Central Bank Planning & Eurozone

Eschatology Part 2 Posted February 28th, 2015

By www.chuckcoppes.com

“QE [quantitative easing] has been a bonanza for the fast money traders who front run

the Fed but has done virtually nothing for the main street economy.”

- David Stockman, The Great Deformation

“Certain big central banks are making moves, leaving a lot of others having to

respond on the fly to the implications of those moves.”

- Rob Carnell, Chief Economist ING Group International

“An over-borrowed family owes money to someone else; U.S. debt is,

to a large extent, money we owe to ourselves.”

- Princeton Economist Paul Krugman on US Debt

"Short of a Political Union, I find it very difficult to foresee the Euro [zone] holding

together in its current form. It probably could get a union of Germany, Austria,

Luxembourg, the Netherlands, Finland for example. But not south Europe."

- Alan Greenspan, Former Fed Chairman

And Another Weekend Greeting to All,

As we all know, drama in the Eurozone continues to dominate the financial press, and this

deserves our careful attention for reasons I will discuss in Part Two of this report. As indicated

in Part One (Feb. 13, 2015), the radical Syriza Party has taken over in Greece and talks with the

Eurogroup have been tense as they try to restructure their debt problems. Meanwhile the ECB

plans to launch their own version of QE within the Eurozone to stimulate economic growth, but

the real reason is to fight deflation, capitalize banks and protect their cronies – more central bank

planning. As in Part One, we will deal with the implications of a new fiscal union in Europe

and how this relates to Bible prophecy and the decline of the US. The banksters are trapped in

their own “accommodative” policies, and things are going to get much worse as we go on.

G20 Vows to Boost Economic Growth

Through Fiscal & Monetary Policies

2/11/2015 12:34 AM ET http://www.rttnews.com

The G20 finance ministers and central bank governors called for accommodative monetary

and fiscal policies as the global growth remains 'uneven' with subdued progress in Eurozone and

Japan. According to a communique released after the two-day meeting of G20 finance ministers

and central bank governors in Istanbul on Tuesday, officials expressed determination to overcome

challenges to achieve the common objective of strong, sustainable and balanced growth and to add

jobs and foster inclusiveness. Officials noted that the current economic conditions require

accommodative monetary policies in some economies…..{but of course!}.

The recent G20 Meeting in Turkey has concluded that more bank intervention is needed to

micromanage the global economy. Rick Santelli (the only sane voice on CNBC) has repeatedly

noted the insanity of central bank manipulations and how traders are simply “trading” the Fed:

http://goldsilver.com/video/the-central-bank-manipulation-trade-rick-santelli/

As the economist at ING said above, central bank moves force them “to respond on the fly” with

their trading strategies; and this, my friends, is not a real market! It is a casino. David Stockman

has noted how traders are merely “front running” the Fed and we need to slap handcuffs on the

Fed! What has central bank planning done for the world since 2008? Put simply, it has created

more leverage, concentrated risk and set the world up for a credit crisis worse than 2008 as the

following few articles so clearly demonstrate. I will have more comments below:

Read: Stockman: Slap Handcuffs on the Fed Before It's Too Late

The Global Financial System Stands on the

Brink of Second Credit Crisis By John Ficenec, 6:57AM GMT 09 Feb 2015, UK

The world economy stands on the brink of a second credit crisis as the vital transmission systems

for lending between banks begin to seize up and the debt markets fall over. The latest round of

quantitative easing from the European Central Bank will buy some time but it looks like too

little too late. It was the collapse of US house prices back in 2007 that resulted in the seizure of

the credit markets and banking crisis of 2008. And it would be easy to lay the blame for the 2008

financial crisis at the doorstep of American home owners, easy but wrong. The collapse of the US

housing market was not the cause of the crisis, it was merely a symptom of the more insidious

ills of cheap credit, low risk and the promise of another bailout round the corner. It seems

nothing has been learned. The response to the underlying causes of the first global financial

collapse, namely cheap debt, low risk and bailouts, has simply been a heroic effort to create

cheaper credit, lower risk and even larger bailouts. It hasn’t worked. [See Chart Below]:

Here is a stunning chart that has made its way around the Internet recently. Please note that

central bank intervention since 2008 (yellow) has bought up trillions in government bonds and

commercial debt, and this does not even include $1.1 trillion to be added by the ECB through

next year! Nothing has been learned. And now a renewed warning from the Chinese:

World Heading for Financial Crisis Worse

than in 2008: China’s Global Dagong Credit

Rating Agency Warns Economy , February 04, 13:34, www.itar-tass.com

BEIJING, February 4. /TASS/. The world economy may slip into a new global financial crisis in

the next few years, China’s Dagong Rating Agency Head Guan Jianzhong said in an interview

with TASS news agency on Wednesday. "I believe we’ll have to face a new world financial crisis

in the next few years. It is difficult to give the exact time but all the signs are present, such as the

growing volume of debts and the unsteady development of the economies of the US, the EU, China

and some other developing countries," he said, adding the situation is even worse than 2008."

Is it any wonder that China continues to hedge themselves with massive gold acquisitions? The

Dagong Rating Agency now ranks the US 13th with a negative outlook, and a new study by the

McKinsey Global Institute reveals how governments are not deleveraging debt, but adding debt!

A record $57 trillion has been added since 2007, and the beat goes on. Or will it? In 2000, the

global sovereign debt was $110 trillion and now we have nearly doubled that figure:

World Record Debt of $199 Trillion could

Drag Economies into Another Crisis February 06, 2015 10:53, McKinsey Global Institute

Global debt has soared by $57 trillion since the outbreak of the financial crisis in 2007, with

the debt to GDP ratio jumping to above 500 percent in Japan. This raises questions about

financial stability and poses a threat of another crisis. “After the 2008 financial crisis and the

longest and deepest global recession since World War II, it was widely expected that the world’s

economies would deleverage. It has not happened. Instead, debt continues to grow in nearly

all countries, in both absolute terms and relative to GDP. This creates fresh risks in some

countries and limits growth prospects in many,” according to new research carried out by

consultants McKinsey in 47 countries. The amount of world debt reached $199 trillion at the

end of 2014, with the growth rate exceeding the pace of global economic expansion and the debt

to GDP ratio increased from 269 to 286 percent. “Higher levels of debt pose questions about

financial stability and whether some countries face the risk of a crisis.”

“We conclude that, absent additional steps and new approaches, business leaders should expect

that debt will be a drag on GDP growth and continue to create volatility and fragility in financial

markets,” the McKinsey report says. Deleveraging remains limited to a handful of sectors in some

countries. The only countries that managed to cut their debt were Argentina, Romania, Egypt,

Saudi Arabia and Israel. Geographically, Ireland was the country where the debt to GDP ratio

saw a record increase – of 172 percent. The ratio in Japan added 64 percent and remains the

world’s highest at 400 percent. In Russia, the debt to GDP ratio saw a moderate growth by

19 percent, remaining relatively low at 65 percent.

As the chart above illustrates central banks keep issuing new debt (QE), and the McKinsey

report concludes that the collective global debt to GDP has reached an astonishing 286%! What

does this mean? That we are on an unsustainable fiscal path and governments are in trouble:

http://www.financeandeconomics.org/sovereign-bonds/

This link shares how low, or zero, interest rates are going to blow up the bond market that is

used to create new fiat currency. Yet, this hot money is pumping up the world stock market!

This disconnect between soaring stock indexes and low GDP expectations is a phenomenon

known as Financial Repression that I have discussed before. As I explained in Part One, the

central banksters must fight deflation (loss of spending and contraction in prices) in order to

service government debt pyramids that are now $200 trillion (McKinsey). How do they deal

with this debt? They drop interest rates, inflate their currency, impose capital exchange controls

and suppress gold and silver (as a monetary alternative). Does this sound familiar? In this chart,

the US started this process in 2000, and you can also see that QE intervention began in 2009:

As you can also see in the chart, stocks are up (to convince everyone the economy is recovering)

while unemployment persists (in the real economy). The goal of Financial Repression is to

punish investors and savers (with low interest and higher inflation) to ease payment of sovereign

debt. It’s that simple and central banks are trapped into this policy and cannot raise rates!

http://www.gordontlong.com/Financial_Repression.htm

You can learn a lot more about Financial Repression at the above link and how all of this

excessive government debt directs monetary policy, which eventually affects all of us. And

speaking of excessive government debt, we need to address the latest developments in Greece.

The first bailout talks ended within four hours on February 16th with no resolve, and now Greece

has been given four more months to work out the impossible task of debt restructuring:

The Greek Debt to GDP Problem! dollarcollapse.com / by John Rubino on February 20, 2015

Minutes ago, Eurozone finance ministers announced that they’ve agreed to give Greece four

months of breathing room in which to get its financial house in order. In that time, Greece will

either work out a debt restructuring with its creditors or create a fully-functioning economy capable

of managing the developed world’s second highest ratio of government debt-to-GDP. And

they’ll do these things while increasing the number of public sector jobs and limiting the

privatization of public assets. More bureaucrats, richer pensions, stricter labor laws… this is

straight out of French president Francois Hollande’s playbook, which has failed miserably for a

pretty basic reason: after government reaches a certain size, making it bigger is a net negative.

A shrinking pie doesn’t allow major constituencies to keep what they have, everyone starts

squabbling and the place becomes ungovernable………... READ MORE

Greece has a debt to GDP of 175% (Japan is the leader at 400% - McKinsey). This comment

that government debt reaching a “certain size” becomes a “net negative” is collaborated in a study

done by economists Reinhart & Rogoff in 2010 who argue that anything above 90% debt to GDP

is “a permanent drag on growth.” What does this say about the world economy? Greece has a

population of only 11 million (less than LA and Long Beach, CA), but total external debt of $412

billion. How did this happen? There is no free labor market in Greece and unions have demanded

higher wages resulting in high unemployment. With 3.8 million employed and 4.1 million on

unemployment and pensions they have reached a tipping point. By 2010, Greek bonds reached

40% (18% now), and 80% of the EU-IMF bailout went to protect crony banksters holding Greek

bonds! Now Greece has hit the wall again and refuses to service this debt. If Greece exits the

Eurozone its debt to GDP will likely soar to 230%, and Alan Greenspan recently predicted that

Greece will not only leave the Eurozone, but must form a new political union! Read on:

Alan Greenspan: "Greece Will Leave the

Eurozone" And "There Is No Way That I

Can Conceive Of the Euro Continuing"

Submitted by Tyler Durden, 2/1/2015

Every two weeks or so on average, we ask ourselves: why do central bankers only tell the truth

after they have quit their post (rhetorically, of course). Back in November, the Fed's own former

head, the person who single-handedly unleashed the great moderation and led to the current

terminal financial state where the global economy bounces from one bubble to another even bigger

bubble or else everything implodes, Alan Greenspan said "Gold Is Currency; No Fiat Currency,

Including the Dollar, Can Match It.” It was another statement by the maestro that has caught the

world's attention, this time opining on Greece, when he told BBC Radio's the World This

Weekend that "Greece will leave the Eurozone. I don't see that it helps Greece to be in the Euro,

and I certainly don't see that it helps the rest of the Eurozone. It's just a matter of time before

everyone recognizes that parting is the best strategy.... At this stage I don't see any people who

are willing to put up the funds for Greece... All the cards are being held by the members of the

Eurozone." Naturally, this is just what anyone with a functioning frontal lobe (which immediately

excludes all tenured economists) would have said 5 years ago. And it wasn't just Greece that the

Maestro decided to throw under the revisionist history bus: he took a stab at the Eurozone itself.

“The problem is that there there is no way that I can conceive of the euro of continuing,

unless and until all of the members of Eurozone become politically integrated - actually even

just fiscally integrated won't do it." …..His conclusion: "Short of a political Union, I find it

very difficult to foresee the Euro [zone] holding together in its current form. It probably

could get a union of Germany, Austria, Luxembourg, the Netherlands, Finland for example.

But not south Europe." With anti-Europe, anti-austerity, anti-Merkel political parties storming

to the forefront in most peripheral European nations, Greenspan is right for once.

Syriza Stands Defiant, US tries to calm EU

Stance while Greenspan predicts Grexit! goldcore.com / By GoldCore Research / February 10, 2015

Alan Greenspan has thrown down the gauntlet and predicted a Greek exit from the Euro.

Noting the contradiction at the heart of Europe Greenspan pointed out that without political

unity you cannot have a fiscal unity. “The problem is that there is no way that I can conceive

of the euro of continuing, unless and until all of the members of the Eurozone become

politically integrated – actually even just fiscally integrated won’t do it.” Greenspan’s words

may prove to be prophetic as European rhetoric has become increasingly polarized and the

only leader with any real power, Merkel, seems to be captured by special interests within the

financial services apparatus. The contagious effects of a Greek exit could be catastrophic for the

EU as other debt laden countries eject centrist technocratic parties in favour of new nationalist

parties with very little experience. Watch for swift elections in Italy, Portugal, Spain and

Ireland. Should Europe sneeze then the United States could catch the cold. An exit and its

repercussions could make Lehman in 2008 look like a picnic……………READ MORE\

The importance of these statements coming from a former Fed chairman cannot be emphasized

enough! The need for a strong fiscal union in the Eurozone has been frequently suggested, but

the call for the Eurozone to become “politically integrated” as mentioned above my Greenspan

is actually stunning. According to the German magazine Der Spiegel the ECB is already preparing

for a Grexit from the 19-member Eurozone. Greenspan’s words may prove to be “prophetic”

as noted in the above article, and that brings us to the Eurozone in prophetic eschatology.

The Eurozone in Prophetic Eschatology Excerpts from America’s Financial Reckoning Day, by Chuck Coppes

As covered in Part One, Europe is destined to rise as a Revived Roman Empire as indicated in

Bible prophecy. The current Eurozone must be “dramatically revised” down to a core member-

ship of ten nations, and how this will happen still remains to be seen. There is not a clear provision

for nations to exit the Eurozone (http://mises.org/library/there-no-escape-euro), but the Lisbon

Treaty does allow that a “Member State may decide to withdraw from the Union in accordance

with its own constitutional requirements” (Art. 50.1). To highlight this development the following

excerpt is from my book (p. 205) that describes an important prophecy in the book of Daniel:

“In an earlier vision, Daniel interpreted a dream that the king of Babylon had in which he

saw a great statue. “The head of that statue was made of fine gold, its breast and its arms of silver,

its belly and its thighs of bronze, its legs of iron, its feet partly of iron and partly of clay” (Dan.

2:32-33). It was revealed to Daniel that this statue represented the same four kingdoms in his later

vision – Babylon, Medo-Persia, Greece, and Rome (Dan. 2:36-40). Concerning the feet and “ten”

toes he writes, “In that you saw the feet and toes, partly of potter’s clay and partly iron, it will be

a divided kingdom; but it will have in it the toughness of iron….so some of the kingdom will be

strong and part of it will be brittle….they will combine with one another in the seed of men, but

they will not adhere to one another, even as iron does not combine with pottery” (Dan. 2:41-43).

These ten toes relate to the ten horns elsewhere, and here we are told that the EU will be “a divided

kingdom” and member nations “will not adhere to one another.” This is consistent with the EU

motto: United in Diversity (www.eurunion.org).”

It is a major theme in my book (based on this prophecy) that what is unfolding in Europe will

result in a new fiscal/political union that does not include southern Europe as declared by the

prophet Greenspan – ha! This would necessarily refer to the so-called PIIGS and other member

nations that comprised ancient Rome. Concerning this great image Dr. John Walvoord provides

this comment concerning a “Stone” seen in the vision that strikes the feet of this statue:

Nebuchadnezzar’s Vision of the Great Image By Dr. John Wolvoord, http://www.walvoord.com/book/export/html/243

“The feet portion of the image representing the final stage will also include on an equal basis

the Eastern and Western areas once possessed by ancient Rome….In view of the very accurate

portrayal of preceding history by the image, it is a reasonable and natural conclusion that the feet

stage of the image, including destruction by the Stone is still future and unfulfilled….The

Stone is part and parcel of the sovereignty of God of which it is an effective expression. The

symbolism clearly makes this originate in God rather than in men. The effect is that the fifth

kingdom, the kingdom of God, replaces completely all vestiges of the preceding kingdoms, which

prophecy can only be fulfilled in any literal sense by a reign of Christ over the earth. Only

the premillennial position, which assigns this event as coinciding with the second advent of

Christ, gives literal fulfillment to the symbolism involved in the destruction of the image. In

concluding his interpretation, Daniel reaffirms the absolute certainty of the fulfillment of the

dream, stating again that its interpretation comes from God, that the dream is certain.”

The Stone, of course, is none other than Jesus Christ coming to rule and reign in His promised

kingdom (Dan. 2:44; Mt. 6:10). This is a premillennial reign in the sense that He comes prior to

a 1,000 year reign on earth (Rev. 20:6). You will notice in the charts above that the gentile

kingdoms from Babylon to Rome were all historically fulfilled and the final gentile kingdom will

be represented by the ten toes in the statue with a great leader known as the Antichrist. In the

New Testament, John writes about the Antichrist (beast) ruling with ten horns, which relates to

the ten toes in the Old Testament. Here is an excerpt from my book (p. 204):

“In the book of Revelation, John describes the Antichrist as a “beast” and also notes that

he has ten horns with ten crowns, which indicates authority (Rev. 13:1). John writes, “The ten

horns which you saw are ten kings, who have not yet received a kingdom, but they receive

authority as kings with the beast for one hour. These have one purpose and they give their power

and authority to the beast” (Rev. 17:11-12). In this same passage John adds, “For God has put in

their hearts to execute His purpose by having a common purpose, and by giving their kingdom to

the beast, until the words of God should be fulfilled” (Rev. 17:17). Here we are reminded that

God is sovereignly in control of all world events. And that the rise of the European Union as a

world power is yet another “super sign” that we are living in the last days before Christ’s return.”

The chart indicates a “prophetic gap” leading up to the Antichrist kingdom, and this gap of 2,000

years is the Church Age, as I explain in my book (p. 199) as the 70 Weeks of Daniel:

“In 538 B.C. the prophet Daniel received a message from the angel Gabriel concerning Israel’s

exile in Babylon, the coming Messiah, and the end of the age, known as “The Seventy Weeks of

Daniel.” The angel Gabriel revealed to Daniel that “seventy weeks have been decreed for your

people and your holy city” (Dan. 9:24). At the completion of these 70 weeks “everlasting

righteousness” would be ushered in; however, the Messiah would be “cut off” at the end of the

69th week (Dan. 9:26). The 70 weeks have been understood to be 70 weeks of years, or 490 years.”

“This 490 year period began with the decree to rebuild Jerusalem in 445 B.C. (Neh. 2:1-8), and

the 69 weeks, or 483 years, were historically fulfilled when the Messiah came and was crucified

(Isa. 53). The final 70th week of Daniel’s prophecy is yet to be fulfilled, and is separated by

approximately 2,000 years of Church history.”

https://www.youtube.com/watch?v=I67rpwWMSZQ&list=PL6483B6E161161915&index=1

70th Week of Daniel Series (Ten Short Videos)

The historical accuracy of the book of Daniel is simply amazing and proof of divine inspiration.

The 70 Weeks (illustrated here) is an important prophecy, and you can learn more at the above

link. We are currently in the gap before the final 70th week, or seven years of tribulation as I

write about in my book (p. 200). This period will see the rise of the Antichrist as noted:

“This gap, known as the Church Age, will be immediately followed by the Tribulation

period after millions have been raptured and many more millions are left behind. The Tribulation

period will involve God’s judgment upon the earth (seals, trumpets, bowls), and this period is

outlined in the book of Revelation, chapters 6-19…. The Tribulation period will be a frightening

period of human history, and particularly because the coming world leader, the Antichrist, will be

possessed by the Devil himself. As mentioned already, the Antichrist cannot come to power until

the restraining influence of the Church is removed or taken away.”

As indicated in this chart above, and my book excerpt, there is a “restraining” influence that is

preventing the Antichrist coming to power. Who/What is this? It is born-again Christians who

possess the Holy Spirit (1 Jn. 4:4). Once Christians are gone all hell will break loose in an epic

struggle between good and evil for those left behind. This event is known as the Rapture:

A recent movie with Nicholas Cage portrayed the world after the Rapture, and interestingly

enough most on the airplane concluded that the missing persons were abducted…by aliens! Yep.

And this is not that farfetched. In fact, I would say it makes perfect sense. In early 2010, Stephen

Hawking made the prediction that alien contact will be made and that these aliens will be hostile!

http://www.naturalnews.com/028655_aliens_extraterrestrials.html

http://www.independent.co.uk/news/science/plan-to-broadcast-messages-to-alien-worlds-

leaves-cosmologists-worrying-10042555.html

In the link above, cosmologists “fear that sending signals of our existence could lead to visits from

malign extraterrestrials intent on doing harm to humans.” How interesting huh? The collapse

of the Eurozone is extremely prophetic as their debts keep mounting. http://www.eudebtclock.org/

As the events in Europe unfold it becomes increasingly apparent that the global monetary system

needs a “reset” as I covered in Part One. What does this mean? It means that central bank

planners have made a miserable mess, and out of this debt crisis will likely come a new basket

currency known as the “SDR” that has been proposed by the IMF since 1969. How this new

currency chess game will play out will be interesting, but I predict that the Eurozone will survive

in better shape than the US dollar as things line up with Biblical eschatology. In other words, the

collapse of the Eurozone will precede the collapse of America….. as a judgment from God.

Warning of Global Monetary Reset by David Stockman!

Audio-18 Min: http://kingworldnews.com/david-stockman-2-14-15/

The Bible says that “pride goes before destruction” (Pro. 16:18). Is the USA a proud nation?

Yes, proud and profoundly ignorant! The following headlines demonstrate our arrogance and

stupidity as consumer “confidence” surges to pre-2008 levels with rosey forecasts:

Consumer Confidence Surges To Highest

Since the Last Time Markets Crashed zerohedge.com / by Tyler Durden / 01/27/2015 10:12

Despite stagnant wages, surging jobless claims, and global geopolitical anxiety, US consumers

have not been this exuberant since August 2007… a month before the great quant fund blow-

up and the top of US equities… But it’s different this time, we’re got money-printing……right?

The U.S. Economy Will Soon See Its Best

Years in a Decade, Forecasters Say! The Wall Street Journal, Feb 2, 2015, wsj.com, blog

It should also be noted that business-inventory-ratio-to-consumer-sales are at pre-2008 levels,

and this means that consumer spending is down with low sales and a glut in over capacity of

business inventories. This means that the economy is getting worse and not better:

Consumer Spending Falls Most in 5 Years:

Proof Economy Getting Worse, Not Better

profitconfidential.com / By Michael Lombardi, February 2, 2015

A stock market can’t move higher if the companies listed on that market are not posting earnings

and revenue growth. American companies are stuck on both fronts right now. Corporate Earnings

Dismal, Revenue Growth Embarrassing. It is the worst since 2008 ……… READ MORE

We are a nation in denial. We are a nation with the largest national debt and according to the

McKinsey report a 269% debt to GDP – we are worse than Greece! Wall Street shill Paul

Krugman says that US debt is “money we owe to ourselves” so no big deal right? Wrong! We

owe approximately 40% of that public debt to other nations, and that is a very big deal!

On February 20, 2015, Moody’s Investor Services downgraded Russian bonds, and Russia in

return dumped $22 billion in US bonds. This is a trend that we are seeing as several nations are

moving away from US assets, and some day this will become our financial reckoning day as I

have outlined in my book. On August 5, 2011, Standard & Poor’s Rating Service dared to

downgrade US Treasuries for the first time in 235 years. What happened? The US Justice Dept.

sued S&P in retaliation and they settled for $1.5 billion a few weeks ago. The US is insolvent

and in worse fiscal shape than Greece and other countries in the Eurozone. As analyst Jim Willie

recently said, “The US faces deep risk of falling into the Third World, as those characteristics

appear on every corner and every wall.” I couldn’t agree more, and all the more reason to seek

the safety of precious metals as the Greeks are now doing as indicated in this recent article:

Fearing Grexit, Greeks Turn To Gold Again zerohedge.com / by Tyler Durden on 02/09/2015 13:05

It never fails: every time redenomination risks and the specter of the (New) Drachma rear its ugly

heads, Greeks, like dutiful Austrian economists, realize that Neoliberal economics is nothing but

a steaming pile of drivel that only works when everyone is “confident” and gets deeper in debt

with a smile on their face while failing in every other instance, and decide that the time has come

to convert their paper wealth into hard assets. It happened in 2010, in 2012, and now that Greece

is on the verge of its third Grexit in the past 5 years, it is happening again. As Bloomberg reports,

“Greek demand for gold coins is rising as investors search for a safe haven from the country’s

political turmoil, according to the U.K. Royal Mint.” ……………………….READ MORE

What is happening in Greece is known in monetary circles as Gresham’s Law, which states that

bad money drives out good money. In other words, people reject paper currency for hard money.

The Greeks are hiding gold, silver (euros) in AC units, under tiles, in gardens, etc. and banks are

experiencing bank runs as people pull out cash. The Greek banks had $25 billion withdrawn in

December and another $12 billion in January with February results soon. The ECB has had to

extend its Emergency Liquidity Assistance to Greek banks from $6 billion to $66 billion!

As the above chart reveals bank deposits are dropping and Greek bank stocks have now fallen

by a whopping 75%! This is a good example how the fractional reserve fiat banking system is

just a “confidence game” and we can expect more stress and bank bail-ins in the future:

Gold And Silver verses Fiat Money:

“It’s All a Confidence Game” goldsilverworlds.com / Gary Christenson / February 9, 2015

What do loss of confidence, loss of faith in financial systems, and pervasive lies have to do

with gold and silver? The answer begins with: Gold is far more truthful money – central banks

can’t print it or create it from “thin air.” Dollars, euros, yen and others are fiat currency units based

on confidence and debt (not assets) and are supported by government mandates that these pieces

of colored paper and computerized digits shall be accepted as money. But confidence in debt

based currencies promoted by insolvent governments is clearly waning. The Russians and

Chinese understand – they are converting dollars, yuan, and rubles into gold. Europe, Japan and

the U.S. are “printing” more euros, yen, and dollars hoping that “extend and pretend” will give the

politicians more years in office, another war or two, and more profits for the military contractors

and bankers. When propaganda and “statistics” fail, there are always diversions like bombs and

invasions. (What happened to the gold from Iraq, Libya, and the Ukraine? If gold has little

value, why did it disappear so quickly?) What happens when another financial calamity occurs?

Something major can and will occur in the next few years. Possibilities: derivative crisis in

Europe (Greek bonds anyone?); tactical nukes in Ukraine; cyberattack on US, Japanese or

European banking systems; fall of the Petrodollar; credit collapse in China; US T-bond crash; an

audit of the gold in Fort Knox (just kidding); or many other possibilities……….READ MORE

If there is so much risk and calamity in the world why is the price of gold and silver so low?

This is a darn good question, and I have addressed this in several newsletters in the past. The

quick answer is what Bud Conrad said with Casey Research, “There are no markets, only

interventions.” Love that quote! And by this we mean the criminal banksters and their schemes

to manipulate the paper gold/silver indexes at COMEX, or CRIMEX as we say. As I shared in

Part One, the US jobs report on Friday February 6th was preceded by another attack against the

metals. How big was this recent crime spree? According to Zerohedge the banksters had naked

short contracts totaling 10 million oz. on gold and a whopping 600,000,000 oz. naked short on

silver – that is 2/3 the annual production of silver! On top of this, CRIMEX raised futures

contracts margins by 11% just for good measure. Why all the reckless desperation to smash the

metals? The central bank planners MUST make their policies look like they are working, and

thus they intervene – but Ted Butler says this manipulation cannot/will not last forever:

We Are Close To a Point Where COMEX

Price Manipulation Will Become Ineffective Gold Silver Worlds | February 10, 2015 | Category: Investing

Readers will undoubtedly remember how gold tumbled on Friday (Feb. 6th) on the

unemployment report in the U.S. The headlines in mainstream media attributed gold’s decline

to the jobs report, as for instance Gold Declines to Three-Week Low on U.S. Payrolls Data via

Bloomberg. The price of gold lost more than 2 pct just minutes after the unemployment report

came out. The chart below shows the astonishing rate of decline on the hourly chart. One could

rightfully ask the question how gold could fall that fast. Related to that, which factors in the

real world of supply and demand of gold had changed to justify such a decline??

In his latest update, silver analyst Ted Butler pointed out that a relationship between economic

data and the price of gold is non-existent. There is a perception, mostly created by the mainstream

media that the gold price changes because of some news or events. The truth is that the only driver

of gold and silver prices are the futures markets. That is where prices are set. Butler has been

advocating this idea for four decades. The following is an excerpt from his latest market update in

which he reiterates that point: “I hope no one was terribly surprised at the price weakness Friday,

or for the past two weeks, or thought for a moment that it had anything to do with the employment

report or anything else in the world away from COMEX positioning. Given that silver is the most

manipulated commodity in the world and in history, I fully expect that it can fall further both

absolutely and relative to gold in the short term due to the only negative price factor in play,

namely, positioning on the COMEX. However, the reciprocal readjustment to decades of price

manipulation does not appear to be that far away and, in the long term, silver still looks like a lock

for long term outperformance, both on its own and relative to gold. In other words, gold and silver

prices are set in the COMEX futures market for many years. There is no real price discovery in

precious metals. So if we would reach a point, somewhere in the future, where this imbalanced

situation get restored then prices will trade much higher than today.” Butler is known for revealing

the dynamics behind the COMEX manipulation scheme. Prior to his work, there was no mention

about gold or silver price manipulation. In the last two decades, since he has started writing about

it on the Internet, the subject has got much more attention to the point where Butler appears to be

more faithful than ever about a resolution. This quote is also from his latest market update:

“Judging by the increasing numbers of commentators and observers now including the

developments in futures trading on the COMEX as the prime price influence on gold and silver,

I am greatly encouraged. I firmly believe that we are much closer than ever to the point where

enough see the COMEX price manipulation to render it ineffective. We are not there yet, but that

day will come. How a possible resolution will play out remains to be seen. But precious metals

market students will admit that prices are indeed disconnected from real world inventories,

demand and supply, a situation which arguably cannot last forever.”

As Butler says, there is no price discovery for metals (real supply & demand, etc.), but a resolution

is coming and this will be force majeure, or major delivery defaults when the warehouses cannot

deliver physical metals. I like what Dr. Jeffrey Lewis had to say on this. “Whether the implosion

is triggered by the ever increasing density of the unsustainable silver shorts, or it begins

elsewhere…When that day comes, the entire concept of the contract will come home to roost,

and many will wish for the day where signed, sealed and delivered had real meaning.” It has been

estimated that there is a 100:1 ratio of paper derivatives contracts to actual physical metals in

the exchanges, and this is simply playing musical chairs…..♪♫…..when the music stops where

would you rather be? I thought so! For more on the phony jobs report listen to this interview:

Phony Jobs Report and Metals Smash:

http://kingworldnews.com/eric-sprott-2-7-15/

John Williams (shadowstats.com) exposes the fraud of government statistics and responded to

the jobs report asking how 46,000 new retail jobs were added in January with a dismal Christmas?

As we’ll see below, there is even fraud with the World Gold Council reports on gold demand:

It has been exposed that the World Gold Council regularly underestimates gold figures and data

to downplay record worldwide demand. In these charts, you can see the official WGC figures

for Chinese gold demand (left), and the adjusted figures (right) that more accurately reveal that

Chinese demand is substantially higher, as I also covered in Part One. No surprises here…..

http://www.profitconfidential.com/gold/depressed-silver-prices-presenting-

bigger-opportunity-than-gold/

As the link above suggests, the artificially depressed silver paper index prices represent a bigger

investment opportunity than gold, and I certainly agree. Silver mining is down 24%, demand is

up 29% from India and American Silver Eagle sales are soaring as I will mention below:

Silver: The Best Performing Asset Of 2015 investmentresearchdynamics.com / David Kranzler / February 13, 2015

Silver has carved out a cyclical bottom formation and appears to in a solid uptrend. There

is massive physical demand supporting this move. For the last three-plus years, the precious metals

market has been in a trading pattern in which you were supposed to sell the rallies. Now silver –

and the rest of the sector – appears to be in a pattern in which all dips should be

bought/accumulated. SLV moved from a $14.66 in early November to $17.61 on Jan. 20, 2015.

This is a 20.5% move in a little over 10 weeks. Stock market heroin addicts would kill for a move

like that in that short of a period. I wrote an article for Seeking Alpha in which I show a great

chart of SLV and discuss why I believe that silver will be the best performing asset of 2015. You

can read that article here: Silver Is The Place To Be In 2015……..SOURCE

The chart on the left here shows how Silver Eagles outpace Gold Eagle sales at the US Mint.

And you can see how silver sales have climbed since the financial crisis of 2008, which has never

been “fixed” and the worst is yet to come. The chart on the right is another comparison to gold:

What do we see here? In the first ten days of February, the US Mint sold 1,389,000 Silver Eagles

compared to 6,500 Gold Eagles. This 213:1 Silver to Gold Eagle buying ratio is quite significant

when we compare it to global mine production. Using data from GFMS 2014 Gold & Silver

World Surveys, total world silver production was 820 million oz. in 2013 compared to 9.7 million

oz. of gold production. Thus, the world produced 8.5 oz of silver for every ounce of gold in

2013. So, as the world produces 8.5 times more silver than gold, the US Mint is currently selling

Silver Eagles at more than 200 times the rate of Gold Eagles! Can this pace continue? At some

point the scarcity of silver in the marketplace will become too much for the miners or warehouses

to deliver, and this is why delivery defaults are almost certain to happen. How soon? All of my

research convinces me that it has to be soon. Especially with the dramatic depletion of silver at

the Shanghai Exchange in China that I covered in Part One – down 95% in just the past 12

months or so! As this excellent article asks below – do you have a gold & silver seatbelt?

Do you have a gold & silver seatbelt?

http://news.goldseek.com/GoldSeek/1424972520.php

In this article, David Smith shares his experience in Argentina where he tipped people with silver

to their amazement! Why? As most of you know, Argentina has experienced currency collapses

and hyperinflation and the people KNOW how to appreciate real money when they see it. Next

month I will have a Special Report entitled Investing in Precious Metals, Physical Storage &

IRA Accounts that you will not want to miss! You can learn more on these topics at my IDP

website and I would be glad to assist you with any questions that you may have.

In conclusion, let me summarize this two part newsletter topic of central bank planning and

Eurozone eschatology. Concerning precious metals as mentioned above, the demand is great both

here in the US and abroad as metals go from the West to the East. Central banks are repatriating

their gold like never before, and this is a strong indication that they sense the danger of systemic

failure in the monetary system. Jim Rickards likens the present unstable situation to an avalanche

just waiting for enough snow (debt) to collapse everything. The central planners in these nations

are doing everything they can to inspire “confidence” while they intervene in capital markets, set

low interest rates and suppress metals as part of their financial repression scheme as we saw in

the February jobs report in Part One and Two. The physical market will eventually assert force

majeure upon the paper casinos and Gresham’s Law is a strong signal that it is time to be prepared

with your own hedging strategy, as I will be discussing in my next newsletter.

As documented in the latest McKinsey report, the central bank planners have only made things

worse since 2008, and now they are trapped into an unsustainable policy of debt monetization

and risky debt defaults. The US is sitting on the largest debt pyramid in the world as a result of

Triffin’s Dilemma that has helped postpone our reckoning day since 1971 (p. 108 in my book).

A monetary reset is in the works and will be a hot topic in the IMF meeting to recalibrate the SDR

later this fall. A Grexit seems likely in the Eurozone despite all attempts to maintain fiscal order,

and this will challenge their treaties and force an amendment (Art. 49) to fundamentally restructure

the Eurozone into a smaller fiscal union that complies with the Maastricht Treaty guidelines.

As I have stated before, the problems in the Eurozone can be resolved, and they will be. The

fiscal/monetary problems in the US cannot be resolved as Robert Triffin warned us back in 1961.

The Frankfurt financial district is destined to become the most important monetary hub in the

world as both New York and London yield to this new macroeconomic paradigm. As Jim

Rickards states “the EU is destined to evolve into the world’s economic superpower” (The Death

of Money, p. 136). Major changes take place during a crisis and it is important to keep our eyes

on Europe as they evolve, and then America’s uncreditworthiness will come into focus.

I know this has been a lot of information, but I want you to get a sense of how urgent and prophetic

these times are. What we are witnessing is an eschatological fulfillment of ancient prophecies

that are even falling off the lips of Sir Alan Greenspan! (Yes, he was knighted in the UK in

2002). A fiscal/political union is precisely what Brussels and Frankfurt need, and a Grexit is

just the beginning. I know of no other book that has uniquely captured the Biblical narrative and

tied this in with contemporary geopolitics and economic trends, and if you would like a signed

copy of my book, or have me send one to a loved one, please give me a call.

Yes, the darkest hour is before the dawn. World leaders want us to have confidence in them.

Our confidence and trust must be in the Lord. “For the grace of God has appeared, bringing

salvation to all men [so we are] looking for the blessed hope and the appearing of the glory of

our great God and Savior, Christ Jesus” (Tit. 2:11-13). It is time to get right with God, or get

left behind as they say. Jesus is that mighty Stone that will crush all earthly powers and “His

kingdom will be an everlasting kingdom, and all the dominions will serve and obey Him” (Dan.

7:27). Would you like to be in that kingdom? I pray that you will be. “For whoever calls upon

the name of the Lord will be saved” (Rom. 10:13). If you have not done this, or you would like

to know that you belong to Him I invite you to watch this short 3-minute clip to learn more about

having a relationship with Jesus, our great and mighty King who is coming soon!

Until Next Time, God Bless & Keep You, Your Messenger from Pinetop

www.idpconsultinggroup.com

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