And the power is at the very top. Benefit further down the pyramid will come into question as the 120 year Supercycle plays out. The maintenance of the game requires sacrifice and its strength depends upon its base. Sacrifice will always occur at its base, but the weakness of the system is ALSO at its base. For the power to grow, the base must expand and we are at that point now, that is known as the proverbial "rock and a hard place". We've sacrificed and squeezed the base for the survival of the power and in turn the system. We've created an expansion of the biggest bank's reserves, while draining the "reserves" of the base. Instead of deleveraging the base, we've piled more debt on many different levels of the base in a desperate effort to break out of essentially flatline velocity of money.
I had an opportunity to visit with several bankers recently and realized just how rings within rings is effectively used to control the system. What impressed me was just how compartmentalized their information is. These weren't bankers from small firms, but from the very top of the pyramid. They weren't going to leak any secrets, but they did reveal some very interesting attitudes. Several were very angry at the Republicans for the recent shutdown. I was fascinated they actually believed the Republicans were responsible for initiating the shutdown. They were also fearful the Fed may begin withdrawing QE sooner than late. When I brought up the possibility of the Ten Year hitting breaking over 3% and forcing Yellen cough up 120 Billion/ month to keep the rates controlled they were caught off guard and seemed to have not considered that as a possibility at all. Mind you now...... they represented some very prominent firms. I did find it interesting that one of them talked about a mutual friend of theirs (once again at a prominent firm) that was going very far off the elite path with a doomsday scenario and was taking steps by preparing for it with guns, gold, and grub. They did not know I was in the same camp. These were all Yale, Harvard, and Wharton boyz......and going into the three Gs is indeed eyebrow raising in their circles. But it illustrates once again rings within rings within rings.
Back to our trade. No indication with certainty anything has changed, but every day that goes by is a further depletion of physical silver and gold from the West. More sand leaks out of the West's hourglass and the day of reckoning. gl