Despite recent escalation in geopolitical turmoil, the economic scene last week was rather sleepy.

But it’s okay, this week will have it all! Draghi leading Europe rates to -.40% (yes, that’s a minus sign) PLUS an increase in the bond buying program to €75BILLION (from €60b), which in turn will flow into the US FED Yellen, “are we or aren’t we”, data driven rate rise fiasco that may be, after all this time, a one-off 0.25% move in the US Fed rate.

Welcome to the endgame folks. Opinions will vary on when it started but the chance to reform a very broken fractional reserve system was lost in 2008/09.

The answer to a broken debt and derivative laden financial system is certainly not more debt and derivatives, unless your livelihood and reputation relies on it being so.

It’s this thinking that delays the inevitable reform/reset and increases the severity. As the sun comes up in the East and sets in the West, other forces of nature inevitably take their course. How you prepare for this and the opportunity on the other side is up to you.

We’d love to share some of the other investment opportunities that make up the 70 to 80% of investment recommendations that exist for us outside the precious metals space, but nothing represents the problems of the financial system better than this sector. Demand oversupply, insurance, physical holding, oversoldness, hated by all things FIAT, its got the lot.

For now, as WW3 approaches, with the global economy (on the verge of unprecedented money printing due to deteriorating GDP growth) ready to unleash an unmanageable debt and derivative position on an already debt and derivative position, this (below) happens!!!! Last Friday. Really?

No news, quietest period of the day, someone(thing) drops 2BILLION dollars of paper gold into the market at one time!! This is so ridiculous! Hardly looking for the best price.

Looking for an explanation? Let’s have Dr Paul Craig Roberts do it.

PCR was assistant Secretary of State in the Reagan administration and one of the very few remaining individuals in a high-level position with a questioning mind and he’s still asking questions today.

A true loyalist to the US flag for so long.  After a long period of quietness, he now shares his thoughts via his own blog and recently had this to say through King World News (KWN). On a side note, KWN is generally a “sideshow bob”, Gold Bug haven but sometimes, they really nail it.

Unfortunately for Australians, though the following may not fit with the common rhetoric, hopefully, it still presents you with some serious food for thought from a very humble man. It starts with some Geopolitical commentary… Enjoy.
Dr. Paul Craig Roberts:  “It could well be that this is going to work out so much in Russia’s favor that Putin will send a letter of thanks to the Turkish President and say, ‘Thank you very much.  You’ve done us a huge favor. (Laughter).  We lost a pilot and a naval marine but we sure have gained a lot.  That was only two deaths for winning a war.”…

“So that looks to me like the most likely outcome.  The unintended consequence of this are so positive for Russia that it’s got Washington quaking and Europe wondering about the idiocy of being in NATO.”

Eric King:  “What I’m hearing from you Russia is dominating in Syria.  The Russians have completely taken over and there’s really nothing Washington can do.”

Paul Craig Roberts:  “No, except make a fool of itself by supporting ISIS.  We brought ISIS in there (to Syria) — everybody knows that.  Just the other day the former head the Pentagon’s Defense Intelligence Agency said on television that ‘Yes, we created ISIS and we used them as henchmen to overthrow governments.’ (Laughter).

And the polls in Europe show that the people are on Russia’s side regarding the shooting down of their aircraft.  They don’t believe (the West’s) story at all.  So I think what you are seeing here is the arrogance, hubris, and stupidity of the United States government.  They are just handing every possible advantage over to the Russians.

This American government is the most incompetent government that has ever walked the earth.  Those people don’t have any sense at all.  Just look at what they’ve done.  In 14 years they’ve destroyed 7 countries, killed millions of people, and displaced millions of people.  And where are those displaced people?  They are overrunning Europe.

This is all because those Europeans were stupid enough to enable our wars.  Now the political parties in Europe are under tremendous pressure from these refugees and the populations who object to them, and from the rising dissident parties who are saying, ‘Look at what these people who you trusted have done.  They’ve changed your country.  It’s not Germany anymore — it’s Syria.’ (Laughter).

This is a disaster.  Only the stupid Americans could have produced such a disaster.  Does Putin need to do anything?  We’re doing it all for him.  So he doesn’t need to do anything.  He’s not going to attack anybody.  What does he need to attack anybody for?  The idiot Americans are destroying themselves and their allies.  This is an amazing fiasco.”
And On Gold… Massive Government Corruption

Eric King:  “Dr. Roberts, people are worried about World War III breaking out and yet we have the price of gold today hitting 5 1/2 year lows.  So I guess even though Washington has lost control in the Middle East, they still feel like they have to keep up appearances.”

Paul Craig Roberts:  “Gold didn’t hit a low, it was artificially driven down by the bullion banks, who are agents of the Federal Reserve and acting on the Fed’s orders.  This is the way the Fed protects the dollar from losing value.  This has been going on in earnest since the fall of 2011.  We see the appearance at the most odd times of day and night, for no reason whatsoever, of massive short sale of paper contracts that cause the price of gold to move straight down.”

Eric King:  “We saw that today in the gold market with roughly $2 billion of paper gold being sold into the market almost instantaneously.”

Paul Craig Roberts:  “But it doesn’t mean anything about the value of gold.  It simply means that the Federal Reserve and the bullion banks have manipulated the market.  So that’s what’s going on.  This is the worst kind of criminality and the worst kind of corruption. I, myself, wrote to the Commodity Futures Trading  Commission and asked them why they permitted this?  This is a violation of the law.  But nothing can be done because it’s the government that’s doing it and the government is not going to prosecute itself.

So never say gold hit a new low because it didn’t.  It got driven down artificially by a corrupt government…”