Jim Rickards on Whether Gold�s Outlook is Linked to Gold�s Crash of 2013

There was 500 tons removed from the GLD [SPDR Gold Trust ETF] warehouse by the bullion banks. That was a massive physical overhang removed from the market. People don�t really understand how the GLD ETF works. When people are buying the GLD, they are not buying or selling gold; they are buying and selling shares.

The gold sits in a warehouse and is only available to authorized participants. If you look at the list of authorized participants and look at the list of bullion banks, they are pretty much the same people: Goldman Sachs, Citigroup, JPMorgan, Morgan Stanley, Deutsche Bank, HSBC, etc.

Those banks have the ability to buy up shares, take the shares, cash them in, and get physical gold. And they were doing that and they were sending that gold to Shanghai to support trading and leasing on the Shanghai gold exchange. So when you take 500 tons and dump it on the market, that�s about 20 percent of the annual mining supply. It�s a massive physical injection.

The other factor is just outright manipulation, which is very visible in Comex future prices. I�ve seen some statistical analysis that demonstrates market manipulation beyond the shadow of a doubt.

So the point is that between central bank manipulation through Comex futures and bullion banks dumping the physical, and by cleaning out the GLD warehouse, and also the Comex warehouse for that matter, there is a massive amount of gold that came on the market over and above normal supply trends, putting massive selling pressure on the Comex.

So that was a bad combination, but the problem is that it�s not sustainable.

- Source, etf daily news:

http://etfdailynews.com/2014/02/10/jim-rickards-target-gold-price-between-7000-and-9000/2/

Jim Rickards Prospect on the Price of Gold

Gold has a number of vectors. It is technically set up for a massive rally. Let me separate the fundamentals from the technicals.

Fundamentally my target price for gold is in the range of $7,000 to $9,000 per ounce. That�s not something that will happen straight away, but it�s not a 10-year forecast either. It�s a three- to five-year forecast, for the price to rise by about five to six times.

My analysis is based on a collapse of confidence in the dollar and other forms of paper money. To restore confidence you have two means: You either flood the world with liquidity from the International Monetary Fund in the form of Special Drawing Rights [SDRs, a form of money issued by the IMF], or we return to a gold standard.

The flooding of the market with SDRs would be highly inflationary, so that by itself would drive gold to a higher level. If they go back to a gold standard they will have to take a non-deflationary price.

People say there is not enough gold in the world. The answer is there is always enough gold in the world. It�s just a question of the price. Now, at $1,300 an ounce, there is not enough gold to support world trade and finance. But at $10,000 per ounce, there is enough gold. It�s not about gold, it�s about the price.

If you go back to a gold standard you have to avoid the blunder that England made in 1925, by going back to the gold standard at the wrong price, which proved to be highly deflationary, and contributed to the Great Depression.

I�ve done the math on that and the non-deflationary price for a gold standard today is about $9,000 per ounce.

The target price is based on supporting the paper money supply with gold. That would be using M1 [paper notes, coins, and checking accounts] as the monetary base, with a 40 percent backing. If you were to use M2 [M1 plus savings accounts and money market funds] with a 100 percent backing, that would be $40,000 per ounce.

- Source, etf daily news:

http://etfdailynews.com/2014/02/10/jim-rickards-target-gold-price-between-7000-and-9000/

About Jim Rickards New Book "The Death of Money"

The sequel is that in �Currency Wars� I also had a lot of history. There were five chapters of history and I thought that was very important.

If you are going to talk about gold with the reader, a lot of times if you jump right into gold, people think you are sort of a nut. I find if you tell the story through history people can see gold in a context, and when you talk about it, it doesn�t seem quite so strange.

In my new book, �The Death of Money,� there is no reason to repeat the history�that�s all in �Currency Wars��so it�s more forward leaning, and talks more about the future of the international monetary system, a coming collapse.

And not just a collapse, because a lot of people are running around talking doom and gloom, the end of the dollar and all that. I might even agree with that, but I don�t think it has a lot of content.

What I try to do is provide a more in-depth analysis describing what will come next, what the future international monetary system will look like.

I point out that the international monetary system has already collapsed three times within the last 100 years�1914, 1939, and 1971�and that another collapse would not be at all unusual. But it�s not the end of the world. It�s just that the major powers sit down and reform the system. I talk about what that reformation will look like.

So that�s the sequel or the continuation of the story looking over the horizon. Some stuff that is before �Currency Wars� and some stuff that is after. And other content on the contemporary situation in Europe and China, so I hope people enjoy it.

- Source, etf Daily News:

http://etfdailynews.com/2014/02/10/jim-rickards-target-gold-price-between-7000-and-9000/

China's "Giant Ponzi Scheme" Won't End Well

The Daily Ticker's Aaron Task and Lauren Lyster discuss the drop in Chinese stocks and economic growth coupled with rise in rates.

Grooming Young Cult Members

This is a page from a children's coloring book compiled by Elevation Church in Charlotte, NC, pastored by the inexplicably charismatic Steven Furtick. At first I thought this must... yes, had to be... a joke, but I quickly learned it's real.

What is charisma?

To most people, it's the inscrutable X factor--a mystical, almost magical career booster. Not many people have charisma. But when you talk to those who do, you discover that it isn't such a mystery after all. Yes, it's charm and personal magnetism, but -- more important -- it's the remarkable ability to get others to endorse your vision and promote it passionately. Charisma makes you a leader.

If that's the mark of a leader, of someone with that uncanny ability, then I'm at a loss to explain people like Furtick, Perry Noble, Ed Young, and yes, Steve Gaines. Because I don't find any of these men (or the dozens like them) charming or possessing a shred of personal magnetism. Quite the contrary, I find their narcissism and ham-fisted bullying a total turnoff. But assuming, and this must be true because they have hundreds, even thousands, of staunch defenders, that someone out there must view them as possessing that magic thing called "charisma," then the question arises, why do some people view these men as "charismatic" and blindly and enthusiastically follow them while others, myself included, see them for the scary cult leaders they are? What turns seemingly discerning people into rabid cheerleaders for the self-appointed man-o-gawd and his "vision"?

Charisma is a tricky thing. Jack Kennedy oozed it -- but so did Hitler and Charles Manson. Con artists, charlatans, and megalomaniacs can make it their instrument as effectively as the best CEOs, entertainers, and presidents. Used wisely, it's a blessing. Indulged, it can be a curse. Charismatic visionaries lead people ahead -- and sometimes astray. They can be impetuous, unpredictable, and exasperating to work for....

Maybe that explains it. Like any "gift," it can be used for good or... dare I say... evil. But why do so many people seem blind to it? Is it because there's a certain amount of truth mixed in with the leader's "vision"? When preachers exclaim, "It's in da book!" who's going to argue with that? Is it because a lot of people don't study their bibles and think for themselves, so they can be easily manipulated?

A popular and frightening trend in churches today, especially the megachurch variety, is "vision-casting" by the "senior" pastor and the demand by the man-o-gawd and his minions that the sheeple pledge loyalty to the pastor and his "vision." One of the red-flag words they use is "unity." One of Steve Gaines' favorite themes which I've heard him repeat in dozens of sermons is the proof-text of Ephesians 4:3... "to preserve the unity of the Spirit in the bond of peace." And yet, he leaves out verse 2... "with all humility and gentleness, with patience, showing tolerance for one another in love."

Is that what we see here?

The following is an excerpt from the transcript of a Steve Gaines sermon from several years ago. See if you can find any sign of humility, gentleness, patience, tolerance, or love in his words.

Bellevue Baptist Church needs proactive peacemakers... to come against any... troublemaker... and I'm telling you this. This may sound a little too clear cut for you, but I'm telling you... you're on one side or the other in any church you're in, whether you go to Bellevue or not. You are either a peacemaker, or you are a troublemaker. There is no middle ground. Peacemakers support the church's leadership... as long as it's scriptural. Peacemakers squelch gossip. They don't listen to it, and they sure don't share it. Peacemakers discourage division. What is division? Two visions. Peacemakers... rebuke troublemakers. Peacemakers comfort and reassure troubled church members. They diligently preserve the unity of the spirit and the bond of peace. And all of us as members at Bellevue need... to be... such peacemakers. We cannot ever afford to allow Satan to divide us even just a little bit. WE CANNOT ALLOW TROUBLEMAKERS TO BE ALIVE AND WELL IN THIS FELLOWSHIP... in this church... to win the day! We must diligently be proactive and aggressively... be... peacemakers. That's the call for unity.

Steve Gaines and Steven Furtick are but two examples, albeit quite different examples, of what has been coined "the cult of personality." This is the situation where a man... or at least what a man says... becomes the focus of a church. Not all these characteristics apply to either of these men, but enough of them do that it should give pause to thinking Christians. How many of these do you recognize in these and other "senior" pastors you know?

The demand for special treatment, special honor, special recognition. In other words, there is an active cultivation of being treated differently than others.

"Spiritually-ordained authority," anyone?

No one is allowed to question the leader without retribution. There is a �thin skin� evident toward any and all critics, who are often written off as �haters� or simply those who are envious. There is a bubble that prevents constructive criticism.

"Troublemakers in the church"?

Hey haters!

There is no sense of team leadership, team teaching or team mentality. There is a single person or leader, and then there are implementers. No one is to question the leader�s vision. It is seen as God-given, sacrosanct, and thus anything the leader says or does in pursuit of that vision is never to be questioned.

"Our pastor's vision... "?

Sometimes they even invoke the law to keep the faithful loyal.

And whatever you do, don't question the man-o-gawd!

The person travels in an entourage, often with personal security, and is seldom accessible.

And, I would add, the person has a heightened sense of insecurity and paranoia.

Invoking the name of "Jesus" and saying that it's all about Him doesn't fool everyone into believing that's so.

In fact, with Elevation Church and their Code there's not much mention of Jesus or the gospel. The central figure seems to be "Pastor Steven."

Nowhere is this more evident than in this 2010 blog post in which the staff is given their marching orders.

We believe that God�s given Pastor Steven the vision of where he wants to take Elevation�s ministry. And the Lord�s called us all here to use our gifts and strengths corporately as a way of seeing that vision come to life.

Someone once asked (in response to one of Miss Higgy's flowery prayer letters) what is this thing called a vision? S/he then proceeded to define it.

Miss Higgy: "Pray for the commitment to the vision cast before us from the Lord through our pastor in sharing the love of Jesus with Memphis and all the surrounding areas in which we live."

Comment:

Where has the Lord Jesus ever presented this doctrine? I mean, it's like Jesus is standing somewhere with a bow and arrow and attached to the arrow is this thing called a vision. Then Jesus releases the arrow and it zings through "our" Pastor and lands on the ground before us. As it lands we bow to it as a sacred "message from God". Do what?

Do what, indeed!

To indoctrinate susceptible adults in this "cult" mindset is one thing, but to do it to children is criminal. Wrap it up in as many proof-texts from the bible as you want. It's still spiritual abuse, and it's time for people to wake up and see it for what it is. It's this attitude of "do not question your spiritual authority figures" that is the root cause of much of the spiritual and sexual abuse in churches that we read about on a daily basis today. For pete's sake, wake up and smell the coffee before it's too late.

Jim Rickards - China to slow down significantly

(Video not able to be embedded, please click image to watch)

�I think China is going to slow down significantly. China is about 10 percent of global GDP, so if you slow down China, you�re going to slow down the whole world.�

Jim Rickards - The Fed is tapering QE into a recession

Jim Rickards, lawyer, economist, investment banker, is a self-proclaimed gold-vigilante with over three decades of experience working in capital markets. In an interview with Boom Bust, Jim gives us his views on where the economy and monetary system are headed. He sees trouble for the current post-Bretton Woods monetary system.

For the first time in history, more than half of all members of Congress are millionaires. Of the 534-current members of Congress, at least 268-had an average net worth of $1 million or more. While the US is faced with unprecedented issues surrounding unemployment, food stamps, social assistance and minimum wage rates, it begs the question: has the US turned into a plutocracy?

- Source, Russia Today:

www.rt.com