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« Gold Miners: A Correction In The Wind | Main | The Germans React To Draghi's Monetary "Tidal Wave" »


MIKE HOY has very kindly sent article to us which I thought would be of interest to you:

For the last several decades, the out-of-control growth of US Government spending

when combined with the unlimited printing policies of “The Fed” has set the stage for

“The Perfect Storm!”  

Anyone with a simple calculator can easily understand how it is virtually impossible for

320,000,000 people to retire a current and rapidly growing debt of

$19,000,000,000,000. This is a sum which equates into $60,000 worth of debt per man,

woman and child in the US today. Please ignore the fact that half of the population pays

no income tax at all.  Forget about the $100,000,000,000,000-$200,000,000,000,000 in

future entitlement obligations as only a dreamer could believe this debt has any chance

of ever being funded with anything other than more worthless paper!!

Two very important factors separate the US from the rest of the indebted nations of the

world.  First; the US debt dwarfs the debt of all other nations.  Second; the US

population has been brainwashed into the false belief the mere existence of “The Fed”

is an “unquestioned given” entitled with the “inalienable right to print” unlimited trillions

of fiat dollars to bail itself and any of its friends out of any mess they may find

themselves in!

The US financial system came within an eyelash of imploding in September of 2008 as

“The Run” on money market accounts threatened to bring the financial system to its


To the rescue came “Helicopter Ben” as head of “The Fed” armed with his theories from

a lifetime of study which he was eager to implement in a real life situation.    

“Uncle Ben” opened the floodgates passing out trillions in “monopoly money” as he

believed the solution to the problem was more of the same.  He was presented the

classic opportunity to attack and destroy the enemy responsible for the creation and

implementation of “The Financial Weapons of Mass Destruction” while bringing to

justice those responsible for the desecration of the world-wide financial system.

Unfortunately his mousetrap wound up being designed by and for the benefit of the

“rats” responsible for the implosion within the financial system.  Instead of being the

cure for the impending nightmare “Uncle Ben’s policies” wound-up becoming an

effective vaccination for the “rats” as their numbers multiplied with the disappearance of

the cheese; leaving the masses of the world to deal with the mortal side-effects of a

corrupt financial world gone mad!

Not only did no one go to prison as a result of the 2008 implosion but the solution

chosen by The Fed to print trillions has made a very dangerous financial nightmare

exponentially worse when “The Fat Lady” does makes her appearance!  


 It was not enough lowering interest to zero destroying the life savings of depositors;

now the architects responsible for “The Next Depression” are currently in the process of

unveiling their next and greatest scam on the bank depositors of the world as they know

the orchestra is warming up in preparation for the finale!  

Regardless of the misinformation being spewed daily by a bought-off mass media the

architects know the day of reckoning is close at hand where their derivative nightmare is

imploding and depositors will be lined up demanding their funds just like 1929.  

They are also aware of the fact that “you never let a good crisis go to waste” particularly

when the greatest opportunity to legally rob their depositors has availed itself at the

exact same time “justice” should be pounding on their door to haul them away in chains!

Negative interest rates are the proposed camouflaged bail-in funding scam designed to

not only cover-up one the greatest banking debacles of all time but it also serves as the

blueprint to pull off the greatest banking heist in history as depositors will be “locked in”

to a lifetime of slavery and servitude with no place to run!  

Not only has their lifetime savings been stolen but they now must pay, to the same

thieves who stole their money, lifetime fees on every withdrawal and deposit to their

captive bank accounts!   

Simply put; “bail-ins” are designed to give the Government, and their banking friends,

complete and absolute control over the finances of every citizen in this Country and The

World for the rest of their lives!  This is another “tax” that will never go away!


It is no accident the Countries of the world are in the process of eliminating cash from

their societies at the exact same time negative interest rates are becoming a household

phrase. These Countries, including the US, know the only way they can maintain

absolute and complete control over depositor funds while charging for the privilege of

being in possession of those funds is to eliminate all competition.  Cash is their greatest

immediate competitor and it must be eliminated.  If you eliminate cash withdrawals there

will be no standing in line as the system implodes!   

This act, most likely, will bring about the architects own demise as eliminating cash

withdrawals will end in a massive panic to purchase and take possession of physical

gold and silver. This transfer will repatriate depositor funds from a bankrupt system to a

physical asset that is no man’s liability which will never be worthless!  Gold’s recent

breakout from its multi-year bear market is a direct result of the masses awakening to

the growing risk of confiscation in the banking system!

Therefore, “The Powers That Be” must also “attempt” to eliminate the actual purchase

and possession of physical gold and silver!  Failing to do so would create a leak in the

dam which imprisons captive depositor assets.  To ignore this leak would compromise

the structure of the dam as the funds escaping would exponentially grow in numbers as

the masses awaken to the diabolical theft now underway!  


For decades, The US Dollar earned its seat at the head of The World Reserve Currency

Table through strong leadership in financial, economic and fiscal trade policies where

the US amassed the world’s largest trade surplus.  Unfortunately, those days are fond

memories as the US is clearly the world’s greatest debtor nation as the outsourcing of

its manufacturing base has destroyed millions of US jobs where consumers are now

dependent upon foreign made goods and services to supply the trinkets and toys they

can no longer afford but are addicted to buying.

This shift from being a major producer to an indebted consumer has rendered the

historical US superiority advantage obsolete in many fields they were once masters!

Two generations of US Citizens have been born and raised under the mistaken belief

that financial issues which are being dealt with on foreign shores as a result of fiscal

irresponsibility simply cannot happen here.  I wish it were true but history begs to differ

as the facts bare out!

Bank “bail-ins” will be the “ultimate admission of failure by the Government” exposing

decades of lies, corruption and manipulation which have become adopted and

unquestioned as a normal practice of doing business!

The illusion that all is well created by certain elected officials being spread by a “bought

off Mass Media” will continue until a trigger is pulled bringing true reality into the lives of

those who have never learned to think for themselves!

I have written in the past that I believe “The Trigger” which ultimately sets the dominoes

in motion creating long lines at the bank to get cash, which simply does not and never

has existed in quantities sufficient to ward off bank runs, will be a massive disruption in

the physical delivery and supply of gold as the public awakens to the fact that they must

regain control of their own personal wealth.

When the day arrives where the public is denied the right to purchase physical gold and

silver either by Government decree or the fact that the physical supply of gold has

reached its available supply limits at prices anywhere near these levels; gold and silver

prices will rise dramatically and a New World Reserve Currency will be born which I

believe will be backed by gold.

The logic is simple; if you are a foreign supplier of goods and services would you prefer

to accept as payment, for your labor and declining resources, a currency printed out of

thin air, backed by only a promise to pay from the world’s largest debtor nation or would

you prefer to trade in a currency backed by gold regardless of the conversion ratio?

The only question which needs to be answered deals with the timing of “The Trigger”

being pulled.  Until that day arrives, when the supply of gold disappears, the “Game” will

continue with the ultimate winner taking full advantage of every opportunity to add to

their holdings converting the never-ending flood of overpriced and worthless paper into

an asset with limited supplies which will never be deemed “worthless!”

One would think the value of the paper currency would collapse as the transfer from

paper to gold is taking place.  Oddly enough, the exact opposite is happening as the

value of the paper is being supported at record high levels to maintain the illusion that

all is well on the financial Homefront of the fiat paper dominated society, while the price

of gold and silver has been manipulated in the paper markets to the downside for years

in hopes that gold would revert back to its once believed place in the financial chain as

that of an “Archaic Relic!”

Just imagine for a moment the absolute giddiness of those who for years have been

dumping paper, they know to be worthless, at record high prices; while taking the

massive profits and proceeds to buy the limited available quantities of gold at prices

they cannot even begin to comprehend.  

These accumulators of true wealth are perfectly content to see this “Game” go on as

long as possible!  The “Game” will end when the supply of gold is depleted culminating

with the crowning of a New World Reserve Currency backed by gold!

The irony to this madness is the fact that the masses, when they awaken to the financial

collapse directly in front of them, will initially revert to history as they panic to buy the

dollar thinking they have a safe haven in which to ride the storm out!  Unfortunately, the

recent rise and breakout in the price of gold may be a sign that “The Greatest Bubble in

the History of Paper Currency” is in the process of being burst!

Those with exposure to long term 10 year and 30 year US Treasury Bonds yielding well

below 3% are going to be in for some very unpleasant surprises as the world panics to

dump paper that is deemed to be very questionable in safety while yielding no return on

their investment.  

One must be in a prescription induced hypnotic trance to own 10 year and 30 year US

Government bonds at record high prices and record low yields when the only hope of

ever refunding their principal is through the printing of more worthless paper.  

Miss a few payments on your credit card and then tell me how high your interest rates

rise!  Do you really think record low interest rates on record high US Government debt

have anything in common with a free market environment?  This is not a bad time to

think about “Return of Capital versus Return on Capital!”


Those who believe today’s times share frightening similarities with the Depression of the

1930’s might be interested to know that while the vast majority of US citizens suffered

greatly, with many of those losing everything, there were those who prospered.

If the theories behind anything written in this article come to pass then I believe the

financial events of the last few decades has set the stage for enormous wealth to be

made as the masses awaken from their “normalcy bias” induced trance to begin seeking

answers to simple questions they should have asked long ago!

And this ladies and gentlemen is where history offers a viable hedge against the

uncertain times which most likely will mirror the Depression of the 1930’s!  It is not a

question of “IF” but only a question of “WHEN” “The Trigger” is pulled bringing about the

change that very few can even begin to comprehend!

This will be the subject of my next article which is currently in the process of being



For those with an interest in investments we own in our own portfolios I invite you to join

my Free E-Mail List where I share my thoughts and investments with those who are on

my list.  I currently view my favorite equity position as one of the best and most timely

investments I have ever made at these prices.

Those with an interest to join my list or have any questions can simply respond at the e-

mail address below where you can ask to be added to my list!  I have not nor will I ever

sell or distribute any information from my list.


The opinions shared in this article are my own personal opinions.  It is up to each of you

to do your own homework as in the end your opinions may vary from mine!  I have not

been compensated to write this article.





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