Brilliant two videos Jack. I wonder how things will be up here in Canada. We don’t have a Fed as it were. Although we will be feeling the effects.

Tunnel Rat
Tunnel Rat
12 years ago

Thanks for the great videos. I tend to believe that all QE was instituted for an additional reason you did not describe: competitive currency devaluation. We are in a currency war with China. Unfortunately currency wars always lead to trade wars, which often lead to real wars.

China has debt problems too, it is just internal debt owed by city and provincial governments to the central government. There is an imbalance, and they are much more internally politically unstable than we are led to believe.

So what do you do when things are going bad at home? Blame the external “other” at pick a fight. And no I am not describing what China will do, but rather what the US will do.

Tunnel Rat
Tunnel Rat
12 years ago

Thanks Jack. This is my first time participating in the comments. I referenced just China, but I meant to infer that all the major currencies worldwide are being devalued at the same time. The ECB is doing QE now too, and the BRIC can’t afford to have their exports rise in price relative to the dollar either. The Chinese depend on the cash flow from current trade imbalance. As you stated they are using that cash to purchase gold.
My point being that this makes for a potentialy unstable national security situation. While the banksters have their endgame in mind, there are people in non financial and political sectors of power who may not wish to go down without a fight, once they realize what is happening. It may be to late at that point, but that makes the danger even greater in my opinion. I am a new listener (about 50 shows so far). I will send you an e-mail PM introducing myself.

Brent Eamer
Brent Eamer
12 years ago

I found Canada’s debt clock and we are sitting at 591 billion, which would be about the same as the U.S having a 5.91 trillion debt (Assuming Canada has 1/10 U.S population) .
Which is what I think the U.S was at in 2000. We are attempting to tighten further at the federal level but it is very difficult due to sluggish growth.

Chris Harrison
12 years ago

Jack, this was an AWESOME summation of what the Fed and the big banks are currently doing. One of the reasons I listen to your shows is that you have a rare talent for taking complex financial matters and distilling them down to something that most non-financial types can easily understand. In fact, the only other person I’ve come across who has a comparable talent toward that end is Chris Martenson.

One question I have as we move into the future, however, is regarding property tax. I know that we are looking at the end of our currency “as we know it,” and that one of the recommendations you gave at the end is to get your own piece of productive property if you can — which I fully agree with and am in the process of paying off. However — given that state and local governments cannot print their own money, and will likely be squeezed even further as what we’re currently experiencing moves further along, doesn’t it logically follow that localities will continue to raise property taxes in order to maintain their operating budgets? I can see that if the Fed succeeds in re-inflating the housing market, that this could take some of the pressure off of the local governments. But I have trouble seeing property taxes going anywhere but up in the near-term future — which in turn makes the property ownership thing a little less tenable. I mean, here in Orange Co., NY where I live, we already pay $550/mo in property taxes — which pales in comparison to Westchester and Long Island, where most people pay over $1000 per month. Do you think that property taxes might very well be the other side of the vise that the financial powers-that-be use to really squeeze those who try to maintain control over their own means of production (productive land)?

Houstonhomesteader
Houstonhomesteader
12 years ago
Reply to  Chris Harrison

I too am worried about property tax. We own two properties and are debt free. But if we have unemployment, we could lose it all to the gov’t b/c of unpaid taxes. I think they’ll go after property owners with increased taxes b/c we can’t change our position quickly to escape the increased taxation. If we try to sell after things go south, I think prices will be very depressed b/c of the fed dumping so many foreclosed homes. How do you plan for this?

Chris Harrison
12 years ago

IOW, it sounds like you’re saying that we should deal with property taxes the same way we deal with getting ourselves out of debt — live below our means, save money, use common sense. No disagreement here.

notaxes
12 years ago

No disrespect to you Jack, I also agree that owing your property free and clear is a good thing, but the point is, it’s not really as free and clear as we would like to think, $550/mo sound more like rent. I remember a timeshare salesman trying to convice me why I needed to “own”, but with all the maintainace fees it does become a liability. Were not at that point yet but it does raise the question, how much property tax is to much? I know some Amish that do not use the school system yet the property taxes push them below the proverty level if not the loss of their home

notaxes
12 years ago

This is a very good point. I am trying to figure this out myself.
If your paying $550 to $1000/month for property taxes you don’t own your property, this is insane! How can we truly own property and be self-sufficient when we are paying rent (property taxes) This is a very important issue I would like to see addressed.

notaxes
12 years ago
Reply to  notaxes

I intended to post this as a reply to Chris Harrison’s comment

Frank
Frank
12 years ago

I’m posting two websites from the same blog, from Mint.com.

One visually explains Deflation.
The other visually explains Inflation.

This should help you all understand Inflation, Deflation, and QE3.
I haven’t watched Jack’s Presentations yet. After I watch them, I will comment.
I think it is important to understand why QE3 is necessary. Growing GDP requires spending. Austerity reduces growth. The visual explanations in my posts should be self explanatory.

Frank
Frank
12 years ago
Reply to  Frank
Frank
Frank
12 years ago
Tunnel Rat
Tunnel Rat
12 years ago
Reply to  Frank

“For better or worse…” Usually when this cliche is used the author/speaker means worse. So much for the “positive attitude” needed to fight deflation. Thanks for the links.

Scott
Scott
12 years ago

Can someone point me to where the gold holdings are listed on the Fed’s balance sheet? I see something like 11 Billion. Seems small to me, must need to look somewhere else..

Mike
Mike
12 years ago

I think you are totally correct in what’s going on. What I wonder is, what is going to happen with student loans and such? I also fear they are going to try to tax us to death, so that the low income people just don’t have a chance. I am preparing the best I can, and listening to you evey day. I pray all those who just cannot open their eyes enough. to see what is happening.

coigtansiuvenis
12 years ago

I agree with your assesment, and as aside I just found the podcast and love it, and would to add in about China. The reason why China is going along with it is because they don’t have much choice and the central government needs as much time as possible to shore up their position. While it may be strange to say this, China is actually a very unstable and weak nation, and they are going through a very delicate period of leadership transition.

Ultimately China’s economic model is unsustainable, planned economies always are, and the Chinese government has made their legitimacy rest entirely on continued economic growth. This won’t continue, previous examples of rapidly rising export economies show this. Many of their industries would have negative return rates if it were not for government subsidies.

They also have a real estate bubble that far dwarfs the one we had back in 2007, and they have an infrastructure bubble as well. What does this mean? That Chinas economy will crash at the worst or, at the minimum, experience a major set back. This will queue major unrest in a nation that already experiences thousands of major protests a year, something that most mainstream media doesn’t report.

This is why the Chinese government encourages their people to buy commodities as they hope to try and have as little unrest as possible. Unrest is coming, but the Chinese governments goal, surprise surprise, isn’t so to help their people so much as to ensure that they will remain in power. If the US has a fascist economy then the Chinese have a gangster one.

Moreover China holds trillion of dollars in debt that they will never see a payment on, or if they do, at such a significantly reduced rate, due to inflation of the US dollar, that it won’t matter. Once again, the Chinese government is playing it so well because their survival depends on it. China lacks many of the natural advantages in terms of resources, geography, and wealth that the US does. Like Russia they are playing a game against time in terms of demographics, they know this, and they are acting accordingly.

Provided that the collapse isn’t so bad that the US has to deal with real secessionist movements, paticularly around the Mississippi river basin which is one of the major reasons why the US is a global power, then I expect the US to remain the worlds super power. But that doesn’t mean much for the average American. Power is relative, and the king of the mountain and the king of a mole hill are still technically both kings.

Anyways love the podcasts and I will continue to follow them in the future to help plan my prepping needs. Unfortunately for me I live in an urban area and will continue to do so because of job requirements and family needs.