Sunday, July 15, 2012


How's that for stating the obvious. But of course you can't quite put your finger on it because there are so many choices for "something".....maybe we should replace "something" with EVERYTHING. On September 15, 2008 Hank Paulson, Ben Bernanke, and a group composed of all the U.S. pols stepped onto a stage and told the world the system was on the verge of collapse and they had just saved it. They were actually being relatively truthful. The lie was they had NOT saved it....they had only plugged an enormous leak that did indeed threaten and immediate collapse. Many that pay attention to these events really don't want to admit just how vulnerable they are to this system. As the globalization and corporatist cabal manages an ever increasingly complex system that has been leveraged into the stratosphere, an ever increasing risk of a nuclear risk event develops. Our over-simplification of the risk may do an injustice to just how increasingly unmanageable this risk really is. More simply stated.....The current ever increasing globally managed banking AND goods production has introduced a risk that is systemic now to the ENTIRE world. Extrapolate the below example for instance. The ripple effect would be what? Try this simple event.........

When Trucks Stop, America Stops
A Timeline Showing the Deterioration of Major Industries Following a Truck Stoppage
The first 24 hours
• Delivery of medical supplies to affected areas will cease.
• Hospitals will run out of basic supplies such as syringes and catheters within hours. Radiopharmaceuticals
will deteriorate and become unusable.
• Service stations will begin to run out of fuel.
• Manufacturers using JIT manufacturing will develop component shortages.
• US mail and other package delivery will cease.
Within one day
••• Food shortages will begin to develop.
••• Automobile fuel availability and delivery will dwindle, leading to sky-rocketing prices and long lines at
the gas pumps.
••• Without manufacturing components and trucks for product delivery, assembly lines will shut down putting
thousands out of work.
Within two to three days
• Food shortages will escalate, especially in the face of hoarding and consumer panic.
• Supplies of essentials such as bottled water, powdered milk, and canned meat at major retailers will
• ATMs will run out of cash and banks will be unable to process transactions.
• Service stations will completely run out of fuel for autos and trucks.
• Garbage will start piling up in urban and suburban areas.
• Container ships will sit idle in ports and rail transport will be disrupted eventually coming to a standstill.
Within a week
• Automobile travel will cease due to lack of fuel. Without autos and busses, many people will not be able to
get to work, shop for groceries, or access medical care.
• Hospitals will begin to exhaust oxygen supplies.
Within two weeks
• The nation’s clean water will begin to run dry.
Within 4 weeks
• The nation will exhaust its clean water supply and  water will be safe only after boiling. As a result
gastrointestinal illness will increase, further taxing an already weakened health care system.
   Holcomb, R When Trucks Stop, America Stops American Trucking Association

The entire system runs on confidence. It is essential for the system. CONfidence must be maintained as we have discussed in the past because the fiat currencies have NOTHING backing them other than confidence. Think about it. You have to believe that the currency will maintain its value over a time line longer than a few months. That leaves us in the conundrum. If the dollar strengthens too far then the velocity of money will remain too low as deflationary forces exert their control. You have to have confidence in the system and its currency's future for investment by the private sector or you have a problem. The puppetmasters know very well that gold and silver serve as the proverbial canary in the coal mine for too many participants. The headline price of these metals must be controlled to buy time for the system to heal. Unfortunately the complexities of the system have reached an absurd level. Hand it to the puppet masters.....they have kept this game going to this point in spite of Volcanoes, oil spills, wars, civil wars, floods, drouts, and a variety of other impediments that would crush most systems. We're walking on ice so don't get too comfortable. You can't do much about it but you can do some things to try and help you through the next phase of the game. Prepare accordingly.


  1. let the sales begin

  2. Kli,

    As always, an excellent post.

    From the last thread, I think some of the fears regarding purchasing physical, are discovery issues and storage issues. If you buy from some type of dealer through the mail, then your name & address will be in their system. Will records be confiscated? Will your friends/neighbors find out due to some slip of the tongue? I am concerned that secrecy will be hard to maintain.

    Phil Davis advises being "cashy & cautious". He believes some type of QE has to be coming since there are no other choices for maintaining the system. When though??

  3. My thoughts fwiw re: stacking is simply that the majority does not have the discretionary funds to save and if they do have been conditioned and conned into thinking that the TBTF’s are a safe place to park their savings or if they are somewhat aware, in a Mason Jar.

    However economics are never taught properly on a long enough time frame so the majority has no idea as to the effects of inflation on goods and the erosion of the purchasing power their fiat. I have also through conversations found that the fact there is no current means of exchange for goods with the metals also prevents folks from stacking (the few folks I know with discretionary funds anyway). As for discovery it is a real concern since the majority of transactions are electronic and as Joe pointed out a while back, everything is recorded and traceable. Actually on that subject during a discussion Joe pointed out that they are working on and have things that will blow your mind (Not an exact quote but close) check out the following link:

    Crazy stuff, every time I see stuff like this I’m amazed how much he knew!!!

    Of course Security is also a real concern as well; loose lips sink ships…….

    Any thought on the dollar seems to be getting pretty lofty and due for a beat down.


    bout say's it all!

    1. Fantastic article! I've pulled out of the market completely for now and maybe for good. My trading has sucked lately! Got my metals, need to start stocking up on food and water. I've been obsessed with paying off my home mortgage for the past few years but starting to wonder if that's really the wise thing to spend money on. Anyhow I'll still be posting here regardless, you can't get rid of me that easily ;)

    2. stick around hubz......should be able to keep this going awhile longer.......once they give me the hook.......I'll be gone

  5. I agree with you Tom, most people do not have faith in Gold. When I talk to friends and relatives, they do not see the metals as money. My guess is that the Mass Media has done its job in telling the most people owning gold is dumb.

    Now the reason I stack up the physical metals because my parents were born in Cuba. They had EVERYTHING taken from them except the money they had at home. Gold is very accepted in the Cuban culture, either as jewelry or coins. When I son was born he was given a gold chain and bracelet with his name on it, like I did, and my father before me. My father has a huge gold collection in his house along with a bunch of guns. My parents have seen first hand what happens when you do not have gold in you possession.

    That is why I buy the phyzz when possible. I don't care if its a gold coin here and a silver bar there. I have been buying for years and the total is now pretty large. I will continue to buy when I can because when you got to go, you got to be able to carry alot of your wealth on your person!

  6. Miners catching a bid. There are rumors of KGC being bought by ABX (check seeking alpha for article). Good luck.

  7. Rudy,

    Thanks for sharing your family's story.

    It is that type of experience that we need to hear more of.

  8. my barber is vietnamese, he sewed gold into the bottom of his shoes..said it was the only way to get out of Vietnam in the 70's, another friend said Gold is why he lives in the the US..not in Russia....take it for what its worth

    DOC....Nktr is on run north..

  9. Ever since that guy on SA said that NKTR was only worth a buck share, it has been doing great. I am hoping he will write another article soon.

    1. or maybe 2

      Just made some change on ANTH..

      Looking at ISR on beatdown over 3.5 ml raise

  10. Tom & Rudy--Most people w/assets I ask about gold say, How will you sell it when you need to? or Hasn't it already run up alot? These are educated, plugged in peeps. I don't think our schools teach history any longer and younger people don't read. Yes, Joe was amazing; I owe alot to Kli and Joe. Always wondered who he really is. GL all, ZGNX having a little boost w/news of FDA acceptance for review of pain drug. Not familiar w/PRX, +37%. And Kli, thanks for the whipsaw advice. Holding on.

  11. KLI: Now some in the mainstream media are talking about Great Depression 2:

    How Close Are We to New Great Depression?

    I'm getting a little nervous after reading your blog post. Will the crash really happen this fast?

  12. several countries in Eurozone already in keepin the peeps at bay with crumbs and guns.....that can't last much longer. Once their bellies grow taught their will to pick up the pitchforks will rise.....the puppetmasters know this and you can count on printing on a scale that will dwarf the last QE......simply put...there is no choice

  13. According to Tom's article, there'll be no sewing of gold into shoes...nowhere to run, nowhere to hide and no KLI blog???

  14. Just a morning futures pump job??

    Both Phil Davis & Keystone wrote today that unless Bernanke hints that QE is coming, the markets will sell off. I believe he speaks at 10am, so we will find out soon enough.

  15. Doc,

    Hard to sell this market off during earning season...ANTH is on tear...could be baker bros. who brought it down to load up on shares...

  16. WOW! AUQ getting crushed on CEO Health news. Seems overdone!

  17. PMs behaving as expected on BB testimony...I believe he is speaking again tomorrow...good accumulation opp.

  18. oh the Bernake is going to print....even more the the 10% increase in m3....just a dog and pony show today.

    The algos gave us buying opp's.

    1. Jackson Hole will be setting for announcement...that place must be QE nirvana

  19. Fed Chairman Ben Bernanke offered no new hints Tuesday that the central bank is planning more easing.

    And right on cue gold dive bombs...


  20. Kli, can you forward my email to Joe...thanks

    I ran into him on msg board and he wanted to give all of you a shout out! Hello from Joe..,

  21. QE announcement at Jackson Hole seems appropriate. Do you think it will be a world wide coordinated event? Also I do not believe that a spx at 1190 for even 1290 is necessary. Why give up gropund in the war?

    1. I think we have seen the lows of year until after elections...and I'm a bear...

  22. everyone take a look at ANX....might be breaking out...

  23. Ben is allowing some deflation such as oil/gasoline prices. As the price of gas falls, it is an immediate "tax break" and all of us benefit. I wouldn't be suprised that we hear this in Obama's speeches as the election heats up. He will go on & on about how he got tough with "big oil" and forced lower gas prices and how this will stimulate the economy and create jobs. Blah, blah,...
    But, the time will come that Ben will need to print more, and do so in a coordinated fashion. Who knows when that will be.

  24. Gold/equities just rebounded quickly. Did Ben say something while I was working?

  25. VVUS approved, expect fireworks on ARNA, could be beat down with all the shorts..Not a doctor but it looks as though the REMS would hinder sales of vvus vs arna a doctor I wouldn't prescribe the vvus drug with pregnancy defects vs arna drug...

    I think they will punish ARNA....but then it will rise again...crazy...