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Unless our politicians give up the "free market" follies and subservience to banksters, we are all hopelessly screwed including them. Their errant ways are about to catch up with them. We need to bring back manufacturing, reregulate the banks and TAKE BACK all their ill-gotten gains. We need to redefine treason as the wholesale sell-out of a country to economic interests. We need to to arrest and try and strip the assets of all of these people who took the world and the USA down this horrible path. This article explains a little of their crimes against this country and humanity
 link to www.silverdoctors.com

By Jim Willie, GoldenJackass.com

Bankers know they are finished, and are cutting deals to avoid prison
JPMorgan is losing control of the USTBond & Interest Rate Swap structures
The destructive Fascist Business Model is in its final chapter, the climax
A major bank scandal is brewing, from illegal usage of Allocated Gold accounts

All hail August and September, the months to kick precious metals into gear. The year's bottom was seen in May around the $1550/oz level. The upward movement began at end July and early August. The momentum picked up in late August, and has gained additional vigor in early September. Rumors of a weakened JPMorgan monster have yet to come to light, or be seen in the gold price from their relaxed heavy hand. No limit of naked shorting gold futures is being enforced. The criminality of the currency regime is complete, total, and profound. However, the daily chart shows some new life in a rather impressive reversal in progress. It has much more to run. The $1700 level should be breached very soon with confidence. There might be no looking back. The ruined banks, the ruined sovereign bonds, the ruinous wars, the struggles with mine output, the splendid citizen demand, it all adds up to aggravated price structures pointing to higher prices.

The Hippocratic Oath dictates never to do harm to the patient. The central bankers instead take the Hypocritical Oath that dictates to cripple the patient, to drain the blood, to preserve power by tightening the straps, to erode buying power from hard work, and to render life savings a weak shell, while whispering lies in the ears on blame for what went badly wrong, against the background din of endorsed war themes. The effectiveness of the latter oath is seen in the systemic failure of the USEconomy, whose financial and economic structure has been destroyed by bad economic policy, the poor paper financial foundation from the monetary system, corrupt bond market practices marred by $trillion frauds, and a marriage between the state and sanctioned large corporations whose only efficiency is seen in dark corners protected by criminal impunity. The Fascist Business Model showed itself in bold terms in the 1990 decade, in the strengthened links between state and major corporations, where inefficiency, favoritism, and corruption produce the bitter fruit of a sclerotic financial structure and weakened body economic. The Gold price responds to the systemic failure of the ruinous financial and economic policy, aggravated by the devoted ghoulish doctors and their perverse solutions that neither fix anything nor attempt to apply remedy.

The Jackson Hole conference was another gathering of losers, stuck in apologist mode to explain their vast ongoing enduring failure. It has become an empty echo to the Davos Forum. This year, after two years of the drastic treatment reliant upon bond monetization (Quantitative Easing), the display revealed more vividly than in the past the gaggle of losers gone fishing. The Bernanke speech said nothing of substance, nothing. He is out of ideas, out of tools, out of credibility, holding a ruined balance sheet which will not be restored. The latest Bernanke stupidism is the continued bond monetization until a certain threshold of economic growth (GDP) is reached. These loser bankers do not even attempt legitimate solutions, choosing instead their usual fare to work toward power preservation whose schemes are marred by yet more paper mache covering of toxic sores. The financial markets look to clues on QE when it never ended, and thus its participants appear truly clueless. They appeal beseechingly like emaciated hound dogs seeking small food scraps from the fat bankers who never miss a $200 lunch, the tab always paid by the starving serfs and vassals that peer through the windows. In past years the Jackass was eager to hear the buzz from the conference, looking for choice morsels to indicate future direction. This year, a walk around the block to look at blossoms from the vibrant flora has been brought more satisfaction. Even EuroCB chief witch doctor Draghi decided not to attend the conference, perhaps unwilling to be tarnished by a broad inept banker brush, or to find himself impaled by a fishing hook.

The banker losers will continue to ply their trade, to print more money and avoid the Gold Standard. They will find ways to justify more propping of the giant insolvent banks, whose business model has been wrecked, whose balance sheets have been wrecked, whose executives live large despite the wreckage. The dangerous dastardly desperate concoctions with hidden derivative platforms and cables erected by the big banks in the 1990 and 2000 decades bought them more time, but did not avert the mutually assured destruction. The central bankers have no solutions. The Gold price responds to the systemic failure of the ruinous financial and economic policy, aggravated by the devoted ghoulish doctors and their perverse solutions that neither fix anything nor attempt to apply remedy.


Discussion of growth targets has turned absurd, since the recession is accelerating in speed. Discussion of bond buying shell game specifics has turned absurd, since the USFed has been buyer of over 80% of USGovt debt since 2010 during a foreign buyer strike. Discussion of inflation considerations and the ordinary deceptions has turned absurd, since the CPI has been over 7% or 8% for years on end. Discussion of the stimulative effects of 0% has turned absurd, since it is a giant wet blanket that shrinks profits and kills capital through retirement of equipment in unprofitable business enterprise. Current monetary policy assures a greater and faster economic decline, where GDP minimum limits will not be reached. Discussion of the benefits of more printed money has turned absurd, as the nation slowly becomes wise to the sham and counterfeit to wealth. If dispensed money is not earned, the hangover arrives the next year or next decade, whose tab is due now. Discussion of the urgently needed spending restrictions imposed upon the USCongress has turned absurd, since they are deadlocked and should be disbanded as an ineffective temple of beggars to banks and industry, whose main function has been to raise funds and win the next election. Discussion that relies upon keywords laced throughout commentary has turned absurd, since the entire vocabulary has suffered from propaganda in a vast dumbing down of the American people. The national hive is in its sunset and twilight phase, long past the point of remedy, due to two decades of ransacking the asset base and capital base. The nation no longer comprehends the basic concepts of capitalism. Instead it embraces socialism and carries out fascism against a constant drumbeat of war, which even features appearances of military symbols at signature sporting events. The Gold price responds to the systemic failure of the ruinous financial and economic policy, aggravated by the devoted ghoulish doctors and their perverse solutions that neither fix anything nor attempt to apply remedy.

The Euro Central Bank has announced its own vapid stupid pointless monetary policy to enforce a cap on sovereign bonds. The absurdity runs parallel with the inept US counterpart. The USFed will buy bonds until an economic growth level is attained, never to be attained. The EuroCB will buy bonds to prevent the sovereign bond yields from reaching a dangerous level, which will always be pressured. No bond market can claim legitimacy when an imposed limit is enforced on bond yields. Harken back to the USFed buying TIPS bonds, like icing down the thermometer that measures fever levels.

The failure is stark and clear. Monetary policy has gone amok. They have no solutions, so they press harder in the same reckless direction. What the world is witnessing is the official institutionalized ruin of sovereign bond markets in the United States and Europe, which serve as foundations for the USDollar and Euro currencies. Both currencies are doomed to the dustbin of history, all in time. Central bankers have lost all credibility, cornered without options in a public way. Central banker appear writhing flailing wiggling as they apologize for lack of solutions, while their integrity vanishes like an oily mist off an overused printing press. Central banks are presiding over wrecked bond markets, wrecked currency markets, and a divergence gold market (paper versus physical). They are at the helm of giant vessels, which are sinking from their own ordered liquidity measures, taking on water, unable to negotiate around icebergs.


No solutions are being pursued by the central bankers, their partners at the giant banks, and their subordinate henchmen that occupy key government posts. The path to remedy is not complicated. Liquidations must provide the foundation of solutions, not amplified liquidity. The broken structures cannot be puffed up. Rather they must be dissolved, something abhorrent to the ruling elite. No viable solutions are being pursued, only preservation of the power structure at all costs. Any valid meaningful legitimate remedy must begin with six important planks. My Jackass planks are simple. Nobody can deny a constructive theme to my harshly critical analysis. None of the six planks will be introduced, since all interfere, even collide, with the priorities of the syndicate. No options remain except valid solutions, which are becoming obvious. The following are the Jackass Planks to Valid Recovery.

1) liquidate the big US banks

2) liquidate the US housing market

3) return factories to US shores

4) reform the tax structure to lower corporate tax and to encourage factory return

5) end the wars to secure oil and narcotics supply

6) re-impose the Gold Standard.

They must liquidate the big banks, since they are insolvent entities that cannot function as either credit engines to the economy nor capital investment nurseries in which to nurture new formation of businesses. The big banks are vast constructions configured to speculate like casinos, loaded with structural cable lines long ago broken, designed to support the system, to compensate for past errors, and to cover their giant cracks and holes in supporting platforms. In 2006, the Jackass had a basic epiphany. The big banks would never be liquidated, since they control the power of the USGovt, especially after the key events in September 2001 when the control levers changed hands more formally to Wall Street firms. Leaders rarely ever relinquish power, especially when the corruption is deeply engrained. The entire liquidation process would let go of power in obvious ways, but it would also open the door for revelations of past criminal activity whose prosecution could not be prevented or controlled. The keys to the tainted kingdom remain part and parcel in the form of control of the USDollar printing press and USTreasury Bond complex. The breakdown of the Bretton Woods Gold Accord had a motive, to create new independent control of the USDollar printing press. It was coveted. It has been exploited. It will be preserved and defended at all costs, even if with wider war. The Gold price responds to the refusal to liquidate the big banks and the horrendous effects imposed on the USEconomy from a criminal zombie banking system impaired to serve as credit locomotives. The contaminated circulatory system will spread the cancer.

They must liquidate the housing inventory, both held by the big banks and by Fannie Mae vat under the USGovt aegis. No market ever recovers without clearing the inventory in an orderly process. This required step cannot be done either. The obvious outcome would be a housing market where home prices would plunge to 30% to 40% lower. The crippling effect to the USEconomy could set off a chain reaction where even lower prices could arrive, far below construction prices, long thought to serve as price floor. See Nevada and other locations, where home prices have been 25% to 35% below construction prices for over two years, in order to smash that thin veneer masquerading as theory. A relentless flood of inventory directed by the big banks would result in a yearlong nightmare. Their REO inventory of unsold homes seized by foreclosure is much larger than widely regarded or estimated, like 8 to 10 million homes. They use Fannie Mae, Freddie Mac, and the entire Federal Housing Admin channels to conceal the size of the problem.

A much bigger motive obstructs the liquidation, a deep criminality lodged in Fannie Mae itself. It has served for 20 years as the clearing house for federal fraud rings, often called the Role Programs. Not the least of criminal deeds was the theft from Fannie funds by presidents between 1988 and 2000 to the tune of $1.5 trillion, well documented by Catherine Fitts as auditor. Many records were lost in Oklahoma City during another mysterious event. Her work resulted in banishment and attempted murders via arsenic poison. She still kicks sand, but in more subtle manner. The liquidation of the housing market would expose a much broader fraud streak in the mortgage bonds, where bond fraud and counterfeit worked side by side. The practice of using one home's income stream from monthly payments in multiple bonds securitized to that stream would be exposed. The MERS title database has already been exposed in prima facie, but its deeper exposure would show the titles devoted to multiple mortgage bonds in obvious ways not desired by the bankers who designed the clever tool for speed and fraud efficiency. The Powers in office do not want a full disclosure of the vast Fannie Mae corruption that laces across two dozen federal offices and agencies. The Powers do not wish to expose much worse mortgage bond fraud, which might tempt millions of home owners to stop making monthly payments altogether. The Gold price responds to the refusal to liquidate the housing market and the horrendous effects imposed on the USEconomy from an archipelago of shell households impaired to participate. The long enduring consumerism chapter is coming to an end finally, as the home ATM card has been taken away.

They must bring back US factories from Asia. From the 1980 decade to a climax in the 2000 decade, the factories went eastward to find roots in Asia, all across Asia from Korea and Japan to Taiwan to Hong Kong to Singapore to Malaysia to Thailand, then lastly to China. The motive was simple, the lower cost labor, but also to avoid the union pressures on cost. The underlying factors are less simple. The trend of outsourcing industry to Asia stands as the most serious and lethal factor in the degradation of the USEconomy, manifested in the decline in real income, the growth of debt, and the newfound dependence upon asset inflation within the entire national system. By dispatching, forfeiting, and relocating factories to Asia, the USEconomy lost its core in legitimate income.

The deceased Kurt Richebacher in private conversations with the Jackass in August 2003 mentioned the key to survival of any economy. It must produce its own steel (for structures) and vehicles (for transportation). The US for two to three decades has not done either. The steel mills that have survived in small scale, given the name mini-mills. The car industry is dominated by Asia and Europe. The truck industry remains solid, although the components are often Asian and the small trucks are Asian. The point by the elder economic statesman was that industry must be domestically produced, with domestic income from production, in order for a domestic economy to flourish. The seminal event took place in 1984 for Intel, when it announcing a move of its production facilities to the Pacific Rim. It came as a shock, when at the time the Jackass was a viable peg in a marketing research outfit at Digital Equipment Corp in Maynard Massachusetts, the site of numerous wonderful memories. The following decades saw an army of high tech firms relocate manufacturing sites in the Pacific Rim. The Jackass had DEC mfg site clients in Hong Kong, Taiwan, and Singapore, as well as Clonmel and Galway Ireland, with near weekly contact from the engineering staffs who implemented a quality control procedure. The Jackass creation became an engineering specification that saved DEC $70 to $80 million per year companywide, due to 28 sites that used it. Enough digression.

The offshoring and outsourcing trend continued in the 1990 decade, as almost every high tech and PC firm used Asian factories. For instance, the Apple i-Pods, i-Phones, i-Pads, and other products are manufactured for Apple by Foxconn, a Taiwan-based company. The firm's official name is Hon Hai Precision Industry Co. The Apple family of products are mostly manufactured in Shenzen China. However, Foxconn maintains factories in countries across the world including Thailand, Malaysia, the Czech Republic, South Korea, Singapore, and the Philippines. This is an American success story that does not involve value added by US workers, only US investors in the wildly successful stock. The Apple story is indicative as to the distortions within the USEconomy.