Silver Price: Attention All Crybabies, Get the Checkbook Out!

The tears stream from the faces of the silver bugs.  Boo-hoo!  Where’s my $100 silver?

Toughen up!  Better yet, go buy a 10-year Treasury, then.  I hear Greek 1-year paper is even better, paying out 150 percent.  What a deal!

Look! The Fed wants you OUT of precious metals.  Understand?  Sign-up for my 100% FREE Alerts

But before you hit that sell button, there are some pretty smart fellas who’ve done a lot of legwork and research on the subject of silver and see $100 as chump change when the dust settles from these manipulating bankers.  Keep the faith.

Physical buyers will break the cartel, and not by Max Keiser’s gang of JP Morgan haters getting together to clean out the COMEX, though Keiser’s laudable efforts will aid the cause of protecting investors from the Fed’s insanity.

No sir.  It will be China who will drive the silver price higher for all silver bugs.  So relax, be patient and enjoy.

One man who provides the silvery details to the China story, Stephen Leeb Ph. D, economist, NY Times best-selling author, and promoter of his latest book, Red Alert, is back to remind silver bugs of the bright future for the silver price in his latest  interview on GoldSeek Radio (GRS).  (Previous BER articles about Leeb and silver, click here and here.)

“Silver is an utterly critical metal when it comes to renewable energies, solar panels; there’s no other game in town,” Leeb told GSR.  “ . . . Silver-based solar is going to play a major part in our energy future . . . China used to export silver, now they’re importing, and they are very big importers.  And they [China] went on to say that they’re not going export any silver what so ever.”  Though China recently relaxed its strict export quota of rare earths, silver was not included in the increased export quota.  And for good reason, according to Leeb.

Who is Stephen Leeb.  He’s not the marquee name in Google’s search results.  He is not as well-known as Jim Rogers; he’s not Marc Faber; and he’s not Peter Schiff.

Leeb is, however, a prolific author and researcher who’s looked at China’s multi-decade economic plans—plans that require a monstrous amount of critical industrial metals, including silver, to fulfill a national, strategic goal of reducing fossil fuels consumption within the People’s Republic.  Leeb predicted the oil price would top $100 when it traded at $27.  Now, he’s more alarmed at what he has discovered about China’s future consumption needs for the new energy commodity, silver.  (See Robert Hirsch interview (audio) on the subject of Peak Oil on Financial Sense Newshour of Dec. 15.)

Leeb’s emphasis on detailed points about silver and its importance to renewable energy projects in China is ahead of the curve from most precious metals advocates—though, Rogers, in a broader sense, has already taken Leeb’s thesis regarding China voracious needs to include almost any commodity.  And according to Leeb (echoed by Jim Rogers), the supply and demand characteristics for silver in the renewable energy sector must include a much, much higher price.

“I do believe [$200] is not an unreasonable target” for silver, Leeb told GoldSeek Radio host Chris Waltzek.

Leeb believes the silver’s industrial usage for renewable energy will greatly outweigh its usefulness as protection against central banker monetary profligacy.  The need for silver will become a global security issue at some point, especially in the US, but the America must “wake up” to, first, address the issue of Peak Oil and publicly recognize the vital commodity for the next decade or two will be silver.

“But the problem is,” Leeb continued, “once it reaches one hundred [dollars], people start getting very, very nervous.  It’s a very, big broad round number and they [bankers and/or government] start taking action; they might consider outlawing the ownership of silver as a monetary metal.”

The future must include breaking from fossil fuels as a source of energy; there’s just not enough cheap oil to go around, and China doesn’t want to take on the U.S. military to get the amount of oil it needs to increase its own GDP, according to Leeb in an earlier interview on Financial Sense Newshour of Nov. 10.

Wind and solar power are the future, and China “gets it,” he said.

“Along with rare earths, which are obviously so vital, so critical, you also have copper, which is on no one’s radar screen as a potentially scarce metal,” Leeb said in his most recent GSR interview.  “And you have silver, which is on some people’s radar screen, but they don’t know if it’s like gold, a precious metal, or whether it’s an industrial metal. Well, it’s both.

“But I do believe that its primary purpose over the next five to 10 years is going to be as an industrial metal; it’s going to be critical to defining our energy future.  And China really does get this.  They’ve written about peak oil and they’ve written about peak coal.  So they’re preparing.”

Shedding some light on the probably plans for China’s $3.2 trillion reserve, Leeb expects a lot of that money as well as future reserves will be spent on stockpiling strategic metals instead of using the cash to build a powerful war machine to match Russia to collectively compete directly against the U.S. and its allies during the remainder of the decade—speculatively speaking, a sort of a Sun Tzu tactic inspired by the book, The Art of War (English translation & Wiki synopsis), which has been reported by several sources as required reading for all Beijing senior officials.

“Their major expenditures . . . they have cited seven industries, of which, the most important, are energy based industries, which they plan to spend, I would guess, nearly $5 trillion to the end of the decade.  That’s the equivalent to two world wars . . . and they’re going to spend that over the next eight or nine years.”

How much silver will be needed during this $5 trillion outlay in renewable energy projects in China?  “Mind-boggling” amounts, according to Leeb.  And as far as price, Leeb steps up his $200 per ounce easy layup prediction to venture into much bigger price levels as possibilities for the white metal.

“There’s no way of saying how high it [silver] will go; it’s dramatically high[er],” according to Leeb, when taking into account, too, central banks opting to inflate out of a debt bubble gone popped.

At $27 silver, the price is “ridiculous,” he said, and added, “I’m a believer of $10,000 gold. . . but I would not be surprised, if we avoid a Depression between now and the end of this decade, I would not be surprised if gold doesn’t touch $10,000.”

Given Leeb’s prediction of a gold/silver ratio touching at least 7.5, that calculates to a silver price north of $1,000 by the end of the decade, making a $200 prediction seem easily attainable, indeed, under a Leeb scenario.  Sign-up for my 100% FREE Alerts

Jim Rogers, Ron Paul for President

Commodities investor, Jim Rogers, likes Congressman Ron Paul as the next president of the United States.

Though the 69-year-old Singapore resident said he doesn’t formally endorse candidates, Rogers told Australian Financial News Network (AFFN) he likes what he hears from Ron Paul, in as much as Paul at least addresses the issues of restoring fiscal and monetary responsibility in Washington.  Sign-up for my 100% FREE Alerts

“Gary Johnson and Ron Paul seem to understand the problems that are facing America, but I’m not in the business of endorsing political candidates,” said Rogers.

However, Rogers does endorse prudent, yet very painful, remedies to debt levels in the U.S., including real budget cuts, including draconian cuts in military spending, a Ron Paul theme throughout his campaign and throughout the more than two decades as a U.S. Representative from Texas.

The Austrian school of economics advocate, Rogers, also insists the Fed should go, another strong message from Paul, who was heavily influenced by Friedrich Hayek’s book, The Road to Serfdom, while Paul was a medical resident in the 1960s.

“The U.S. Government should abolish the Federal Reserve [System] that’s the first thing they should do.  And they are not going to do that, but they should do is let the interest rates find their normal rate their realistic level,” Rogers told The Street in a Dec. 7 interview.  “Right now, masses of people in America the people who have save and invest the people who have done what we would say as the right thing to do are being destroyed . . .”

And Rogers affinity for Ron Paul is not a recent one; he’s been an advocate for Paul since 2008, as evidenced by his interview with Financial Times of London soon after the election of Barrack Obama.

John Authers of FT started the interview with Rogers, “Now you correctly predicted a year ago that Ron Paul was not going to be elected president, partly because you want him to be.”  Smiling, Rogers interjected, “Right.”  Authers continued, “How worried are you now that we do know who the next president is going to be, are you worried about what you see from president-elect Obama so far do you think that could worsen the situation still more?”

Rogers replied, “Are you worried?  Now, I didn’t vote for McCain.  So I don’t think this is some kind of sour grapes or something.  But Mr. Obama has said his two economic planks are: he’s going to tax capital . . . and he’s going to protect American workers.”

Rogers continued, stressing that he was hopeful that cooler heads in Washington would prevail to stop Obama with his plan from protectionist policies and higher taxes, the precise elixir that torpedoed any chance of recovery during the Great Depression.

Fast forward to today’s AFFN interview, Rogers sounded much more resigned to the fate of a terrible crisis worsening in America.  What Rogers feared in 2008 has progressed into horror, as previous interviews with Rogers suggested that he is concerned that a Fed printing record amounts of money only exacerbates the U.S. economy with the addition of inflation, on top of high unemployment and still higher levels of unserviceable debt.

“We’ve lost one decade In the West . . . as you know, stock markets in America are below where they were 10 or 12 years ago, so we’ve already lost one decade in the economy and the markets,” Rogers explained.  “We’re going to lose at least one more decade, if not two or three.  The Japanese have already lost two decades so far.”

When asked about the prospects of a turnaround in the U.S. political system in time to prevent an economic collapse in the U.S., Rogers isn’t betting on it.

“I’m not confident at all, I have absolutely no confidence that anything’s going to be done,” he said.  Rogers predicts a much worse crisis than the 2008 near-total-collapse of the financial system, starting next year, or 2013.

Rogers has never venture to say what Washington’s response to profound civil unrest would be to U.S. economic Armageddon.  Was it a factor in his decision to uproot and move to Singapore?  One of the regular reporters from his typical media outlet rotation should ask Rogers about this very question.

And what possibly could change Jim Rogers’ mind about the U.S.?  Maybe a Ron Paul win in the Republican primaries and a win in Nov. 2012 would be a promising start to regain some confidence that all is not loss.  Sign-up for my 100% FREE Alerts

Gerald Celente Forecast 2012, FEMA Prepares for Dollar Collapse

Winding down one year ushers in forecasts for the coming year.  And the man many want to hear from most is none other than Trends Research Institute Founder Gerald Celente, whose predictions for 2012 include his most dire one yet.

Speaking with Aaron Task of The Daily Ticker on Dec. 17, the confident and outspoken Celente began the discussion by reminding viewers of his 2011 forecast of mass demonstrations erupting throughout the world.  Sign-up for my 100% FREE Alerts

Celente’s December 2010 prediction came to pass much quicker than even he might have anticipated, as the self-immolation of a Tunisian street vendor Mohamed Bouazizi in December 2010 sparked (certainly no pun intended) the ‘Arab Spring’.

By mid-January 2011, the Bouazizi incident catalyzed riots in the Tunisia capital of Tunis, emboldening watchful citizens of neighboring countries to take to the streets of Algeria, Morocco, Libya, with the main event mushrooming in Cairo, Egypt, symbolically taking center stage at the Mecca of the Arab World throughout the summer, and again, recently, in a Part II of the struggle for liberty.

Then came the Occupy Wall Street (OWS) movement, the first significant uprising from North Africa’s brethren counterparts of the West.  Beginning on Sept. 17, a small gathering of young adults at Zuccotti Park in New York City’s Wall Street district began the protest of growing wealth disparity in the U.S.

So where to now?  Celente said ‘Occupy’ appears to have legs, or in this case, an endless number of tentacles.

“Time Magazine, is, well, not on time,” Celente said, referring to Time Magazine’s, ‘Person of the Year: The Protester’ issue of Dec. 15.  “They’re just calling it protestors.  We’re calling it, ‘The Invasion of the Occtupy’.”

Celente goes on to explain the critical difference between the Occupy movement and another anti-establishment organization, WikiLeaks: Occupy has no leader, which, Celente believes, gives the movement enduring robustness in the fight for an end to the fascist takeover of the ‘Free’ World.

“The very weakness that the people think of the Occupy movement, not having a leader, not having one message, is, in fact, its very strength,” he said.  “For example, you take the WikiLeaks, big news and doing a lot of important information coming.  But it died because they cut the head of the leader off.”

He added, “The Occtupy doesn’t have a head to cut off . . . the tentacles, they’re reaching everywhere . . . You cut off one tentacle and another one grows.  There’s no one base, there’s no one message.  This is huge and it’s just going to continue and spread.”

Celente points to Wall Street bankers and complicit politicians as the cause of the Occupy movement, referring to JP Morgan CEO Jamie Dimon, in particular, as the epitome of Wall Street corruption and arrogance.

“I heard Jamie Dimon, CEO of JP Morgan Chase,” Celente said.  “He doesn’t get it, why people are angry, you know, with people that are successful and making a lot of money.  Guess what?  The greedy never get it.  The gap between the rich and the poor in this country is this widest in any of the industrialized nations.”

“You have an off-with-their-heads moment that’s being generated now,” Celente added, somberly.

Two days later, on Dec. 19, Celente continued the discussion of his 2012 predictions with Eric King of King World News, elaborating to KWN’s more financially-focused and specialized audience on some more sensitive issues he didn’t cover in his interview with The Daily Ticker.

“One of our tends is the technocrat takeover.  Over in Greece or over in Italy, they are all bragging they’re bringing the technocrats,” Celente told KWN.  “It’s not the technocrats, it’s the bankers.  The bankers have taken over the temples of the capitals of the world.”

Instead of applying the concept of a Jubilee Year, founded upon the wisdom of 1750 BC Babylonian King Hammurabi, who canceled burdensome debt levels of his people in order to preserve his kingdom, today’s bankers have set a course for revolution, according to Celente.  (See economist Michael Hudson Dec. 2 article, titled, Hammurabi Knew Better, Debt Slavery – Why It Destroyed Rome, Why It Will Destroy Us Unless It’s Stopped.)

“As the bankers take over, and we’re seeing what’s going on,” Celente added, “they are throwing out democratically elected governments, we are forecasting there is going to be a severe decline in 2012, particularly in Europe.”

“So that brings us to the next trend, get ready for economic martial law,” he continued.  “They are going to call a bank holiday.  So what we are saying is conditions have become a lot worse.  And a bank holiday is no holiday folks.”

Celente speculates that Congress’ passage of National Defense Authorization Act is a tip off to a terrible national event scheduled or anticipated by the U.S. government—an event bad enough to possibly spark a revolution in America.  He calls that trend prediction: Battlefield USA.

“It just became law. The Bill of Rights in the United States has been abrogated,” Celente said.  “They [Congress] passed the new Defense Act and in that Defense Act they have in there, in clear language, anybody can be arrested under the National Defense Authorization Act . . . No judge, no jury, no trial, no rights of habeas corpus.  This is what the United States has become.

“So they are putting the soldiers in place.  I used to think they were nuts talking about the FEMA camps, now I don’t anymore.”  Sign-up for my 100% FREE Alerts

Gold Price: Lord Haw-Haw Dennis Gartman announces “Death of a Bull”

Timing gold purchases is quite often very difficult, even for the so-called pros.  So if you think you don’t have what it takes to trade among the best, don’t feel bad, even the ‘pros’ get it wrong.  Sign-up for my 100% FREE Alerts

Taking Virginia-based economist and publisher of the Gartman Letter, Dennis Gartman, for example.  His track record for forecasting gold prices is so bad that he’s become known as the latest contrary indicator—a ‘professional’ punter, if you will.

Moreover, it’s been suggested that the reason for Gartman’s subscription base is to get fast-track knowledge of Gartman’s trade so that a trader can take the other side.

Just last week, Gartman told Bloomberg News, “we are out of gold” as of Monday (Dec. 12) and “the beginnings of a real bear market, and the death of a bull.”

Sounds dreadful, doesn’t it?  So what should gold holders do?  Well, let’s see how the advice of the gold market’s Lord Haw-Haw panned out for investors during previous corrective phases—which, by the way, are those very times when buying gold makes more sense in a secular bull market.

“I feared the whole financial system was coming to a halt, and you need a little gold in that case,” Gartman told Bloomberg News on Nov. 3, 2008.  “I doubt it will anymore. But it sure felt like it a month ago. There’s no value in gold now.”  (See chart, below.)

Three weeks later, on Nov. 25, Gartman didn’t change his mind; he got more bearish when he should have been a raving bull!

“We are short of gold,” he said in a Bloomberg interview. “We shall always sell rallies such as these that retrace as classically as this market has.”

As the market continued to rally, Gartman became ever more aloof, stating on November 16, 2009 that there was, indeed, “a gold bubble” and anyone thinking otherwise is “naive.”

Apparently, ‘Mr. Gold’ James Sinclair of JSMineset hasn’t been a long-term subscriber to the Gartman Letter.  Eight weeks earlier, Sinclair saw gold for what it is: a hedge against currency devaluations.

“The carry trade has dropped the dollar as a currency of choice,” Sinclair told Bloomberg Radio in a Oct. 7, 2009.  “Gold is competition to currencies,” and added that he expects gold to reach $1,650 per ounce by the first quarter of 2011.  Sinclair was off by five months, as gold soared during the summer of 2011, reaching his $1,650 price target in August.

Back to Gartman:

Somewhere between the dates Nov. 16, 2009 and May 18, 2010, Gartman became to think, maybe, it was he who was naïve about the gold market, jumped back into the “bubble” at some point during the six-month period, then proclaimed to Reuters on May, 18, 2010, “We want out and are heading for the sidelines.”

Now Gartman tells us gold is done.  Finished.  The Fed is done bailing out banks on both sides of the Atlantic and a deflationary collapse is coming.

Apparently, others, too, have noticed Gartman’s poor record of calling bull market tops.  Didn’t Marc Faber make reference to these misguided souls in his interview with Financial Sense Newshour?  See BER article, Marc Faber Fears Gold Confiscation.

From zerohedge.com:

“In August 2011, Gartman said that gold was the biggest bubble of our lifetime. Inconsistently, only last week, Gartman said on CNBC that he is ‘long gold’ and has been for ‘six or seven months’,” zerohedge’s ‘Tyler Durden’ wrote.

“Gartman’s short term calls on gold and silver have been wrong more often than not in recent years. He tends to turn bearish after gold has already experienced a correction and is close to bottoming.

“Those wishing to diversify and add gold to their portfolio will use his call as a contrarian signal that we may be getting close to a low in this most recent sell off. Our advice is to ignore gurus, price predictions and noise – up and down – and focus on the real fundamentals driving the gold market.”

The obvious question, therefore, is: Why subscribe to the Gartman Letter while others steeped in the gold market have gotten it right?  One doesn’t have to pay for some good advice.  Just point your browser to King World News and listen to Eric King’s interviews with the gold market’s real McCoys, or read James Sinclair’s JSMineset.com blog.  Sign-up for my 100% FREE Alerts

Gold Price War: Nouriel Roubini vs Windmills

In a Tweet yesterday, the ingenious gentleman Nouriel Roubini de la Milan taunted the gold bugs, “Where is 2,000?”

Someone should have Tweeted the self-described ‘global nomad’, “Ask Bernanke, my Lord; he’s almost done building that windmill for you to fight.”  Sign-up for my 100% FREE Alerts

But, it appears the errant-knight isn’t ready to go home, quite yet.  And like Don Quixote, whose repeated follies resulted in his uneducated squire paying  Quixote’s damages, the investor who follows Roubini will most likely receive a similar bill at the end of a failed monetary system.

In December 2009, when gold traded at $1,100/oz, Roubini exclaimed, “all the gold bugs who say gold is going to go to $1,500, $2,000, they’re just speaking nonsense.”

On the other hand, Marc Faber, the man, who, not only has worked hard protecting the public from American pathocracy, has been right more often about a subject he knows something about: gold—and its critical role as a competing medium to mismanaged state currencies.

But the modern-day high priest charlatan of Milan pretends he’s never heard of Martin Luther or Copernicus.

When Faber was asked in a Dec. 7 FSN interview why gold hasn’t crashed the U.S. dollar yet, Faber blamed the countless deflationists who still follow the likes of Roubini, Prechter, Shilling and David Rosenberg (who appears to have recently defected, from his note to clients, titled, Eight Areas of Behavioral Change to Watch for in 2012, where he sneaks out the back door of deflationists headquarters).

“I don’t hear about gold.  I lived through the last gold bubble between 1978 and January 1980.  The whole world, whether you were in the Middle East or in Asia or Europe or in America was trading London gold, buying and selling every day,” he recalls.  “This has not happened yet, and it hasn’t happened.  Your friends, the deflationists, have been telling people that gold will collapse to $200 an ounce for the last 10 years and that it was in a bubble.

“[They] said it [gold] was in a bubble at $500; they said it at $600, and they’re still maintaining it.  So a lot of people they don’t own it; they bought it and sold it again.  But in the meantime, gold has moved into sold hands.”

See BER article, Marc Faber Fears Gold Confiscation

In the FSN interview, Faber is talking about Roubini, for one.  The graph, below, reveals whether Roubini has been right about gold since his bold statement of Dec. 2009.

So far, Roubini has cost us 33.8 percent at the supermarket and gas station.  How much has the Larry Summers and Jeffrey Sachs protégé cost us to purchase a lousy 2 percent dividend yield of the DJIA?

Roubini cost us 20.1 percent to receive 2 measly percent, which loses us money after inflation, anyway.

Listen to his economic outlook because he’s good at that, but ignore his advice of where to put your savings.  Stick with Faber, Rogers, Sinclair and others about wealth preserving positions.  And visit the Web sites of James Turk and Eric Sprott for how and where to protect your assets.

Wouldn’t it be nice to see $1,200 gold?

Gold $1,200?  It would be great, sure.  But we’d have to listen to Roubini’s I-told-you-so nonsense.  Preserving wealth not only making the right decisions, it involves resisting the psychological warfare waged by possible plants who will discourage the silver bullet option (gold and silver) away from the Federal Reserve system.  In fact, many have questioned whether Roubini, Dennis Gartman and Jeff Christian are today’s Lord Haw-Haws.

Sounds like another tin-foil-hat conspiracy theory?  Who knows the truth about anything when a bunch of sociopaths have taken over the financial industry, government and media.  Ask yourself how well would you have fared listening to Bernanke, Greenspan, Roubini, Gartman or Christian?  Ask Gerald Celente.

“I think it is absolutely essential in a democracy to have competition in the media, a lot of competition, and we seem to be moving away from that.” —Walter Cronkite

“Most Americans have no real understanding of the operation of the international money lenders. The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and manipulates the credit of the United States.” —Sen. Barry Goldwater (Rep. AZ)

“It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.” —Henry Ford

“Government spending is always a ‘tax’ burden on the American people and is never equally or fairly distributed.  The poor and low-middle income workers always suffer the most from the deceitful tax of inflation and borrowing.” —Congressman Ron Paul

“All the gold bugs who say gold is going to go to $1,500, $2,000, they’re just speaking nonsense.” —Nouriel Roubini de la Milan

Silver price: Hey Silver Bugs, You Cryin’ Yet?

The more silver bugs cry as they watch the latest breakdown in the silver price the better it is for the rest who will make it through to the other side of the biggest financial crisis since the Civil War.  Sign-up for my 100% FREE Alerts

Take in the economic scenario the Fed faces, then ask yourself what the Fed will do about it and which planet will the silver price orbit after the dust settles.  Here are the facts that should calm investor fears:

“Let us be honest. The U.S. is still trapped in a depression a full 18 months into zero interest rates, quantitative easing (QE), and fiscal stimulus that has pushed the budget deficit above 10pc of GDP,” The Telegraph’s Ambrose Evans-Pritchard penned in a Jul. 4, 2010 article.

Now look at Shadowstats economist John Williams’ chart, below.  GDP is again dropping, 18 more months later, from Evan-Pritchard’s last year’s Independence Day article. (The real GDP is calculated by Williams, shown by the blue line.)

Now, take a look at the number of U.S. food stamps recipients?  Does the graph, below, square with an employment rebound?

If the economy has been on the mend, slowly creating jobs for nearly a year now, why have there been 4 million more food stamps recipients in the U.S. since July 4, 2010?

Note the blue line in John Williams’ graph, below.  That’s the real unemployment rate (approximately 22.5 percent)—the rate that would have been reported by the BLS during President Ronald Reagan’s first term (1981-85).

And the jobs created which blunted a crashing jobs market have been the throwaway kind.  See BER article, Gerald Celente:  Brace for Economic 9/11.  The trends forecaster describes the type of jobs created, mostly the type of local jobs that you would find on the tropical island of Fiji, not the high quality jobs found in Germany or Switzerland.

And it’s about to get worse, as Celente predicts.

The U.S. is “tipping into a new recession,” ECRI’s Lakshman Achuthan told Bloomberg Radio on Sept. 30  “We don’t make these calls lightly. When we make them, it’s because there’s an overwhelming objective message coming out of our forward-looking indicators. What is going on with the leading indicators is wildfire; it’s not reversible.”

Since Sept. 30, Achuthan hasn’t budged from his dire forecast.  (See Economic Cycle Research Institute—ECRI, here and, of Dec. 9, here.)

Okay, the Fed faces a U.S. economy that’s rolling over—again—from an already negative GDP, according to John Williams.

So, what will the Fed print to prevent an economic collapse?

Watch it; it’s a trick question!  Jim Rogers explains in a Dec. 14 interview with TheStreet:

TheStreet Reporter: What should the Fed do at their upcoming meeting, aside from QE3?  We’ve seen more Fed presidents come out and call for more monetary easing.  What should they really do?

Jim Rogers: They’re already, Alex, they’re already . . . QE3 is already here, Alex.  Get out the numbers for non-seasonally adjusted M2, and you will see that Mr. Bernanke said, in the summer, we’re going to keep rates artificially low. You can’t just say the words, you got to do something.

Rogers goes on to say that the Fed hasn’t stopped printing money since QE2; it just wants people to think it has.  And thanks to a complicit media, whose been told to repeat the con over and over in an effort to prevent a bona fide run on currencies, some investors still believe the Fed has stopped printing.

Look at the chart, below.  A couple of months ago, the Fed was expanding M2 money supply by 20 percent!  That’s a rate that even former Fed Chairman under President Nixon, Arthur Burns, would blush at, as the maestro of the 60s and 70s presided over the highest U.S. inflation rate since the Civil War.

The Fed never stopped printing!

Silver investors now wait for Bernanke to announce even more printing! That’s when the top blows off the gold and silver market, according to Jim Rogers, Peter Schiff, Jim Rickards, Marc Faber, James Turk, James Sinclair and FX Concepts John Taylor.

That signal could come in late January, maybe tomorrow, or next week, but it’s coming.  Let’s see what more Fed money printing will be called this time.

Back to the Rogers interview.  Notice how the scripted question by TheStreet reporter was written in a way to fool the public into thinking that the Fed hasn’t been printing money since so-called QE2 ended on June 30?

It’s the ol’ leading the witness trick, with a false premise to plant a lie in the minds of the observers, to throw them off the track to the truth.   At least TheStreet reporter didn’t stoop to the, “Well, of course you’re going to say that, Jim, you sell your Rogers Commodity Fund” line, or something along those lines.

Here’s another example of the vicious propaganda thrown at some pretty smart guys who warn of a coming tsunami of commodities price inflation in 2012:  Witness the Marc Faber interview on CNBC, last week.

In his interview with CNBC’s ‘working girl’, Maria Bartiromo, Marc Faber got the better of the dullard Bartiromo, working her over pretty well (if she noticed).  Faber’s had 20+ years experience dealing with such nonsense during his time living in Thailand.

Do a Google Images search on the term, “Maria Bartiromo.”  You’ll see endless poses in the search results.  That’s what CNBC thinks of you—a 20-year-old drunk on a Thai vacation.

Bartiromo, after hearing Faber’s gruesome assessment of the world economy, said, “Okay, you think the world is ending, so which five stocks would you buy?”

By the way, if you didn’t listen to the Bartiromo interview, Faber outdid himself with yet another one his great Faberism.  He retorted, “I Have A Very Special Stock Tip For You. The Symbol Is G-O-L-D.”  Now, that’s a great Faberism!

And finally, and more dramatically, The Hat Trick Letter’s Jim Willie explains the Fed con in a really classic Jim Willie style—his style is the rambling and information-packed rant!  See BER article and link to audio interview here.  Willie covers almost everything in this interview that silver investors should know.

So we see sub-$30 silver.

Now for the question that’s on everyone’s mind . . . drum roll please. . . how far will the silver fall?

And the answer is the same as it has been since the bull market began in 2002: When every last ripe apple falls from the shaken tree.  That’s when the price will stop falling.

And right now, the tree needs to be shaken as hard as the Fed can shake it, because the next move up in silver will most likely be akin to the last one.

You remember, the move from $17.50 to $49.94, from August 2010 to April 2011, a 177 percent price explosion higher within 8 months?!

The Fed would just prefer the base of the next move for silver (gold, too, as well as oil and other commodities) is lower before the massive catapult higher.  Also, remember, north of $50 in the price of silver unleashes the metal; there is no resistance levels above that price.  This is the last stand for the Fed, and it will make the best of it.

Wow! China Gold Imports Spike 4,000% y-o-y

UK-based International Business Times reports China’s gold imports spiking 50 percent in October from September, and soaring 4,000 percent from October of a year ago, to an all-time single-month record high of 85.7 tons.  Sign-up for my 100% FREE Alerts

Though India’s anticipated record gold imports of a 1,000 tons this year could slow due to signs of slowing jewelry demand from a recent 20.3 percent crash in the rupee, since August, investors can no doubt count on China to, not only take over the gold market slack, but soon-to-dominate the New York-London gold cartel

As a reminder to evolving drama in the gold market, WikiLeaks exposed China’s plan to break from its sadistic recycling of trade surpluses into U.S. Treasuries, a shift in strategy by Beijing that’s prompted other Asian nations to follow suit.  See BER article, WikiLeaks Drops Bombshell on gold Market, GATA right again!

Source: U.S. embassy cable – 09BEIJING1134

According to China’s National Foreign Exchanges Administration, China’s gold reserves have recently increased. Currently, the majority of its gold reserves have been located in the United States and European countries. The U.S. and Europe have always suppressed the rising price of gold. They intend to weaken gold’s function as an international reserve currency. They don’t want to see other countries turning to gold reserves instead of the U.S. dollar or euro. Therefore, suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar’s role as the international reserve currency. China’s increased gold reserves will thus act as a model and lead other countries toward reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the renminbi.

And the promotion of the “internationalization” of the renminbi has noticeably accelerated this year.  On a year-over-year basis, the amount and rate of increase of gold purchases by the People’s Republic of China is no less impressive than the $3.2 trillion of foreign reserves slated to be deployed by Beijing.

IB Times quotes Credit Suisse analysts Thomas Kendall, who sees “Chinese imports of the yellow metal hitting 470-490 tonnes for the full year, up from last year’s 245 tonnes,” a near-double spike in volume anticipated at the close of 2011.

And it appears that the Chinese are patient when accumulating gold, outside of its steady purchases from its own China-based mining industry, buying on opportunistic dips created by periodic hedge funds selling.  In fact, the notorious sell offs in the gold market plays into the hands of the masters of Sun Tzu (1), as September’s swoon from one large hedge fund manager provided attractive prices for Beijing’s rapid gold accumulation program.

“Analysts said the [gold] buying, led by emerging market central banks intent on diversifying their growing foreign exchange reserves, helped explain gold’s rebound from a low of $1,534 a troy in September as large hedge funds such as Paulson & Co were forced to sell some gold to cover losses elsewhere,” stated the Financial Times of London on Nov. 17.

After dominating the world economy in production and exports of the past two decades, Beijing’s next Mao-like ‘Great Leap Forward’ enlists 100s of million of China’s middle class in a joint venture with its central bank to now wrest control of the gold market away from New York and London.

As the world witnessed the powerful rise of China, post Tiananmen Square, the power of 1.3 billion Chinese, encouraged and mobilized by a centrally-commanded political structure to achieve an objective vital to its national security can produce awesome results.  As the WikiLeaks cable exposes, today, Beijing is out to break the gold cartel with its awesome population might.

Since 2002, after lifting the 53-year ban on gold ownership under Mao Zedong, the Chinese have eagerly scooped up gold coins and jewelry at rapid rates, to numbers which now rival India’s colossal demand for the yellow metal.

Forbes Magazine reported in March, “Believe it or not Ripley! The People’s Bank of China (PBOC) recommended yesterday that 1 billion Chinese consider buying gold as a hedge against inflation and to preserve values in a world where currencies can fall. . . . Wow! Be like the Fed telling you to buy oil stocks or crude oil futures due to expectation higher gasoline prices this summer.”

According to the World Gold Council, total gold demand in the PRoC will reach 750 tons in 2011.  In the third quarter, consumer demand for the precious metal continued to soar, led by a 24 percent increase in demand of 60.2 tons of gold bars and coins, from last year’s third quarter total of 48.5 tons, while demand for jewelry rose 13 percent.

Front-running China’s demand

Frank Holmes, contributing editor for Forbes Magazine penned an article, today, titled, Central Bank Appetite And The Monetary Case For $10,000 Gold.  Holmes sees what the Chinese see: a tsunami of money creation coming out of the U.S. and the ECB, whose combined currencies comprise approximately 88 percent of all central bank reserves.

In the Forbes article, he quotes long-time friend and founder of Goldcorp’s Silver Wheaton, Frank Giustra:

The bottom line is that the money needed to bail out Europe and to fund America’s spiraling debt and future unfunded obligations is in the tens of trillions. IT DOES NOT EXIST.

It has to be created by printing money in massive quantities, and despite all the rhetoric you will hear against such policies, in the end it’s the path of least resistance. Printing money is an invisible tax on savings, much easier to initiate, than, say, raising taxes or cutting back on services and entitlements.

Under the Holmes scenario, which, incidentally, has become an ever-increasingly common conclusion, drawn by many well-respected analysts, the gold price could move as high as $10,000 per ounce in coming years.  That means: the dollar and euro are expected to erode significantly in purchasing power during that time period.

As far as the question: when is a good time to buy gold?  Stephen Leeb, author of Red Alert: How China’s Growing Prosperity Threatens the American Way of Life, has researched China and its strategic initiatives for the coming 20 years.  According to him, just jump in and wait, because a few hundred dollars here, or there, won’t amount to much in the long run.

“So how low gold will go here is literally meaningless,” Leeb told King World News on Monday.  “My advice to investors is don’t try to catch a bottom and be a hero.  It could happen any time.  It could be happening as we speak, it could be happening today.  But it’s really irrelevant.  Let’s say gold is at $3000, $4,000 or $5,000 in three or four years, which I think is very, very likely–are you really even going to remember that it went to $1,650 or $1,550?  No.”

(1) From Wiki: The book was first translated into the French language in 1772 by French Jesuit Jean Joseph Marie Amiot, and into English by British officer Everard Ferguson Calthrop in 1905. Leaders as diverse as Mao Zedong, General Vo Nguyen Giap, Baron Antoine-Henri Jomini, GeneralDouglas MacArthur, Napoleon, and leaders of Imperial Japan have drawn inspiration from the work. The Art of War has also been applied to business and managerial strategies.

MF Global Case Exposes JP Morgan COMEX Fraud

With 19 days left in the year 2011, one would think that the famous Ann Barnhardt interview, posted Dec. 1, on the FinancialSense Newshour website was a shoo-in for the most important interview about your money this year.  Sign-up for my 100% FREE Alerts

But, it appears that Jim Willie of The Hat Trick Letter takes Barnhardt’s gruesome assessment of the financial industry several steps forward in classic Jim Willie style.  Marc Faber, Jim Rogers and, even Gerald Celente, Peter Schiff and Max Keiser, don’t do quite the justice to the topic of: the tag team effort by the bankers, regulators and politicians who conspire to fleece the American people, like Jim Willie can do.

For those already familiar with Jim Willie, go right to a most fascinating interview with the man, who, prior to the Lehman collapse, was unfairly referred to as ‘Crazy Jim’ for his ‘ridiculous’ prediction for systemic financial collapse at a time when the compelling evidence for such an event could only be appreciated by those few among us steeped in all the academic disciplines of money, history and of human behavior, rolled up into one.

Jim Willie interview, click here.

For those unfamiliar ears to the Willie experience, his presentations sound no less crazy than they’ve sounded of the past.  His presentation of the facts, the events of past and present, as well as the conclusions he draws, appear ‘nutty’ to the layperson.

But no one can ever say that the man has ever been wrong about what he has for many years envisioned—and expressed in no uncertain terms, proving once again the adage: It’s not, what a man says; it’s the posture in which the man says it, that appeals to the man-on-the street.  See Milgrim Experiment.

Though Willie earned a Ph.D. in inferential statistics, he won’t wear a suit and tie or a lab coat.  You’ll have to take in the data and draw your own conclusions, because he sounds exasperated from those around him who won’t listen—even his own family members.

Jim Willie, PhD., now, presumably, lives a peaceful life in Costa Rica, where he publishes his famous Hat Trick Letter.

Gerald Celente: Brace for Economic 9/11

Founder of Trends Research Institute Gerald Celente predicts an economic 9/11 for the United States is just around the corner.

Though last Friday’s U.S. Labor Department employment report showed a remarkable drop in the unemployment rate to 8.6 percent for November, down from 9 percent in October, Celente’s said nothing has changed in the employment picture.  In fact, he said, the economy will get worse. Sign-up for my 100% FREE Alerts

Moreover, because of the Celente’s deteriorating jobs outlook, continued inflation and a deepening recession slated for the first quarter of 2012, American will explode into “economic martial law,” according to him.

America is being fed the hope of a recovery; it’s all a “lie,” Celente said, and will blindside many Americans who still believe Washington’s propaganda and numbers fudging.

“It’s food stamp employees.  Oh, there were jobs created in retail,” Celente told Russia Today.  “You know, those wonderful jobs where you take people’s money and say, ‘Have a nice day’.  And there were jobs in hospitality.  That’s another word for cleaning up somebody’s room.  Oh, and there were jobs in healthcare.  You know, working in nursing homes, making $62.50 a week by the time after taxes.  You know, so these aren’t real jobs.  This is a plantation economy.”

Not only are poor quality jobs created, but buried in the November labor data reveals 315,000 unemployed workers haven’t found jobs in the last 12 months.  These long-term jobless Americans fall off the radar, no longer counted by the Labor Department, thereby artificially lowering the unemployment rate.  (For more on government manipulation regarding employment statistics, see Shadowstats.com)

The number of Americans who want to work but still cannot find work stands at 13.3 million.  And the jobs picture gets worse after taking into account a naturally growing U.S. labor pool.

“And the big lie, that no one’s talking about as they pump up this weak number, is that, you need a 125,000 jobs a month to account for the new people moving into the economy and population growth,” Celente explained.  “So that leaves all the people that have lost all these jobs since the Great Recession hit still out of work.

“It’s going to get worse,” he added.  “As a matter of fact, we’re coming out with our top trends for 2012, and one of them is going to be economic martial law.  We’re going to go into an economic 9/11.”

Celente notes a disconnect between the reality of an impending economic collapse and Americans taken in by hype surrounding the day after the Thanksgiving Day holiday, or ‘Black Friday’.  While the U.S. economic ship sinks, the passengers seem not to notice, according to Celente.

“What they’re [the Fed] doing is that, they’re pumping this up to get the people to spend their last pennies that they don’t have on Christmas junk,” he said.  “And you saw with all the hype with this Black Friday. They’re not solving the problems over in Europe.

“The European Union is collapsing, the European monetary union.  What did they do?  They just came out with credit ratings, showing 15 of the banks have lost their credit ratings because they’ve been degrading.  The same day they come out, central banks around the world are pumping trillions of dollars into them to keep it afloat.”

The so-called smart money, however, isn’t fooled.  Stock prices, which are regarded as a reliable leading economic indicator of future economic growth, have stalled from the bear market rally of March 2009.

And the Fed appears to be confirming the fear on Wall Street.  On Dec. 8, the U.S. central bank released a report showing a $2.4 trillion drop in U.S. household net worth for the quarter ending Sept. 30.

“Americans’ wealth last summer suffered its biggest quarterly loss in more than two years as stocks, pension funds and home values lost value,” according to Reuters.  “It was the sharpest drop since the tumultuous period after the September 2008 bankruptcy of investment bank Lehman Brothers.”

Adding to the worries of a renewed downturn in the U.S. economy include Europe’s and Japan’s financial problems as well as a China slowdown, which, taken together, have never conspired simultaneously since the Great Depression.

If the U.S., Europe, Japan and China, together representing more than half of global GDP, how will America, Europe and Japan pay on its sovereign debt?

Following the collapse of Lehman Brothers in 2008, governments backstopped the financial system to prevent financial Armageddon.  Today, it’s the governments that need backstopping.  Who will backstop them?

“When the New Year comes, the Winter of Discontent is going to set in, reality is going to bite,” Celente concluded.  Brace for an economic 9/11.

Marc Faber Fears Gold Confiscation

Aside from the cherished and entertaining Faberisms deployed from time to time in his fight to preserve the truth in front of television audiences controlled by a media-based establishment propaganda machine, Marc Faber also demonstrates why he’s the go-to man for clarity and thoughtful insights in the midst of today’s Orwellian headache.

Speaking with FinancialSense Newshour’s (FSN) James Puplava on Wednesday, Faber, the editor and publisher of the Gloom Boom Doom Report discusses a range of topics, from geopolitics, to freedom and tyranny, to his concerns of people living in an age of central bank monetary cannons gone completely rogue.  He also touched on one of his favorite asset classes, gold, and the third-rail subject of interest to every gold bug: government confiscation.  Sign-up for my 100% FREE Alerts

Note: James Puplava’s FinancialSense.com Web site is loaded with some of the most informative interviews from the brightest minds assembled on the Internet.  See its audio archived interviews.

As far as how high the price of gold can go, it depends upon who has control of the printing presses, according to Faber.  Right now, he said, the power hungry in Washington won’t let gold bugs down, as each sign of a lurking systemic collapse or stock market meltdown has been propped up by the Fed.

“If I could show you a picture of Mr. Ben Bernanke and Mr. Obama, then I would have to say that the upside is unlimited,” said Faber.

And the downside risk to gold rests on the shoulders of central bankers, as well, as the Fed, and now the ECB, will go to any length to feed the global financial system with creative and backdoor credit expansion mechanisms.

“In my view the downside exists if money printing by government is insufficient to revive or maintain credit growth at this level and you have a credit collapse,” he said, and also noted that competing asset classes would most likely fall more, thus retaining gold holders purchasing power during a bona fide deflationary collapse.

But, first, the globe will undergo roaring inflation, according to Faber, then, second, the Robert Prechter, Gary Schilling and David ‘Rosie’ Rosenberg deflationary spiral scenario will play out.

“One day there will be a credit collapse, but I think we aren’t yet there.  Before it happens they’re going to print,” Faber speculates.  “And when printing as it has done in the last 12 years in the U.S. leads to discontent populations, because when you print money then only a few players in the economy that benefit, not the majority of households.”

However, Faber warns that the gold market’s extremely volatile, a normal symptom of a fiat-backed financial system inducing the public into schizophrenia—of clinging to the familiarity of a 67-year-long financial system, moving to periods of fearing total loss at the currency graveyard—will chase investors out.

“A 30 percent correction or 40 percent correction cannot be ruled out, but as I maintain, again and again, I’m not going to go and sell my gold,” Faber said forcefully, as he explained that owning gold is should be viewed as the ultimate insurance policy to cover financial calamity, a viewpoint shared by famed Dow Theory Letters’ Richard Russell—another periodic guest of FSN.

Whether the gold price is in bubble territory, as a few prominent analysts claim, Faber doesn’t see it that way, at all.  In fact, he said, very few people own it or talk about it.  History clearly demonstrates that every bubble will suck in the very last investor before collapsing under its own weight.

Besides, the powerful propaganda machine, which endlessly repeats the party line of a system predicated on a fiat system of dollar hegemony, will not allow cheerleaders of the gold bugs to expend too much airtime away from Wall Street advertisers and obvious shills (to the trained eye) of CNBC, Bloomberg and other ‘mainstream’ media.

So far, the propaganda has only delayed the inevitable rush into gold—the next and longest stage of the bull market.

“I have one concern about gold.  I was recently on Taiwan and South Korea, at two large conferences, nobody owned any gold,” Faber said.  “Gold is owned by a minority, even in the U.S..  Most people in the U.S. have no clue what an ounce of gold is or looks like and so forth.  The same in Europe.”

But as the ‘wealthy’ begin to acquire gold, the chasm between the ‘rich’ and poor will widen substantially, not just between the 1 percent and the rest, but between the upper 10 percent and the growing-poorer middle class.  That’s when the democratic process turns ugly, morphing from a society of rights to a nation ruled by a tyrannical banana republic political dynamic.  See FSN interview, Ann Barnhardt: The Entire Futures/Options Market Has Been Destroyed by the MF Global Collapse.  Or transcript.

Populist political leaders vying for votes from the masses will opt to score easy points with the 90 percent have-nots at the expense of the haves, with draconian taxes on assets such as gold and silver held by the haves, not just through taxes on capital gains, but maybe even through a wealth tax on the holdings.

“This is what the tyranny of the masses can do,” Faber explains.

“You can make it, advertise it to the masses by just taking away from a few people, he added.  “I’m worried most about is the case of gold, not the price; that I’m not worried . . . but I’m worried about the government taking it away.”

The interview moves on to the discussion of the bull rally in gold and silver.  After 11 years of continuous gains in the price of gold, why, then, do so few investors hold the metal?

Faber explains that there remains too many deflationists holding to their thesis of a tumbling gold price, though, as Faber suggests, there has been no factual evidence to support the argument since the pop of the Nasdaq bubble of 1999.

What deflationists point to as proof of their contention, declining housing prices and stock prices, are really manifestations of inflation moving out of those asset classes into others, such as commodities, precious metals and overseas assets, of all kinds.  Inflation, Faber has stated in the past, doesn’t move all asset prices up simultaneously.

“I don’t hear about gold.  I lived through the last gold bubble between 1978 and January 1980.  The whole world, whether you were in the Middle East or in Asia or Europe or in America was trading London gold, buying and selling every day,” he recalls.  “This has not happened yet, and it hasn’t happened.  Your friends, the deflationists, have been telling people that gold will collapse to $200 an ounce for the last 10 years and that’s it was in a bubble.

“[They] said it [gold] was in a bubble at $500; they said it at $600, and they’re still maintaining it.  So a lot of people they don’t own it; they bought it and sold it again.  But in the meantime, gold has moved into sold hands.

“In my case, I’m not going to sell my gold unless I have to.  In other words, everything else is bankrupt, bond market, stock market, cash and real estate.”

Faber also points out, even though the price of gold appears to look like and quack like a bubble duck, with the price of the yellow metal sporting gains of 700 percent since the year 2000, the monetary base and credit creation by the Fed has been so large for so long, the gold price has much more room to move higher to reach ‘fair value’.  See Goldmoney Founder James Turk’s analysis on this very point: BER article, Goldmoney’s James Turk, $11,000 Gold Price.

“I can turnaround and say, look if I consider the price of gold, an average price in mid-1980s, then we take $400 or $450, or whatever it is,” Faber explains, “and we take the monetary base at that time; we take the international reserve; we take into consideration that China hasn’t really begun in earnest to open up; and we haven’t had this wealth expansion in emerging economies, and so forth and so on.  Then, I can maintain, well, actually the gold price is not up; it’s just the price of money, or the value of money, has declined so much against a stable anchor.  So I don’t think that we’re in a bubble stage.”

For the newcomers to the gold market, Faber stresses, “Don’t buy it on leverage.”

Reiterating his previous comments during the interview, Faber leaves the FSN listener with his overriding observations of a U.S. government (other Westerner countries, as well) that shows signs of eventually taking the next steps in its fight to maintain a hopelessly broken political and financial system: confiscation, not necessarily though a highly unlikely and dangerous door-to-door search of proof of non-paid taxes on a citizen’s bullion stash, but through confiscatory levels of taxation and possible criminal penalties to those who daring to escape the Marxist or Fascist regime’s grip on power over its population’s wealth.

“My only concern with the gold insurance is government will take it away,” Faber concluded.  “That is my only concern.  I’m not concerned about the price.

“I also have a concern generally speaking about our capitalistic system.  For sure people with assets, they will be taxed more heavily, that’s for sure.”